–Bounty Farm Managing Director says

YOUNG entrepreneurs will soon have an opportunity to turn their business ideas into reality, thanks to the fact that the government is working to set up a zero-interest development bank, according to Bounty Farm Ltd. Managing Director, David Fernandes.
Fernandes made these remarks during a recent episode of the ‘Starting Point’ podcast and urged young Guyanese to seize the opportunity and build strong financial reputations from day one.
“The fact that the government is speaking about the development bank for small entrepreneurs at 0 per cent interest gives them a real chance of succeeding. When the rates are so high, 15, 20 per cent interest, there’s no way that a small entrepreneur could actually reap the benefits of competing at the same time, making money and try to pay the bank correctly. So, this is fantastic,” he said.
The Managing Director also urged them to identify where there are gaps in the marketplace and fill them, noting that: “adding value is critical, because adding value, especially in non-perishable commodities, is critical.”
He also told young people that they could even mirror the success of local brands such as Umami and Beharry and build regionally recognised brands.
“There are many opportunities and I think that the next generation of Guyanese are the ones who are now kids and teenagers have a great, great opportunity at some special things in their life that we never had when I was growing up in the early 70s and the 80s,” he said.
Access to funding for young entrepreneurs, women, and small business owners in Guyana could soon become easier as the government is moving to set up the zero-interest development bank.
This was announced by Vice-President Dr. Bharrat Jagdeo during a recent press conference, where he explained that this bank will be designed to convert ideas into thriving businesses.
Speaking on the government’s vision, Dr. Jagdeo said the concept of a development bank was born out of years of surveys, consultations and conversations with citizens across the length and breadth of Guyana.
Dr. Jagdeo said: “Many started a business, but they can’t either grow the business or get the idea translated into a business because of the lack of financing… and we made it clear, we want to create an environment where young people, women and all Guyanese for that matter, can make use of the opportunities in Guyana to create income for themselves and their families and to hold their wealth.”
He said it was in that regard that the government believes that a good starting point would be to ensure that these companies have access to the capital. As the government forges ahead with this venture, Dr. Jagdeo said stakeholders are working on its development.
About US$200 million in seed funding will be used in this venture. Jagdeo said the funds will be disbursed in tranches.
Work on the concept has started, he said.
“We want an early budget next year where we will be putting part of the financing to start the bank in the budget,” he said, adding, “We hope that before the end of next year that this bank will be fully established and functional.”
The bank will advance credit for small businesses at zero interest with fewer collateral requirements. To hasten this commitment, an expert committee has been entrusted with formulating the model of the SME Development Bank.
They will need to study global experiences, delineate the legal and institutional framework, and identify the financial structures required to operationalise the bank.