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T
HE DEVELOPMENT Bank of Jamaica (DBJ) and the
Jamaica Business Development Corporation (JBDC)
have been going all out to help small-business operators
and even persons just thinking about setting up a business to
sort through the minefield that this process entails.
The two agencies provide help with two of the most critical
stages of starting a business – creating a business plan and
accessing financing.
According to Collin Coley, business development officer at
the JBDC, many business operators face difficulty with creating
a business plan, which is needed to attract investors or access a
loan.
“Well, that’s where the JBDC comes in, because a business
plan is very technical, so for a layman to pick up and do one
is not that easy. So we do those plans for small-business
people. The cost will vary from $35,000 upward, depending
on the size of the business, but it is something you will need
to take to the bank for a loan, or to a potential investor that
may want to invest in your business,” explained Coley
“The business plan would entail things like market research
to show that there is a space in the market for your product. It
would also include a sales forecast, which would outline how
many items or units you have to sell to cover your expenses.
“So even if you have been in business for 20 years and
want to expand, you would still need a business plan, because
the bank wants to see how you intend to spend the loan and
how quickly you will be able to pay it back,” added Coley.
The DBJ assists with financial planning for small
businesses, as well as constructing a business plan, by offering
small-business operators financial assistance to fund the
creation of those plans.
Claudette White, communications and marketing manager
at the DBJ, said the bank deemed this move necessary as poor
financial planning, as well as gaps in business plans, has been
identified as a major factor that contributed to small business
operators being denied loans to start or expand their business.
“During the DBJ’s interaction with these operators, it was
noted that many small-business persons were unable to
access credit from financial institutions due to a lack of
management capacity.
“Approved financial institutions also indicated that they
were more inclined to extend credit to Jamaican small
businesses if they received capacity development, which
could improve their credit worthiness,” said White.
FUNDING PROGRAMME
She noted that the DBJ instituted a pilot programme
where it would provide funding for 70 per cent of the cost of
creating business plans or technical expertise, under its
Voucher for Technical Assistance (VTA) programme.
According to White, so far the response to the VTA has
been overwhelming.
“To date, most of the SMEs (small and medium
enterprises) who approach the approved financial institutions
with gaps in their loan applications were lacking up-to-date
financial statements; the second most-issued voucher was for
business plan preparation, with 21 entrepreneurs benefiting
from this assistance,” said White.
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GOING FOR GROWTH FEATURE
| THURSDAY, MAY 7, 2015
Orlando Knibb (right) was among those who visited
the JBDC’s Mobile Business Clinic recently. Helping
him is public education and public relations manager
of the Trade Board, Makeda Ramgeet Baugh.
LETUSHELPYOUTOSTART
DBJ, JBDC stand ready to provide
technical and financial boost
Business vouchers, low cost
assistance from DBJ, JBDC
FILE PHOTOS
Credit analyst and marketing officer at the Self Start Fund, Ammesha Samuels (centre), speaks with
Jacqueline Moodie (right) of Moods Artistic Creation during the Jamaica Business Development
Corporation’s Mobile Business Clinic in Lucea recently. Looking on is assistant accountant at the Self Start
Fund, Tammy-Sue Johnson.
HOW IT WORKS:
Assessing a Voucher for
Technical Assistance
from the DBJ
‘Even if you have been in business for 20 years and want to expand, you would still need a
business plan, because the bank wants to see how you intend to spend the loan …’