Honourable Minister of Tourism, Industry and Commerce of Guyana, Manniram Prashad; Chairman, Mr. Kyle Jackman; President of the Caribbean Association of Small and Medium Enterprises, Senator Sandra Husbands; Assistant Secretary-General and other Members of Staff of the CARICOM Secretariat; Members of the Media, Ladies and Gentlemen,
On behalf of the Secretary-General, Dr Edwin Carrington, and my colleagues from the CARICOM Secretariat, I welcome you to the CARICOM Secretariat headquarters and to this the Second Roundtable on Small and Medium Enterprises.
Honourable Minister of Tourism, Industry and Commerce of Guyana, Manniram Prashad; Chairman, Mr. Kyle Jackman; President of the Caribbean Association of Small and Medium Enterprises, Senator Sandra Husbands; Assistant Secretary-General and other Members of Staff of the CARICOM Secretariat; Members of the Media, Ladies and Gentlemen,
On behalf of the Secretary-General, Dr Edwin Carrington, and my colleagues from the CARICOM Secretariat, I welcome you to the CARICOM Secretariat headquarters and to this the Second Roundtable on Small and Medium Enterprises.
The theme for this Roundtable – Innovative Approaches – is quite apt, for it is accepted that SMEs, in contrast to big business, have a reputation for innovation. It is for this reason, coupled with the fact that they have difficulties attracting capital, that national and regional fostering of SMEs is a common occurrence. For example, it is absolutely essential to create accessible micro credit schemes to enable the growth of the SME sector; furthermore, supportive government fiscal and incentives policies are critical for the survival and growth of the sector. The Secretary-General just last week led a delegation of the Secretariat, Member States and Regional organisations to the Second CARICOM-Spain Joint Commission meeting in Jamaica. At that meeting we stressed the important role SMEs had to play in the structural economic transformation of the countries of the Region. The Spanish delegation pledged to consider financial assistance for programmes that would develop SMEs and support microcredit mechanisms.
SMEs have been shown to contribute significantly to virtually all economies in the world, both developed and developing countries. Although the definition of an SME may vary from country to country, World Bank figures indicate, in a sample of developed countries, that SMEs contribute to as much as three quarters of GDP and more than sixty percent of employment. This is contrary to the belief that big business constitutes the main driver of economic activity in developed countries. Roya Ghafele, an Economist with WIPO, states in an article entitled: SMEs or Micromultinationals…: “When looking at the internationalisation of business operations, size matters less and less: SMEs equally take their share in the global market. Rather than critical mass and the necessary budgetary backing, smart business strategies, a high degree of flexibility and the ability to grasp new business opportunities drive success in worldwide markets.”
SMEs are no less important to our Region. In fact they are central to the success of the Community, contributing to a large percentage of GDP and accounting for 50% of employment. They have the potential to contribute further to Member State and regional economic growth, increased employment levels and locally relevant product and service innovation.
The CARICOM Single Market and Economy provides the environment for this to happen. The CARICOM Single Market became a reality this year. Indeed, as you are aware, the process of removal of restrictions on the free movement of goods and services, on capital and on certain skills, including the self-employed, is now complete. Agreement has also been reached on the CARICOM Development Fund which is provided for in the Revised Treaty of Chaguaramas “for the purpose of providing financial or technical assistance to disadvantaged countries, regions and sectors.”
Article 53 of the Revised Treaty, titled: “Micro and Small Economic Enterprise Development” provides for the relevant Councils of the Community “to encourage policy initiatives and the establishment of effective programmes to foster a facilitative legal, economic and administrative framework in the Member States to enhance micro and small economic enterprise development”. Specifically, provision is made for:
– the encouragement of the competitiveness of SMEs;
– promotion of the establishment of support agencies including entrepreneurial centres;
– addressing the need to access training and education; -encouraging financial institutions to provide appropriate and innovative financing instruments; and
– promotion of innovation within the enterprise sector.
