Paulwell MORE THAN 2,000 small businesses are expected to be generated annually under "Jump Start", a $50 million credit initiative aimed at assisting young entrepreneurs to start their own businesses.
Minister of Industry, Commerce and Technology, Phillip Paulwell, said that while they were trying to increase the amount of money available for on-lending, they intend to see the creation of 2,100 small businesses from the amount now available.
He was speaking at a press briefing on Monday to commission micro finance organisations participating in Jump Start, as well as the launch of the programme at the offices of Development Options at Holborn Road, St. Andrew. Development Options will be the implementing agency for the credit programme.
Mr. Paulwell pointed out that Jump Start was a response to the need for access to credit expressed by many potential entrepreneurs who wanted to start their own businesses.
Under the programme, entrepreneurs can borrow a maximum of $50,000 after which they graduate to other micro or credit programmes already in place.
Noting that a credit bureau would be commissioned next week, the Minister said that because the challenges have been reduced and access to credit increased, "we have to install systems to ensure that persons who borrow and are not willing to repay will not remain in the system."
President of Development Options, Maureen Webber, said that while Jump Start will be targeting persons in inner city communities, the programme would also be extended outside the Corporate Area of Kingston and St. Andrew.
As a result, the commissioned micro finance organisations will focus on six areas: Westmore-land, St. Mary, St. Catherine, St. James, St. Ann and Kingston.
Ms. Webber said borrowers under the programme would find the process less onerous as the aim was to make funds available to those who need it. The programme has been designed to ensure that after the application process has been completed, the funds would be disbursed within 10 working days.
Entrepreneurs will be required to complete a pre-application form providing information on their business idea, skill level and references. They will also be required to participate in an orientation session on business management.
Loans will be based on character rather than traditional collateral required by commercial banks and other financial institutions.
Participating micro finance organisations are Consolidated Caribbean Investments (CCI), based at the Ocean Village Shopping Centre in Ocho Rios, St. Ann; Stacelaw Financial Services (SFS) at Haughton Avenue, Kingston 10; First Union Financial Company (FU), Kingston 5; Martin & Company in Kingston and Savanna-la-mar; Micro Capital at Queen Street, Montego Bay, and St. Mary Co-operative Credit Union at Main Street, Port Maria.
