THE investment in small businesses is a crucial part of a growing economy and with a good environment, they can develop into large scale entities, with great benefits to the country.
The new Government has recognised this and has put several measures in place to ensure a flourishing small and micro- business sector.Minister of Business and Investment, Dominic Gaskin, during an interview with the Government Information Agency (GINA) and the Guyana Chronicle, pointed out that according to the Small Business Act, there is a particular clause that stipulates that 20% of all public contracts awarded must go to small businesses.
He added that his Ministry is keen on making this happen, because it can see a large sum of money being invested into the sector.
“I think we are perhaps looking at $15 billion that can be awarded to small business,” he said.
However, in order to be able to award these contracts, he pointed out that it is also important to ensure that these entities be able to effectively carry out the required jobs.
“To implement that provision, we have to ensure that our small businesses have the capacity to meet the requirements of those contracts, we can’t just say well okay 20% of contracts go to small businesses and then compromise on the criteria of those contracts,” said the Minister.
“I see this as a way that we can really transform the small business sector, if we deliberately go about increasing capacity within the small business sector to access a certain range of contracts… and I do believe that in our five years in office you will see small businesses accessing the public procurement pipeline, ” Gaskin also stated.
Business environment
Further, the Ministry is also looking to improve the general business environment to encourage more productivity and investment.
“Those business transactions that involve state agencies, I think if we can make those transactions smoother, more efficient, and perhaps even more tailored to creating successful businesses, or to the success of the businesses, I think that will automatically improve the prospects for small businesses, so that intervention which we are currently working on is vital,” the Business Minister reiterated.
With regard to financing, the Minister alluded to the grant scheme which is currently in place, saying that “There is currently a programme or project that is funded by the Low Carbon Development Strategy (LCDS), Norwegian funding, that is targeting small and micro enterprise development…it’s a US$10 million project, and it’s two tranches of US$5 million and I think the first US$5 million phase comes to an end in March of next year (2016), and what should be released then is the second US$5 million for the second phase. ”
SMALL BUSINESS EXPO
Further, small business enterprises will also have the opportunity to showcase and market their products at the Ministry’s 2015 pre-Christmas/Small Business Expo, which is slated to be held at the end of November. This Expo is designed to aid in the marketing process of local products and create more exposure for small businesses and entrepreneurs.
RURAL ENTERPRISE PROJECT
Earlier this year, the Minister had pointed out that “a rural enterprise development project is the way forward for rural communities… because most of the rural communities have no sustainable economy… there is nothing for young people to do when they leave school inside of their own communities, so somehow or the other, we have to stimulate a diverse set of businesses in all our regions.”
He noted that a Rural Enterprise Development Fund was set up under the previous Administration, but despite lauding the initiative, he criticised the way it was done.
“I think it was an excellent initiative, is something to be pursued not necessary in the way it was.”
Further, the Minister highlighted that $1 billion was allocated for this fund in 2014; but it is unclear whether the entire sum has been expended. The Minister said that if indeed a portion is remaining, this can be re-allocated for something more effective.
To encourage greater participation from rural communities, the Ministry is contemplating the hosting of regional expos across the country, in an effort to further support and create exposure for small businesses in the various regions.
These expos, which will resemble that of the Berbice Expo, will serve as a testing ground for the participants, to check on their products and services in their catchment areas, and later partake in larger trade shows in the country, and possibly internationally.
Minister Gaskin said that with the building of capacity in both the Ministry and the Small Business Bureau, “I think we do have quite a healthy package there for small businesses”.