Lack of structure and strategic planning is a key factor behind the closure of many small businesses, according to organisers of the Pathway to Profit initiative.
While acknowledging that financial constraints are a major challenge for entrepreneurs in starting and maintaining their businesses, Ashley Phillips-Kinch, co-coordinator and owner of Bijou Media, said a number of micro, small and medium enterprises (MSMEs) also fail to adopt proper systems, instead operating informally rather than as structured entities.
“I feel that as small business owners, we use that word ‘small’ lightly, and we use that to define ourselves when we should really be operating just like a corporate entity. We need structure. We need to know where and when and how to put things, and what we don’t do is think of that first,” she said.
“We think it’s just me, or, you know, my family, involved in the business, and we don’t structure it the right way. So apart from finances, obviously you definitely need marketing. But I feel like structure is one of the key things that we miss…,” she said.
Rochelle Walrond-Cox added that structure is central to building long-term business success.
“Structure really leads into the legacy that you’re leaving behind, because we realised that a lot of microbusinesses, small businesses, after a few years or so, tend to shut down. But what is the legacy? What is the exit plan? What are you going to do next? How are you growing that business so it remains, so it can be passed on to the next generation?” she stated.
Walrond-Cox, who is also the CEO of Digital IRC and Envoici told Barbados TODAY that some persons also suffered a lack of understanding in relation to the operations aspect, including what technologies they should be investing in and which ones were going to take their business to the next level.
The comments were made at the Pathway to Profit event at the Lloyd Erskine Sandiford Centre, which brought together entrepreneurs and industry experts. The initiative focused on building sustainable businesses through guidance in accounting, risk management, insurance and business continuity.
The event was sponsored by Payce Digital, The Barbados Trust Fund Ltd, the Small Business Association and FundAccess.
The two were speaking as a number of local entrepreneurs gathered for first-hand insights from industry experts on how to create sustainable businesses.
The Pathway to Profit event was held at the Lloyd Erskine Sandiford Centre, with the aim of transforming small businesses into profitable entities by providing owners with expert advice in accounting, risk management, insurance and business continuity.
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