Challenges in Business Studies

Education is critical to a young person's future and potentially opens up opportunities and

choices for an individual to sustain him/herself financially. At some point in their lives, all

students will encounter the world of business. Therefore, they must be prepared to engage in

business activities with confidence and competence, by understanding how businesses function

and the role they play in our society. In the Caribbean, the Caribbean Examination Council has

recently undertaken a slight modification in its School Based Assessment (SBA) for subjects in

the area of Business by integrating several business subjects to form one SBA. The students who

are now undertaking such an assessment are deemed as pursuing - Business Studies. Business

Studies provides students with the skills that are required in the business environment and equip

them for the impact these skills can have on their own lives and by extension the society.

Although Caribbean countries differ in terms of language and dialect, customs, foods, religions,

and other traditions that are rooted in the diversity of its people, history, migration, culture and

geography, they share several commonalities. Consequently, the nature, structure and purpose of

Business Studies in secondary schools in the Caribbean have been facing a number of political,

economical and societal challenges throughout the years. This essay will identify one challenge

that Business Studies in secondary schools in the Caribbean faces with two effects on St.Vincent

and the Grenadines along with five changes to alleviate the impacts and four challenges to be

encountered in an attempt to implement the goals in the Business Studies curriculum.

One challenge faced in Business Studies in secondary schools in the Caribbean is the

inability of the curriculum to adequately prepare students for the lack of conduciveness of the

business environment to growth and development within the economy.This a major economic

challenge to the Business Studies curriculum because the curriculum paints a picture of an
economy that eagerly awaits creativity, innovation and addition to its already thriving businesses.

Unfortunately, this is untrue of the existent business world in Caribbean countries. Among the

countries of the Organisation of Eastern Caribbean States (OECS) regarding their economic

structure, Schmid & Schwartz (2018) posit that

several economic development challenges emerge, including weak fiscal

institutions, crime and violence, a sluggish private sector, weak productive

development policies, skill-biased emigration and other structural

impediments. Taken together, these factors have resulted in a complex and

challenging environment for promoting sustainable growth and

development in the Caribbean (p.1)

Unfortunately, this present state holds true for both the private and public sector. Ruprah

and Sierra (2016) and Khadan (2017) purport that firms in the Caribbean's private sector

"underperform their peers in other regions across several dimensions, including investment, sales

growth, innovative capacity, and productivity" (as cited in Schmid & Schwartz, 2018, p. 8) In the

public sector, there is weak service delivery which results in high economic costs.

Many high school graduates after being taught entrepreneurial skills become desirous of

owning and establishing their own business. This desire in and of itself is commendable and

praise worthy. However, reality sets in when these graduates are unable to receive adequate

funding from lending agencies to start and or sustain their business enterprise. According to

Compete Caribbean (2015) (as cited in Schmid & Schwartz, 201), access to finance is a

challenge for small firms.The conditions for accessing finance and collateral requirements are
both prohibitive. Many financial institutions view loans to young, inexperienced entrepreneurs as

a great risk. Hence, financial help is often denied to these individuals. Some institutions would

go as far as requesting collateral. The question to be asked is, "what collateral would a young

person have who is about to start his/her life?" The graduates begin to realise that the creation,

establishment and maintenance ofa business is not as easy as A,B,C. The truth be told, the

Caribbean countries lack economies of scale.

In St.Vincent and the Grenadines, this challenge presents numerous effects. However,

only two will be mentioned. Firstly, this challenge can lead to a dramatic increase in government

spending. An economy where growth and development is lacking will not motivate young

persons who are ambitious and proactive and who possess no strong support system from family

and friends.As a result, they become unemployed. This rise in unemployment forces the

government to search for ways to provide for them. The government can do so by creating jobs

and or issuing of welfare support. Both demand large amounts of spending which can lead to

further higher levels of debt-to-GDP ratios for country. These higher ratios further lead to higher

interest payments for which the government must pay. This will inevitably spill off in the return

of larger portions of the country's revenue going to off-set its expenditure. This will further

weaken the country's volatility, vulnerability and its ability to face shocks (Yartey & Turner -

Jones, 2014, as cited in Schmid & Schwartz, 2018).

Secondly, there will be an increase in criminal activities which will further lead to higher

levels of crime and violence. One whose dreams, goals and aspirations have been crushed can

become violent in nature especially when no ray of hope is seen.Many youngsters who reside on

the outskirts of the island (Petit Bordel, Sandy Bay, Chateaubelair) resort to the plantation of

marijuana as a means to survive and to provide for their family. Many of them have talents in the
areas of carpentry, masonry, cake decorating, sewing and cooking but the avenues for further

advancement and establishment of these skills are absent. As a result, they do that which is

illegal; plant and or sell marijuana, gamble and prostitute themselves.This has become so

rampant that it can be said that nearly an entire village thrives as a result of marijuana

cultivation. Involvement in these illegal activities are known for serious violent acts including

abuse and brutal deaths of an offender and his or her family members. In 'businesses' like these,

victims of unfair deals often take revenge which results in the death of another person.

