Tuesday, 31st August 2021 — I dare say that with the recently passed legislation imposing the Goods and Services Tax (GST) that doing business in Anguilla will become even more challenging. Individuals have asked me why I haven’t started an enterprise on the island. My reply was that it is not only too costly, but also quite cumbersome.
When I resided in Seattle, Washington, I had a business license for part-time/self-employed work that cost a nominal US$75 per year. The state and city’s business record-keeping was clear-cut. There was one simple form to fill out annually regarding the earnings. Many business expenses were deductible on federal government income tax return filings.
In Anguilla, I was discouraged by the expense of operating a similar freelance endeavour involving editorial/writing services, events planning and project management. The Government of Anguilla’s (GOA’s) licensing fees are astronomical. As well, paper work to apply for a business license and reporting to the Inland Revenue and Statistics Departments are exhaustive. How can entrepreneurs be encouraged to operate locally under such austere parameters?
Granted, there are numerous persons who have tried their hands at operating various business entities in Anguilla. The spirit of creativity and innovation abounds here. Some succeed. Yet others flop. Several started over delving into another venture. A few closed-up shops.
I have great admiration for establishments like Mary’s Bakery that recently went through over a year-long major renovation of its premises. The Rogers Family came together with the support of many others – like the Lakes and National Commercial Bank of Anguilla – to renovate the building’s design. It was indeed a struggle. They now have a beautifully modernised facility that can be passed on to generations to come.
What will happen to small businesses and entrepreneurs when the Government Administration implements GST in July 2022? These establishments, whether long-standing or newly created, will not have the resources – financially or human capacity wise – to engage in collecting, accounting and reporting this new form of taxation. If they don’t comply, then there are onerous penalties for their inability to meet GST’s regulations.
The Anguilla community is a place where people are encouraged to explore business development opportunities. There is a resourceful spirit of wanting to see where one can succeed. Organisations like the Anguilla Development Board offer some assistance and small loans for establishing businesses. Young entrepreneurs are encouraged to investigate the field of commerce through the Department of Youth and Culture’s Get Set Programme, and the Anguilla Youth Business Foundation.
Nevertheless, Anguilla doesn’t have a large national agency, like the US Small Business Administration (SBA), which offers loans, technical support and necessary guidance for developing business plans in the private sector. SBA has a programme specially designed – giving attention to women and persons from under-represented groups when bidding on government contracts. Numerous courses are also offered by SBA for those seeking professional knowhow.
The Government of Anguilla mightn’t have the capacity to do something on such a grand scale. Yet, GOA could start by making it easier to conduct trades, especially for small to medium-sized businesses. Concessions are given to developers, corporations and resort properties. So why not give more allowances to smaller commercial enterprises? They are usually allocated when Executive Council makes an exemption.
We need more diversity in Anguilla’s business community rather than to keep repeating the same types of establishments that already exist. There are more than enough restaurants, bars, hair/nail salons along with car dealerships. It would be great to produce fresh ideas that have never been launched in this small developing state.
How about a recruitment agency? When businesses/sole proprietors need to hire someone on a short-term basis or for long-term, contract and permanent staffing, they can go to an agency that has already vetted the prospective personnel. It’s a benefit having potential employees, supervisors, managers and executives screened by an outside source. Saves time, effort and money in advertising, processing applications and interviewing.
Since tourism is key to Anguilla’s economy, an international/regional hospitality training institute could be established at defunct hotel properties like Cinnamon Reef or The Mariners. A new venture in the works is a beekeeping/honey products project collaborated by the Anguilla National Trust and Department of Natural Resources.
Opportunities to create and envisage marketable developments are endless. We must continue to build businesses yet seek alternatives to GST, so that commerce is sustainable.
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Kay M Ferguson is a contributing columnist who uses a nom de plume, The Empress Extraordinaire. Her words encourage us to explore who we are, evolve as human-beings and transform our world. Link with Kay at anguillawriter@gmail.com.
