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The development of small and medium-scale businesses continues to depend on government and private sector support as well as the availability of specialised funding from international lending institutions.
This was the consensus when stakeholders within the private sector discussed various issues surrounding the development of local Small/Medium Enterprises (SMEs) at a forum organised by business–support agency DFLSA incorporated. The objective of the forum was to create a framework for SME development. To this end, the forum examined what international institutions should do for private sector development, reforms to the business sector, what needs changing as well as governance and access to financing solutions.
During the panel discussions, Chairman of Go-Invest Geoff da Silva said there is a growing realisation that additional efforts are needed towards the development of SMEs. He said that the need for additional private sector organisations as well as an increase in production from local companies is among several areas that need to be improved. According to da Silva, the National Competitiveness Strategy outlined several policies which are directly related to SMEs, including taxation and tax reform, IT development, business, land and property registration, access to finance as well as judicial reform. He said the latter is of key importance.
According to DaSilva, there have been recent moves towards addressing the development of SMEs, with the commercial banks being at the forefront of the process. Who are the SMEs and how are they going to be assisted are what need to be understood as development of the sector is considered, he noted. He said two of the major issues affecting further enhancement of SMEs are the low level of entrepreneurship as well as the low level of innovation.
Meanwhile, Private Sector Commission (PSC) Chairman Gerry Gouveia called for the international lending institutions, such as the Inter-American Development Bank (IDB) to be friendlier and to be more involved on the local scene, “where people can see you.” Against this backdrop, he stated that persons attempting to or engaged in business activities “would be part of the issue, in terms of credit eligibility.” According to Gouveia, in his 17 years as a businessman working with international business partners, he observed that the local banks are friendlier, while the international financial organisations are “quite bureaucratic.”
According to Gouveia sustainability by companies needs to be examined and maintained at an acceptable level, in order to foster private sector development. He also stated that businesses should strive towards reaching and maintaining higher standards, and he noted the creation of proper business plans as being critical towards the success of businesses.
The slow disbursement of European development funds to the private sector in the Caribbean, minimum risk taking transactions undertaken by the commercial banks here as well as slow progress in the installation of the Caricom Single Market and Economy (CSME) were among several concerns raised by Chairman of the Guyana Manufacturing and Services Association (GM&SA) Ramesh Dookhoo. In addition, he stated that recent red-flagging of containers shipped to the United States from Guyana by export companies was an issue engaging the attention of the GM&SA.
Outdated laws regarding the business sector were also raised at yesterday’s forum and according to DaSilva a local consultant is currently looking at reforming such laws. In addition, training programmes for persons within the sector were also identified as a key factor in the development of the SMEs.
At yesterday’s forum, institutional dialogue and the formation of specific associations to address the concerns of the private sector were recognised as being fundamental towards the development of the sector, while the more successful businesspersons were urged to establish relationships to further assist in the development of businesses in their “embryonic stage.”
