Business definitions released

Gets rid of irregularities

The Ministry of Tourism, Environment, Investment and Commerce has announced progress in the effort to define the micro, small and medium-enterprises sector.

Minister of Investment and Commerce Charles Clifford said the Cayman Islands Investment Bureau has developed technical details supporting proposed MSME sector definitions.

‘Given the importance of small business development to the continued economic prosperity of the Cayman Islands, the establishment of definitions concerning enterprises in this sector is an essential base for government policy,’ Mr. Clifford said.

Mr. Dax Basdeo, executive director of the CIIB explained that in the past, this group has been inconsistently defined across sectors in the Cayman Islands.

This irregularity has made gathering MSME data difficult and providing assistance to businesses in need problematic.

‘Despite the poor global economic outlook for 2009, we know that opportunities will exist for local entrepreneurs in our MSME sector. Our goal is to support them so they can achieve their highest potential, thereby bolstering our economic capacity to handle such economic conditions,’ Mr. Clifford said.

Mr. Basdeo said that definition input was sought from key stakeholders.

‘We have consulted several entities in both the public and private sectors, and we also incorporated considerations from regional and international definitions,’ he said.

Local stakeholders and others in the business community are encouraged to provide further input in order to finalise these definitions.

The definitions for MSMEs which are currently being considered are as follows:

Micro Enterprise:

a) independently owned and operated, with close control over operations ans decisions held by the owners (i.e. owner managed and not a subsidiary of an international business)

b) less than 5 employees – excluding the owner(s)

c) the maximum net worth of the business does not exceed CI$75,000

d) annual turnover of the business does not exceed CI$100,000

e) total borrowings do not exceed CI$100,000

Small Enterprise:

a) independently owned and operated, with close control over operations and decisions held by the owners (i.e. not a subsidiary of an international business)

b) between 5 and 10 employees – excluding the owner(s)

c) the maximum net worth of the business does not exceed CI$300,000

d) annual turnover does not exceed CI$250,000

e) total borrowings do not exceed CI$250,000

Medium Enterprise:

a) independently owned and operated (i.e. not a subsidiary of an international business)

b) between 11 and 24 employees – excluding the owner(s)

c) annual turnover does not exceed CI$500,000

d) total borrowings do not exceed CI$500,000

To provide input on the above definitions, contact the CIIB at 945-0943 or [email protected]

Alternatively, visit www.investcayman.ky/sbn.cfm

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