Prime Minister Bruce Golding (left) examines a vase at the official opening last Saturday of the Jamaica Business Development Centre's (JBDC) Incubator and Resource Centre. The Incubator and Resource Centre is located at the Freezone Complex, Marcus Garvey Drive, in Kingston. Beside the prime minister is JBDC Executive Director Valerie Viera. - Winston Sill/Freelance Photographer

Prime Minister Bruce Golding yesterday hurled criticism at commercial banks for their lack of support for micro, small and medium-sized enterprises (MSMEs).

"The commercial banking sector has not yet recognised its obligation to provide a customer-friendly door to the small businesses," Golding told his audience at the opening of the Jamaica Development Incubator and Resource Centre at the Garmex Freezone in Kingston.

Noting that MSMEs provided the base for job creation and economic growth, Golding said that banks were investing too heavily in government paper, noting that one boss of one the island's largest commercial admitted that as much as 70 per cent of its profits came from investment in government paper.

"In a sense, we (the Government) have spoilt them (the banks) because if you put butter into puss mouth then puss is going to grab the butter. And therefore if we put an option before them that compares so favourably with the hard option of going out and investing in a business or evaluating a risk of somebody who is going in a business ... then the bank is going to go in the direction of least resistance," the prime minister said.

Make credit facilities

He said Government will shortly announce initiatives to make credit facilities for MSMEs. In addition, Golding says more will be done to provide the sector with business training to improve the success rate of small business. The estimated mortality rate of small businesses is 70 per cent the Jamaica Business Development Centre reported.

He said there would also be a restructuring and refocusing of scientific research agencies within the Government to directly link them to commercial activity.

"The application of knowledge is going to be driver of business," Golding said.

"Its a holistic thing. It is not going to be just a matter of taking money out of the National Insurance Fund and say we going to lend money to small business. It's a concrete package that we have to do where we can expose them," he said.

Approximately 32.3 per cent of the country's labour force is employed by the small business sector.