THE junior stock exchange was established in 2009 as part of the Government’s overall growth-inducement strategy.

The aim was to spur meaningful economic growth through the expansion of the local small to medium business sector (SMEs).

The junior stock exchange was conceived by the then Jamaica Labour Party Administration as a vehicle for the raising of equity capital to enable local SMEs to expand productive capacity, with the expectation that this would have a multiplier effect on the economy.

Over the past six years we have seen the positive impact of the Junior Market at work; helping companies across industries to counteract the growth-inhibiting factors of limited access to expansion and developmental capital and assistance, and diseconomies of scales.

Most local SMEs have excellent product offerings, competent and dedicated staff and innovative skills, yet most do enough just to survive.

The Junior Market is an inducement to companies to enter the mainstream of economic activity, building corporate governance and other structures through the offer of access to capital.

Listing on the junior stock exchange has provided that well-needed support to facilitate the transition of many local SMEs.

The incentives provided through the junior stock exchange also seeks to encourage SMEs to build out and expand their businesses which allows for greater product variety, wider product ranges and greater competitiveness among businesses which encourages consumer spending while increasing local resilience to external shocks.

The tax relief measure under the junior stock exchange is an inducement to companies to reinvest in capital expansion.

The proposal from the current Administration to phase out the incentives of the junior stock exchange by April 2016 is therefore illtimed; since at a time when economic growth is proving elusive, we eliminate a major growth-inducing strategy for SMEs — the engines of growth of modern economies.

At a time when the nation is between the twin evils of deep cuts in the public sector or even greater levels of taxation, phasing out the junior stock exchange will signal to the nation that this PNP Administration is once again proving anti-job, anti-growth and anti-development.

The overall approach of the current finance minister and in particular, his approach to the current issues betrays his much-vaunted intellectual agility, vision and foresight.

The minister has shown little creativity in the development and or implementation of growth strategies. Institutional strengthening and capacity-building is the way forward since the junior stock exchange has had way more positives than negatives.

Ozane Bell is treasurer of G2K. Send comments to the Observer or ozane.bell@ gmail.com.