SMALL and medium-sized enterprises (SMEs) could significantly increase their access to capital by pooling the proposed $3 million loans under the impending Guyana Development Bank (GDB).
Chief Executive Officer of Gaico Construction and Chairman of the Guyana Shipping Association, Komal Singh, said this approach could allow businesses to combine their resources and undertake larger ventures.
Singh made the remarks recently during the Guyana Dialogue on “Bridging the Financial Gap: Leveraging Finance for Small and Medium Enterprises’ Growth and Competitiveness,” where he argued that the financing should not be viewed as an opportunity limited to individual businesses.
Instead, he said, the $3 million allocation could become considerably more impactful if entrepreneurs join forces through consortiums and joint ventures.
Singh said that while the $3 million may appear modest when provided individually, pooling the funds could create significantly greater investment capacity. He noted that the government has been encouraging increased collaboration between businesses and the private sector.
He said the concept would allow entrepreneurs with different skills, expertise, and resources to combine their strengths and pursue ventures that may otherwise be beyond the reach of a single small business.
According to Singh, for example, 10 individuals receiving $3 million each could collectively mobilise $30 million, giving them significantly greater capacity to establish or expand a business.
The approach, he said, could be particularly useful in emerging areas with strong revenue potential.
He pointed to the rapid growth of shared housing and other business opportunities, as examples of ventures that could benefit from greater access to pooled financing.
The proposal comes as government prepares to establish the Guyana Development Bank, which is expected to provide financing support to businesses and entrepreneurs, particularly those who may face difficulties accessing traditional commercial lending.
Singh stressed that the objective should not simply be to distribute funds to individual applicants, but to encourage businesses to think beyond operating independently.
He said private-sector organisations and business support organisations are already working with entrepreneurs to encourage them to form consortiums capable of undertaking larger projects.
Singh said, “The consortium is a way of bringing them together so that that $3 million will now multiply by five, 10, 15, 20 to meet whatever small businesses they’re looking at.”
His comments underscore a broader push toward collaboration among Guyanese businesses, with consortiums potentially allowing smaller enterprises to combine capital, expertise, and other resources to compete for larger commercial opportunities.
For Singh, the value of the proposed financing therefore lies not only in the amount received by each entrepreneur, but in the ability of businesses to multiply that capital through collective action.
The model could ultimately allow small businesses to move beyond the limitations of individual financing and participate in ventures requiring substantially greater levels of investment.
As Guyana’s economy continues to expand, Singh’s position is that SMEs must also find ways to scale—and that pooling relatively modest amounts of financing could provide a pathway to doing so. The government plans to establish GDB offices in every administrative region, staffed with trained personnel to support entrepreneurs.
The staff will assist applicants with developing business proposals, financial management, financial literacy, and marketing. The bank aims to ensure borrowers build sustainable businesses rather than simply receive loans.
Government is recruiting project officers, accountants, proposal development specialists, and trainers nationwide. The GDB is expected to provide zero-collateral, zero-interest loans of up to GY$3 million to SMEs and productive sectors, including agriculture, tourism, and creative industries.
While the GDB will provide up to G$3 million in zero-interest, zero-collateral financing, eligible businesses could access an additional G$7 million through participating commercial banks, bringing total potential financing to G$10 million.
The bank will be capitalised with more than US$200 million.
