'Hard Push' For Small Business Bill By March

By NEIL HARTNELL

#Tribune Business Editor

#nhartnell@tribunemedia.net

#A well-known small business consultant says he will “push the Government hard” to pass legislation deemed vital to the sector’s growth prospects by March 2015.

#Mark Turnquest, principal in Mark A. Turnquest & Associate Companies, told Tribune Business that the consultant team working on the Small and Medium-Sized Enterprises Development Bill had completed its task, and submitted its final report and recommendations to the Government.

#Emphasising that it was now the Christie administration’s decision on how to move the proposed Bill forward, Mr Turnquest warned that its impact - even when passed - would not be felt “overnight”.

#Disclosing that much “infrastructure development” was required once the law was passed, he explained that it would likely take six months to properly structure the Small and Medium-Sized Enterprises Development Agency (SMEDA).

#SMEDA, which the legislation will create, is intended to play the key role in implementing a Bill its provisions - which are all designed to foster a more sustainable, thriving small and medium-sized business sector.

#Mr Turnquest told Tribune Business he would press for SMEDA to be operational by 2015 year-end, as it will effectively co-ordinate the work of all the Government’s existing business support agencies.

#Mr Turnquest, who was part of the consultant team that worked on the Bill, revealed to this newspaper: “We just concluded on the strategic plan for SMEDA. It’s finished, and we have given it to the Ministry of Finance.

#“We finished the report by Jennifer Edwards in reference to how SMEDA should look. Everything is finalised in terms of how its operations should be structured. All the groundwork is finished.

#“The only thing is for the Government to finalise how they want to proceed. The only thing the Government has to decide is when they want to bring the legislation.”

#Tribune Business previously revealed how the August 28 report, by Compete Caribbean’s Dr Jennifer Edwards, recommended that SMEDA only allocate 20 per cent of its funding to cover operational expenses, freeing “no less than $8 million” per year to assisting Bahamian entrepreneurs.

#The report also called for the Bahamas to draft regulations to accompany the Bill, and give it enforcement teeth, plus bring its definition of the small business sector into line with that of other Caribbean nations.

#The Bill has been a long time in development, having initially been proposed and 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 it 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.

#In fairness, the attention of the Government, and its Ministry of Finance, have likely been distracted by other pressing policy issues in recent months, such as Value-Added Tax (VAT) and associated fiscal woes, plus the gaming legislation.

#Now, with these matters progressed closer to completion, Mr Turnquest and others in the small business are hoping the Christie administration will move on the SMEDA Bill in the New Year.

#“I’m going to push the Government hard to have it legislated by March next year, and most definitely to have SMEDA done by the end of next year,” Mr Turnquest told Tribune Business.

#“It’s going to take six months after the legislation is passed to get SMEDA fully functional, with staff, chairman, a Board of Directors and proper location.

#“It’s not going to be done overnight. There’s a lot of infrastructure development.”

#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.

#The initial strategy had called for the Government’s other business support functions and agencies, such as the Bahamas Agricultural and Industrial Corporation (BAIC), Bahamas Entrepreneurial Venture Fund and Bahamas Development Bank (BDB), to be incorporated into SMEDA.

#Mr Turnquest, though, told Tribune Business that the revised plan was for all these agencies to now remain as standalone entities, with SMEDA acting as ‘the glue’ binding them together.

#The BDB, even though less than 30 per cent of its outstanding gross loan portfolio is ‘performing’, will remain “an optional” source of debt financing for small businesses and entrepreneurs.

#“All of them will be standing alone, and SMEDA is just going to be a supporting mechanism,” Mr Turnquest explained.

#“It’s going to be the overarching mechanism to make sure that all the business service organisations are focused on small businesses, run efficiently and effectively, and there are synergies between the organisations.

#“It’s to make sure there’s harmony and a good business environment, so that all businesses can succeed.”

Small Business ‘Cannot Wait’ For National Plan

By NATARIO McKENZIE

#Tribune Business Reporter

#nmckenzie@tribunemedia.net

#The Government and private sector were yesterday urged to collaborate  to address the challenges faced by small and medium-sized enterprises, a well-known consultant warning: “It’s just getting worse.”

#Mark Turnquest, principal of Mark A. Turnquest Consulting, told Tribune Business that the Government must put serious focus on creating the long-awaited Small and Medium-Sized Enterprise Development Agency (SMEDA), and passing the legislation that will facilitate it. 

#“I know that the Government has stalled on the two important structures that are needed because they indicated that would want the National Development Plan to take shape but, unfortunately, the small business community can’t wait that long,” Mr Turnquest said.

#The most significant thing about the small business development agency will be the funding element that will be in place once there is a dedicated structure. The funding element is very important.”

#Mr Turnquest added: “There is nothing special going on when it comes to economic development for the sector.

#“I have to applaud the Chamber, which has developed the Small Business Help Desk, which is important, but we need a more national focus. We don’t have any type of ideal meaning of a small business or a medium seized business in the country, and that’s where the  Small Business Bill is going to be significant.

#“When banks and lending agencies address small businesses and medium-sized businesses, they will know what type of structure these businesses have. Almost every lending organisation or business development organisation has a different definition of a small and medium-sized enterprise.”

