Small Business Week has come of age!

The Small Business Association of Barbados will organise the 21^st iteration of Small Business Week this September from the 22^nd – 28^th.

Hosting this week of activities consistently for 21 years is no small feat and is testimony to the support and commitment of several stakeholders, in the vision and strategic purpose for this event. Using the idiom therefore of ‘coming of age’ is fitting and demonstrate a level of maturing and success which this length of time portends. Similar to the individual reaching the legal age of 21 with the rights and privileges appertaining, Small Business Week has reached its age of maturity.

The proverbial question may be asked why organise a week of activities every year. It is not an income generator for the SBA as all proceeds cover the cost of staging the events. The week is not about the parochial activities on the association’s annual work plan. Small Business Week has been transformed into a national event capturing the imagination of policymakers, financiers, business support organisations and even development partners around a common objective of celebrating and promoting the local micro, small and medium enterprise sector. 

So, what drives the organisers each year to mount a week of activities to encourage support for the sector? It is the intrinsic understanding of the value of the MSME sector to economic and social development and the fact that this sector, like with other emerging economies, is really the engine of economic growth.  

For the better part of two-plus decades Small Business Week has challenged all stakeholders with themes and provocative foci to discuss issues of development and transformation. Such categories include economic recovery and growth; innovation and adaptation; digital transformation and the technological revolution; sustainability and resilience; and global engagement. These themes were chosen to help shape the policy and programmatic agenda for the small business sector.

While research is still being compiled, anecdotal information suggests there is much to be done as the environment for small business development is still not enabling enough.

It is a truism that if many of the topics introduced for the week of activities were actually operationalised the regulatory regime, access to suitable capacity building programmes and finance would have enabled the sector to pivot to sustainable growth and development. Notwithstanding the exogenous shocks of our time, namely the global financial crisis, the COVID-19 pandemic, natural disasters and global supply chain disruptions, enough has been done over the years in terms of research, Think Tanks and strategy to build a more resilient and competitive sector.

Drawing on the Babson College entrepreneurial ecosystem framework, Barbados still does not have an entrepreneurial economy. The matrix identified several contributors operating in a symbiotic relationship to produce an environment conducive for business growth and excellence.  

The model speaks to the policy regime, access to capital and markets, culture, education and business supports that are needed to make the system work.

A critique therefore on where we are after the 21 years of Small Business Week is therefore timely. Assessing our progress through the lens of the Babson College matrix the following, which is not exhaustive, is observed:

• Policy environment – the regulatory regime is archaic, the last update to the legislation for the sector was 2006. Compliance cost now makes it challenging for most companies to operate. There is no up-to-date policy framework or regulation to support trade with the major social media platforms. Supporting tools like the Collateral Registry and preferential 5.5% tax rate have had a failed start.
• Finance- access to finance and availability of different types of finance has not been addressed satisfactorily. Diversification to equity financing and the establishment of a Junior Stock Exchange is as slow as molasses up the proverbial hill.
• Culture– changing a culture is admittedly a long process, however education and institutional arrangements can support the desired change. Acceptance of failure and reengineering business models, disruption and an invention culture should be encouraged.
• Supports– several Business Support Organisations have been playing their part however the effort through the Small Business Development Centre framework to have a national coordinated mechanism has gone in abeyance.
• Human capital – Barbados has a highly educable population, yet the educational system is not geared towards entrepreneurial thinking. Industry struggles in attracting suitable labour to fill basic functions. Yearly the number of students with basic cognitive skills is on the decline.
• Markets– the domestic market should serve as a foundation for firms, followed by the regional market of the CARICOM Single Market & Economy. This latter regime is not fully operationalised and therefore not an incentive for small firms.  Government as the largest procurer of goods and services should use its framework as a foundation for MSMEs to build capacity before internationalisation. Small firms still do not participate in a significant percentage of Government procurement.

This list demonstrates there is much work to be done within the ecosystem. 

So, on to another Small Business Week and continued discussions on what must be done to create the sustainable developments needed within the sector.

The SBA remains motivated to continue being a part of this national conversation. The current trajectory of advocating and educating, collaborating and innovating, will be pursued until a significant dent is made to produce a sector that is resilient and innovative, with the capacity to be domestically sustainable and globally competitive.