‘We should not become second class citizens in our own country in our own country’

Oct 04, 2024 News

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– Former GCCI President

…says local businesses need stronger protections against foreign competition

By Shania Williams

Kaieteur News – Former President of the Georgetown Chamber of Commerce and Industry (GCCI), Timothy Tucker has called for stronger protections for local small businesses against foreign competition, asserting that “we do not want to become second-class citizens in our own country.”

His comments come in the wake of recent protests by residents and vendors of Agricola against the establishment and operation of Chinese supermarkets in their community.

Importance of small businesses

During an exclusive interview with Kaieteur News on Thursday, Tucker acknowledged the importance of foreign investment for Guyana but stressed that it should not come at the expense of small and micro businesses.  Tucker said that inadequate access to financing is a significant barrier to the growth of the small and micro businesses adding that, “The real reason small businesses struggle to grow is their lack of proper access to financial resources.”

To this end he noted that unlike small businesses, foreign entities often enter the market with substantial financial backing and competitive advantages, which jeopardizes local enterprises.  “When small businesses have to compete against foreign firms that benefit from better financing and support from their home countries, it can devastate indigenous and family-owned businesses,” the former GCCI head said.

He also emphasised the vital role small businesses play in providing additional income for single parents, retirees, and families, and warned that without protective measures, they risk being overwhelmed by foreign competition. “We must safeguard them from large, syndicated foreign investors that mimic local mom-and-pop stores, as this threatens the potential for middle-class entrepreneurship and community sustainability,” Tucker said adding, “If we don’t protect these businesses at the community, regional, and national levels, we will face serious problems in the future.”

Protecting small businesses

Tucker then urged the government to reinforce the laws that protect small businesses and called for a review of zoning and anti-competitive laws to support indigenous enterprises. “We should look at community frameworks similar to the small business associations in the United States that provide protections, tax exemptions, and access to financing for local businesses.”

Additionally, Tucker proposed that the government holds community meetings to allow small business owners to voice their challenges and needs. “I envision broad consultations where each community can share its experiences, enabling us to empower local government to control the types of businesses that operate in their areas. We shouldn’t have ten foreign supermarkets within a quarter-mile radius.”

He also expressed concern over the ease with which foreign businesses can penetrate the Guyanese market, stating, “These companies have the resources to analyze markets and identify opportunities, which poses a threat to our local businesses. We must proactively find solutions to protect our country and its people.”

Tucker reiterated the importance of supporting local vendors and businesses, particularly in light of recent initiatives like the local content law in the oil and gas sector. “We need to ensure that the vendors and small businesses that have been part of our communities for generations are not pushed aside. Finding ways to support them is crucial for the future of our economy.”

Protest

Residents and vendors of Agricola, earlier this week protested against Chinese-owned businesses being setup in their community. They fear that establishments such as the supermarkets will drive the locals out of business. As a result, they voiced their apprehension about a new Chinese supermarket set to be opened at the corner of Brutus Street and the East Bank Public Road. They argue that the supermarket’s presence will threaten their small vending shops.

Kaieteur News understands that these vendors would sell their products from outside of a building that was recently sold to Chinese nationals, who plan to renovate it into a supermarket.

Fighting for their livelihood

One vendor, identified only as Ms. Clark, who has been selling outside the building for over 50 years, expressed her frustration: “I can’t understand Chinese coming to put me out of my little business that I’m hustling for. I have my little house to look after; my grandchildren, and now I have to move for the sake of the Chinese coming here.” Meanwhile, another said that the local shops have been taking care of the community.

“We have a business association in Agricola where our businesses take care of our community. We don’t want them here,” the vendor said.  He further criticized the government of Guyana for allowing foreigners to “snatch” opportunities from locals: “The government is bringing in foreigners that are not benefitting Guyanese… We can’t go to China and open a business.”

Another vendor said that the vendors in the community will suffer should the Chinese owned supermarket open.  “What will happen to the people that already establish their business for over the years? Yes they are going to sell at a cheaper price at the beginning and after time goes by they are going to increase,” the vendor said.

 

 

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• foreign investments, GCCI, small business, Timothy Tucker

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