Family-owned businesses are the throttle needed for rapid expansion of Jamaica's economic growth projections, says Dr Lawrence Nicholson, head of the Decision Sciences and Information Systems Unit at the Mona School of Business and Management.
Nicholson, who was making a presentation at the Jamaica Exporters' Association's
Family Business Management Workshop in Kingston last week, told The Gleaner that the seat of entrepreneurship is with the family-owned businesses.
"Family-owned business is pivotal in helping to accelerate the Government's economic growth agenda. We all know that the engine for economic growth is MSMEs (micro, small, and medium-size enterprises) and more than 70 per cent of MSMEs could be categorised as family-owned businesses, not only here in Jamaica, but also in the English-speaking Caribbean," Nicholson added.
Just over 3,000 family-owned businesses were registered in Jamaica up to 2006, with projections, according to Nicholson, that the number could double by the end of 2018.
Approximately 81 per cent of these businesses are MSMEs with less than 15 employees. But of that number, 49 per cent are wholesale or retail operations.
Nicholson revealed that revenues generated from family-owned businesses are equivalent to approximately 30 to 32 per cent of gross domestic product in Jamaica.