Crime and corruption stifling business ecosystem in Jamaica — PSOJ President

• July 07 2019
• http://www.jamaicaobserver.com/sunday-finance/crime-and-corruption-stifling-business-ecosystem-in-jamaica-psoj-president-difficulty-in-accessing-capital-hindering-smes_169162

President of the Private Sector Organisation of Jamaica (PSOJ) Howard Mitchell says Jamaica has a large, informal Small and Medium-sized Enterprises (SME) economy due to the difficulty they face in accessing capital.

In an interview with the Jamaica Observer's Sunday Finance, Mitchell said the main reason why there's an informal economy in the SMEs sector is because many small businesses face challenges in accessing capital for growth and development.

He added that many SMEs are not officially registered with identification to pay taxes or gain access to the formal banking system, to be approved for loans.

“In that informal space, there is a lot of indiscipline and irregular activity,” the president said. “That irregular activity breeds a lot of money. Because [SMEs] are not registered, there is a tendency to pay people and that is a crime.”

He explained that as a marginalised group, many businesses may feel excluded from opportunities offered by financial institutions or business development organisations.

“When you feel excluded, you feel disadvantaged and you'll have a tendency to act individually and selfishly,” he said.

These activities, he believes, are only short-term opportunities that have long-term consequences, as it facilitates crime and corruption which ultimately stifles the business ecosystem in Jamaica.