‘Historic day’ for MSMEs

WESTERN BUREAU:

The Government has committed to ensuring that micro, small and medium-sized enterprises (MSMEs) benefit from the billions of dollars being spent on public contracts, with Finance Minister Fayval Williams indicating that plans are being put in place to end the era of government procurement being reserved primarily for large established companies.

Williams, who was speaking at the launch of the MSME Procurement Integration Project and Boot Camp in St James, yesterday, said the initiative marks a major step in implementing Jamaica’s public procurement set-aside policy, which reserves eligible government contracts for qualifying MSMEs.

“For too long, many small businesses have viewed government procurement as something that is out of their reach, inaccessible, something reserved for larger or established firms. We are changing that narrative,” she said.

According to Williams, the Government purchases billions of dollars in goods, services and works each year, and those expenditures should do more than keep public institutions operating.

“Government spending should accomplish more than meeting operational needs. It should also stimulate enterprise, create employment, encourage innovation and strengthen local industries,” she said. “Every public dollar must deliver value for taxpayers while also supporting economic transformation.”

Williams further revealed that procurement data show that between the 2023-24 and 2024-25 financial years, and the first nine months of 2025-26, more than 29,000 procurement transactions valued at $36.2 billion fell below the current single-source thresholds, making them suitable for MSMEs.

The contracts included approximately 12,400 goods contracts worth $13.7 billion, 12,500 service contracts valued at $14.4 billion, and 4,300 works contracts worth about $8.2 billion.

Holding up the document with the figures before the audience, Williams asked: “Show your hand if you’re a small business and you participated in that $36.2 billion.”

When no hands were raised, she responded: “We are changing that. By this same time next year... we must have numbers about new companies that have participated in government procurement.”

Williams also stressed that the $36.2 billion represents only a fraction of the approximately $186 billion allocated in this year’s national budget for goods, services and procurement of works.

She said Jamaica has an estimated 425,000 MSMEs, employing between 60 per cent and 70 per cent of the workforce while contributing approximately 44 per cent of gross domestic product.

“They are not a small part of our economy. They are its foundation,” she said.

Williams further argued that every government contract awarded to a small business creates a ripple effect across the economy through new hiring, investment, increased tax revenues and stronger local communities.

“Economists call that the multiplier effect. I call it nation-building,” said Williams, pointing to countries including the United States, Canada, South Korea and Singapore, which deliberately use public procurement to strengthen domestic businesses and drive economic development.

Williams also urged entrepreneurs to formalise their businesses and maintain proper financial records, warning that many promising enterprises fail to grow because they neglect sound business administration.

“You must have your financials in order. You will not move from where you are if you don’t have those things in place, and we’re here in the Government to help you,” she said.

She disclosed that officials are already reviewing procurement requirements that may unnecessarily prevent small businesses from qualifying, including a provision requiring MSMEs to have an established line of credit before securing contracts.

Williams said the Government would also expand supplier registration, strengthen training and monitor compliance with the procurement set-aside policy to ensure more MSMEs secure contracts.

“This minister is going to be pushing the various entities to make sure it happens, and they have to show me the numbers,” she said. “When Jamaica’s small businesses succeed, Jamaica succeeds, and there is no stronger procurement policy than one that builds both value for money and a stronger nation.”

MSMEs now have a guaranteed share of the procurement pie, 20 per cent under the government procurement set-aside order of 2019 from which they can bid to provide goods and services to the Government under secured contracts.

Tishauna Mullings, chief social innovator at Next Step Social Impact Consulting and representative of the Young Entrepreneurs Association (YEA), says the setting aside of public procurement contracts for MSMEs will be transformative for local entrepreneurs.

“We’ll be able to pay our staff better, secure the much-needed contracts, and we’re grateful that there’s a set-aside, so we don’t have to compete directly with the so-called big boys. This allocation gives us the space to do our work,” she told The Gleaner.

“We’re also excited about the training and hand-holding support that’s available. Many MSMEs stayed away before because they didn’t understand the process. Now, I feel like we’re turning a big corner. The truth is, the ball is in our court – if the set-aside works as the minister outlined and we are properly trained, then once we apply, the contracts should start coming to us. I believe this will truly change the landscape for MSMEs in Jamaica,” she added.

Garnett Reid, president of the Small Business Association of Jamaica (SBAJ), has hailed the Government’s move to reserve 20 per cent of eligible public procurement contracts for MSMEs as a historic opportunity that must be matched by training and preparedness.

In responding to the MSME Procurement Integrated Project and Boot Camp launch, Reid thanked the Ministry of Finance, the Public Procurement Commission, the Development Bank of Jamaica, and the Ministry of Industry, Investment and Commerce for what he described as their unwavering support for the sector.

“Today is a very historic day. We must express our sincere thanks and appreciation for the support given by the Ministry of Finance for the 20 per cent set-aside in government contracts, he said.

However, Reid cautioned that not every small business is currently equipped to benefit from the programme.

“Not all small operators have the necessary training to qualify for the 20 per cent set-aside,” he said.

Reid said, while noting that the SBAJ would partner with organisations, including the YEA and the MSME Alliance, to ensure business owners receive the training needed to compete successfully for government contracts.

albert.ferguson@gleanerjm.com