FOR the ten years of its existence, the Small Business Development Finance Trust Incorporated (SBDF) has financed 6740 loans to the value of approximately $2B, and has created no less than 15,000 jobs, according to information revealed at that agency’s Tenth Annual General Meeting (AGM), which also served as occasion to celebrate its 10th anniversary of existence and achievements recorded therein.

‘PROUD MOMENT’: Finance Minister Dr. Ashni Singh and Director of SBDF Mrs. Yvonne Hinds, cut the anniversary cake in observance of the agency’s 10th year in existence. Also in photo are Prime Minister Samuel Hinds; Managing Director of SBDF, Mrs. Manjula Brijmohan (left); Director Mr Mohamed Ali (third right), and Director Hemraj Kissoon (right). (Cullen Bess-Nelson photo)

He pointed out that, for the longest while, government has placed at the centre of its policy framework the creation of an environment that is conducive to the growth and prosperity of small businesses.

On behalf of the President and the Government of Guyana, Dr Singh complimented the SBDF and its founders, and singled out Managing Director Mrs. Manjula Brijmohan for her single-handed perseverance in fulfilling the vision of promoting small businesses in Guyana.

Dr Singh indicated that the accomplishment of ten years of existence is an occasion worthy of celebration and applause, especially since the entity has proven its value and worth in the national landscape, arising from the most modest of beginnings.

Making particular reference to the impressive statistical data contained in the 2012 Annual Report of the SBDF, Dr. Singh said the fact that the entity has funded so many loans is an extremely significant and commendable accomplishment. He also pointed out that a small entity as unassuming as the SBDF has created or sustained no less than 15,113 jobs over the last ten years; and in the year ending December 31, 2012, had created no less than 2,207 jobs.

Dr. Singh asserted that, at some point in time, large businesses were once small; and building a successful business requires hard work and perseverance. He explained that these developments don’t often appear as evident or as obvious as they should be because they happen right before our eyes.

According to him, every investment made in Guyana is of relevance to small businesses; and for every big investor that comes into a country, hundreds, if not thousands, of small businesses end up supplying goods and services directly or indirectly to them; hence the importance of the overall economic environment to small businesses.

He also stressed the importance of having consistent standards and quality, and reaffirmed the Government’s commitment to creating, maintaining and enhancing an environment that is conducive to attracting investments -- both foreign and domestic, and both large and small scale.

Dr. Singh said he believes that, as a country, Guyana has made considerable progress in this regard; and he pointed out that Guyana has been achieving uninterrupted economic growth since 2006.

With regard to macroeconomic stability, the Finance Minister pointed out that work done as a Government and as a country to achieve the macroeconomic stability achieved should not be dismissed as irrelevant to the daily life of any Guyanese citizen.

Dr. Singh said that, in order to ensure that business is stable and moving in the right direction, Government has also sought to create an environment wherein key macroeconomic indicators are favourable to business. This, he said, includes ensuring that inflation is contained, the exchange and interest rates remain stable, and there are adequate external reserves.

He said that in an open economy such as Guyana’s, it is critical to have adequate external reserves, because as long as the country imports goods and services, it has to ensure that the economy has adequate external financing to support this activity.

He asserted that investors, big and small, would not invest in an economy which does not display stable macroeconomic conditions and bright and favourable prospects for the future.

In absence of Chairman Mr. Sattaur Gafoor, Mr. Mohamed Ali, a director of the SBDF, delivered the Chairman’s Report, which stated that the loan portfolio of that agency has appreciated from $37.1M in 2003 to $282.3M in 2012.

The report stated that the SBDF performed reasonably well for 2012, disbursing more than 722 loans to a value of $440.5M; that the agency had a high retention rate of 85%; and that the agency was also able to increase its capital by $104.1M, which enhanced its capacity to assist new clients.

“As we continue to increase our ‘outreach programme’ in rural areas, the emphasis has always been on the productive sector, although we have never neglected the retail and service sectors,” the report stated.

In his report, Chairman Gafoor said the agency was extremely grateful to Prime Minister Samuel Hinds for coming to its rescue by requesting the International Finance Corporation (IFC) to examine its operations and, if possible, provide the agency with assistance. This, according to the Chairman, is how, in 2007, the SBDF started with the IFC -- financial arm of the World Bank; and through this arrangement, the SBDF has benefited from a loan of US$300,000 for onlending purpose.

In terms of the SBDF’s vision for the future, Mr. Gafoor said the agency’s promise is to make itself a micro-finance leading institution. “We are committed to developing micro and small entrepreneurs by providing access to finance and training. This would empower small men and women to gain confidence, think ahead, and live with dignity and economic security,” he stated.

According to him, the agency has developed its strategic plan for the next five years, along with estimated capital requirements of $5M.
SBDF was established in 2002 as a non-profit organisation, but later became a corporate entity in 2009. The main thrust of the agency is to alleviate poverty among subsistence entrepreneurs, and to transform them into commercial suppliers with eco-efficient practices of improving production and productivity.

Also present at the SBDF’s AGM were Prime Minister Samuel Hinds; President of the Georgetown Chamber of Commerce and Industry (GCCI), Mr Clinton Urling; CEO of the Small Business Bureau, Mr. Derrick Cummings; Managing Director of SBDF, Mrs. Manjula Brijmohan; and Director Mrs. Yvonne Hinds.
Awards distributed to SBDF clients included those for the best young entrepreneur, most progressive entrepreneur, best managed project, and best innovative male entrepreneur.