Small Business plight
THE EDITOR: It is with great interest that I read about the initiative to set up fiscal incentives, including an equity fund to help new manufacturers establish their businesses and be able to compete in the global market place and to promote the development of TT’s industrial landscape in TT’s non-energy sector. It is important as we do so to identify some of the obstacles such as the overwhelming effort needed with government institutions and agencies, from getting information to plan one’s business to routine business transactions. The small industrial (including maritime) business is operating with low margins and cannot afford inefficiencies. Government bureaucracy is strangling growth. Government needs to streamline its affairs and cut out non-value adding processes, steps and personnel. Corruption is accepted by our society as a necessary evil since businessmen are penalised for taking the high ground, while those that pay consideration are rewarded. Red tape is designed to frustrate businesses so that funds can be extorted. It is standard practise to pay "overtime fees" to customs so that goods can be cleared in just five days. Provide a duck and bottle of rum and the leaking water main will be repaired immediately after 4 pm. The recourse to businesses is more red tape with the ombudsman, RIC, bank supervisor etc. In the end, it’s less stressful to give in and accept the status quo. What is frightening is that criminals also want to collect "tax." So the so-called community leaders extort money from legitimate businesses, and the police, government and society are powerless to stop them. Utilities are unreliable. Small businesses cannot afford loss of production. Power/water/phones are key to any operation, and the present utilities do not provide an acceptable level of service. Further, the industry is run by monopolies and there is little recourse for consumers. The cost of capital is high. Financial institutions including those belonging to the national administration have conspired to maintain the status quo. They therefore do little to ease the financial burden of new businesses. Monopolies are monopolies. So businesses are harassed with lawyer’s letters, VAT office inspections are instigated and price wars are tolerated. L C CHOW Pointe-a-Pierre
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"Small Business plight"