The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Small Business Development Centre (SBDC) has received a $600,000 grant funding boost for its mission to create and empower more Bahamian entrepreneurs.

K Peter Turnquest, deputy prime minister, hailed the funding from the Inter-American Development Bank (IDB” as “a happy day” given that it will build capacity, and foster co-ordination, between stakeholders in the micro, small and medium-sized enterprises (MSMEs) sector.

He added that the Government had wanted to create an initiative that will “provide capital to the most disadvantaged sectors of our economy”, and was not giving out “free money” in its attempt - through the SBDC - to “spread the wealth” among a wider base of businesses and entrepreneurs.

Mr Turnquest said: “We are signing a technical co-operation agreement that will unlock $1.3m in resources.... This is going to help us to expand the work that the SBDC is involved in.”

Daniela Carrera Marquis, the IDB’s country representative, said the Accelerate Bahamas project - for which The Bahamas is providing $710,000 in counterpart financing - is a technical cooperation effort designed “to improve the entrepreneurial and innovation ecosystem in The Bahamas by increasing access to finance and advisory services among SMEs”.

It also involves the building of a financial technology (Fintech) platform to mobilise capital, and she added: “With this technical co-operation, IDB lab will provide $600,000 towards a $1.3m technical co-operation with the Small Business Development Centre in The Bahamas.

“This project will complement two other projects that the IDB is currently engaged in with the SBDC in The Bahamas. One of them is the bank’s credit enhancement facility for $25m, which will provide partial credit guarantees to eligible financial institutions for loans to be given to SMEs that are unable to meet the financing requirements from established financial institutions but have been advised by the SBDC.

“It also builds on the technical co-operation agreement to build on the capacity of the SBDC; for it to be able to enhance its operational and fiduciary capabilities and be able to manage its functions to better serve SMEs.”

Ms Marquis added that the “principle constraints” to SME development in The Bahamas are “financing” and having an “adequately educated workforce for business growth”. She said: “We will support the [SBDC] in the role that they are providing as a key stakeholder in the provision of advisory services and capital support for businesses throughout the Bahamas,.

“It will also help to shape the entrepreneurial ecosystem based on the role that the SBDC is playing - and will continue to play - within the Bahamas. The project will support the access to finance for SMEs through the establishment of a Fintech platform that will allow or support the mobilisation of capital for SMEs at various stages of business development over their life cycle.

“The capacity to provide this Fintech platform will also enhance or leverage the credit enhancement facility that is available for the SBDC to mitigate some of the risks SME’s will have. It will be different from national institutions in that it will be a platform that allows for a more transparent and clear engagement between those that have the funding and those who need this financing.”

Davinia Grant, the SBDC’s executive director, said the SBDC currently only has 20 advisors on staff to serve some 5,000 plus businesses already in their system. The grant, she added, will help build the SBDC’s capacity and expand its reach.