Over $2.3B in loans, distributed to SMEs amid ongoing growth challenges

Small and medium-sized enterprises (SMEs) in Guyana have received more than $2.3 billion in financial support since 2020 through a combination of Government-backed loan guarantees and grant funding as efforts intensify to strengthen entrepreneurship and expand the non-oil economy.
This is according to the 2025 Annual Report of the Guyana Manufacturing and Service Association (GMSA), which notes that “approximately $1.3 billion in loan guarantees and over $1 billion in grants have been disbursed to support SMEs since 2020”.
The report highlights the significant scale of financial intervention aimed at boosting small business development, while also pointing to persistent structural challenges that continue to limit the sector’s full growth potential.
According to the report, the financing forms part of broader efforts to stimulate business activity, encourage innovation, and support job creation across various sectors. SMEs are widely regarded as a critical component of Guyana’s economic framework, particularly as the country seeks to diversify beyond oil and gas and build resilience within traditional and emerging industries.
The report notes that these funding initiatives have helped to increase access to capital for small businesses, many of which previously faced difficulties securing financing through traditional banking channels.
Despite the injection of billions of dollars into the sector, the report makes it clear that financial support alone is not sufficient to drive sustained growth. It points out that SMEs continue to face “constraints related to infrastructure, limited capacity, and challenges in scaling operations”, which hinder their ability to expand and compete effectively.
Additionally, gaps in technical expertise, business development support, and access to markets remain ongoing concerns for small business operators. These challenges, the report suggests, must be addressed alongside financing in order to unlock the full potential of the SME sector. In response to these issues, the report highlights a plan for additional institutional support, including the establishment of a dedicated financial institution for small businesses.
It notes that “the establishment of an SME Development Bank is expected to further improve access to financing and support the growth of small businesses.”
Such an institution is anticipated to provide more tailored financial products and services, better aligned with the needs of SMEs. The report also outlines a proposal by the GMSA to develop a business incubation and administrative complex aimed at supporting small enterprises.
The planned facility, estimated to cost approximately $600 million, would provide space for start-ups, training opportunities, and business development support services. According to the report, the initiative is intended to address some of the capacity and infrastructure gaps currently affecting SMEs while fostering innovation and entrepreneurship.
The expansion of SMEs is seen as central to Guyana’s broader economic strategy, particularly in light of rapid growth driven by the oil sector. The report emphasises that strengthening small businesses will be key to ensuring that economic benefits are widely distributed and that growth is sustained across multiple industries.
It further notes that SMEs play an important role in job creation, value-added production, and the development of local supply chains. While acknowledging the progress made through financial support programmes, the report stresses the importance of a more comprehensive approach to SME development.
“Access to financing must be complemented by improvements in infrastructure, training, and market access,” the report indicates, highlighting the need for coordinated policy measures.
Without such measures, it warns, the impact of financial support may be limited in driving long-term business expansion.
As Guyana’s economy continues to expand, the report suggests that strengthening the SME sector will remain a priority for policymakers and industry stakeholders.