Shaw tells SMEs to formalise operation to better access funding
Minister of Industry, Commerce, Agriculture and Fisheries, Audley Shaw, is encouraging small and medium-sized enterprises to formalise their operations so as to gain greater access to low interest funding.
“[They] must realise that they too have a duty and responsibility to become formal and this Government is driving that they should get formal; get transparent, develop a business plan, and do what is required of a formal business and you can be in a position to access money at much more competitive interest rates,” Shaw said.
“And this also include monies at single-digit interest rates,” he added.
Shaw was speaking this morning at the CEO Breakfast Forum hosted by the Organisation of American States and the Jamaica Business Development Corporation.
He said that there are a number of opportunities for funding for small and medium businesses including the partial credit schemes offered by the World Bank and the Inter-American Development Bank.
However, Shaw acknowledged that these funds would be largely insignificant compared to what the sector needs.
“So the challenge is that as government we have to find more substantial windows and one such is the stock exchange,” Shaw said noting the government plans to establish a micro stock exchange.
Shaw said this will allow small and micro businesses to access capital towards expansion, which in turn will benefit the economy.