Growth & Jobs | Financial institutions urged to fund non-traditional ideas
Young entrepreneurs are bursting with great ideas to start their own businesses but many are not able to access capital from several financial institutions that prefer to fund traditional business proposals.
That was the concern expressed by Deandra Chung-Jones, president of the Young Entrepreneurs Association (YEA), who noted that restaurants, car marts, bakeries, and other known concepts are more likely to be supported than businesses in technology and the creative industry.
"Some of the challenges we have with the bank is that they stick to some of the more traditional means of business. In other words, they tend to give loans to persons with the usual business ideas," she said.
"Young people are not sticking to the regular car marts and the restaurants. They are doing things in technology, science, the creative industry, art and software development. They need funding for these ideas."
Chung-Jones added, "Young people now are bursting with innovative and technological ideas that are not the norm. They are thinking outside the box."
Meet worldwide demand
She further stated that it was crucial that the Jamaican market be adjusted to meet the demand of what is happening worldwide.
"I understand that it is higher risk for the bank but they need to find means and ways of funding these new ideas," she said.
"[In] Other places in the world, young people are generating millions and thousands from these ideas. We have to look at where the world is going and adjust our markets accordingly."
Her advice to aspiring and young business owners is: "Before you get into business, make sure you have a relationship with your banker. That can assist greatly in the process as well, in terms of funding. It helps when you have history that they can use as collateral."