Statement on the Updated MSME and Entrepreneurship Policy

The MSME & Entrepreneurship Policy was first tabled in 2013, as a comprehensive document of initiatives for addressing the major issues confronting the growth and development of the MSME sector in Jamaica;

In 2016 MICAF began a limited review of the 2013 Policy to make it more relevant and current to the changing economic landscape for MSMEs.

This review sought to:

 Amend the definition for MSMEs, bringing it into alignment with international definitions and national requirements;

 Generate a 5-Year Costed Implementation Plan/Roadmap with key projects, activities, strategies, performance measures, timelines, responsibility framework and expected outcomes for the sector and,

 Incorporate critical and relevant emerging priority areas of growing significance nationally, regionally and internationally.

The Revised 2017 Policy is consistent with Government of Jamaica’s commitment and efforts to have the document updated on a regular basis to respond to changing socio-economic developments and dynamism within the MSME ecosystem.

It is also consistent with repeated requests from key stakeholders to have a current and relevant enabling environment to drive the growth and development of the sector;

The Updated Policy review process took into consideration alignment with other National Development Policies including; Vision 2030, and the Medium Term Economic Framework; as well as, other legislative, regulatory and programmatic developments within the MSME Ecosystem since 2013.

A new priority area, Social Value Creation, has been added following extensive consultations. Social Value Creation takes into account the recent emergence of the role of social enterprises operating in the MSME space.

There are six (6) thematic priority areas including the following:
 Creating an Enabling Business Environment
 Increasing Finance to the Sector
 Enhancing Business Development Support
 Fostering a Culture of Entrepreneurship and Innovation
 Social Value Creation
 Tackling Cross-Cutting Issues

DEFINITION OF THE MSMEs

It is important to note that the definition of MSMEs has been reviewed, as proposed by the Bank of Jamaica and the Development Bank of Jamaica, to be more closely aligned with developments in the current business environment; and international standard definitions. Following a Validation Workshop with stakeholders it was agreed that “turnover” thresholds would be the primary determinant in the MSME definition, with “employment” acting only as a guide in the definition;

The following changes are therefore being reflected in the Updated Policy:

 Micro Enterprises increased from a cap on annual sales turnover of J$10 million to J$15 million. It was J$5 million to under J$10 million in the 2013 Policy.

 Small Enterprises increased from a cap on annual sales turnover of J$50 million to J$75 million. It was over J$10 million to under J$50 million in the 2013 Policy.

 Medium Enterprises increased from a cap on annual sales turnover of J$75 million to J$425 million. It was over J$50 million to under J$150 million in the 2013 Policy.

The Updated 2017 Policy is being tabled today as a Green Paper. The Ministry will be convening one major Validation/Consultation Workshop with a view to presenting the Draft Final Policy to all stakeholders, and to present the Final Policy as a White Paper before the end of the current Fiscal Year.

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