$300 Million to support investment and growth in small businesses

The government has injected another $300m into its efforts to support the small business development fund for the further development of small businesses and for new small businesses coming on stream.

Finance Minister, Dr. Ashni Singh announced on Monday that some $584 million will be allocated to the Small Business Bureau this year with $300 million of the allocation going towards the Small business Development Fund.

“In 2022, through the Small Business Development Fund, more than 1,400 entrepreneurs benefitted from grant financing ranging from $150,000 to $500,000 in areas such as Professional and Business Services, Low Carbon Agriculture and Agro-Processing, Farming and processing and Livestock development. This represents an almost 91.6 percent increase in the number of beneficiaries from the year prior. A sum of $300 million is budgeted in 2023 for the Fund to continue assisting small entrepreneurs,” the Finance Minister told the House during his budget presentation.

The Finance Minister said the government, through the Small Business Burueau has continued to support small business development through several initatives which include the issuing of grants and collateral guarantee programmes, special grant programmes to businesses affected by COVID-19 and training of clients across all 10 Administrative Regions.

“In addition to increasing their access to finance, there has been a robust ongoing effort to enhance the capacity and capabilities of small businesses. Last year, over 2,000 business owners were trained and benefitted from courses to improve their strategic positioning, general and financial management, record keeping, digital marketing and market access, among other areas,” the Finance Minister noted.

He also said the government recognises the constraints faced by many small businesses in relation to finding adequate and suitable space for them to set up shop. As a result, the government has already embarked on the construction of industrial estates and business incubator centres at key locations countrywide.

“To this end, notwithstanding some delays in logistics in acquiring equipment, the business incubator centers at Lethem and Belvedere are expected to be fully operationalized in 2023, resulting in the creation of over 400 jobs. These will provide direct and indirect services, aimed primarily to boost agro-processing output, and are expected to generate revenues through rental space for office use, training facilities and shopfront pods for 48 small businesses to sell their goods and services. In a bid to further expand available land for industrial development, $327.8 million has been allocated in 2023 to continue development works in Amelia’s Ward and commence works for the establishment of a new industrial estate in Region 2,” the Minister announced further.