SMEs may face troublesome times ahead...says local entrepreneur

By Melissa Bryant
Reporter-SKNVibes.com

~~Adz:Left~~BASSETERRE, St. Kitts – JUDITH RAWLINS, local entrepreneur and proprietor of the Brown Sugar clothing line, has said that small and medium enterprise (SMEs) need support from the government, banks, consumers and employees if they are to survive the impact of the global financial crisis.

Rawlins delivered these remarks at a Central Basseterre Town Hall Meeting at the McKnight Community Centre on Thursday, October 30, where she outlined the effects of the crisis on local businesses.

According to Rawlins, the outlook for the future is filled with questions and worrisome possibilities.
“Will the banks be willing to work with SMEs in trying times or will they tighten up their credit controls, such as introducing stricter lending criteria? This move can directly or indirectly affect businesses and their customers. It can result in an entrepreneur not being able to maintain their overdraft, credit flow, etcetera, or a consumer being unable to access a loan to supplement their income and thus leading to a change in their spending habits,” Rawlins said.

“Another important question is, ‘Will consumers tighten their belts and save for a rainy day?’ There has been an increase in commodity prices, fuel prices and the overall cost of living. Whether you’re TDC, Brown Sugar or the lady on the corner selling sugar cake, you know the cry of your customers, ‘Lawd de price high!’ People may spend less and consequently, profit will be reduced,” she added.

Rawlins further stated that cash flow is essential to small businesses for operational cash and stock purchasing, noting that SMEs are flexible and therefore have the opportunity to adjust themselves accordingly to what is happening in the market.

She stressed that players in the economy should understand their roles.

“The middle class has the responsibity to buy local, to go out and spend to ensure that there is turnover in the economy. So, while others may now be unable to afford certain extracurricular things, the responsibility falls on the middle class...the drivers of the economy, to pick up that slack,” Rawlins said.

In response to her advice for entrepreneurs, Rawlins stated that it is important for them to ride the wave by maintaining existing clientele, keeping their market share, curbing spending, enhancing producvity and being prudent in business.