Minister of Energy, Small Business and Entrepreneurship, Kerrie Symmonds, is insisting that a collateral registry be developed in this island.
Access to finance for micro, small and medium enterprises (MSMEs) is a legitimate concern, he said, while pointing out that business facilitation for far too long has been treated in a bastardised way in Barbados, “being relevant to only those of lighter hue and complexion, coming from foreign climes and spending millions in investment”.
“Availability of insurance for those plying their trade legitimately and earning a living legitimately as a business, fishermen in Christ Church and in St. James where I represent are known not to have one vessel alone, but sometimes two to three. People have formed partnerships and sometimes have more than that, and then when you hear that they cannot get insurance for the boat that is nonsense, but it happens in Barbados. We as a gov-ernment must now confront the issue as to how we can make sure that we so transform and restructure the way in which financing is available to small businesses in this country,” he said.
Speaking in the Lower House yesterday as it debated an amendment to the Appropriation Bill 2020, he said Barbadians must be educated on the benefits of a collateral registry.
“We have to begin now to talk to Barbadians about secure transactions in the context of a collateral registry, understanding the need to monetise the process of secure transactions, having laws in this country which secure transactions, and develop a collateral registry so that you can have an appropriate level of impact on the quest for economic development. Collateral is the oxygen for the free flow of credit in an economy. It is foolishness to suggest that fishermen, small plumbers, small contractors and artisans who have a wealth of resources by way of assets, small farmers have their crops, small businesses have inventory and now in this COVID time have accounts receivable, but there is nowhere in this land where you [can] secure financial assistance and loans against your accounts receivable and the inventory you have,” Symmonds stressed. (JMB)