The Development Bank of Jamaica (DBJ) has partnered with the Private Sector Organisation of Jamaica (PSOJ) in launching an online portal to allow small and medium-sized companies to strengthen managerial and administrative services and to improve their creditworthiness.

Under the DBJ’s Voucher for Technical Assistance (VTA) programme, micro, small and medium enterprises operating in the productive sectors may receive vouchers valuing up to $500,000 to assist with market research, financial statements, business plan, factory layout, product formulation, among others.

What’s more, the business support services will be managed by an accredited business development organisation which will assist the MSMEs in carrying out the required services in an efficient and effective manner.

“We realised that what the DBJ was offering wasn’t enough as a significant number of young private sector companies needed more support to put them on the path of growth and sustainability,” managing director of the DBJ, Milverton Reynolds stated at the launch of the online self-application portal last Friday at the institution’s headquarters.

“With the best will in the world, neither the DBJ nor our partner institutions can help companies which have no idea about how to prepare a business plan or a financial statement – without which, they cannot qualify for a loan,” he continued.

Since May 2014, the DBJ has granted 434 vouchers to 289 entrepreneurs across the island to both male- and female-owned businesses across various sectors. According to the Bank, the vouchers have allowed 12 loans amounting to $168 million, and supporting $265 million in investment.

Reynolds reckons that those numbers will increase now that grant facility is more accessible to entrepreneurs across the island via the Internet. While there are no specific requirements for applying for the funding, companies seeking to benefit must have their business tax registration number, national insurance scheme number, business registration number and date to begin the process online.

“People talk about access to funding as a challenge in Jamaica, but I don’t think we have a funding problem — what we have is a capacity gap. You could have money coming out of your ear, if an MSME does not have proper governance, administrative and accounting capacity, they cannot get lower interest rates because banks lend money based on risks,” Chief Executive Oficer of PSOJ Dennis Chung.

He added that programmes such as the VTA is essential to Jamaica’s economy as it will help to build the capacity of MSMEs while improving on Jamaica’s global competitiveness.

“If you look at the global competitiveness report, that Jamaica lags in two areas, efficiency enhancers and innovation which are really the only categories that can make you a competitive country.

“And we only have to look at what has happened in Jamaica prior to recent years of growth. But you could actually go to sleep for 20 years and the same companies that you saw on the stock market 20 years ago, they would be here today. When countries are moving forward you don’t have that. Look at what has happened in the US over the last 10 years; you didn’t have Facebook, Amazon and all those things,” Chung said, adding that creating competitive industries is the only way to grow economies.

Entrepreneurs who operate businesses in the traditional industries as well as those operating in the emerging industries qualify for assistance under the programme. Traditional industries include agriculture, agro-processing, tourism, energy, manufacturing, mining and services. The emerging industries includes animation and information technology.