EMPOWERING SMALL BUSINESSES

ANY step to improve financial literacy in Barbados is a step in the right direction.

That’s according to Ms. Lisa Gale, Director of the Barbados Accreditation Council (BAC).

In an interview with Business Monday, Ms. Gale said that the initiative will bring benefits to those small and medium-sized businesses, which are the targets for the proposal.

“Way back in 2009 I recall the Central Bank of Barbados announcing a project towards improving literacy, but this policy is clearly defined with a specified scope, target audience and output expectations,” said Ms. Gale, who is also an international trade specialist.

According to her, “This project aimed specifically at small businesses will auger well for Barbados business community.

I believe it will also transcend business to households, given that when persons are empowered they use these decisions and new skills at home and in other entities they are involved. The children of these entrepreneurs/business owners will hopefully have a head start, given the superior knowledge their parents will be exposed to.”

She has noted that too often we are trained to be good consumers, but never good investors. Granted historically the environment has not been pro-investment and Barbadians have been deemed risk-aversed, the official pointed out therefore that having many not opting for investment mechanisms, times are changing and more and more persons are demanding more options.

“The main benefit of financial literacy is that it empowers persons to make smart financial decisions. It provides the knowledge and skills we need to manage money effectively. Issues like budgeting, saving, borrowing, and investing are key and we don’t necessarily learn them in school or from our parents. It’s often too late at pre-adult years to be now grasping these concepts. If we start early, we would be better equipped to reach our financial goals and achieve financial stability,” said Ms. Gale.

“Added to acquiring my qualifications and having been exposed to training sessions and working with a range of businesses in my tenure at the Chamber, it was a smooth transition into running my consultancy for the past three years. From early on I secured an accountant who assisted with financial advice and she encouraged me to buy an accounting programme, which also allowed me to manage the billing and payments process on my own; this investment was priceless. I see that the programme also goes as far as covering marketing – a key part of the success of any business.”

She said that many businesses are not aware of the ratios they can handle as it relates to debt and debt servicing and tend to underestimate their numbers, not necessarily factoring in the variable costs which can sometimes surprise them.

“I can only say thumbs up for those entrepreneurs who stand to benefit from this new policy. I wish the organisers well and look forward to this reverberating throughout the society, not only the businesses,” she added.