[B]Government unveils micro and small enterprise project to be funded through GRIF[/B
By Stabroek staff | 3 Comments | Local | Monday, September 26, 2011
Government has unveiled another project to be funded through the Guyana REDD+ Investment Fund (GRIF) with a budget of US$10M over four years for the Micro and Small Enterprise Develop-ment project.
The Inter-American Development Bank (IDB) will be the ‘partner entity’ for this project which will be implemented by the Ministry of Tourism, Industry and Commerce according to a draft project profile posted on the newly-established GRIF website. The project encompasses two phases with the first phase running from 2012 to 2013 and the other from 2014 to 2015.
“The GOG (Government of Guyana) has identified the development of small and micro enterprises (MSEs) and providing alternative livelihoods to vulnerable groups as a key component of the LCDS to receive funding through the GRIF. In particular, it aims to address two of the major bottlenecks that constrain the development of MSEs and the ability of vulnerable groups to build alternative livelihoods in Guyana, which are i) limited access to finance and ii) limited technical and business skills. It will also strengthen the Small Business Bureau, which will administer the project components,” says the project profile.
“By facilitating the expansion of the business development support sector along a low carbon path, the GoG aims to provide economic opportunities to some of the most marginalized groups in Guyana, while promoting self-sufficiency, sustainable business initiatives and working closely with the private sector in a sustainable manner.”
The document noted that start-ups, small and micro enterprises (MSEs) and vulnerable groups all carry a high degree of lending risk, “given the economic reality in which they operate and a market failure known as asymmetric information.” It says that due to the high cost of obtaining adequate loan feasibility information and distinguishing between good and bad loans within these economic groups, lending institutions are often hesitant to provide loans to MSEs and vulnerable groups, or will add a high risk premium to their standard rate of interest and to their standard security and collateral criteria.
“As a result, MSEs and vulnerable groups in Guyana with feasible business development proposals are not always able to access the finance they need to grow or to enter a new economic activity. In addition, many MSEs, vulnerable groups and potential entrepreneurs lack the skills and training necessary to develop and implement their business proposition successfully,” it says.]
By Stabroek staff | 3 Comments | Local | Monday, September 26, 2011
Government has unveiled another project to be funded through the Guyana REDD+ Investment Fund (GRIF) with a budget of US$10M over four years for the Micro and Small Enterprise Develop-ment project.
The Inter-American Development Bank (IDB) will be the ‘partner entity’ for this project which will be implemented by the Ministry of Tourism, Industry and Commerce according to a draft project profile posted on the newly-established GRIF website. The project encompasses two phases with the first phase running from 2012 to 2013 and the other from 2014 to 2015.
“The GOG (Government of Guyana) has identified the development of small and micro enterprises (MSEs) and providing alternative livelihoods to vulnerable groups as a key component of the LCDS to receive funding through the GRIF. In particular, it aims to address two of the major bottlenecks that constrain the development of MSEs and the ability of vulnerable groups to build alternative livelihoods in Guyana, which are i) limited access to finance and ii) limited technical and business skills. It will also strengthen the Small Business Bureau, which will administer the project components,” says the project profile.
“By facilitating the expansion of the business development support sector along a low carbon path, the GoG aims to provide economic opportunities to some of the most marginalized groups in Guyana, while promoting self-sufficiency, sustainable business initiatives and working closely with the private sector in a sustainable manner.”
The document noted that start-ups, small and micro enterprises (MSEs) and vulnerable groups all carry a high degree of lending risk, “given the economic reality in which they operate and a market failure known as asymmetric information.” It says that due to the high cost of obtaining adequate loan feasibility information and distinguishing between good and bad loans within these economic groups, lending institutions are often hesitant to provide loans to MSEs and vulnerable groups, or will add a high risk premium to their standard rate of interest and to their standard security and collateral criteria.
“As a result, MSEs and vulnerable groups in Guyana with feasible business development proposals are not always able to access the finance they need to grow or to enter a new economic activity. In addition, many MSEs, vulnerable groups and potential entrepreneurs lack the skills and training necessary to develop and implement their business proposition successfully,” it says.]
