Study points to low level of small business training
Published:Sunday | June 6, 2010 | 12:00 AM
It is being suggested that the Government either significantly increase the funding it provides to the state-owned micro- and small-business training and promotions agency, Jamaica Business Development Centre (JBDC), or farm out to private-sector entities to provide, at market rates, the services that the agency now offers.
University of the West Indies (UWI) researcher, Dr David Tennant, made the recommendation last week, as he pointed to research which showed a very low coverage of the micro, small and medium (MSMS) sector by the agency.
"In the context where (it is) estimated that the JBDC, in 2008, achieved coverage of less than five per cent of the MSME sector, we must question whether the broader development objective is being met," he said, as he presented research data at a forum at the university's Mona campus on Thursday.
The UWI academic challenged the Government to fund the activities of the JBDC in a meaningful way if the entity was to be regarded as an important part of meeting the nation's developmental objective.
Important growth
But Valerie Veira, chief executive officer at JBDC, is pointing to what she said was important growth in the agency's coverage since it was established in 2001.
"I think that what would be more interesting, rather than an average, is to see the growth of that coverage over the period," she said.
"I don't think that (the mean) translates the reality that the coverage is growing."
Fault has also been found with the research findings by Dr Beverly Morgan of the Competitiveness Company who disagreed with the study that training coverage was an issue affecting the sector.
"You need to establish that the extent of the coverage is in fact an important variable, and based on the work that I have looked at on MSME training, MSME doesn't want general training," she said.
"There are other issues. Coverage is not a priority issue," she said.
In defending the research and pointing to a way forward, Dr Tennant said while he was not advocating any specific action to be taken by the Government, it appeared more prudent for the State to consider an alternative that would not be a strain on the national budget.
"In the current context of fiscal stringency, we have suggested an alternative approach that should be considered by the Government that puts less strain on the budget over the medium to long term," he said. Dr Tennant also pointed to data indicating a 70 per cent lack of awareness of business-development services among operators in the sector.