The Small Business Development Finance (SBDF) trust is calling for government’s assistance to support the urgently needed creation of small-scale intermediate industries in rural areas across the country.
Chairman of the group Sattaur Gafoor told a gathering of small business persons yesterday at the body’s 9th Annual General Meeting at the Hotel Tower in the city, that the body is in need of government’s support as well as the private sector to carry out its mandate to assist small businesses, including those in rural areas.
He said the expansion of the agricultural sector means that there is higher production of materials, which would need to be absorbed in a timely manner. “The need, therefore, to create small-scale intermediate industries in the economic life of rural Guyana is urgent,” Gafoor said.
Managing Director of the SBDF Manjula Brijmohan yesterday called on the Minister of Finance to put in place a framework to support institutions such as the SBDF. She said that the government should promote creativity and productivity enhancements projects instead of handouts. “We want our people to write their own future rather than to be dependent and labelled as WUC (Western Union Children),” Brijmohan added, noting that over the past decade micro financing has grown across Latin America, while the Caribbean region is lagging behind.
Brijmohan also said that the organisation is happy that President Donald Ramotar has acknowledged and announced his commitment for the development and growth of village economies. “Rural development has always been our main focus in rural outreach programmes. We consider agriculture sector development as the basis of small scale industrialisation and economic growth,” she added.
Republic Bank CEO John Alves, meanwhile, noted that small business enterprises remain important for national development, as they stimulate the economy while creating jobs for many.
He said that the United Nations’ Food and Agricul-tural Organisation (FAO) estimates Caricom’s food import bill to be a whopping US$3.5 billion annually, and against this background he noted that a positive move made by the government was the outline and subsequent implementation of an agriculture diversification plan to carry the country’s economy forward.
Alves said that there needs better establishment of framework for the extension and development of the sector and he noted that the choice of a business model by the prospective businessperson in the sector is important, since it is essential to outline a plan in order to develop a small business.
He also said that there is need for dialogue among the stakeholders of the sector, adding that the organisation of small farmers into groups would ensure that each farmer benefit. He said cooperation has been temporary and sporadic and he argued the benefits of organisation.
Meanwhile, Gafoor noted yesterday that the SBDF continues to provide expert quality service to the public. According to him, the resilient spirit of the members of the organisation combined with the responsible manner in which business was conducted over the past year contributed significantly to the positive financial performance of the agency. Last year, the body recorded revenues totalling $66.2 million, which he noted represents a 36% increase over the previous year, generating a surplus of $25.3 million in spite of heavy financial cost. He said that this was an indication that the SBDF has grown to become a strong financial institution with the ability to honour its financial as well as developmental responsibilities.
Gafoor said that since its formation almost a decade ago, the SBDF has financed some 710 loans at a cost of $400 million over the years. He also noted that it was able to assist many persons in the creation of their small businesses across the country and enabling the employment of many persons. He said that SBDF has extended its loans portfolio to urban areas, including the Railway Embankment, West Coast Berbice, the Linden/Soesdyke Highway as well as Parika.
