Hylton wants gov’t to do more for small businesses Loop Jamaica

Black Immigrant Daily News

Opposition Spokesperson on Industry, Investment and Global Logistics Anthony Hylton is calling on the government to do more to assist the struggling micro small and medium enterprises (MSME) sector.

Consumer and business confidence fell recently and pollster Don Anderson said some consumers and business operators are bracing for continued difficult economic conditions — expressing a lack of confidence in overall growth over the next 12 months.

Against this backdrop, Hylton outlined in a statement that the so-called business-unfriendly environment — increased interest rate, high energy prices and tightening access to capital in the wake of the global pandemic — has rendered a large segment of the MSME sector failing or struggling to survive.

According to Hylton, there is evidence that indicates that some 40 per cent of the MSME businesses have either been teetering on bankruptcy or have already shuttered their businesses as the temporary measures put in place during the pandemic by government and financial institutions are coming to or have already ended.

“The environment has turned even more hostile for the majority of MSME businesses which were already reeling from the effects of COVID-19 and supply disruption, only to be hit by these increases and the threat of decreased demand for their goods and services,” Hylton said.

The former commerce minister noted that the situation is further exacerbated by the fact that the Insolvency Act 2014 has neither been promoted in the sector nor reviewed by the current administration, as required by law. The Act was put in place by the PNP Administration to protect firms from becoming bankrupt once they were able to come to an agreement with their creditors.

“The result has been that many firms/entrepreneurs are unaware of the opportunity to put forward proposals to their creditors to save their businesses and livelihoods and to avoid liquidation,” Hylton said.

The Opposition Spokesperson is therefore calling on the government to act now to save these struggling businesses and the many jobs they provide.

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