The Tribune

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

A Cabinet minister yesterday conceded that the long-awaited Small and Medium-Sized Enterprises (SME) Development Bill “may have receded from the front line”, but nevertheless remained on the Government’s legislative radar.

Michael Halkitis, minister of state for finance, confirmed that the Christie administration may have to do “some tweaking” to elements of the Bill before presenting it to Parliament, although he did not identify them.

This, the minister said, was because the Government wanted to ensure “that all of the agencies involved in small business administration were on the same page”. 

However, the Golden Isles MP acknowledged the length of time that had passed since the SME Bill was developed under both the first Christie and the former Ingraham administrations.

He admitted that the legislation had somehow “receded” from the top of the Government’s ‘To-Do’ list. 

“It has been in the works for some time now,” the minister said. “We undertook some consultation with the stakeholders, inclusive of some of the Government agencies. 

“What we had to do is go back and do some reconsideration, and some tweaking of the legislation might be in order because we wanted to just ensure that all of the agencies involved in small business administration were on the same page. 

“So it might have receded from the front line a bit, but it’s still something that’s on the Government’s radar.” 

The Bill has been a long time in development, having initially been proposed under the first Christie administration, and then drafted under the former Ingraham administration before it was voted out of office in May 2012. 

Some observers have privately expressed concern to Tribune Business that the legislation might go the same way as the proposed Contractors Bill, which has undergone numerous revisions under multiple administrations, and has yet to make it to Cabinet, Parliament or the statute book. 

Khaalis Rolle, state minister for investments, told Tribune Business earlier this year that the SME Development Bill was being reviewed to ensure it co-ordinated with, and did not “duplicate”, any elements in the National Development Plan. 

Mr Rolle also indicated there “may be some changes” to the structure of the Small and Medium Sized Business Development Agency (SMEDA), the main entity that the SME Bill will create.

SMEDA’s main role will be to arrest the relatively high failure rate among Bahamian start-up businesses and entrepreneurs, and aid many more in making the growth transition to medium-sized and larger businesses. 

It will effectively be established as a “one stop shop’ for various forms of business support and advice, with SMEDA putting entrepreneurs in contact with marketing, accounting, legal and other forms of professional advice. 

The agency will also likely help entrepreneurs develop viable business plans that can be presented to potential financiers and capital providers. However, SMEDA itself will not engage in lending to small businesses and entrepreneurs, though it may provide guarantees. 

To that end, the Chamber of Commerce launched its Small Business Help Desk yesterday at the Comfort Suites Hotel at Paradise Island. 

The Help Desk, if required, will function as a ‘back office support’ that many entrepenuers - especially those ‘on the road’ for much of the day, both require and lack. The ultimate goal of the Help Desk is to eventually become self-sustaining by charging a nominal fee for certain services that it will provide. 

However, Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, stressed that the Help Desk is not a funding facility, and will not be awarding any loans, grants, or capital investments to any business or project. 

“However, advisors will be able to assist and administer. We’re not funding anybody; we’re only providing the facilities for you to be able to qualify for funding,” Mr Sumner said.

“But advisors will be able to assist these businesses in identifying opportunities, and assist in preparing the business to apply for such opportunities.’

And, addressing the fact that more than half of all business start-ups typically end up failing within their first year of operation, Mr Sumner said the Help Desk will endeavour to do whatever it can to “assist these businesses so that failure does not become an option”. 

“To this end we will continue to work in partnership with our colleagues at the Bahamas Entrepreneurial Venture Fund, the Bahamas Development Bank, the Bahamas Agriculture and Industrial Corporation, the College of the Bahamas on the research side, the IDB, as well as other agencies throughout the country as we seek to fulfill our mandate for the development of SME’s in the Bahamas,” he added.

“While we understand that this country will always be dependent on foreign direct investments and the tourism industry to support and bolster our economy, we also understand that the micro, small and medium-sized businesses are the ones that drive the economy of any country.”