Although Article 53 is devoted to SMEs, all of the provisions of the Revised Treaty apply to SMEs and I anticipate that these will be examined more closely during the course of the Roundtable.
It is interesting to see that the recent EU theme for their set of comprehensive policies for their SMEs, reads: “Think Small First”. And of course, size is relative. For us in CARICOM, my recommended theme would be: “Think Big Now”! We have been thinking small for much too long. Let us move forward and “Think Global.”
In order to assist in this venture of thinking big, and the further development of SMEs, the Secretariat has undertaken a regional project, entitled “The expansion/transition of the Traditional Family-owned Firm into Larger and More Profitable Enterprises Operating at the National and regional Levels with Corresponding Opportunity for external Shareholder Participation in management within the CSME”. It will examine the nature of family owned businesses and determine what is expected to move them to corporate status, not only from the point of view of policy but also and especially as far as changing their mind-set. I urge you to give Dr. Jean Griffith who is the consultant on the project your total support.
Thank you.
SMEs have been shown to contribute significantly to virtually all economies in the world, both developed and developing countries. Although the definition of an SME may vary from country to country, World Bank figures indicate, in a sample of developed countries, that SMEs contribute to as much as three quarters of GDP and more than sixty percent of employment. This is contrary to the belief that big business constitutes the main driver of economic activity in developed countries. Roya Ghafele, an Economist with WIPO, states in an article entitled: SMEs or Micromultinationals…: “When looking at the internationalisation of business operations, size matters less and less: SMEs equally take their share in the global market. Rather than critical mass and the necessary budgetary backing, smart business strategies, a high degree of flexibility and the ability to grasp new business opportunities drive success in worldwide markets.”
SMEs are no less important to our Region. In fact they are central to the success of the Community, contributing to a large percentage of GDP and accounting for 50% of employment. They have the potential to contribute further to Member State and regional economic growth, increased employment levels and locally relevant product and service innovation.
The CARICOM Single Market and Economy provides the environment for this to happen. The CARICOM Single Market became a reality this year. Indeed, as you are aware, the process of removal of restrictions on the free movement of goods and services, on capital and on certain skills, including the self-employed, is now complete. Agreement has also been reached on the CARICOM Development Fund which is provided for in the Revised Treaty of Chaguaramas “for the purpose of providing financial or technical assistance to disadvantaged countries, regions and sectors.”
Article 53 of the Revised Treaty, titled: “Micro and Small Economic Enterprise Development” provides for the relevant Councils of the Community “to encourage policy initiatives and the establishment of effective programmes to foster a facilitative legal, economic and administrative framework in the Member States to enhance micro and small economic enterprise development”. Specifically, provision is made for:
– the encouragement of the competitiveness of SMEs;
– promotion of the establishment of support agencies including entrepreneurial centres;
– addressing the need to access training and education; -encouraging financial institutions to provide appropriate and innovative financing instruments; and
– promotion of innovation within the enterprise sector.
Although Article 53 is devoted to SMEs, all of the provisions of the Revised Treaty apply to SMEs and I anticipate that these will be examined more closely during the course of the Roundtable.
It is interesting to see that the recent EU theme for their set of comprehensive policies for their SMEs, reads: “Think Small First”. And of course, size is relative. For us in CARICOM, my recommended theme would be: “Think Big Now”! We have been thinking small for much too long. Let us move forward and “Think Global.”
In order to assist in this venture of thinking big, and the further development of SMEs, the Secretariat has undertaken a regional project, entitled “The expansion/transition of the Traditional Family-owned Firm into Larger and More Profitable Enterprises Operating at the National and regional Levels with Corresponding Opportunity for external Shareholder Participation in management within the CSME”. It will examine the nature of family owned businesses and determine what is expected to move them to corporate status, not only from the point of view of policy but also and especially as far as changing their mind-set. I urge you to give Dr. Jean Griffith who is the consultant on the project your total support.
Thank you.
