The Role of the Entrepreneur in Economic Recovery
When the going gets tough, the business owner needs to get tougher. The burden of recovery is not only carried by the help of financial institutions or the government. Mark Tracey, Project Executive for the Private Sector Organization of Jamaica’s Access to Finance for SME Project, appeared on #MoneyMovesJa and told us how the business owner can play a role in fortifying his/her business in tough financial times.
“Small businesses looking at how they can pivot need to look into the ecosystem to see about the various programs available through the private and public sector that will help them to stabilize the ship through funding, through venture capital and through various means of technical support and training,” said Tracey.
Through the Access to Finance Project, entrepreneurs can access help in various forms. COVID Cast, for example, was launched in 2020 to train and give resources to owners of small businesses. It was launched in part to fulfill PSOJ AFFP’s mandate to continue equipping SMEs with the resources to improve their businesses for a more productive economy.
“One of the mechanisms that we put in place was our conference where we showcased the Go Digital initiative in how small businesses can pivot in order to survive using ecommerce platforms and online-based solutions in providing services and having their goods available to people.” said Tracey.
How can businesses ensure that they remain financially viable?
Tracey recommends that businesses be up front and have the conversation with the bank around what they can do to:
- Qualify for a loan
- Get the best interest rate
- Look into restructuring or moratoriums for existing loans.
Entrepreneurs can also access finance through the Development Bank of Jamaica (DBJ). The DBJ’s BIGEE initiative stands for Boosting Innovation, Growth and Entrepreneurship in the Ecosystem. The program looks to help small businesses have access to funds.
How do you know which of these initiatives is right for you?
Entrepreneurs can use AFFB’s online assessment to understand where they are financially.
This can help them to know where they can go to find services.
“If the business will take on new products and services, then the BIGEE program would be one they can look at,” said Tracey.
Through the program they can receive funding to create new initiatives around technology to boost businesses in a new channel.
Who should bear the brunt of economic recovery?
“It’s a balance,” said Tracey. “We found that in our studies, absolutely a large chunk of the economy and economic activity happens because of the MSME space. So we are talking about 40-60% of economic activity brought on by MSMEs and what they do for the country,” he added.
In that regard, the government should help where they can to ensure that the economy is stabilized and remains afloat. He adds that the private sector should help, with banks specifically offering forbearance, moratoriums and easy access to loans. Meanwhile, small businesses themselves should seek proper training and guidance to help them weather the storm.
As a business owner, your business is your responsibility, which is why you need to play an active role in its financial recovery.
Access the PSOJ’s Small Business Portal:
https://www.smallbusinessportal.com/
