MORE than 6,500 small and medium-sized enterprises (SMEs) have registered with Guyana’s Small Business Bureau (SBB) over the past six years, Minister of Tourism, Industry and Commerce Susan Rodrigues has said.
Speaking at the Guyana Manufacturing and Services Association (GMSA) Business Luncheon, on Tuesday, Rodrigues disclosed that approximately 6,511 new SMEs had registered with the Bureau during that period.
She said the government’s support was aimed not only at helping people establish businesses, but also at making them sustainable.
The SBB provides business development assistance, grants and access to a loan guarantee programme.
“All of our initiatives to grow the small and medium-sized enterprises are to ensure that we are not only registering new businesses, but that the businesses are sustainable. And that’s why we have a very active monitoring and evaluation unit at the small business bureau,” the minister highlighted.
Rodrigues also highlighted the bureau’s monitoring and evaluation work. Over the past five years, it had made 7,801 visits to small businesses, and 75 per cent of the businesses visited remained in operation.
The minister said small businesses were important to families and communities and encouraged entrepreneurs to make use of available support. She also urged them to strengthen their financial records, management and business planning so they could prepare for investment and expand into new markets.
BUSINESS CLINICS
Rodrigues also pointed to community business clinics as a way of connecting entrepreneurs with practical guidance.
The clinics bring together agencies and organisations, including those dealing with tax, social security, company registration, commerce and small-business support. Entrepreneurs can obtain information and advice from multiple agencies in one place, she said.
Further, the bureau provides support through grants, business-development services and a loan guarantee programme. Under the programme, the bureau can guarantee 40 to 70 per cent of the collateral required for business owners seeking loans of up to $30 million from commercial institutions.
GUYANA DEVELOPMENT BANK
She further highlighted the Guyana Development Bank’s role in supporting small and medium-sized enterprises (SMEs), describing its financing as available with zero collateral and zero interest.
Notably, the recently operationalised financial intuitions offer zero-collateral, zero-interest financing that can help small businesses build the habits needed to grow and access commercial loans
Rodrigues said access to finance was important for businesses seeking to expand. She noted, however, that the bank’s repayment requirement was also valuable, because it could help entrepreneurs develop the discipline needed to manage borrowing.
Repaying a loan, she said, encourages businesses to keep proper records, meet targets, maintain productivity and take responsibility for servicing their debt. These are normal requirements of running and growing a business.
Rodrigues said the experience could prepare SMEs to seek larger loans and eventually approach commercial financial institutions
The platform provides for two types of loans – quick loans which are loans below $300,000 for which a simplified process and reduced documentation are required; relative to SME loans which are between $300,000 and $3 million and for which slightly more documentation would be needed, but ensuring that the system remains simple and easy to use.
Once approved, the loan is disbursed directly into the borrower’s bank account, and repayment is also done through the banking and financial system.