ACTING Minister of Tourism, Industry and Commerce, Mr. Irfaan Ali has warned local small businesses against restructuring their price lines, in a bid to secure increased revenue, especially when dealing with tourists and foreigners.

Speaking at a business empowerment seminar, hosted by the Georgetown Chamber of Commerce and Industry (GCCI), he said that culture cannot be accepted and must be changed.
The minister referred to a recent example of Barbadian hoteliers visiting Guyana to purchase furniture and seafood but were met with unjustified hikes, despite previously being given lists that indicated different prices.
He emphasised that this practice must be curbed as it will not take one’s business to a higher level.
“It doesn’t matter whether you are a small, medium or large scale enterprise, as the most important aspect of a business entity is honesty and trust and, as a community, it is vital to develop that aspect of Guyana’s environs,” Ali advised.
He added that among the issues plaguing small businesses is the propensity to dispose of profits in foreign territories on properties and other capital investments.
The minister asked the questions: “What do we do with our profits? Do we reinvest it, does it go to the banking system or is it exported?”
He said profits from many entities are spent on foreign shores.

ANOTHER CHALLENGE
Minister Ali also observed that another challenge to micro-enterprises is the tendency to establish impersonating businesses, based on trends and said, for example, if someone should visit certain communities and see everyone operating the same type of business.
He said, when one person opens a clothing store or boutique, then everybody else starts to open more such stores and boutiques.
Ali continued by pointing out that, if there are eight clothing stores in the community, a smart businessman should not think of opening a business based on that same trend but rather an alteration shop would be deemed more profitable, because most people have to adjust their clothing when they buy it and that might be a more feasible business.
Nevertheless, the minister said government, together with the private sector, cannot expect small and medium enterprises (SMEs), without the capacity to conduct market research, to identify opportunities that are not based on trends.
He suggested that the private sector take the initiative to lead individuals in the direction which calls for a collaborative approach by all stakeholders.
Ali said SMEs can anticipate a reorganised and aggressive business council that will conduct outreaches and collaborate with the private sector, as persons will be assisted with the groundwork to identify relevant areas and direct businesses to opportunities.
The minister maintained that a small business entity is not there just to create a weekly wage and remain in its micro stage.
He said a lot of businesses start at the micro level but never seek to expand beyond the family, because of the need to maintain control.
Ali advocated that SMEs must be developed and accelerated into a pathway of growth and cited 10 poultry farmers producing 300 chickens as not being as effective as singly as they would, if they banded together to apply to government for a long-term lease and access a bank loan.
He said that would get them a competitive advantage, ensuring they have the appropriate size of business to compete.

BASIC QUESTIONS
According to him, persons must ask basic questions at both the policy and private sector levels as to how people can be grouped in sectors to build linkages for developing small businesses.
He said, although the mining sector in Guyana is thriving, graduates are leaving technical institutes with certificates and are looking for jobs but, if mechanics can create linkages, they will increase their access to opportunities and negotiate with a company of miners to contract their services.
Ali said that is because the entrepreneurial spirit in them has not been brought out and it is his belief that entrepreneurship should be taught as a foundation course in every programme at the university level, since it is essential to produce people to become job creators.
He asserted that financial institutions must determine the manner in which a common level financial platform, that would not pose a challenge to SMEs, can be developed.
The minister said he is hopeful that, with the collaborative efforts of financial institutions, transaction time can be reduced with pre-approved projects and ideas based on the trajectory of the economy.
He disclosed that, this year, government will develop a robust model for the small business development fund which now stands at more than $360M.
The revolving facility will be managed and administered to ensure viability, sustainability and profitability to ensure that everyone benefits, he assured.
Ali acknowledged that there is a common misconception that revolving funds sourced from government are “charity and easy money.”
But he highlighted the need for small businesses to fulfil legal obligations, such as tax and National Insurance Scheme (NIS) compliance, adding that those are the two foremost requirements in accessing and procuring government services.
He concluded that it is not just about identifying opportunities but ensuring the creation of a framework to make use of them.
“We must prepare ourselves,” he advised, stating that such empowerment forums are important not only for the provision of information but to move businesses from the stage of idea to implementation.