ROUNDTABLE ON MICRO, SMALL, AND MEDIUM ENTERPRISES, CHAMBER OF COMMERCE and Industry, Belize City, 21 October 2010.

Talking Points presented by Alexis Rosado, Chief Executive Officer, Ministry of Foreign Affairs and Foreign Trade. The subject of todays roundtable is timely, and I commend the Chamber of Commerce for taking the lead in organizing this event. Those of you who are here today must be applauded too for taking the time from your busy schedules to join in the discussion. Your presence here suggests that you already have a good sense and appreciation of the importance of the subject and the tremendous potential that the development of Micro, Small and Medium Enterprises (MSMEs) represent. Without getting into the distinction between the two and what they mean for Belize, I will ask for your indulgence as I use the acronyms MSMEs and SMEs interchangeably. My preference for using the acronym SMEs is only because it is easier to pronounce, and in any case the distinction is subjective and arguable. What is not arguable is the role of micro, small and medium enterprises and their importance in the building of a succesful economy. economy leader could thrive without them. creativity, entrepreneurship, and change. the private sector, economies tend to be fragile. Despite what may perhaps be a readyness to moan about our own apparent backwardness and failures, we do in fact have proud success stories. Our small farmers and producers of cocoa in Toledo have distinquished themselves as world leaders who first introduced Fair Trade labelled
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No true global

The very word enterprise Seldom are any of these

suggests an undertaking that requires boldness, initiative, innovation, characteristics associated with the public sector. When these are lacking in

chocolate in Europe; Travellers Liquours have earned themselves a number of awards in the International Sugar Cane Spirits Competition; Hot Mamas sauces have excelled in the Fiery Food Challenges in the US; our citrus juices are considered premium products in the global market; and Marie Sharps. Suffice it to say that the brand stands unmatched as a symbol of excellence and I dare say is second to none in the world. I have not mentioned anything about services. Our national anthem long ago revealed the hidden secret that Belize is blessed with wealth untold. destination are boundless. Our natural attractions as a tourism A number of small operators and resorts have

distinguished themselves well. It is with some pride, for example, that I can refer to Chaa Creek in the corner of the country I come from - which has earned itself the ASTA Environtmental Award and the Caribbean Hotel Associations Green Hotelier Award. In the media, Channel 5 and Channel 7 have been the recipients of Caribbean awards for excellence in reporting. The public sector is not completely left out of this share of accomplishments. We have established institutions that have earned the respect of the worlds toughest scrutineers. Through BAHA, for example, Belize has been afforded List 1 status by the European Union one of the few in the region. Once a product carries BAHAs seal of approval the biggest markets of the world will open up for that product. Other works are on the way. The Burea of Standards is now being strengthened, and we are in the process of devising the setting up of a Competition Commission. My intention here is not meant for us to gloat. I mention these only to stress the point that in many ways we can compete, and compete successfully, with the best in the world. Note that I have only mentioned those that have excelled in quality and high standards. We cannot and should not aim to
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compete in terms of quantity. In goods and in services this will always be a challenge. The Belize brand must therefore stand for quality rather than quantity. That must be our trademark. Speaking from the policy perspective there is no doubt, and no one needs convincing of the importance and need for SMEs in moving the country forward. The Medium Term Development Strategy 2010-2013 under its sectoral focus, Enterprise Development, speaks to the need for SME institutional strengthening and productive sector credit. In the working draft Horizon 2030, the development of a strong small business sector to create jobs resonates as a theme throughout the Economic Section of the document. The latest Draft Country Poverty Report in its recommendations speaks to the need to devise innovative ways to address financing for existing and potential SMEs and suggests a need to review tax policy to alleviate burden on SMEs. As recent as August of this year, an assessment of the Financial Crisis Impact on MSMEs was conducted by BELTRAIDE with assistance from JICA . The resounding message in all these policy They all recognize the need to address the documents and reports is the importance of micro, small and medium enterprises to the economy. the utmost urgency. My own Ministry, through the Trade Directorate and I must pause here to commend the tireless work of the staff in the Directorate - has conducted nationwide consultations with SMEs. By and large, perhaps the greatest obstacle identified in our interface with them was the lack of affordable access to financing. They also need support with quality and technical standards, marketing, market intelligence, and logistics. course presents a challenge for all of us. I know that BELTRAIDE as the public entity with lead responsibility has been
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challenges SMEs face in order to unleash their full potential and to do so with

Infrastructure of

active in advancing the interests of MSMEs.

There is always room for

improvement in everyting we do of course. But I know that they have been doing and plan to do much more work in this area. BELTRAIDE is present here today so I will leave it to them to speak of all their activities. The Chamber of Commerce in some time past did tremendous work in the area of promoting SMEs. I want to salute the current leadership and very competent staff for building their own capacity and committing their efforts and resources in this line of activity. Todays event being one example of that commitment and their good efforts. I should not say much more but I want to leave with two thoughts that I hope you do not find too provoking. One arises from a suggestion that for us to cut the deploring state of poverty in Belize we must seek high levels of economic growth. In fact, over the period 2002 to 2009 during which our poverty increased by 10 percent, from 33 to 43 percent, our economic growth in real terms was actually over 20 percent, from $1.8 billiion in 2002 to $2.4 billion in 2009. What we must watch are the engines that are utilized to achieve that growth. I dare say that over that same period, with a few exceptions, there was little development of new SMEs in this country. That helps to explain the rise in unemployment and poverty. The monetarists, I am afraid to say were wrong. We now know that growth for its own sake can and does increase the wealth and poverty gap and may lead to an increase in poverty. We have seen that happen in Belize. The other thought I want to leave with you is that planning in the traditional sense that we know it does not work. If we all agree that for our economy to develop sustainably we need an entrepreneural society in Belize, then we must accept that the characteristics associated with enterprise must imbue the everyday activities of persons and institutions in the private and public sector of this country I referred to these in my introduction, i.e. boldness,
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initiative, innovation, creativity, entrepreneurship, change.

By its very

nature enterprise focuses and siezes on opportunities and on needs that arise. In business, as in life, opportunities and needs are more often than not tentative and temporary, less structured, less foreseen. In any given time we get left behind if we do not sieze an opportunity or address a need. Either way, the expected result is not what is desirable. On the other hand, the converse true. By seizing an opportunity or addressing a need when they arise we improve our chances of success. Here today and elsewhere, as we discuss and prepare for the future of SMEs I hope that our aims and ambitions are rooted on modest rather than grandiose ambitions, on pragmatic rather that dogmatic approaches to opportunities and challenges that face us. We know that all plans, and strategies, products of the human hand, tend to age and become obsolete. We must adapt and change. Always. us and the I have every confidence that each of a

institutions we represent can make innovation and entrepreneurship normal, ongoing,

everyday activity, a practice in our own work and in that of our organizations. Thank You.

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