Guyana’s Development Bank could help small businesses move from ideas to bankable projects, giving entrepreneurs access to mentoring, structure and seed financing at a time when the country’s non-oil economy is expanding.
Georgetown Chamber of Commerce and Industry President Kathy Smith said micro, small and medium-sized enterprises are excited about the bank, but stressed that the funding should not be viewed as “free money.”
“It’s Guyana’s money. And if the money is given to you, you have to pay back the money,” Smith said.
Smith said the GCCI has long advocated for greater access to financing, including through its Business Development Programme, which helps small businesses understand how to access capital.
She said financing has become more available in Guyana, pointing to measures such as the Movable Property Act, which allows businesses to use movable assets, including vehicles, when approaching banks. However, she said commercial banks and other lenders still have to manage risk and protect shareholders.
According to Smith, the challenge is that many banks are not moving fast enough to capture the ideas, visions and opportunities emerging among small businesses as Guyana’s economy grows.
She said the Development Bank could help close that gap by supporting entrepreneurs who may have strong ideas but lack the formal structure needed to qualify for financing.
Smith said the bank is expected to include a department that can mentor business owners, help them prepare business plans and assist them in structuring their companies so they can appear more bankable before meeting a loan officer.
She said the government is also expected to provide $3 million in no-interest seed funding, which entrepreneurs can use as a base to secure additional financing from other financial institutions.
For small businesses, that could be a major opening. Smith said entrepreneurs in agro-processing, construction, mining, ICT, education and small manufacturing could all benefit from better access to finance.
She gave examples of a coconut farmer who wants to build an oil factory, a baker in Berbice who wants to create a small production facility, and shade-house farmers who want to bottle, package and process their produce for wider markets.
Smith described the bank as a major win for Guyana’s private sector, saying it could help ordinary entrepreneurs access money and expand beyond small-scale operations.
However, she urged businesses not to wait until they approach the bank to begin organising themselves. She encouraged MSMEs to prepare business plans and build out their structures early, noting that those who arrive with proper plans may be able to move faster through the financing process.
