Prudence N. Barnes, Contributor
LEFT: Sonya Dunstan displays a range of her products. RIGHT: Sonya Dunstan stirs fudge. - PHOTOS BY PRUDENCE BARNES
AFTER WORKING for over 12 years in some of Jamaica's finest hotels, Sonya Dunstan started on a new career as a businesswoman.
With some financial assistance from family, Dunstan began making a living from items that have literally existed 'right under our noses', adding some unique touches to create a vibrant and growing business.
Traditional treats like tamarind balls with a taste of rum; coconut drops; chocolate rum fudge; Blue Mountain Coffee fudge, colourful and tasty old time Jamaican mint balls; unique flavours of jams and jellies from local agricultural produce and a range of other products created to exacting standards and attractively packaged for the local and overseas markets, form a part of her line of products.
In days gone by, she would have probably sought help from a mother or aunt in formulating her product. Instead she sought training in making jams and jellies through the Scientific Research Council (SRC) and business and marketing guidance from the Jamaica Business Development Centre (JBDC) whose 'Things Jamaican' stores are now numbered among her distribution outlets.
So overwhelming has been the response to her line of desserts and confectioneries, her company, 'A Taste of the Islands', is already outgrowing its small space at the JD Chocolate Fudge factory on Cargill Avenue in Kingston. She now employs three people.
Island Treats
When Leoni Walsh was made redundant after 18 years of service with the Versair In-Flite Services catering company, she decided to parlay her love of baking and the kitchen into a business. Island Treats is her line of gizzadas, puddings, coconut drops and other traditional folk confectioneries, and while she is not at the level she wants to be in the development of her business, she is pressing ahead hoping to find some means of expanding. In the meantime she caters lunches.
These women are among an increasing number of Jamaicans using established folk culture knowledge to establish small and micro business particularly in agro-processing.
Harold Davis, executive director of the (JBDC) which provides business development, marketing and technical assistance to nurture small and micro businesses, says more Jamaicans are starting their own businesses in confectioneries, agro-processing and other businesses that make use of the indigenous cultural knowledge.
There has been a steady increase in the number of persons approaching the JBDC for help in establishing businesses, he said. "Every year since 2001 we have seen a 20 per cent increase over the previous year, in the number of persons coming forward to seek assistance."
He notes that 30 to 40 per cent of those who seek guidance from the JBDC actually start their businesses. A growing number of them, he says, go into the cottage industry and use local materials for assembling products.
Dr. Audia Barnett, executive director of the Scientific Research Council (SRC), says the SRC is also experiencing an increase in the number of people who come to the organisation for research and development services. "People have their recipes and ideas, and they are coming to us to make it happen," she says. She adds that Jamaicans are seeking help with developing formulations from agricultural products for the food, "nutraceutical" (products from healing herbs) and the beauty industry.
Jerk, fruit-based products, and folk remedies such as noni, are some of the products the SRC has provided assistance in developing. Though it is not clear how many have been helped, Dr. Barnett says the numbers are growing.
FINANCING ARRANGEMENTS
The SRC also develops formulations that it sells to people and companies for prices ranging from $15,000 to $200,000. For those who come with their own formulation, the SRC charges only for its time. It also opens its lab for research and development for start-up companies for a fee. They also provide training courses in food processing and linkages with agencies such as the JBDC as part of their community outreach.
Mr. Davis of the JBDC attributes the increase in small business activity to the fact that there are more sources of help available to small and micro businesses than there were before.
A number of financial institutions are also now providing a mix of financing arrangements for micro and small businesses on favourable terms. Many commercial lenders request types of collateral and offer interest rates which are prohibitive to most micro and small businesses.
Among these financial institutions are the Micro Investment Development Agency (MIDA), the Self-Start Fund, the Micro Enterprise Services Limited (MESL); the Ex-Im Bank; the Development Bank of Jamaica and Jamaica National Small Business Loans. Some commercial banks are also establishing small business loan programmes.
The Self-Start Fund told the Financial Gleaner that it has seen an 86 per cent growth in the number of loans for start up and working capital as at April 2005 compared to the same period last year. The amount loaned has also grown by some 68 per cent, according to Asquith Brown, general manager of the Self Start Fund.
"The trend is that more persons are coming forward for start up and working capital to expand existing businesses," Mr. Brown said, adding that the agency does not ask for traditional collateral but accepts guarantors.
Jamaica National Small Business Loans Limited also says it has witnessed an increase in the number of loans issued.
"Last year we disbursed some 20,000 loans valued at some $670 million compared to 15,000 loans the year before," said Thelma Young, credit and risk manager at JN Small Business Loans Limited. Mrs. Young notes that since October 2000 when her company was established, some 58,000 loans valued at $1.8 billion have been loaned to micro and small businesses. They can receive a minimum start-up loan of $50,000 and a maximum of $300,000 for a re-financing loan.
But the major portion of their loan disbursements, 67 per cent, has been for the retail and distribution business with only six per cent going towards manufacturing.
These increased sources of funding have resulted in improvements in the overall manufacturing sector. After years in decline, the sector has begun to show recovery and the Planning Institute of Jamaica's Economic Update and Outlook for January to March 2005 shows that the sector has grown 2.1 per cent more than the corresponding period in 2004. In the last financial year, manufacturing grew by 2.9 per cent, with most growth happening in the food and beverage and tobacco groupings.
But while more sources of financing are available, many small businesses are still finding it difficult to access loans and there are gaps that pose significant challenges to micro and small businesses, among them is the lack of availability of funding for research and development.
Davis explains that the mortality rate for new businesses is high because many are not thoroughly planned before they start operating. He says only some 30 to 40 per cent of businesses which are conceptualised actually start, and "We are not sure how many survive."
Sonia Dunstan, who studied food and beverage and hospitality management at the University of Technology and Florida International University (FIU) respectively, never received a loan from any financial institution. Those she approached were reluctant to assist.
Despite that, she has achieved some success in he business and her products are also found in selected supermarkets and gift shops. "For the most part I do my own sales, marketing and merchandising," Dunstan states.
Jessie's Jamaican Fruit and Rum Cake
Another of the new entrepreneurs is Jessie Duffus-Thomas, the originator of 'Jessie's Jamaican Fruit and Rum Cake'.
Working from her home in Discovery Bay, St. Ann, Mrs. Duffus-Thomas told JIS News that she has been baking cakes for many years now. The inspiration, she said, came about due to the positive comments from her friends and family who knew that she loved to bake and would often encourage her to start her own business.
"This Fruit and Rum Cake is an original family recipe, created in the hills of St. Ann. It has been in existence for over the past four generations and to date minor additions have been made to it to capture a rather unique taste and texture," she said. Jessie's Kitchen, is a registered sole trader business and currently has two employees.
"After 18 months of careful planning and marketing research, we began the sale of our Jamaican Fruit and Rum Cake in September 2005 and we have been gaining recognition across the island," she said.
In February of this year, the Jamaica Promotions Corporation (JAMPRO) took her products to an international expo in London where it got favourable responses. Jessie's Kitchen is now working towards promoting its product globally, she said.
Additionally, by the middle of November Jessie's Christmas cakes will be on the market and a new line of products will be entering the market in the year 2006.
Sonia Dunstan has continued to reinvest in her business, and sees the necessity for expansion, but says she is moving cautiously. "I would definitely love to expand. But I have to be careful, because you have to be conscious of inflation. You have to be conscious of variables like electricity? And even for packaging, the cost factor is very high." Nevertheless, she notes "in five years, I would like to be operating out of my own establishment; have a greater market presence and extend the range of products I offer".
