Government to bolster support for small businesses

Following the devastation wrought by Hurricane Melissa and the debilitating effects on the small-business sector, the Government has indicated that it will be seeking to strengthen support for micro, small, and medium-sized enterprises (MSMEs).

Fayval Williams, minister of finance and the public service, made the announcement as she opened the 2026-2027 Budget Debate in the House of Representatives yesterday.

“We are strengthening support for small businesses seeking to participate in government procurement. The commission has already begun engaging micro, small, and medium-sized business associations to guide their members through the supplier-registration process, and a series of targeted engagements will continue to assist entrepreneurs in completing registration and understanding how to compete effectively for government contracts,” she said.

The minister also disclosed more measures to assist small businesses.

“In the upcoming financial year, the Government will also advance the implementation of the Public Procurement (Set Asides) framework, which allows portions of government procurement to be reserved for Jamaican suppliers, including micro and small enterprises. In partnership with the Public Procurement Commission (PPC), we will establish and maintain a verified list of qualifying MSME suppliers to enable procuring entities to easily identify eligible businesses when applying the Set Asides provisions.”

The Public Procurement (Set Asides) Order, 2019 reserves 20 per cent of public procurement contracts for MSMEs. The directive, part of the Public Procurement Act, mandates that government entities set aside, or reserve, this portion to increase local participation in government contracts and boost economic growth.

SET ASIDES ORDER MANDATE

“Once this system is operational, the ministry will issue a renewed directive to public bodies mandating utilisation of the Set Asides Order, with special emphasis on micro enterprises with annual turnover below $15 million and small enterprises with turnover between $15 million and $75 million.”

The finance minister also assured MSMEs that bureaucratic “red tape” would be addressed.

“At the same time, we will continue working with the Public Procurement Commission to simplify and streamline the supplier-registration system so that businesses can more easily enter the public procurement marketplace. These initiatives will ensure that government procurement not only delivers value for money but also serves as a powerful tool for inclusive economic growth by opening more opportunities for Jamaican entrepreneurs to supply goods and services to the Government.”

Williams conceded that improvements remained a step behind announcements.

“It was never repealed, but the systems mentioned in the Government’s Circular are not operational. Now that the Public Procurement Commission maintains a registry, I have already discussed with them taking over the role of verifying qualifying suppliers and maintaining the list of qualified MSMEs. There will, however, be a need for some website/software changes, and the PPC will likely need some additional budgetary support to execute the changes,” she said.

“It is possible to get it done in this new fiscal year. I know the PPC will need some support, and I am committed. Once the system is modified, a new circular will need to be issued, focused on only micro and small enterprises.”

MEASURES HAILED

In the meantime, Antoinette Hamilton, president of the MSME Alliance, has welcomed the implementation of the measures.

Speaking on Radio Jamaica’s Beyond the Headlines yesterday evening, Hamilton noted that the announcements were not new but hailed movement in the right direction.

“Well, last year, during the Budget Debate, it was mentioned that the ‘Set Asides’ would have taken place. It seems as if some progress has been made. We know that we have been engaged. However, we are hoping that this budget cycle, it will actually be implemented. So it is good to see that progress has been made. But it was mentioned last year that it would have been done in that budget cycle.”

The Public Procurement (Set Asides) Order, 2019 defines a medium enterprise as having a turnover of between $75 million and $425 million, a micro enterprise as having a turnover of less than $15 million, and small enterprises from $15 million to $75 million.

Williams also argued in Parliament that smaller businesses need more support.

“We need to give plenty of hand-holding assistance to entities with turnover below $75 million to help them to navigate the complexities of the Government’s procurement system. The good news is [that] no amendments are needed to the act. It is the operationalisation of the act and regulations to which we must attend with haste. The SMEs can wait no longer.”

Hamilton welcomed the minister’s comments.

“Yes, we are very interested, and it was good that she also recognised that [it is] important to focus on the micro and small entities and the need for capacity building, and the MSME Alliance is ready to support her in that regard, and they do need the hand holding. So it was important that she mentioned that, and we are ready to work with her where that is concerned. As soon as she is ready to implement, we are ready to assist,” Hamilton said.

Williams noted that the PPC will need to make adjustments to its software before a new circular is issued. She also disclosed that the PPC has been working on getting the costings to make the required changes. She promised that greater access to the Government’s billions of dollars of procurement, in-line with the Procurement Act, regulations and circulars will shortly open up more widely to MSMEs.

According to the Planning Institute of Jamaica, MSMEs account for more than 97 per cent of registered businesses, 80 per cent of jobs, and in excess of 40 per cent of GDP.

karen.madden@gleanerjm.com