– US$10M over four years to finance SME development
FINANCE Minister, Dr. Ashni Singh has cautioned that the importance of small and medium-sized enterprises (SMEs) should not be underestimated, as they play an important part in generating economic activity and improving livelihoods alongside the traditional and key emerging sectors. He noted that while the agenda for transforming the nation’s economy might appear dominated by the tasks of modernising the latter sectors, “SMEs make a substantial contribution creating productive employment and generating incomes in such areas as agriculture, agro-processing, arts and craft, entertainment, and artisanry,” he said.
Due to Government’s recognition of the important role SMEs play in improving livelihoods, especially among the most vulnerable, and in promoting a culture of entrepreneurship, there has been focus over the years on creating an enabling environment for these businesses.
The sum of US$1.7M has been budgeted for 2012 to operationalise the Small Business Development Fund, while $22M has been proposed to enable the Small Business Bureau to discharge its functions. Over the next four years, Government will spend US$10M to finance SME development.

Review
A cluster approach was adopted in 2011 by the Small Business Bureau to work with small businesses, specifically with members of the Guyana Arts and Craft Producers Association (GACPA) and Guyana Agro-Processors Association (GAPA). This approach led to awareness and training sessions at which nearly 500 small business owners were exposed to subjects such as the procedures for registration of businesses, export procedures and reduction of export violation risks, standards and conformity assessment, entrepreneurship, packaging, marketing and pricing, and good management practices.
Additionally, 120 entities were included in the Bureau’s database, increasing the number of registered businesses to 1,244.
Special programmes also benefited their respective identified target groups. The Women of Worth (WOW) programme, implemented under a public/private partnership, has seen over 1,188 loans granted to beneficiaries in Regions 2, 3, 4, 5, 6, 8, 9 and 10, for investment in small businesses. Training programmes were conducted and more than 400 single parents acquired the skills needed to become marketable and to improve their financial status.

Future plans
In 2012, there will be continued emphasis on support for the small business sector, through the provision of training and capacity building, and improving the ease with which financing can be accessed. Government will spend US$10M for SME development and to address two of the major bottlenecks that hamper the development of SMEs and the ability of vulnerable groups to build alternative livelihoods in Guyana, namely limited access to finance and technical and business skills.
The Small Business Development Fund will provide for a collateral guarantee scheme, an interest payment support facility, and a grant scheme to assist SMEs and vulnerable persons with viable business propositions to implement their business endeavours.
Through this fund, over 800 jobs are expected to be created, 300 SMEs and vulnerable persons will have access to loans, and it is expected that at least 100 grants would be approved for those who are eligible.
A skills voucher scheme will also be launched to support the development of technical and business skills for 500 SMEs and vulnerable persons this year.