THE JAMAICA Craftskills Promotion Association, currently a pre-micro enterprise group, has embarked upon a programme of development for its members that will assist them to access small loans of $5,000 - $20,000 to provide working capital for their businesses.
A recent study done for the Ministry of Industry, Commerce and Technology indicates that the small business sector is broken down into three basic socio-economic categories. These are:
A) Small Business Enterprise
Employing 4-10 persons (some say up to 49 persons);
Average loan size US$10,000;
With assets of land and building valuing US$100,000;
Usually operates formally; and
Able to meet collateral requirements for loans.
B) Micro Enterprises
Usually owner-operated;
Employ three or less paid employees;
Assets including land and building valuing US$10,000;
Loan size US$1,000-$2,500;
Usually operates informally; and
Existing businesses, usually does not have appropriate collateral, etc.
C) Pre-Micro Enterprise or Start-Ups
Unemployed, underemploy-ed;
Lack appropriate collateral;
Petty traders;
Maximum loan size $30,000;
Lack business skills;
Relatively insensitive to high interest rate.
According to Mr. Junior Wilson, president of the association, "While most of the members of the Jamaica Craftskills Promotion Association have been in business for upwards of three years and have acquired much business experience and are highly skilled at their respective craft, our greatest dilemma and impediment to personal and national development is lack of access to credit on account of lack of collateral."
To address this problem as it affects craft producers particularly those falling at the bottom of the Micro Enterprise category, the association has embarked upon a programme aimed at offering some assistance to members through self-help, fund-raising and corporate contributions.
The assistance will be a revolving loan aiming at strengthening members' productive capacity which, it is hoped, will eventually lead to the development of members' collateral base for further advancement. To benefit, one must be a skilled craft producer and an active member of the association for at least three months.