- New entrepreneurs advised to avoid taking up large stocks of debt in order to start up their operations
- Government is putting forward a number of measures and initiatives to widen the scope for financing
- The Ministry is now “re-engineering” the micro financing enterprise sector
Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, is advising new entrepreneurs to avoid taking up large stocks of debt in order to start up their operations.
“Too many businesses, in starting up, compromise themselves because of the heavy debt that they start with…I urge you to look at how you can bring in family, friends (and) have a strong business proposal that can attract investors,” he told a gathering of stakeholders at the 14th Annual Shirley Playfair Lecture, hosted by the Fair Trading Commission, at the Jamaica Pegasus Hotel, on Monday, September 16.
Mr. Hylton assured that the Government is putting forward a number of measures and initiatives to widen the scope for financing, particularly for micro and small businesses.
He cited the Jamaica Venture Capital Programme (JVCP), which is being implemented over three years, in collaboration with the Inter-American Development Bank (IDB). The JVCP will be launched in April 2014.
The Minister pointed out that the Ministry is now “re-engineering” the micro financing enterprise sector, because agencies such as the Micro Investment Development Agency (MIDA) and Self Start are not as focused as they should be, and need repositioning. “We are doing that with a view to come out with a new revitalized sector in micro financing,” he said.
He also highlighted the Security Interest in Personal Property (SIPP) Bill, which will deal with utilising intellectual property as collateral, for financing. The Bill will also look at the use of “movables,” such as crops and livestock as collateral.
“We recognize the constraints (in micro and small business financing), but we are moving quickly to address some of those constraints,” he said.
The Lecture was held under the theme: ‘Emerging Business Strategies and Implications for Competition’, and featured a presentation on the vertical integration business model by President of the Jamaica Manufacturers’ Association (JMA), Brian Pengelley.
Mr. Pengelley highlighted successful business persons in Jamaica, and how they have been able to expand and grow their businesses, by creating and balancing various types of subsidiaries.