Yaneek Page | Best political-party plans for small businesses
Published:Sunday | August 30, 2020 | 1:01 AM
ADVISORY COLUMN: SMALL BUSINESS
QUESTION: Which political party has the best plans for small businesses?
BUSINESSWISE: It is a critical question I have been asked several times from social media users since Prime Minister Andrew Holness announced that general elections would be held on September 3.
As difficult a question as it may be to answer, I was grateful to see even slight interest in this topic as in my experience of working with thousands of small and micro business owners over the years, most are politically apathetic.
They generally have very little interest, and some are even scornful of politics and policymaking until their businesses suffer fallout from particular decisions, actions, or inaction.
My observations are also, unfortunately, in line with Jamaica’s worsening voter apathy, which saw voter participation falling to an all-time low of under 48 per cent in the 2016 general elections.
High voter apathy, alienation, and fatigue don’t augur well for stable democracy or good governance and are, therefore, trends we must collectively address if we are to enjoy a healthy business environment and long-term political stability. Beyond narrow self-interest, therefore, small businesses must lead by example and also champion greater civic contribution and active participation in our democratic processes and institutions.
Manifestos: Big promises for SMEs
Earlier this week, the Jamaica Labour Party (JLP) and the People’s National Party (PNP) released manifestos, via their websites, outlining plans for the country, including small businesses, should their party form the next government. I encourage all business owners to review the documents in their entirety and not just the section related to small business.
This is because promises in support of aspiring business owners, young entrepreneurs, micro and small businesses are sprinkled liberally throughout almost every section of both manifestos like seasoning.
Also, and more importantly, history has shown that the success, and also the recovery, of small businesses after economic crisis, such as the one we now find ourselves in, is inextricably tied to the fortunes of the countries in which they operate, particularly in a free market economy with high levels of competition among small firms.
Put another way, small businesses are the driving force behind equitable and sustained national growth and also develop best in low-crime, high-growth, flourishing economies and productive societies.
A bit of good news is that both manifestos are easier to read than they appear. Of the 102 pages contained in the JLP's document, 23 are pictures, and several are half pages. Of the 73-page PNP manifesto, four are pictures, but the font used in the document is very large, which makes for an easy read.
Entrepreneurship and Industry
Perhaps the most important point is that from an ideological perspective, there is no real difference between the parties on industry and enterprise.
When it comes to industry, both are championing diversification and less reliance on tourism, new opportunities in logistics, higher-value BPOs, agriculture, and renewable energy.
They both insist that small businesses are the engine of growth, that they need economic stability, greater access to funding, less government bureaucracy and ease of doing business, digitisation of government services, more investment in capacity building and support, and significant help in COVID-19 recovery.
Both parties have promised grant funding, loan guarantees, expanded loan facilities for small businesses, grants for small businesses and young entrepreneurs, and special initiatives for youth agriculture, among many other goodies.
A few noteworthy differences are in the labour arena, treatment of banking fees, removal of fees and interest on annual GCT arrears in the COVID-19 crisis, energy, vendors, and the entertainment sector, among others.
Manifesto gaps
What is not in the manifestos are taxation policies that reflect the future of work, which is independent, and contract based, and the resource constraints facing start-ups and small businesses.
The reality is that most small businesses cannot afford the employers statutory contributions and that it is now more cost effective, competitive, less risky, and easier to hire someone online from India, for example, than to hire a Jamaican at home.
The manifestos are silent on new taxes, small-business insolvency, and additional protections needed to aid recovery from COVID-19.
The Government remains the largest procurer of goods and services, and a considerable source of wealth for connected parties, yet there are no innovative or credible solutions to eliminate corruption and nepotism, commitment to buy Jamaican, and to ensure that lucrative state contracts do not go to party loyalists, politically exposed operatives, and campaign financiers, etc.
Ultimately, every business is different, with varying needs, challenges, and realities. Therefore, the assessment of which political party has the best plans for small businesses may always be subjective.
What is objective is that there are several potential new business opportunities for sharp entrepreneurs looking to pivot in these times, so if you haven’t already done so, review the manifestos, make your assessments, and get a jump-start on your 2021-2022 planning.
Good luck!
Yaneek Page is the programme lead for Market Entry USA, a certified trainer in entrepreneurship, and creator and executive producer of The Innovators and Let’s Make Peace TV series.