Operators of small and medium businesses have called on the government to implement new policies to safeguard the sector amid economic hardships.
Speaking during the Joy Business Pre-Budget Forum ahead of the 2023 Mid-Year Budget, the CEO of Earthyria, Noung Faalong, highlighted the pressing issues faced by small businesses, including high taxes, soaring lending rates, and escalating raw material costs.
The CEO expressed concern over the burdensome production costs, leading some businesses to collapse and necessitating staff reductions.
Noung Faalong recounted, “We have reduced the number of staff by 5 people because we are not able to pay workers. It means that we are not able to produce like we do, it has also reduced our turnaround time because we do not have the needed hands to meet demand.”
The prevailing unfavourable macroeconomic conditions, particularly high inflation and interest rates, have not only affected businesses but also eroded households’ purchasing power, leading to decreased product demand and reduced sales.
“It’s been difficult especially when you have the disposable income of consumers dropping and that has affected their ability to purchase products.”
To address these challenges, Noung Faalong emphasized the need for targeted funding support and improved education to enable all SMEs to benefit fully.
She suggested, “We need a bit more education on how we can position ourselves to make it a bit more accessible. We can also decentralize the administration of these funding opportunities to spread it across the country.”
