Small business advocates, the MSME Alliance said they will be holding a “funeral service” for the death of businesses in the micro, small and medium-sized enterprises (MSMEs) sector that have folded in recent years due to crippling economic circumstances.

The group is inviting “mourners” to attend the service this Saturday at the Portmore Pines Plaza at 1:00 pm.

The service serves “to bring together its members and supporters to mourn the death of businesses in the MSME sector and to draw attention to the need for urgent and significant interventions that will prevent the death of other MSMEs in the future”, according to a press release issued yesterday.

“The organizers intend to bring to the attention of the government and the public that many MSMEs have folded under the tremendous pressures of the global recession, worsened by high JPS (Jamaica Public Service Company) bills, the new tax measures, high interest rates especially for MSMEs without collateral, high and growing bank charges, business closure during the state of emergency, criminality, praedial larceny, among other challenges,” said the release. “While several MSMEs have died, more and more people are opening businesses with the hope that they can survive and grow in these troubling times.”

The MSME Alliance said that governmental support aimed at increasing loan financing to the sector is not sufficient to provide economic stimulus as not many MSMEs are willing to undertake the risks of loan financing in the context of declining demand.

“However, for those willing to borrow, many are disappointed that promises to improve MSME access to financing have not materialized,” added the release. “These include an investment lending institution, a venture capital company, and the credit bureau – the latter of which should enable those with good credit history to access credit without collateral. Further, Cabinet’s decision in April 2009, to provide a 15 per cent procurement set-aside for the micro and small enterprise (MSE) sector has been a failure.”