“Develop the Pola Markets before Capital Markets” – urges MTI
View(s):In a developing country where a significant proposition of population rely on ultra-small businesses for livelihood, governments should invest more ‘energy’ and funds on developing the small business infrastructure vs. getting distracted by the glamour of capital markets. The message should equally resonate to the chambers and business leaders, says MTI Consulting CEO Hilmy Cader.
“Take tea as an example, there are over 400,000 smallholders (who are also voters!), who, as we speak are in a desperate situation. The government’s decision to play the ‘buyers role’ is only a very temporary ‘pain killer’. Similarly, there are over 350,000 ultra-small shop keepers and another 500,000 + who rely on the pavements, polas and walking around to earn a living,” he said in a commentary.
This is the base of the economy and if this is fundamentally strengthened, it will permeate upwards and eventually strengthen capital markets vs developing capital markets and hoping it will trickle down to the these grassroots. Even in mature economics like the US and Australia, there is increasing focus on small businesses. In fact, the post GFC recovery in the US is largely attributed the business improvements in small businesses. Australia has a dedicated minister for small businesses and considered a key role in the cabinet. So, how about the next small business road show in Galenbedunuwewa, Thanamalwila and Girandurukotte?! The core argument is: “Develop ‘Main Street’ and ‘Wall Street’ will follow”, he says.
(Please see Comment on Page 2.)