CAPRI data show vulnerable business group at great risk

Jamaican small businesses experienced about 27 per cent supply disruptions due to availability and increased prices which were twice as high, when compared to three other caribbean countries during the coronavirus pandemic.

The source of that data from the Caribbean Policy Research Institute (CAPRI), which was made public recently also made reference to the vulnerable groups in the four countries. A total of 206 entrepreneurs and small businesses were surveyed.

Additional data showing supply disruptions among the countries pointed out that Barbados experienced an 8 per cent disruption, Antigua & Barbuda - 14 per cent and Trinidad & Tobago - 12 per cent.

Commenting on the report launch, Miriam Self, researcher at CAPRI, said small businesses have struggled.

“More than half of the small businesses [among the four countries] reported making no adjustments to sale strategies during the lockdowns, bringing into question their continued sustainability,” said Self, pointing to the survey.

Explaining that the report highlighted gaps in support available for small businesses, Self said, “More small businesses, despite the measures offered by the Government, are excluded as beneficiaries from measures such as cash payments, employer retention grants, loans and tax credits.”

She continued: “Our survey highlighted that small businesses, especially informal ones, are inhibited in accessing benefits, because more than half of the small businesses surveyed, had no business registration. Therefore, they are ineligible to apply for grants or loans with a registration component or requirement.”

Self explained that 25 per cent of small businesses do not file tax returns, so tax credit would not be beneficial. She also explained that 16. 5 per cent of business owners indicated the need for loans.

Based on the gaps highlighted, the researcher said vulnerable groups must be considered, targeted and reached.

Self recommended that an accessible framework or mechanism be created to enable small businesses to conduct online processes such as a shopping platform including a payment facility.

“The pandemic is not over and the situation faced by vulnerable groups lingers and could possibly worsen. Therefore, governments must keep focus on centring those on the margins as they continue to make policies that affect not only substantial segments of populations but the wider society,” said Self.