#Mr Turnquest said it was disappointing that SMEDA and the Small and Medium-Sized Business Development Bill had not yet been introduced.

#“ My team and I did a survey of almost 1,000 small business owners, and they are always asking me what has happened,” he added.

#“The Government, along with the the private sector, has to collaborate and act as one when it comes to addressing the ills. It’s just getting worse; it’s not getting better, and you can’t sugarcoat it. My recommendation to all stakeholders is to focus on one national plan to develop SMEDA.

#“They need to reach out to the small business consultants in the country. If they are not going to give the Small Business Bill or SMEDA a go, then they need to visit the professionals so we can give them ideas on what to do in the alternative.”

Small Business Bill ‘Close Off’ Is Urged

By NEIL HARTNELL

#Tribune Business Editor

#nhartnell@tribunemedia.net

#The Government and private sector were yesterday urged to finally “close off” work on legislation to revive the small business sector, a well-known consultant arguing: “Enough is enough.”

#Mark Turnquest, head of Mark A. Turnquest Consulting, told Tribune Business that 2016 marked the second year since those leading the consultation on the proposed Small and Medium-Sized Enterprises (SME) Bill completed their efforts and presented their findings to the Christie administration.

#Reiterating his deep “disappointment” that legislation had yet to be brought to Parliament, Mr Turnquest said the Government had managed to drive through the Gaming (web shop) Bill - and was now moving on National Health Insurance - despite the fact small businesses were regarded worldwide as the fastest job creators.

#Illustrating why the SME Bill and agencies it would create are so badly needed, Mr Turnquest said the only businesses that appeared to be open in south Andros when he visited the island over the Christmas holidays were web shops and liquor stores.

#“We had finished the SME Bill and the structure for SMEDA from 2014,” Mr Turnquest said. “I really would like the Government, the Chamber of Commerce and the private sector to close on this.

#“Unfortunately, working with a lot of small businesses, even in the Family Islands, it’s very depressing. I went to south Andros, and 90 per cent of the businesses were closed.

#“Over the Christmas holidays, the only things open were the numbers houses (web shops) and the liquor stores. Only two restaurants were open. There’s nothing going on in south Andros; there’s nothing happening.”

#The SME Bill proposes to create the Small and Medium-Sized Business Development Agency (SMEDA) as a “one stop-shop”, and as the “umbrella” body co-ordinating all the Government’s small business support services.

#Apart from providing all the resources necessary for start-ups and entrepreneurs to turn their ideas into sustainable businesses, SMEDA’s structure is also designed “to minimise political interference”.

#Mr Turnquest, though, said he was told by a senior government official late last year that the Christie administration was fearful SMEDA’s creation, and role, would lead to job losses at other agencies such as the Bahamas Development Bank (BDB) and the Bahamas Agricultural and Industrial Corporation (BAIC).

#The consultant told Tribune Business he rejected such fears, as SMEDA would simply make all government agencies involved in supporting small businesses more productive, enabling them to focus on the better ideas and business plans.

#“Once SMEDA is operational, it will align the other agencies and make them more productive as they will be focused on businesses that are innovative,” Mr Turnquest said, “handicraft, information and communications technology (ICT) and creative businesses that can hire beyond the ‘Mom and pop’ stores.

#“I’m tired of this rigmarole every year. Our government, PLP and FNM, are they really focusing on small business development? You can’t focus on small businesses if there’s no supporting Act in place.

#“I’ve been talking about the SME Bill for the past eight years. Enough is enough.”

#Mr Turnquest said the Government, Bahamas Chamber of Commerce and Employers Confederation (BCCEC) and the wider private sector all “have to be on board” with the initiative for it to succeed.

#Khaalis Rolle, minister of state for investments, previously told Tribune Business that the SME Bill and SMEDA had both effectively been placed on ‘hold’ to ensure they dovetailed with the Government’s National Development Plan, and that there was no “duplication” of roles and structures between the two.

#But Mr Turnquest argued that this concern, too, was not insurmountable, as the Government could merely recall all stakeholders for further discussions if it wanted to restructure either SMEDA or the Bill.

#“Just bring us back to the table and close off this Bill,” he told Tribune Business. “They say small businesses are the sector that’s number one for hiring people, but that’s not what the policies are doing. Everyone has to be on board.”

#Emphasising that Baha Mar’s fate had shown the dangers of relying on one project to create employment and drive the economy, Mr Turnquest said he was not blaming anyone for the SME Bill ‘stalling out’.

#Yet he called for those likely to benefit the most to agitate for its passage.

#“We have too many small businessmen who are passive,” Mr Turnquest told this newspaper. “They don’t put any skin in the game. They’re too scared or are politically driven.

#“This country cannot go another year without the SME Bill and SMEDA. We have got to close on this. We are in dire straits and cannot go on like this. The simplest thing is to get the Act and SMEDA in place, so we can grow the country’s competitiveness and businesses can grow their sales.”

#Mr Turnquest said it was “a sign of weakness” that the Bahamas, unlike its regional counterparts, had no uniform definition of what a ‘small business’ was.

#The sector, the Government, banks and credit unions all have their own definitions, which made it difficult to achieve a structured approach to supporting small businesses.