Under the previous political administration, two Government Ministers, first, the then Finance Minister Winston Jordan and subsequently Dominic Gaskin in his role as Business Minister, announced what they said was the government’s intention to guide action The system is full and effective. a provision in the Small Business Act 2004 to allow small businesses access to 20 per cent of state contracts in circumstances where the effective completion of those contracts falls within the scope of their competence. This newspaper recalls not only applauding the pronouncements, but also, arguing that the clause should be brought into force at the earliest time since we felt – and still are – that little effort was made , previously, by government and Business Support. Organizations (BSO’s) to raise small and micro businesses ‘off the floor’.
We also recall the expressed enthusiasm of the CEO of the Bureau of Small Business, Dr Lowell Porter, who saw in the decision to focus on the 20% allocation to small businesses as the best possible opportunity for small and small businesses. that was registered with the SBB to grow.
We do not recall that we ever had an official reason why the 20 per cent allocation did not come into effect. The ‘grapevine’ version proposed, however, was that the prerequisite to ensure eligibility to access the 20 percent of state contracts depends on businesses complying with NIS and GRA. We knew, of course, that there was no way this could be possible in the immediate term and that this meant, in effect, that the whole idea would be shelved, at least the short term.
That was two or more years ago and as far as we know no effort has been made since then to begin the process of making those small businesses that may have qualified for the 20 per cent concession eligible. We also felt that, at that time, the process of getting small business compliant could have started with those small businesses that were competent and competent and that GRA and NIS could have be forced to give priority to beginning the process of securing. that more such businesses have been accelerated, going forward. That also didn’t happen.
The passing of the Small Business (Amendment) Act 2020 in February this year and the announcement of a 5% preferential limit for those businesses that qualify under the law has given new hope of some progress at last.
Undoubtedly, the 20 per cent of state contract contracts for small businesses was one of the most significant clauses in the Small Business Act 2004 as it would not only have served as a potential breakthrough for suitably equipped small businesses growth – and fast, but also as an incentive for smaller, less-equipped businesses to work to improve their capabilities to the level where they would eventually reach the point of competence. Beyond that, full implementation would have had an impact on poverty alleviation as larger jobs for small businesses would have meant they needed to recruit workers who can deliver to the standard expected by the state contract. None of this happened.
Fast forward to the end of March 2021 where the available evidence may well suggest that priorities have changed. Generally, the private sector, these days (as we say in Guyana) ‘bigger fish to fry,’ the biggest of which is having ‘qualified’ business houses in a place to take advantage of what they are consider it significant potential growth arising out of Local Involvement opportunities. Of course, another issue is whether the majority of small and micro businesses will be able to emerge from the batteries of the COVID-19 pandemic in any kind of shape to take immediate advantage of the 20 percent concession.
Interestingly, since her return to office, the new administration’s interest in resuscitating the sugar industry has been an unmanaged priority. Indeed, one gets the impression that issues related to the growth and regeneration of micro and small businesses, elements embodied in the Small Business Act, will have to stand in line. One might add that since the passage of the Act under PPP / C administration, the current dispensation may feel some commitment to getting the 20 percent concession some focused attention. Here, it’s not just a matter of politics but, in fact, activating a consideration that could be a serious game changer for small businesses as well as for jobs and families, and when all is said and done, it would be ‘ it certainly does that the image of the no harm holder holder.
Going forward with the full national agenda notwithstanding, implementing a 20 percent allocation of state contracts to small businesses should be high on the government’s priority list.