The Creators’ Coven

Jan 22, 2023 News

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By: Zena Henry

Another year to activate your creative skills and take advantage of the oil boom

Kaieteur News – The 2023 budget is out, and that means another year for continued investments, development programmes, increased oil production and of course, increased business opportunities. We take a break from regular programming to discuss some of the opportunities available to small businesses and how persons interested in starting their own establishments may go about doing so.

Of course, we are aware that Guyana has had world class oil discoveries and is currently described as the sweet spot of the global oil industry. Our known crude wealth is well over US$11billion and the industry is set to pump oil for the next two decades. Oil revenues are significant to the growth of economies as the cash garnered from the sale of hydrocarbons is usually utilized for the development of the people as well as the physical infrastructure. In the process, oil economies can attract a wealth of investors looking to capitalize from the oil directly, or from the spin off services that are required. In Guyana’s case, we do not only have oil, but a number of natural resources to be exploited, sectors to expand and new ones to be created. We lack the capacity to satisfy the expanding economy, and we are already depending on foreigners to fill basic requirements that could be delivered in-country.

It has been said over and over again that in the next few years, the people in this country and the environment will look very different because of the foreigners that will be here and the infrastructural changes that will occur. It would be sad, in my view, if Guyanese, in particular, young people, do not understand the change that is about to take place and the need to align themselves with the available opportunities. To not prepare for the pending change is to be left behind. And at this early stage, every Guyanese should be thinking about how they plan to take advantage of the situation. Whether it is through technical training, academic certification to work within the industries or through the establishment of one’s own business, it would be unwise for those who need it most, to not do their homework and utilize the situation so it can best serve them.

There are a great deal of service areas open for investment, including for small and medium size operators. In 2021 Guyana passed the important Local Content Legislation that is supposed to ensure that international companies and the people working for them use more local businesses to provide products and services in at least 40 service areas. Subject to other stipulations, these 40 areas require various levels of Guyanese participation if foreign companies are also interested in operating in these service areas. What this provides is direct service to the lucrative oil sector and the development of Guyanese skills. Some of the business areas that must have Guyanese participation include real estate, rentals, janitorial and cleaning services, fabrication, welding, trucking, transportation, catering among others.

Outside of the oil industry, those very services will be needed for the growing economy. In an earlier discussion we had looked at important requirements for starting and expanding our businesses. Capital is the most import requirement. Many of us will need to access additional sums to establish and grow our businesses. There are agencies such as the Institute of Private Enterprise Development (IPED), Small Business Bureau and the Small Business Development Finance Trust (SBDFT) to name a few. These particular establishments cater to small businesses and for the most part, offer reasonable payback terms which allows small entrepreneurs to secure financing. But there are requirements that have to be met to access these funds. So, if you are interested in seeking such loans, remember that important documents such as your business registration, National Insurance Scheme (NIS) and Guyana Revenue Authority (GRA) compliances are imperative. These are among the must-have documents that needs to be submitted to secure a loan and basically conduct almost any type of trade. Of course, the NIS and GRA documents could be uplifted from the named agencies, while the business registration is uplifted from the Commercial Registry. Not only are these documents important in legitimising your establishment, but it helps in time of accessing work as a registered organisation with the state.

Additionally, it would be wise to begin to familiarise yourself with the business world, attending seminars, meetings, and joining groups of like minded people. The Small Business Bureau, for example, is a national funded organization and apart from the funds one might be able to attain, it offers guidance and advice of the maintenance of the operation. The 2023 budget gave them almost $600m, but the advice received may be even more valuable.

If you are involved in agriculture; interested in securing some state land to start a new venture or expand a current one, again get the help you need for your project; seek out the relevant organizations; utilize the internet, and ascertain where you can get the help required. The Ministry of Agriculture’s National Agricultural Research & Extension Institute (NAREI) for instance, is the premier organisation responsible for spearheading agricultural research and extension activities for productivity enhancement and diversification of the non- traditional crops sector; and they often times provide assistance to citizens in the agriculture field. Connecting with this agency may very well see your agriculture successes improving since you would be getting expert advice from the right people.

 

At the Agri- Investment Forum and Conference held at the Arthur Chung Conference Centre last May, we came across an agro-processing establishment called Ashdel’s owned by Grace Parris who packages interesting pre-cooked foods. The coveted Guyanese pepper pot is now packaged and available to eat after just three minutes of heating. Parris had said that Ashdel’s is a fairly new manufacturing company that produces ready-to-eat products such as pepper pot, porridge and soups. The plantain porridge comes with milk and sugar or plantain alone. One cup of hot water is added to the contents, stir, and it is ready for consumption. She had told the Coven that her products are currently available at the Guyana Shop, but she was also working on ways to expand distribution of her goods.

The Economic Development Fund is another finance avenue. They run a programme sponsored by USAID in the Economic Development Accelerated Programme for agro-processors in Guyana. Shondell Brotherson, an agency representative, had said that what they do is take participants through a year of training, coaching, providing access to international experts in marketing, in operations and in finance, and at the end of it, if they are successful, they are awarded with a grant. The grant helps to scale their businesses and export their product. She said five successful locals would receive US$30,000 to invest in their businesses for 2022. It was this very program, from a previous year, that assisted Parris in propelling her establishment where she was able to improve on production and packaging.

Need to get started on business today! First decide what it is you want to do. Once that is figured out, register your business name. Uplift an application form from the Commercial Registry located on the Avenue of the Republic and fill it out. Seek the necessary help if required, ask questions. Return the form and pay $5,000 to uplift your registration. You are now a registered business owner, and if a serious one, you would make the necessary moves after.

A very easy idea I wish to offer as an example is a washing service. Interestingly, numerous laundromats are already popping up around Georgetown for example. Now imagine investing simply in two washing machines and some laundry detergent, advertising on social media, using some fliers as well, and working from home. And in about three to five years with diligence, you are able to have your own location with adequate equipment, offering specialized services to large companies, hotels and other customers. These are some of the possibilities that exist even for the smallest individual in this new dispensation. A small investment in even a nail and hair course could mean an entire beauty salon in a matter of years or even months, depending on one’s determination.

The idea is not to overthink things, but to look at areas that may seem suitable for you. If you are into plumping, electrical work, catering make the necessary arrangements to qualify yourself within that specific area, whether through training or on the job experience, make it happen!

 

 

 

 

 

 

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• Ashdel’s, Oil revenues, opportunities, programmes, The 2023 budget, Trinidadian product

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