SMALL and micro-enterprises are recognised as catalysts for growth and vital tools to address unemployment and while serving as vehicles for poverty eradication, particularly in rural settings.

Small businesses are generally underestimated but if properly nurtured; their impact on the economy would be quite significant.

According to Entrepreneur Magazine, there are between 25 million and 27 million small businesses in the U.S. and account for 60 to 80 per cent of all U.S. jobs. A recent study by Paychex found that small businesses produce 13 times more patents than larger firms.

GRANT AWARDS

In Guyana, the Ministry of Tourism, Industry and Commerce is trying to replicate this success through the Small Business Bureau (SBB) and its Grant Awards.

The grants target mostly rural entrepreneurs with the aim of providing a platform to grow and develop, thereby transforming village economies.

In late January, some $20 million was disbursed in the form of grants, under the Micro and Small Enterprises (MSE) Development and Building Alternative Livelihoods for Vulnerable Groups’ projects.

Azad Hussain, a small cash crop farmer and resident of Bath Settlement in Region 5 (Mahaica-Berbice) said the grant is a boost that will help him to both increase production and expand his business.

Hussain, 63, told the Guyana Chronicle that the $300,000 grant he recently received is being used to construct a shade house to protect his crops during the rainy period as well as in the dry season.

The father of two grown children, he plants celery and bell pepper for a living, and uses the money from the sales of his produce to support himself and his wife, as well as assisting to meet the school expenses of his grandchildren.

He related that $100,000 has been released to him as a first installment. It was not enough to build the shed but was enough for him to purchase most of the materials needed.

BETTER LIVELIHOOD
Hussain informed that some of the remainder will be distributed this week, saying that the shed will be a big boost when completed, as increased production would mean more money for him, and a better livelihood for his family.

Businesses have to meet several criteria to qualify for the grant, and among these are being registered under the Small Business Act, as well as being compliant with the National Insurance Scheme (NIS) and Guyana Revenue Authority (GRA).

The Grant Award Project was launched in October 2013, and acting Tourism Minister, Irfaan Ali reported that it has created jobs for 167 persons, while 900 others benefited from training.
Valarie De Younge, a resident of Capoey, Region 2 (Pomeroon-Supenaam), Essequibo Coast said the money in the form of a grant is being used to construct two benabs at her resort.
The resort is located in Capoey and attracts around 200 to 300 visitors on the weekend, but things get uncomfortable when it rains.

According to De Younge, 36, the resort currently has one big benab and seven small ones, but these are inadequate to shelter visitors during a downpour.

EXPANDING BUSINESS

On most occasions, she said, the beach goers have to squeeze themselves under the shelters available, noting that the construction of the two large additional sheds will not only ease this problem, but cater for an expanding business.

The recently married De Younge is hoping in the near future to attract overseas visitors, thereby improving the profile and business at the thriving resort, which sits within walking distance from the Capoey Lake.

Minister Ali said the role of small businesses cannot be over-emphasised.
“Nationally you know that there are many small businesses that contribute to the creation of employment and the expansion and development of the economy.”

Financing for small businesses has been provided through a number of programmes, including the Women of Worth (WOW) Programme, piloted by the Ministry of Human Services and Social Security, which has been empowering women through entrepreneurship and the Low Carbon Development Strategy (LCDS).

The Small Business Bureau received US$10 million from the Government through its LCDS/Redd+Investment Fund (GRIF) facility to be utilised over a four-year period for funding, and comprehensive training of small business entrepreneurs.

Heather Thompson, a leather craft producer and fabric designer who operates from a room in her Vreed-in-Hoop home told this publication that the grant is most welcome, as it will enable her to purchase the tools needed to increase her array of products.

TIMELY ASSISTANCE
Thompson has been in the business of producing craft items, leather bags and wall items and designing fabric for more than five years, but did not have enough money to purchase the tools necessary to make slippers.

Now with the tools at her disposal, she is hoping that her business would grow and she would earn enough money to purchase a stall to advertise and sell her products.

The mother of two, currently sells her products by word-of-mouth advertising, and said business has been steady, but could be brighter, and the grant will certainly help in this regard.
President Donald Ramotar has also spoken about the importance of small businesses.

“It has been noted all over the world, that while big businesses and major investments are extremely important, and as we continue to seek these types of investments in our economy, these are a very important pull-factor to help economies develop, but I think it has been noted by many experts in the field, that the sustainability of economic development and progress, in any society, is directly linked to the development of small and medium-scale enterprises within the society.

We also know that many big businesses of today in our country started out small, and therefore I anticipate that many of the small and medium-scale enterprises that we are awarding and encouraging, will not stay small forever, but many I hope will have the potential to go on to become large businesses within society,” he said.

By Tajeram Mohabir