MAINTAINING a positive outlook for the growth of their sector this year, small businesses are banking on their resilience to overcome the growing list of challenges which continue to impact them.

From having had to redefine their business models, digitise operations, cut staff, or deal with the headwinds of a harsh economic environment and its spillover effects, entrepreneurs and other members of the small business community locally are remaining bullish on opportunities, particularly some new ones on which they want to capitalise this year.

“For the sector, crisis is now the new normal and as such we remain positive in our outlook. Over the last few years we have had to face COVID, the war in Ukraine, threats of monkeypox and so much more but we continue to be resilient in our response. From an on the ground experience entrepreneurs are seemingly hopeful as we have learnt and continue to learn the art of resilience which makes us ready for success in an uncertain future,” said president of the Young Entrepreneurs Association (YEA) Cordell Williams-Graham in sharing an outlook with the Jamaica Observer recently.

However, local entrepreneurs are not alone in expressing optimism despite the concerns. In the US, data from a recent survey conducted by JPMorgan Chase & Co for its annual Business Leaders Outlook indicate that despite the heightened concerns for inflation among small businesses in that country, a vast majority said they were feeling positive about their expected performance this year. As a result, more than half of those polled in a survey have signalled that they are expecting to increase revenues and sales in 2023.

“Businesses are signalling that they’re practised in being nimble and prepared for several different scenarios, which are keys to operating effectively in today’s economy,” commented John Simmons, head of middle market banking and specialised industries at JPMorgan Chase.

Just like in the US, Jamaican small businesses have become increasingly creative in navigating various shocks.

Pointing to the opportunities which her members are seeking to take advantage of Williams-Graham, said automation and e-commerce top the list. However she adds that the use of co-working spaces along with greater participation in various accelerator programmes are also key.

For members of the Small Business Association of Jamaica (SBAJ), their President Michael Leckie — in highlighting the areas being targeted by his over 4000-strong membership base this year — said they were more concentrated on opportunities in agribusiness, nearshoring and online marketing.

In calling for a tripartite approach to fully equip the sector, he expressed his greatest hope as being able to see better collaboration across the ministries of industry, investment and commerce (in which small businesses are based) with that of agriculture and education, with all coming together to prepare small businesses for the transition and get them ready to take advantage of emerging opportunities.

“Agriculture is going to be one of the major drivers of growth for the economy this year hence there needs to be a pivot by our business members into this sector, allowing them to develop new products and to drive additional revenues for their companies. Also, when we look at what is happening with logistics we know there is an increased need for nearshoring, which is a big market [regarding] which we must now come together as a region to develop a serious trading bloc,” he told the Business Observer.

Beckoning Government to further increase its support to the sector, Leckie holds the belief that more can also be done to incentivise, regularise, and open up more access to funding for micro, small and medium-sized enterprises (MSMEs) in their quest for growth this year.

“On the part of the sector there has to be a readiness but there also has to be a strong Government push. They have started but it’s still not enough and we think there ought to be a greater push this year — and it has to be coupled with mainly grant funding and other low-interest working capital support for small businesses,” he said.

Admitting that there was an even larger informal sector operating locally, he urged operators to become formalised and to get themselves ready to benefit from some of the programmes already available.

The SBAJ head, providing an update on previous statistics which revealed that about 40 per cent of its members have had to close up shop since the novel coronavirus pandemic, said that recent data out of the Companies’ Office of Jamaica (COJ) showing over 8000 new companies being formed up to last year indicates that progress is being made — efforts which he, like the YEA president, credits to the strength and perseverance of the sector.

“Jamaicans are naturally resilient so as small businesses we will not just sit back but use the opportunities to create new enterprises. Despite the challenges we, however, remain cautiously optimistic as we continue to fight for the growth of our members and sector,” Leckie said.