Hundreds of LEIs Now in Formal Economy

The Social Development Commission (SDC) is reporting significant progress in its business formalisation efforts for grassroots entrepreneurs.

Speaking at a recent Jamaica Information Service (JIS) Think Tank, Director, Local Economic Development at the SDC, Avril Ranger, said that 268 of the 390 Local Economic Initiatives (LEIs) being served through the Local Economic Development Support Programme (LEDSP) have now formalised their operations.

“We were way behind as it relates to having our LEIs, even having their business names registered, and so we are at 69 per cent of those that we are serving right now,” said Ms. Ranger.

She emphasised that the SDC is committed to collaborating with ministries, departments and agencies (MDAs) in supporting and bringing these businesses into the formal economy.

“It’s a very aggressive approach from the Commission, because we know that we cannot have persons operating and they are not in the formal sector, so we put great emphasis on getting this done,” said Ms. Ranger.

She noted that sometimes the LEIs have to be convinced to formalise their businesses, as many of them initially assume it is just another form of taxation.

“So, we have to work also in terms of coaching our LEIs as it relates to their responsibility as an entrepreneur and in contributing to the economy and to being a part of the formal sector,” Ms. Ranger added.

In addition to business registration, the SDC has integrated value-added capacity building programmes such as candle making, soap making, body care lotions and floral decorations training to equip LEIs with practical skills that can expand their economic potential.

Ms. Ranger informed that the SDC maintains detailed data on these initiatives, showing both the scope and impact of the training across different communities.

Digital marketing and business branding also form part of the agency’s support strategy.

“One of the things that we will do with them, from time to time, is to have workshops on how you create your Instagram page and how you project yourself. So, when you walk into the SDC doors, we pretty much strip you down and we reformat in terms of thinking as well as your appearance,” said Ms. Ranger.

She further indicated that through the SDC’s interventions, LEIs are becoming more well-read and exposed.

“They recognise that not only Jamaica is their market but they can also, through our assistance with the training, become formidable businesspersons operating on the Internet,” she added.