MSMEs not ready for government contracts

THE push to reserve 20 per cent of government procurement for micro, small, and medium-size enterprises (MSMEs) is highlighting a readiness problem, with many businesses struggling to meet verification requirements because they lack proper financial records.

“We have launched in July the process of verifying the SMEs for this list, so it is taxing because most do not have financials,” Public Procurement Commission (PPC) Executive Director Nadia Morris said Monday at the launch of the Jamaica Employers’ Federation (JEF) and Young Entrepreneurs Association of Jamaica (YEA) Business Development Centre at the JEF’s office on Ruthven Road in Kingston.

The verification process is intended to establish a business’ category, revenue, and ownership, helping to identify businesses eligible for government procurement opportunities. But the issue extends beyond getting businesses onto the registry, with the PPC also focused on strengthening supply readiness and building a pool of contractors capable of delivering quality services, once awarded contracts.