Business

Jamaican MSMEs opt for savings rather than borrowing to fund start-ups — Study

BY SHAMILLE SCOTT Business reporter scotts@jamaicaobserver.com

Wednesday, April 09, 2014    

Print this page Email A Friend!


POTENTIAL micro, small and medium sized enterprises (MSMES) in Jamaica would rather save than borrow their start-up capital, according to findings of a study done by a member of the Inter-American Development Bank (IDB) Group.

The issue of borrowing isn't trivial — persons have to access personal and business loans, but they don't want to be saddled with debt, said Therese Turner-Jones, IDB country representative, Jamaica.

Turner-Jones revealed this aspect of the findings of the study done by the Multilateral Investment Fund on Monday. The occasion was the launch of the fifth annual Caribbean Microfinance Forum (CFM), which is to be held in Montego Bay, June 2-5.

There, the findings of the research that examined informal markets for microcredit in Belize, Guyana, Suriname and Jamaica will be presented.

It looked at the profile, the risks and impediments to lending in those markets.

"Essentially, it was found that some people don't want to borrow especially with high interest rates," said Turner-Jones. She added that this is the extent to which the various stakeholders, including the IDB can help MSMEs.

MSMEs in the Caribbean need capacity building, where they can get help with their business plans, and market research, so this is what CMF seeks to address, she said.

Jointly funded by the Multilateral Investment Fund, the European Union, Caribbean Development Bank and the Citi Foundation, the CMF is designed to create a more developed microfinance industry in the English-speaking Caribbean.

The event has attracted microfinance practitioners, microfinance networks, development banks as well as service providers. It has also benefited from microfinance experiences from the Pacific, Europe, USA and the Caribbean.

This year, CMF V will be expanded to examine financial services for frontier markets, but from a client's perspective — the entrepreneur. It will focus on three main pillars: youth entrepreneurship — ecosystem for scalability and sustainability; farmer to entrepreneur — transforming the rural economy and technology — innovating to respond.

Young people in the Caribbean constitute the next wave of productive citizens, so it's really important to harness that potential for employment to help this group of people in the region develop, so it's very important to make this a successful venture, said Turner-Jones.

CMF has been supported since 2009 by the Caribbean Capacity Building Microfinance Project II managed in Jamaica by Development Options, and Enlcude, a multinational firm that supports th development of the microfinance industry.

ADVERTISEMENT

POST A COMMENT

HOUSE RULES

 

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT
ADVERTISEMENT

Poll

Did the NWC prepare adequately for the current drought?
Yes
No


View Results »


ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT