THE SME SECTOR IN BARBADOS Presented by: Lynette P Holder May 6, 2010.
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Transcript of THE SME SECTOR IN BARBADOS Presented by: Lynette P Holder May 6, 2010.
![Page 1: THE SME SECTOR IN BARBADOS Presented by: Lynette P Holder May 6, 2010.](https://reader035.fdocuments.in/reader035/viewer/2022062321/56649e6c5503460f94b6bb9c/html5/thumbnails/1.jpg)
THE SME SECTOR IN BARBADOS
Presented by: Lynette P Holder May 6, 2010
![Page 2: THE SME SECTOR IN BARBADOS Presented by: Lynette P Holder May 6, 2010.](https://reader035.fdocuments.in/reader035/viewer/2022062321/56649e6c5503460f94b6bb9c/html5/thumbnails/2.jpg)
OUTLINE
• Introduction• Overview of Sector
– SME Statistics
• Challenges• Importance of the Sector• Role of the BSBA• Conclusion
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BARBADOS – Country Profile
• Area: 430 sq km; 166 sq milesPopulation: 275,000 Capital City: BridgetownPeople: About 80% African descent, 4% European descent, and 16% mixed.
• Annual Growth: 4.3% (Central Bank of Barbados)Unemployment: 9% (Q4 2009)
• Major Economic Sectors: tourism, offshore financial services, construction and utilities, sugar, light manufacturing, component assembly for export, agriculture, information technology services.
• Major export partners (2006): CARICOM 37.0%, US 10.6%, UK 12.3% Major import partners (2006): US 37.25%, CARICOM 26.0%, UK 5.9%
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Profile Cont’d
• GDP (purchasing power parity):• $5.278 billion (2009 est.)• country comparison to the world: 157 • GDP (official exchange rate):• $3.637 billion (2009 est.) • GDP - per capita (PPP):• $18,500 (2009 est.)• country comparison to the world: 64 • GDP - composition by sector:• agriculture: 6%• industry: 16%• services: 78%
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OVERVIEW OF SME SECTOR
Small Business Development Act
Small Business– Annual Revenues $2,000,000– Asset Base $1,000,000– Maximum # Employees 25
Micro – under 10 employees, sales of $500,000/yr
Medium – under 50 employees, sales of $5M/yr
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OVERVIEW OF SECTOR
Statistics• Approximately 11,500 SMEs existing
• Ownership– Sole Proprietorships 52%– Incorporated 43% – Partnerships 5%
• Gender Distribution – 69% Male / 31% Female (Census 2000)
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OVERVIEW OF SECTOR
• Sectoral DistributionSector Distribution (%)
Wholesale & Retail 26.3
Professional Services 24.3
Road Transport incl. garages 10.9
Building & Construction 7.2
Other Manufacturing 7.0
Agriculture 4.9
Banking 4.3
Restaurants 4.1
Insurance (other) 3.1
Shipping, Port and Warehousing 2.9Source: Inland Revenue Dept.
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OVERVIEW OF SECTOR
• Employment Levels
Variable ( source) Quantity
Average no. of employees/business (BSBA)
04
Total number of Employees (BSS) – 24% of workforce
32,266
Labour Costs for small incorporated companies (IR)
$143m
Labour Costs as % of Sales/Revenue for small incorporated companies (IR)
58.61%
Labour Costs as % of Sales/Revenue for all incorporated companies (IR)
43.32%
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CHALLENGES TO SMEs
• Regulatory Framework – structures are often too restrictive, bureaucratic, duplicated
• Financing is sometimes insufficient, frugal, inadequate
• Lack of research data to inform policy and processes
• Poor management structures and systems• Lack of hands-on technical support • High financial and labour costs resulting in
uncompetitive pricing
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IMPORTANCE OF SMEs
• SMEs are in all of the major productive sectors, i.e. agricultural, industrial, manufacturing and services
• Key sources of employment generation: – women, youth, differently-abled: physically or academically
• Ability to enhance economic and social conditions• Creation of backward and forward economic
linkages• Ability to reduce foreign currency expenditure• SMEs are flexible and responsive
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WHO WE ARE
The Barbados Small Business Association (BSBA) is a non-profit organisation representing the interests of micro, small and medium enterprises in Barbados.
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THE BSBA STRUCTURE
BSBA
SBAEISBVCI
EASTERN OFFICE
SECRETARIAT
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BSBA’s PROGRAMMES
• NETWORK OPPORTUNITIES• MARKETING ACTIVITIES• TECHNICAL ASSISTANCE• EDUCATION & TRAINING• SECTORAL GROUP DEVELOPMENT• RADIO & TELEVISION PROGRAMME• DECENTRALISATION OF PRODUCTS &
SERVICES – Satellite Office
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SPECIFIC BENEFITS
• Website & internet facilities• Advertising discounts with industry partners e.g.
radio & newspaper, telephone, computers• Marketing opportunities at exhibitions and
showcases• Promotion via BSBA’s television and radio series• Discounts on members’ products & services • A wider customer base by accessing the BSBA
membership – mail outs, bulletin, meetings• Business support services• Office/meeting facilities
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Membership Sectoral Distribution
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CONCLUSION
• Self-employment is a solution to improving social & economic conditions
• Business start-ups can be found in all areas of economic activity
• BSBA offers handholding, education, training and business development programmes
• Innovation and creativity are needed to transform the current business climate
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QUESTION & ANSWER
www.sba.org.bb