The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Government-sponsored venture capital fund is expected to create 130 local jobs via $1.5m in combined equity financing that has been injected into seven Bahamian businesses.

The Prime Minister, who yesterday touted the Government's backing for micro, small and medium-sized Bahamian businesses (MSMEs) as he kicked-off the mid-year Budget debate in the House of Assembly, pledged "even more support" for the sector as it and the wider economy slowly emerge from the COVID-19 pandemic.

Arguing that even the Government's "most vocal critic" had to acknowledge its MSME efforts, Dr Hubert Minnis asserted that his administration has "done more than any other to provide support and capital - hard currency - [and put it into] into the hands of Bahamian entrepreneurs and small businesses".

Indicating this is likely to be a central element in the Free National Movement's (FNM) bid for re-election to office, the Prime Minister added that the Government had spent more than double what it had pledged to make available to MSMEs during its five-year term in office.

"I made a pledge to spend an unprecedented $25m over five years to support Bahamian businesses," he added. "Some three years since that pledge we have spent well over $50m supporting our wonderful Bahamian entrepreneurs and small businesses."

A significant portion of that increase was driven by the need to help Abaco and Grand Bahama entrepreneurs recover from Hurricane Dorian, as well as the Business Continuity Loan and associated grant initiatives to safeguard small and medium-sized businesses from COVID-19's economic devastation.

"During the peak of the pandemic we provided over $45m in funding to help our small businesses weather this disaster. Now, as we emerge, even more support is needed to help our businesses to expand," the Prime Minister told the House of Assembly.

He added that the Bahamas Development Bank (BDB) will “soon be recapitalised to support the pipeline of more than $20m in Bahamian" investment projects before starting to breakdown the Government's allocations to MSMEs by sector.

Some $2.4m, including $1.5m in grant funding, has been approved for agriculture, forestry and fishing ventures created by 80 Bahamians, the Prime Minister said.

"In the construction Industry over $5.5m has been approved, with $1.3m being grant funding, to 135 Bahamians," Dr Minnis added. "For the new, innovative fashion Industry, a total of $1.1m has been approved, with almost $400,000 in grant funding, to 73 Bahamians.”

The Prime Minister said manufacturing ventures received a $2.4m investment from the Government, with around $200,000 of that sum involving grant funding.

Asserting that the Small Business Development Centre (SBDC) has aided an “unprecedented” 1,543 Bahamian entrepreneurs with loans, grants or business support services, Dr Minnis said the agency's support had been invaluable to clients during COVID-19.

"A local taxi company came to the SBDC in 2019 and obtained a business loan and grant for the owner to expand her fleet of vehicles. They received total funding of $240,000," the Prime Minister added.

"As tourism was hardest hit by COVID, she sought assistance under the Business Continuity programme and received a $20,000 grant and loan support of $130,000.

"That taxi company owner now reports that she was able to retain all 13 of her staff, and business is slowly but surely picking back up as tourism starts to rebound."

Dr Minnis also unveiled a partnership between the SBDC, the Department of Inland Revenue and the Ministry of Agriculture's 'roadside vendors programme' to provide training and financing for the "coconut" industry.

Detailing a phased initiative, which will initially focus on "capacity building", the Prime Minister added: "This training, to be facilitated by the Ministry of Agriculture and the Bahamas Technical and Vocational Institute, will involve the production of authentic Bahamian coconut products such as jewellery, coconut water, coconut oil, flakes, creams, soap and lotion.

"Upon successful completion of the first phase, the second phase will be a guided process/workshop on matters such as how to obtain a business licence, training in basic food handling techniques and processes, and meeting all other regulatory requirements that may be required."

The second phase will involve the Department of Inland Revenue, Ministry of Agriculture and both the Ministry of Education and Department of Physical Planning. Dr Minnis said: "The third area of concentration will be facilitating necessary funds and support for the acquisition of carts or basic production equipment, uniforms and raw materials for their day-to-day business. This element will be shepherded through the SBDC and local financial institutions as necessary."