Chamber president: SMEs making big contribution to GDP

PORT OF SPAIN, Trinidad and Tobago, Guardian – The Small and Medium Enterprises (SME) sector is now making a bigger contribution to the economy of T&T, Moonilal Lalchan, president, T&T Chamber of Commerce, said yesterday. “Statistics show that at the end of 2011, the over 20,000 SME’s contributed to roughly 30 percent of our Gross Domestic Product (GDP) and employed over 200,000 persons. They provide a range of goods and services from the traditional corner shop, to farmers, service providers, ICT industry, cottage industry and food vendors. “It is estimated that within middle income countries like most Caribbean countries, SME’s contribute to 90 percent of employment and 70 percent of Gross Domestic Products (GDP),” he said at the opening of the Arthur Lok Jack Graduate School of Business Showcase, held in collaboration with the Ministry of Labour, at the Hyatt Regency Hotel, Port-of-Spain. Lalchan said SME’s now account for 60 per cent of the T&T Chamber’s membership. In addition, he said, that sector is important in larger and more developed countries. “The role of SMEs in the context of developed countries and many developing countries is well established. In the United Kingdom, they account for 99 per cent of all private sector development with an output of 1.5 billion pounds, while in India it is referred to as the backbone of India’s GDP, contributing to nearly 40 per cent of that country’s entire output. “Their growth is key for any nation’s economic growth,” he said. Lalchan said start ups have their fair share of challenges. “The most common challenge is the lack of access to capital and other funding sources. While they may be potentially more dynamic than larger enterprises, they are also more vulnerable, making them a greater risk than financial institutions are willing to take on. “With a failure rate of almost 90 percent for new businesses, the financial institutions may say they are legitimately being cautious,” he said. The Arthur Lok Jack Business Showcase, described as a Celebration of the Entrepreneurial and Innovative Spirit of the Caribbean, features exhibitor booths, which are free to the public, as well as transformational workshops. Topics to be covered over the three day event range from investing in a small business to entrepreneurship for economic transformation.