Tourism Ministry to offer fund to develop local businesses

The Director of Business and Entrepreneur Development at the Tourism, Industry and Commerce Ministry, John Edghill believes that local entrepreneurs can explore more service-oriented businesses in light of the growing oil and gas sector.
In an interview with Guyana Times, Edghill noted that with the influx of international investors and oil and gas offices in Guyana, the demand for services – specifically business process outsourcing will increase.

“Businesses that provide service such as accounting, filing taxes, printing and catering can benefit from the oil and gas companies. These companies host meetings, they would need meals, and so catering would fill a big gap here,” he explained.

He further noted that the Government along with the Tourism Ministry is working to make the Entrepreneurship and Innovation fund available.
“This is in the making, but we want to see businesses benefiting from this. However, we want businesses that can generate economic benefits. Those business where a workforce would be needed, so people will gain employment and the employees would be paid well,” Edghill added.
Furthermore, Edghill related that the Small Business Bureau can assist locals that lack collateral but are desirous of starting businesses that require a hefty initial capital.
He explained that the Small Business Bureau, through its credit guarantee programme, acts as a guarantor for these entrepreneurs.
“With this programme, the Small Business Bureau would guarantee small business development loans for entrepreneurs. The Bureau doesn’t give the loan, but we would say we are liable if the person doesn’t pay. So, in that way entrepreneurs can access loans from either of the two participating financial institutions working along with Bureau with this initiative,” Edghill related.
In addition, Edghill noted that businesses that participate in the credit guarantee programme are also able to benefit from a six per cent interest rate as opposed to the usual nine per cent stipulated by the local banks.
Furthermore, the Director posited that the Legal Affairs and Tourism, Industry and Commerce Ministries are currently working to make movable capital accepted by financial institutions.
He explained that most people lack immovable collateral and as such may feel ineligible to access loans. Nevertheless, with this new initiative, the Government will be paving the way.
“Many countries like China, Argentina and Albina they would do this. So, persons are no longer limited to only using land and houses as collateral. In this sense, more persons would be able to access loans, specifically entrepreneurs, so that they can expand and branch out,” he detailed.
Meanwhile, Edghill stated that apart from service-oriented businesses, the Government is also supporting businesses within the agriculture and agro-processing fields.
“These businesses are especially feasible in the outskirts of Georgetown, and they require little capital injection. Especially for poultry, that is a business that people can start-up in their backyards once they have the space,” he explained.
He further noted that the Guyana Small Business Bureau would be able to assist these small businesses that do not require such large funding, through grants.