Unlock small-business contracts now, SBAJ says
With thousands of small businesses still counting their losses after Hurricane Melissa, the Small Business Association of Jamaica (SBAJ) is urging the Government to move immediately to unlock the 20 per cent set-aside procurement earmarked for small firms, warning that further delays could push thousands of entrepreneurs past the point of recovery.
SBAJ President Garnet Reid says the storm’s economic toll has exposed the fragility of the country’s small-enterprise base, many of which were already operating on thin margins before Melissa ripped through several parishes.
“Melissa didn’t just knock down buildings. It knocked out dreams. Our small business community is bleeding. If we don’t act now, many will never recover,” Reid said in a press statement on Friday.
For small shopkeepers, tradesmen, service providers, and micro-entrepreneurs, the storm has wiped out months of income and seed capital. The SBAJ argues that the Government’s 20 per cent allocation for small businesses — a long-standing policy under the Ministry of Finance — was designed for situations exactly like this. But procurement rules remain cumbersome, layered with compliance requirements that many small firms simply cannot navigate while trying to rebuild.
Reid is calling for the Government, its procurement agencies, and Jamaica’s international development partners to prioritise small-business rehabilitation by strengthening access to contracts and fast-tracking support.
He believes that without urgent intervention — including simplified bidding processes, rapid technical training, and targeted financial backing — the sector risks a wave of insolvencies with wider consequences for employment and local supply chains.
International partners such as the World Bank, USAID, the European Union, Japan International Cooperation Agency (JICA), the Caribbean Development Bank, and United Nations agencies already active in Jamaica are being urged to help craft immediate recovery facilities. Many currently operate local development and resilience programmes, which the SBAJ argues can help channel technical and financial support to small firms struggling to restart operations.
The association also wants greater transparency around the contract set-aside, including clearer public reporting on how the funds are used and stronger monitoring to ensure the allocation reaches legitimate small enterprises rather than larger players subcontracting loosely in their name.
Reid says the stakes are high, not only for business continuity but for the wider labour market.
According to data from the Ministry of Industry, Investment and Commerce, micro, small, and medium-sized enterprises (MSMEs) account for more than 60 per cent of jobs in Jamaica and over 40 per cent of gross domestic product (GDP) when informal activity is included. They are also the backbone of local supply chains, touching virtually every sector, from retail and services to construction and agriculture.
Further, small enterprises employ a large share of Jamaica’s workforce, particularly in rural communities now grappling with the storm’s impact.
“Small business owners are not asking for a handout. They’re asking for a fair chance. They are ready to rebuild, to contribute, to hire. But they need the tools and the contracts right now,” Reid insisted.