MORE THAN 8,000 BUSINESSES NOT REOPNEING

MANY more than 6,000 small businesses have been permanently closed by the economic ravages of Covid-19. 

That’s the qualified analysis based on sample surveys with business organisations throughout the country, and through research and anecdotal evidence. 

It is estimated that as many at least 8,000 micro, small and medium-sized enterprises did not survive the prolonged shutdown and consumers’ reduced spending ability. 

There are 26,062 registered micro, small and medium-sized businesses, which represent 85 per cent of all operators, contribute 28 per cent of Gross Domestic Product (GDP) and employ more than 200,000 workers. 

At least, those were the figures before the shutdown of the commercial sector as a result of Covid-19. 

Coordinator of the Confederation of Regional Business Chambers Jai Leladharsingh has said that at least 6,000 operators would remain permanently closed. 

This figure was disputed by the Trade and Industry Ministry, which stated that “it is unrealistic that 6,000 business entities in the retail sector will remain closed.” 

Small businesses are defined as having between six and 25 workers, an asset base of $1.5 million to $5 million, excluding real estate, and annual sales $5 million to $10 million. 

The informal sector is characterised as small firms with fewer than five workers, of whom no more than two are regular, and requiring no licence, permit or certification to operate. 

Business organisations in various parts of the country confirmed closures of mainly micro and small shops, and said that middle-sized operators were more likely to survive the Covid-19 backlash. 

They confirmed that the informal sector – vendors, cafes, car-cleaning shops etc., — were badly affected, with some unable to pay rent, utility bills and other charges, and having to send away workers. 

“Some of these guys have said they cannot afford to re-open,” said a business leader at Penal. 

Similar reports resonated at San Juan, Chaguanas, Princes Town, Couva, Curepe and elsewhere. 

Small businesses faced similar problems but some were a bit more financially resilient.  

Medium-sized operators complained of the additional burden of shortages of foreign exchange and of having to purchase on the black market at up to 30 per cent higher than the official rate. 

The operator of a small food takeout business near to Curepe said he had to keep paying rent in order to keep his place, which is well suited to foot traffic. 

Some businesses have found that large corporations have ventured into their respective fields of operations and because of economies of scale, are selling at lower prices. 

One example is stationery, which has become a prime business activity of one of the country’s leading retailers. 

Meat shops, appliance retailers, bakeries and flower shops are similarly affected. 

“The government just did not do enough for us,” said the owner of an auto detailing shop at Chaguanas, who said he is struggling to re-open. 

The Ministry pointed to measures introduced by the Government to assist affected businesses. 

But officials of some of the regional Chambers insist that the aid did not do enough and were not equitably distributed. 

As a result, Trinidad and Tobago’s commercial landscape is different from prior to the Covid-19 pandemic.