Fiji Times Online

Fiji Time: 3:23 PM on Monday 6 September

/ Front page / Business

Poor data bars growth

Saturday, January 23, 2010

SMALL businesses in Fiji do not receive the right support for growth and development because there is no data to justify their important functions in the economy.

Chartered accountant and consultant Dr Nur Bano Ali said this sector was not well recognised "because of the peripheral understanding of its impact and contribution to society and the economy".

Speaking at the FDB 2009 Small Business Awards event in Suva on Thursday night, she said if small business was so important, why was there such a lack of targeted programmes to promote it.

"This is simply because we do not have data to support its important function in the economy and are reliant on global statistics and information to promote this sector in Fiji," Dr Ali said.

"It is the global phenomenon which started some 10 to 15 years ago now that has started the small business movement in Fiji."

The FDB clearly recognises, like most other financing institutions, that small business makes serious contributions in Fiji.

She said emphasis and focus on small business was a global phenomena and very well justified because the collective strength and power of small business was phenomenal.

"For example, a typical small business with a turnover of $30,000 per annum is: owner operated, employs at least two people, pays VAT on its services, and supplies of $2000," Dr Ali said.

"If we multiply this to 50 small businesses then the collective stats are: a turnover of $1.5 million, employment of 100 people, VAT payable of $100,000, supports 50 families.

"Then for 100 of them the turnover becomes $3million, employment levels go up to 200, VAT and contribution to taxes goes up to $200,000," Dr Ali said.

"It is this collective information that has to be captured and articulated to realise the strong contribution of this sector," she said. Dr Ali said small businesses must be supported through a structure that ensured information capture on the numbers of people involved, families who depended on it, values of trade, and the pervasive economic impact of this sector.

"Once we are equipped with the correct information and properly comprehend its socio-economic impact, then we can justify even greater deployment of resources to support the growth and development of this very important player in our economy," she said.

She said the small business sector was not serviced very well at the current time "because it is left to the market forces and the larger institutions who cannot justify the support as it does not necessarily make economic sense to deploy resources to encourage this sector".

"This has to change and I urge intervention at government level to provide the facilitative support mechanism to grow this sector, particularly at this time of Fiji's economic disposition, one that is in need of growth," Dr Ali said.

ANZ
Currency Inward TT Buying Rate Sell Rate
GBP3-week history 0.34100.3330
CAD3-week history 0.55140.5294
EUR3-week history 0.40950.3975
JPY3-week history 45.200042.2000
NZD3-week history 0.73840.7054
AUD3-week history 0.57990.5549
USD3-week history 0.52870.5117

from

$00.00

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