Small businesses serve as incubators of entrepreneurial talents – President Ramotar

Jun 24, 2014 News

---

Head of State Donald Ramotar has noted the administration’s appreciation towards small and medium scale businesses’

contribution towards Guyana’s growing economy. His comments came when the Small Business Development Finance Trust Inc. held its 11th Annual General Meeting,
During the meeting held at the Regency Hotel, Hadfield Street, yesterday, President Ramotar extended heartfelt congratulation to the management and staff of the SBDF for achieving yet another successful year. “I want to thank them for their committed services they provide to their clients including small producers, retailers, and consumers in Guyana.”
The President said that in providing these services, the Trust contributes greatly in supporting the economy and the general development of Guyana.
“For too long the contribution of economic growth and development of small enterprises and medium scale enterprises has been overlooked or not acknowledged in many places including our own country. Today, I wish to record the administration’s appreciation for the continuing role of the small enterprise sector in our economy.”
According to President Ramotar, in today’s society there is a proliferation of small businesses, and small enterprises that are producing goods, services and creating employment for thousands of Guyanese.
“Job creation has been the most signal contribution of small and medium-scale enterprises to economies of many countries. In the European Union as much as two-thirds of the workforce is employed in small and medium scale enterprises.”
The President highlighted the many benefits of small businesses, noting that it is this very same sector, which is currently playing an integral role in the economic recovery of the United States of America.
“This is the vital role small businesses play both in the good and challenging economic times, they are extremely important and very valued. Another economic benefit of small businesses is the contribution they make to sustaining economic growth.”
All businesses are important as all activities contribute to the creation of wealth and improving services, Ramotar said. Big businesses are very important as major pull factors, but for the sustainability of economic development it has been proven that it is in the hands of small and medium scale businesses.
“The economic function that small businesses serve is that they are incubators of entrepreneurial talents, for instance if you look at some of the huge wealth that exists in our world today, some of them started out in garages… it also shows that with technology and with some assistance provided by some organisations like this one (SBDF) can leap frog from being very small to being extremely huge.”
The Head of State called on the owners of small and medium scale businesses to keep up the good work, but implored them not to become complacent and to ensure quality and being able to maintain high quality services and products.
“Do not allow quality to slip, the need for maintaining quality and to build a reputation is important to any business, do not compromise on quality.”
Cheaper electricity

Speaking on impediments to the development of business sector, the President said the biggest one is reliable and cheap electricity and this must be addressed forthwith. The Amalia Falls Hydro power plant will ensure a cheaper and more reliable supply of electricity.
“We spend close to $90 million to subsidise electricity cost for Guyanese when we could use that money for other developmental works and to make life easier for our citizens.”
He added that cheaper electricity will also mean cheaper production cost for industries and higher profit margins.
President Ramotar also used the opportunity to call on the business owners for their support on the Anti Money Laundering and Countering the Financing of Terrorism Bill.
Chairman of the Organisation, Sattaur Gafoor, in his report spoke of the many achievements over the past year despite the challenges. Gafoor said that the SBDF has been able to generate in excess of $30 million over the past year and all their debt payments are up to date.
“There is no doubt therefore that SBDF has grown into a strong institution with the capacity of honouring its financial and developmental responsibilities.”
For last year, the Chairman said that the company’s performance can be termed as reasonably good with almost 600 loans dispensed to the value of $440,204,000.
In moving forward the Chairman said the company’s vision for this year is to help another 700 families, spending $550 million in the process.
“This would empower small men and women to gain confidence, think ahead and live with dignity and economic security.”
Gafoor said the company has developed a strategic plan for the next five years during which they hope to help 4,000 families, to develop their capital resources and to train their human resources with suitable technologies.
The SBDF has been operating for the past 11 years, and has been providing financial assistance to persons for the expansion and opening of small and medium scale businesses.

---

---