Small business sector needs more support, says economist
ONE economist is expressing concern about the impact that the National Pause is having on the local micro, small and medium enterprises (MSME) sector, and is contending that such businesses cannot survive any prolonged closure.
Director of Business Development, Finance and Investment with Stuart & Perkins Caribbean, Kemar Stuart, says as the economy continues to experience challenges as a result of the COVID-19 pandemic, the MSME sector has been one of the hardest hit. He noted that the majority of businesses in the country fall into this category and they have had to close temporarily because of the pandemic. Stuart went on to say that many of these businesses are struggling to make ends meet and it could result in some permanent closures. But, even in the face of that possibility, he maintained that all is not lost.
“If you look at Barbados, Barbados still has a lot of brick-and-mortar businesses and the majority of our business models for small businesses are quite outdated. But COVID has allowed for businesses to innovate and to reinvent the delivery of services in this new digital age. So while I’m not recommending that businesses close down, some sectors and businesses failing will not be all bad, as it will allow for the emergence of new businesses and sectors, which can help to stimulate the economy,” he said in a recent interview with The Barbados Advocate.
His comments came as he said in his opinion the small business sector does not get enough support, and he believes that there is a need for the Government to provide support, financial and otherwise, to assist them at this time.
“If the overall economy is restructured in terms of encompassing small businesses in the economic model, I think that the survival and the chances of survival for small businesses will definitely increase coming out of the pandemic,” he stated.
Meanwhile, the economist is adamant that business and employment opportunities also have to be made available for the youth. He said that youth unemployment was high prior to the pandemic, has definitely gone up, and is likely to rise even more. Stuart said there needs to be a “retooling of the aspirations of the youth”, to create a new cadre of youth entrepreneurs to create employment for other young people, as opposed to having them going after traditional jobs.
“There is going to be greater competition between the youth and the older people, given that it is anticipated that the pension age will be going up, which would mean that more and more older people are still going to be in the workforce. So it’s going to be hard for young people to get opportunities. So I would not depend on the traditional work pool, that would be my suggestion to young people. Instead, they should try to find opportunities whether it be regionally, globally or remotely to become entre-preneurs,” he indicated.