SMALL businesses across the island are facing increased financial pressures as drought conditions and water shortages force many operators to purchase trucked water to keep their businesses open.

The Small Business Association of Jamaica (SBAJ), based on recent internal surveys, said members in Kingston, St Andrew, St Catherine, Clarendon and several other parishes have reported operating cost increases of between 15 and 30 per cent over the past two months due to difficulties accessing water.

The association said the additional expense at this time is particularly burdensome for a number of these micro, small and medium-sized enterprises (MSMEs) that are already grappling with inflation, rising input costs and weaker consumer spending in the post-Hurricane Melissa environment.

“For barbers, restaurants, laundromats, spas, food vendors, manufacturers and so many other MSMEs, water is not optional. It’s the backbone of the business,” SBAJ President Garnett Reid said.

“Right now, owners are choosing between paying staff, buying stock, or paying $8,000 to $20,000 per truck of water just to stay open. This is not sustainable!” he further declared.

With water restrictions in place and National Water Commission (NWC) supplies disrupted in several communities, businesses that depend heavily on water for daily operations are being forced to absorb the cost of finding alternate supplies.

In addition to increased operational costs, the drought has been resulting in reduced operating hours, increased overhead expenses and growing concerns about businesses’ ability to maintain sanitation standards required by regulators.

“Some operators are also considering layoffs if shortages persist,” the lobby group noted.

Scattered showers across parts of the island on Wednesday, along with a forecast from the United States National Oceanic and Atmospheric Administration (NOAA) that a tropical depression could form in the Atlantic later this week, have both offered some hope of relief.

Despite the improved forecast, Reid said the SBAJ remains cautiously optimistic as it continues to assess the situation and provide support for its more than 700 members and the wider MSME community, which comprises over 400,000 operators.

“I welcome any sign of rain in the forecast as a good thing, as not only will this ease the dry-weather challenges we are now facing as a country, but also help to ease the burden on businesses that have to buy truckloads of water frequently,” he told the Jamaica Observer in an interview on Wednesday.

Against the backdrop of a worsening water situation, the SBAJ however urged government, the NWC and development partners to introduce immediate measures that will help to cushion MSMEs from the effects of the drought while building their resilience against future water disruptions.

Among its list of proposals, the association also called for an emergency water subsidy or voucher programme for registered small businesses to help offset the cost of trucked water during the dry period. It further stressed the need for a priority water trucking system to be put in place, coordinated with the NWC and private water suppliers, to ensure essential businesses can access water at regulated rates.

Other measures proposed included a temporary tax relief or a three-month deferral of statutory payments for affected businesses; subsidised water tanks, rainwater harvesting systems and greywater reuse kits; as well as a long-term drought-resilience programme that incorporates small businesses into national water policy planning.

The SBAJ said investment in community catchment systems, water-leak repairs and business continuity training could also help businesses to better prepare for climate-related disruptions.

“Small businesses are the engine of our economy and employ the majority of Jamaicans,” Reid said. “If we don’t protect them now, the effects of this drought will be felt in every household. We need relief today and resilience planning for tomorrow.”

The association, now establishing a Drought Impact Help Desk, said this will allow members to report water-related disruptions and access information on available support.

“The SBAJ stands ready to work with the Government, NWC and private-sector partners to implement measures to assist affected businesses,” Reid also said.