FOR many small businesses, making the decision to participate in a standards development process remains difficult, as managers are typically reluctant to allocate resources to a long-term process that may not yield immediate benefits.However, if a company is committed and participates actively in the process, the return on investment can be substantial, according to Public Relations Officer (PRO) of the Guyana National Bureau of Standards (GNBS), Lloyd David.

The GNBS PRO noted that entrepreneurs are encouraged to have their businesses join the global fraternity of small and medium-size enterprises (SMEs) which are already reaping the benefits of compliance and certification to internationally recognized standards.

“The true prosperity of your SMEs may be hinged on the implementation of standards. Initiate that contact with the GNBS now and find out which standards can best address the needs of your business for growth and competitiveness,” he said.

NOT TOO SMALL
David explained that the notion that an enterprise is too small to implement standards is a myth. The Bureau believes that it is time that local businesses begin to embrace the implementation of standards as guidelines and tools which are determined by consensus as the strategies to be adopted by businesses to streamline their operations, realise profits, maintain sustainability; and, most importantly, facilitate access to more markets.

He said an enterprise can implement standards and use them as negotiating tools, in addition to ensuring quality, improving customer service and reliability, and reducing costs. Standards are also the common language used globally in trade negotiations, and can allow local businesses to confidently export their products to other parts of the world and provide assurance of quality.

The GYS 231 standard, ‘Requirements for good manufacturing practices for micro, small and medium-size enterprises’ defines the fundamental requirements to enhance small business performance through the process of continual improvement and assurance of quality, environment and occupational safety and health requirements.

The standard also reduces nonconformity, David added, and local SMEs are therefore encouraged to consult with the GNBS to be sensitised on how this national standard can be implemented to guarantee improved business performance.

He further explained that standards provide as many benefits for small businesses as they do for global enterprises. The strategic use of standards can make a significant difference to the annual profits of an SME, and can sometimes mean the difference between success and failure.

EXPORT MARKETS
For smaller firms, some of the benefits of using standards include the opening up of export markets, heightened operational efficiency, and increased confidence, as customers from all over the world recognise the compliance of businesses, products and services that comply with standards.

The principal benefits of participation include visibility, in-depth understanding, innovation, competitive advantage, networking possibilities, and opportunities to access potential customers. In other words, non-participation in standardization gives away the advantage to the competition.

It is, however, still a challenge in many business environments, locally and foreign, to convince small companies to participate in standardisation, David noted. The GNBS, through its technical assistance and training programmes, provides an avenue for micro-, small- and medium-size enterprises to be sensitised on the requirements of national and international standards. (rrooplall@guyanachronicle.com)

By Rabindra Rooplall