The Tribune

The Inter-American Development Bank (IDB) is providing $600,000 in grant funding to help kick-start an initiative designed to boost 2,500 micro, small and medium-sized (MSME) Bahamian businesses.

The multilateral lender is partnering with the Small Business Development Centre (SBDC), known as the Access Accelerator, for the total $1.3m initiative designed to provide support services to facilitate MSME development and growth amid the COVID-19 pandemic.

The funding from IDB Lab, the bank's so-called "innovation laboratory", will be used for programming and activities related to promoting innovation; mentorship support; standardising advisory services; and implementing a digital platform to connect MSMEs to funding opportunities.

"The IDB Group remains committed to the development of businesses and entrepreneurship in The Bahamas, which furthers strengthens the nation economically and socially,” said IDB country representative, Daniela Carrera-Marquis.

“It is anticipated that this project will contribute greatly to the quality and robustness of ecosystem support for MSMEs in the country, and contribute to job creation and stimulus of the economy. Digital and financial inclusion for SMEs, with an emphasis on women-led SMEs and to those geared towards green businesses, will further strengthen business continuity and their ability to build a robust economy.”

The project will also bring key players together for advocacy and policy recommendations related to entrepreneurship, the ease of doing business and the promotion of innovation in The Bahamas.

Steering committee members and participants will come together on a quarterly basis to ensure the project is having its expected impact, and discuss necessary actions for improving the environment for SMEs and entrepreneurs.

Davinia Grant, the SBDC's executive director, said: "This collaboration with IDB Lab is timely. We have seen many businesses pivot during the pandemic to rely heavily on technology and digitisation. The incorporation of technology into businesses cannot be viewed as just a pandemic alternative but as the way to operate moving forward.

"Through the Accelerate Bahamas project we can focus on getting more businesses to realise the power of technology, and how using that power coupled with proper business development and accessibility to funding can lead to innovation and success for many Bahamian small business owners.”

Mikia Carter, IDB Lab’s private sector specialist, said the project's execution comes as SMEs struggle with adapting their business models due to the COVID-19 restrictions and social distancing measures. Previously, business transactions primarily relied on human and physical interactions.

“The need for digital transformation of businesses has never before been greater. Digitisation will not only improve the productivity and competitiveness of SMEs, but will play a major role in developing an inclusive and sustainable economy, and hopefully build the blocks to creating a diversified Bahamian economy through the pillars of innovation,” said Ms Carter.