The Bahamas International Securities Exchange (BISX) is seeking to marry its Small Alternative Market (SAM) and regulated environment with the new crowdfunding phenomenon, its chief executive said yesterday.
Keith Davies indicated to BICA’s Accountant’s Week conference that crowdfunding, an increasingly popular form of raising capital and financing, will be a key component in BISX’s bid to provide Bahamian small and medium-sized enterprises (SMEs), and entrepreneurs, with access to a broader investor pool.
“It’s very difficult for small, and particularly entrepreneurial, new businesses to access the capital they need to do the things they want to do to grow their business,” Mr Davies said.
Emphasising that BISX wanted to create access to capital for small and medium-sized businesses, reduce risk and increase education for investors and entrepreneurs, he added that the exchange was also exploring ways to embrace crowdfunding.
“We want to take the aspects, the speed and the broad nature which exists in crowdfunding with those of a regulated stock exchange,” Mr Davies said.
Crowdfunding involves financing a project or business venture by raising small amounts of money from a large number of people, typically via the Internet. It pools money from friends, family and investors.
“It is an area designed to attract entrepreneurs to the market, but in ways that channel their efforts towards seeking the capital they need to do the things that they desire.”
Mr Davies added: “We started talking about the SAM many years ago. We believe that we can create a niche market where we can develop features within the exchange to support small and medium-sized businesses to grow. We believe that there is value in focusing on this area, one that in the fullness of time will benefit the economy of the Bahamas.”
He added that the Chamber of Commerce will act as the ‘bridge’ between BISX and Bahamian companies who are seeking to raise financing, noting that it is already heavily involved in the sector via its SME Help Desk. The Securities Commission is also working with BISX on the initiative.
Mr Davies said the first version of the SAM initiative “never took off”, and added: “I take full responsibility for that. My expectation at the time was that this would have been embraced by the market, having seen something that was needed and would be supported.”
Comments
ohdrap4 8 years, 1 month ago
the PLP beat you to it dude. Except the called it VAT.
Crowdfunding involves financing a project or business venture by raising small amounts of money from a large number of people, ,. It pools money FOR friends, family and investors.
observer2 8 years, 1 month ago
Every day government surrogates come out with some new foolishness. Yesterday Hope was talking about income tax. Today Davies is talking more nonsense about "crowd funding".
What the government really needs to focus on is making it easier for new businesses and existing businesses to work efficiently. They need to get back to basics and stream line the bureaucracy.
The regulatory and administrative cost to form a new business in the Bahamas is so big that it will discourage most. How can you talk about a sophisticated business concept such as "crowd funding" when no one can actually form a new business?
Currently all the steps are needed. None of which can be done properly online.
Company formation - legal cost $5,000. In the US $59.
VAT registration - accounting.
National Insurance registration.
Business license registration.
VAT returns, accountant needed.
VAT computer software - $5,000.
Customs duties on imports.
VAT on imports.
Brokers needed to get items into the country.
Generator cost when BEC fails, which is daily.
24 hours security due to theft.
Armed guard for daylight bugularies.
Untrained workers, due to a national D average.
Very high BEC bills, 3 times as high as the US.
High rental costs in a nice area as landlords try to keep up with VAT on business rental income.
Also people don't have any money to buy your products so sales will be very low.
After all dis its easier to save da lil check from da Chineese/Baha Mar, collect national insurance, hurricane relief and funds from social services and rest ya sef at home. At least it lil cooler now so ya don't need BEC on.
banker 8 years, 1 month ago
Da crowd een gat money. What a parrot azz!
killemwitdakno 8 years, 1 month ago
It would actually be called micro investing since its on a stock market where as crowdfunding is mostly donations but go ahead lead the way.
Sign in to comment
OpenID