By The Star Staff
The Puerto Rico Minority Supplier Development Council (PRMSDC) expressed on Wednesday its concern about the possible effects of a global economic slowdown on the sustainability and growth of the more than 525 certified minority businesses in Puerto Rico, which generate 61,000 direct and indirect jobs and contribute 9.8 billion dollars to the local economy.
During a roundtable organized by the PRMSDC, representatives of the business sector and economic experts analyzed the risks and opportunities that these companies face in the face of global uncertainty, local energy and logistics costs, as well as the impact of the 15 percent global minimum tax on corporate profits.
“The global economic outlook, combined with local challenges such as the cost of energy and logistics, threatens the sustainable development of our minority businesses, essential to the local economy,” said Francisco Cabrera, president and CEO of the PRMSDC, in written statements.
He highlighted the importance of these companies, which represent a pillar in job creation and economic stability on the island.
A key topic was the implementation of the global minimum tax, which could generate approximately $3.8 billion annually if properly managed. “Legislative inaction could result in the loss of significant revenue that could strengthen our industrial base,” said José Quiñones, president of the PRMSDC Board of Directors, stressing that this tax represents both a challenge and an opportunity to improve Puerto Rico’s competitiveness.
Participants also discussed the need to adopt public policies that allow minority businesses to capitalize on these opportunities. Jorge López, president of the PRMSDC Minority Entrepreneurs Committee, proposed the creation of a commission of experts to define how to invest these revenues in infrastructure, technology and strengthening strategic sectors.
The event also highlighted the crucial role of minority businesses in areas such as STEM, innovation and technology, highlighting them as key drivers for economic growth and attracting future investments. According to Vicente Feliciano, economist and president of Advantage Business Consulting, “it is imperative that the government work hand in hand with the private sector to foster a favorable environment that allows for the development of these strategic areas.”
Another of the topics addressed was the potential impact of the relocation of manufacturing companies to Puerto Rico under the administration of incoming President Donald Trump. Experts pointed out the need for a clear strategy to take advantage of this movement as a catalyst for economic development on the island.
The PRMSDC emphasized the importance of government incentives to mitigate the effects of a possible economic slowdown, highlighting that minority businesses must be supported to maintain their competitiveness in an ever-changing economic environment.
The event concluded with a call to action addressed to the new government of Puerto Rico, urging it to implement measures that support minority businesses and ensure their sustainability. The PRMSDC reiterated its commitment to collaborate in the search for solutions that drive economic growth and benefit the entire island.
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