The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Christie administration was yesterday urged to “at least double” the annual capital injections it makes into the Government-sponsored venture capital fund, and provide a much-needed boost to Bahamian entrepreneurship.

Edison Sumner, the Bahamas Entrepreneurial Venture Fund’s vice-chairman, told Tribune Business that increasing the Government’s annual contributions from $1 million to $2 million would help overcome the ‘access to capital’ roadblocks that have traditionally prevented young Bahamians from realising their business dream.

He also revealed that the private sector was “anxiously awaiting” the completion of the long-promised Small and Medium-Sized Enterprises Development (SMEDA) Bill, amid indications that the Government would seek to bring it to Parliament during the 2015 first quarter.

The Bill, as currently drafted, provides for the creation of the Small and Medium-Sized Business Development Agency (SMEDA), which is designed as a ‘one-stop shop’ for providing entrepreneurs with the advice, expertise and resources they need to succeed.

“It would be good if the Government could perhaps consider increasing the contributions it makes to the venture capital fund, so it can support more businesses,” Mr Sumner told Tribune Business.

“We’d like to see it increased to at least double. There are a lot of opportunities we’d like to assist but can’t because of limited funding. Some of the companies funded by the venture fund have done extremely well.”

To-date, the Bahamas Entrepreneurial Venture Fund has financed 50-60 entrepreneurs and young, start-up companies. The last data made public showed it had invested around $4.3 million in these businesses, via a mix of debt and equity positions.

The Government has traditionally injected around $1 million per annum into the venture fund, but Mr Sumner said that in some years no contribution had been made at all.

“Many young Bahamians want to get into business, but one of the major obstacles is access to capital,” Mr Sumner reiterated.

He expressed hope that SMEDA’s creation and subsequent business support services, together with its enabling legislation, would encourage a “more flexible”

approach to small business lending by Bahamas-based commercial banks.

“There’s still work going on with SMEDA,” Mr Sumner said, adding that he had met the Bill’s consultants in December.

They had told him progress was still being made, and they were waiting for assistance from Inter-American Development Bank (IDB) consultants, who were working with the office of Khaalis Rolle, minister of state for investments.

Mr Rolle could not be reached for comment yesterday, but Mr Sumner told Tribune Business: “We are anxiously waiting to see what the outcome will be, and if there are any further amendments to the draft Bill.

“We were advised there may be a move towards a tabling of the Bill in the first quarter of the year, and are anxious to move that process forward.”

Mr Sumner said the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), for which he acts as chief executive, and the various Family Island Chambers would have SMEDA Board seats and have a role in its operations.

Mr Sumner’s comments came as the BCCEC announced it would relaunch its Small and Medium-Sized Enterprise Mentorship programme in early February 2015, in a further bid to stimulate and foster Bahamian entrepreneurship.

The BCCEC, in a statement expressing concern over the increased November 2014 unemployment rate of 15.7 per cent, which was 0.3 percentage points and 1.4 percentage points higher than November 2013 and May 2014, respectively, called for greater focus to be placed on Bahamian business growth and investment.

“The BCCEC has stated numerous times before that the Bahamas’ development strategy should emphasise developing entrepreneurs rather than simply seeking to fill jobs,” it said.

“There is a class of eager, young budding entrepreneurs that is quite impressive, but these individuals need guidance and mentorship, as well as access to capital in order to develop and sustain their businesses.”

The private sector organisation added: “The nature of the Bahamian economy necessitates the need for foreign direct investment (FDI).

“However, true empowerment and growth of economic opportunities for Bahamians will only be achieved through the development of the domestic investor class, and the granting of concessions and subsidies to domestic investment should be no less favourable than that offered to FDI.

“This all speaks to the need for a fully developed and comprehensive National Development Plan, which puts Bahamians first but also provides a road map and parameters for ensuring maximum domestic benefit from all investment activity in the Bahamas.

“The same effort exhibited by the Government in attracting FDI must be matched, if not exceeded, in empowering the domestic investor. Domestic investors are not looking for handouts, but merely for access and opportunities to make their dreams a reality.”