More government contracts could boost the small business sector

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Minister of State at the Ministry of Foreign Trade and Business Development, Sandra Husbands wants to see small businesses get a bigger slice of the pie when it comes to government contracts.

Maris said that with debt management proving to be an albatross on the backs of small businesses, she believes access to government contracts would help those businesses grow and prosper.

“One important area that will help our small businesses grow is really access to government contracts. Many of today’s large businesses grew because they were able to access significant levels of government contracts. Therefore, we need to to be able to use access to these contracts to allow some of our small businesses to be able to grow so that they can create more jobs and that many of them can develop enough resilience to be able to start looking at things like exporting,” the minister told the Standing Committee on Finance of the Finance Bill 2022in Parliament today.

“…One of the challenges that most small businesses face is in the area of ​​debt management. Debt management has been a terrible noose around the necks of businesses, especially small businesses. They’re undercapitalized, they don’t have enough working capital, they can’t access it and then you have the debt strangling them and they don’t have a method by which they’re going to escape.

Insolvency Supervisor Esther Springer told the Committee that the department was responsible for overseeing the administration of the provisions of the Bankruptcy and Insolvency Law.

She revealed that as part of its plans for the coming fiscal year, the ministry would roll out its debt management program which would provide assistance to small businesses and individuals in debt.

Springer said that under the program, they would help develop debt management plans for businesses and business owners would be required to undergo financial counseling and financial training.

“This area is very important and often overlooked. We see people as young as 23 and up to age 72 suffering from serious debt problems. We see people with eight credit cards using one credit card to pay the other. We see businesses starting up, but due to a lack of awareness of what’s out there, they end up in financial trouble,” Springer said. (RB)

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