In light of all this, it is imperative that measures be sort to alleviate the impacts of this

challenge. Firstly, there must be a change in the teaching of the business curriculum. Business

teachers themselves must be become aware of the business environment of the country and teach

the required skills in light of the present state of the economy. The teaching must be connected

with the real world – the world in which the students would function.In doing this the teacher

provides a ‘cushion’ on which the students can lean when things do not work in accordance with

their plans for the future or when the plans are delayed.

In the second place, there must be a revised system among the financial institutions

within the economy. A way must be made to provide the necessary finances to young

entrepreneurs to start and or sustain their business and this must be done at a reasonable interest

rate. This will ensure a level of stability and viability for the new business for much expenses are

often incurred when one starts a business.

In addition to this, structural reforms are needed to improve the business environment and

enhance private sector performance. The authorities must commit themselves to undertake

reforms to strengthen both the fiscal framework and the execution of the fiscal policies within

the country. In this regard, legislations concerning the establishment of a Savings and Stability
Fund can greatly assist small business owners and those who want to manage their own business.

Similarly, reforms to improve taxation administration and tax policy should be made. Small

business owners can be exempted from the payment of certain taxes for a number of years until

their business begins to make a substantial profit. They can also be provided with subsides to

help off – set some of their ‘start –up’ expenses.

At the same time, fiscal consolidation to stabilize public debt must also be put in place.

When a country has less loans to repayment, more of its revenues can be placed back into the

capital fund to stimulate the growth of the economy. More money in the hands of consumers

mean more spending. Hence, pathways are created for more businesses to enter the market and

thus, growth of the economy takes place. A decrease in government debt can make this possible.

Finally, the government must find ways to diverse the economy. With its heavy reliance

on tourism, the OECS has become dependent on several markets, namely; United States, United

Kingdom and Canada for trade and the importation of many goods. This makes the countries

vulnerable due to external forces that may directly affect these countries. Once they are affected,

we in the Caribbean become affected. This makes the economy susceptible for fluctuations in

global commodity prices. Diversification can reduce this susceptibility and create a ratherstable

economy fit for growth and development.

Challenges in every sphere and work of life is inevitable and hence, unavoidable. in

seeking to implement the goals of the Business curriculum, as a business teacher, there are four

possible challenges that I may encounter. The first and main challenge is the availability of

resources needed to enhance teaching. Several secondary schools are without business labs while

others have limited or no access to computers. Moreover, due to the socio –economic status of
the class, several students may not have the required stationery (textbooks, ledgers, journals etc)

to be used in the classroom.

To add further, there is little avenue for the ‘hands-on’ approach to teaching. In other

words, students only receive theoretical knowledge but they lack real – life experience. Within

the teaching environment at secondary schools there is no opportunity for students to have

experiential knowledge from being in a working environment.

Thirdly, lack of support from school administration and by extension the Ministry of

Education in seeking alternative ways to enhance students’ learning outside of the classroom.

The traditional classroom setting has become the ‘ideal’. As a result, many may become afraid of

trying new methods of teaching and learning.

Lastly, and of prime importance is to change the mindset of the society regarding the

study of Business Studies. In many schools and other circles, students are given Business Studies

because they are not considered 'intelligent enough' to pursue Science. Hence, the study of the

subjects is deemed as of a lesser importance than that of Science.

The study of Business Studies - nature, structure and purpose at secondary schools within

the Caribbean will continue to be a point of study due to its content and the weakest of the

economy of Caribbean countries. There will always be challenges, one of which is the inability

of the curriculum to prepare students for survival in an economy that lacks growth and

development. In St.Vincent and the Grenadines, this challenge results in an increase in

government spending and high incidence of crime. Hence, a change in teachers' teaching

strategies along with reforms in fiscal framework and policies and diversification of the economy

can help to alleviate the impacts of the challenge. However, several challenges remain for the

teacher in addressing the goals of the business curriculum. They are: lack of resources, lack of
practical experience in learning activities, lack of support from school administration and the

dominant view of Business Studies among schools and the society at large.
 Reference

Schmid, J. & Schwartz, M. (2018). Development Challenges in the Caribbean. Caribbean

Region Quarterly Bulletin. Vol 7 (3)

 DIVISION OF TEACHER EDUCATION

COURSE: JBTE/BUS 201:Business Studies in the Caribbean Context

NAME OF ASSIGNMENT: Challenges of Business Studies

STUDENT' ID: 1907037

DATE: February 18th, 2020

LECTURER: Ms. Sheila Robertson

 DIVISION OF TEACHER EDUCATION

COURSE: JBTE/BUS 201:Business Studies in the Caribbean Context

NAME OF ASSIGNMENT: Challenges of Business Studies

STUDENT' ID: 1907066

DATE: February 18th, 2020

LECTURER: Ms. Sheila Robertson