Amitabh Sharma, Features Coordinator

Whylie

AT A time when opportunities in the supplementary sector are on the rise, it might be a good idea to start your own small enterprise. However, there are some fundamentals that an incumbent should bear in mind.

Frank Whylie, general manager, Jamaica National Small Business Loans (JNSBL) Limited, gives an overview:

Environment for smallbusinesses in Jamaica

The Jamaican economy is becoming increasingly conducive to the formation of small businesses. Recent changes to the Companies Act of Jamaica also make registering these businesses easier and with the establishment of government agencies such as the Jamaica Business Development Centre, support services for the entrepreneurs looking to start micro and small businesses are now available.

With the CARICOM Single Market and Economy coming fully on stream, there is scope for the growth and expansion of small businesses in Jamaica. It is up to our entrepreneurs to explore these opportunities and capitalise on them.

Advice to individuals who want to set up their own small enterprise

It is critical to research the market to ensure there is real and sustained demand for your product or service. This can be done by speaking with other business persons and potential suppliers or partners who can provide useful information to guide the start-up of the business.

Shop around and research opportunities for funding and ensure that you have the basic skills and manpower for the goods and services you propose to offer. Micro and small businesses often require more support in the start-up stages.

Challenges and overcoming them

At start-up, and even during the first years of business, entrepreneurs often have difficulty providing assets which are accepted as collateral by traditional lending institutions. This limits their options for financing. Some entrepreneurs do not have a clear and workable business plan, which hampers the start and growth of their businesses.

In some cases, lack of appreciation for timing and product life cycles may hinder success in the first instance, while others may have a good idea, but because of the lack of information on how to proceed, they are unable to start the business.

You will need to develop a network of persons who can provide good advice based on their own experience or industry knowledge. Also access services of business development agencies such as the Jamaica Business Development Centre (JBDC).

Flexibility of financial institutions and JNSBL perspective

JNSBL is the product of a mutual organisation, the Jamaica National Building Society. This concept of mutuality influences our operations somewhat in that we aim to develop the entrepreneur.

We recognise the challenge of finding collateral and designed our loan products to increase the chances of qualifying for the loan. We also maintain a close relationship with our clients to ensure the loan is properly serviced.

We are currently developing a response programme to assist our clients who have been affected by Tropical Storm Gustav. The response initiative is geared at helping them return to pre-Gustav state.

Role of JNSBL

We have commissioned JBDC to provide a micro and small business training programme for our clients, this programme introduces them to record keeping, basic accounting, marketing, as well as business management skills. We have trained more than 5,000 micro and small business operators since the start of the programme.

Our clients span all social and demographic groups. Thirty-nine per cent of our clients are based in the rural parishes and some 74 per cent of our clientele are women.

Loan essentials

The criteria for qualification differ depending on the loan products. As for JNSBL, our loan products rely heavily on the character of the borrower and the business plan. We accept non-traditional forms of collateral in order to help micro business operators to qualify for the much-needed funding.

Future of small businesses in Jamaica

I am expecting there to be an increase in micro and small businesses in Jamaica in the coming years. The Government has realised the potential of micro and small enterprises as the drivers of development and will be providing funding to fuel the growth of the sector.

We have several success stories to confirm that there are numerous viable small enterprises owned and operated by persons who understand business management, deliver for their clients, provide employment for other persons and take the necessary steps to keep their businesses growing.

amitabh.sharma@gleanerjm.com