Small business in small economies: constraints and opportunities for growth

Abstract

Small businesses are now increasingly being perceived as an important contributor to economic growth and development. They make significant contribution towards job creation and the provision of low cost goods and services. The role of small business is more critical in small states where size, technology, capital and other resource constraints limit the establishment of large business. In such states, small businesses have the leading role in providing goods and services for the society. Fiji, for instance, has a large proportion of its population engaged in small and micro-enterprise. Most of these small businesses, however, face a number of problems that inhibit their entry into the industry or make their survival difficult. How are these SMEs performing and what are are the problems, if any, that they are encountering? This study is conducted to examine how small businesses have contributed towards rising household income and, to identify the various problems that are plaguing these establishments. The results from the study reveal that poor law and order/security, lack of finance and appropriate skills are major impediments to small business growth and development.