Barker talks on how best govt can assist businesses

Setting up a business is a risky activity and most businesses in most countries fail after a while, economist Paul Barker says.
The Institute of National Affairs executive director said the best way for the State to assist small-to-medium enterprises, and to enable micro-enterprises to grow to become SMEs, was by setting the best conditions for enterprises to be nurtured.
“Certainly, better enforcement of existing business restrictions on overseas operators, notably on a range of micro-enterprises, would help PNG entrepreneurs gain their first break,” he said.
“Enforcing rules on taxation, including GST, wage rates and conditions, would help level the playing field.
“Improving and extending public infrastructure, from transport to power and telecommunications, and lowering the costs of provision, including through competition, where practical, or suitable and reliable sources, for example of power, would improve the viability of a range of firms.
“Together with improving law and order and reducing other costs and risks, including from corruption and uncompetitive tendering, all improve the investment conditions for local entrepreneurs, whether in agriculture, trading, processing, ICT, eco-tourism or whatever.
“Providing, or facilitating the provision of more practical and relevant courses related to business and innovation, at different levels, in schools, Tvet and other venues, including locally-based vocational schools, are all important, including utilising inputs from people with practical business skills.
“Facilitating financial inclusion and capacity is critical, but access to financial capital requires financial innovations and platforms well-adapted to PNG’s market, including its current lack of transferable security.