'For a small business to produce an audited account is financially onerous.'

'Demanding audited accounts could cripple small businesses'

THE UMBRELLA organisation, which represents the interests of small businesses, says the sector faces dark days if authorities press on with plans to peg the award of some government contracts to their audited accounts.

Dr Rosalea Hamilton, president of the MSME Alliance which represents micro, small and medium-size enterprises, told attendees at a Gleaner Editors' Forum yesterday that the sector could be crippled in the long run if such plans come to fruition at this time.

"My members are complaining that the National Contracts Commission (NCC) and some banks are requiring audited accounts," Hamilton said. "For a small business to produce an audited account is financially onerous. Because of the habits and realities of those businesses, they cannot produce those accounts."

Up to press time yesterday, The Gleaner was unable to get a response from the NCC on whether Hamilton's charge is correct.

The MSME Alliance president said if small businesses are required to produce audited accounts, it would mean that several, for example, those operating in the furniture sector, would be unable to secure certain government contracts.

"The implication for a whole sector is huge," Hamilton said.

She added: "If we are serious about the sector, we have to be much more careful about policies and programmes and that is why a governance arrangement that provides the vehicle through which the voices of the people can be heard is so critical not only to good governance, but also economic development."

Hamilton later stressed that she was not against audited accounts being asked of small businesses, but that she felt such requirements should be left until the sector has developed the resources to provide audited accounts.