Future-proofing SMEs: Government-driven growth

The government of TT plays a crucial role in supporting the growth of SMEs. Through financial assistance programmes, training and access to international markets, the government actively empowers SMEs to overcome challenges and seize opportunities.

By supporting SMEs, it also boosts innovation, competitiveness and economic prosperity, ensuring sustainable economic growth.

The current global environment, characterised by dynamic market conditions and rapid technological advancements, requires the future-proofing of SMEs for long-term sustainability and growth.

In this week's column, the Ministry of Trade and Industry outlines initiatives to advance SME growth.

SMEs are recognised as engines of economic growth and job creation.

The Ministry of Trade continues to ensure the right enabling environment is in place to support the resilience of SMEs and entrepreneurs against future shocks.

Through the implementation of key programmes and initiatives, the government is focused on building the sustainability and adaptability of businesses.

SMEs must be able to drive the green and digital transition and navigate a changing international trade and investment landscape.

Enhancing financial support to SMEs

The government continues to create a robust ecosystem with access to diversified financial instruments that empower SMEs to thrive in the face of challenges, uncertainties and opportunities.

Through the range of grants offered, SMEs can innovate, expand their facilities, invest in new equipment and technology, and build capacity to increase productivity and sustain operations in the long term. These financial instruments include the Grant Fund Facility (GFF), the Research and Development Facility (RDF), the Grant Facility for Micro and Small Enterprises in the Yachting sector, the Steelpan Manufacturing Grant Fund Facility (SMGFF), the Export Booster Initiative (EBI), the Music Business Development Grant, the Co-Financing Facility and Import Duty Concessions.

Driving e-commerce

To enable businesses to become more adaptable, resilient and competitive in the global digital economy, the government is currently in the advanced stage of developing a national e-commerce strategy. This strategy will make recommendations to address the challenges identified by businesses in navigating the e-commerce landscape.

Implementing the strategy will equip SMEs with the capacity and tools supported by a well-developed e-commerce ecosystem.

The green economy

SMEs also play a critical role in countries achieving their climate objectives. SMEs are encouraged to green their processes, introduce green innovation and even create new businesses that provide environmental solutions. Future-proofing SMEs to adapt to the green economy and promote sustainability in their operations requires targeted initiatives. To aid businesses in this transition, the government has established a Green Manufacturing Initiative (GMI) to provide local manufacturers with funding to adopt and/or improve green manufacturing practices. There are also key fiscal incentives in place.

The objective is not only to minimise the environmental impact of SMEs but also to allow them to position themselves competitively in an increasingly green market.

Economic infrastructure

To facilitate the growth and expansion of SMEs and future investments, the government continues to develop the required economic spaces and create a conducive environment by establishing several industrial parks. The most recently completed is the Phoenix Park Industrial Estate, already tenanted by several manufacturing, logistics and distribution businesses. In addition, the government has also commenced the implementation of its Special Economic Zones regime.

These strategic actions are geared towards supporting the sustainable growth of SMEs.

Facilitating access to new markets

Increasing access to markets is a pivotal factor in ensuring the long-term success of SMEs.

New markets will result in increased sales and revenue streams and a diversified customer base, which is necessary for growth.

To expand into international markets, the government is negotiating new trade agreements with Chile and Curacao and the expansion of existing agreements with Colombia.

Further, commercial offices were set up in Panama, the UK and the US.

Commercial attachés were appointed in Guyana and Jamaica to provide targeted support to businesses.

Gender diversity

Embracing gender diversity is not just a moral imperative but a strategic necessity for SMEs looking to future-proof their operations.

Businesses with diverse leadership tend to demonstrate resilience in innovation, decision-making and value creation, making them more proficient at traversing future uncertainties. The Trade Ministry in collaboration with the International Trade Centre launched the SheTrades Hub to enable local women-owned businesses to overcome barriers to trading globally.

The hub offers capacity building, networking and opportunities to participate in local, regional and international trade shows and missions.

To date, over 700 women are registered on the platform and have been using the opportunities available to improve and grow their businesses.

Through the Trade Ministry and its state agencies, the government continues to ensure that SMEs have the tools to confidently overcome future challenges, grasp opportunities and remain resilient in times of uncertainty.

The government remains committed to fostering a culture of innovation, sustainability and adaptability for all SMEs in TT.

Some of the ongoing government strategies are:

National e-commerce strategy

Green Manufacturing Initiative (GMI)

Industrial parks

Special Economic Zones regime

Market access: Trade agreements, commercial offices and attachés

SheTrades Hub