The Tribune

By RASHAD ROLLE

THE first crowd-funding website owned and operated by locals in the English-speaking Caribbean was launched in Jamaica on July 6.

The website, Isupport
Jamaica.com, allows persons to donate to the philanthropic projects that are highlighted on the website.

By September, persons will also be able to lend funds to entrepreneurs through the website according to Gareth Manning of JN Small Business Loan Limited (JNSBL), a company in Jamaica which provides credit to micro and small business people.

Persons who sign up to IsupportJamaica.com may lend or contribute using a credit card.

In a press statement, Philip Bernard, general manger of JNSBL, was quoted as saying: “The lack of collateral and the perceived high risk of lending to micro entrepreneurs continue to be major barriers to financing for the Jamaican micro sector.”

Mr Bernard said there are 460,000 micro entrepreneurs in Jamaica and a fifth of them lack a relationship with a financial institution or bank. This lack of access to loans diminishes their ability to contribute to the economy, he noted.

“Our surveys reveal that there are some 180,000 micro entrepreneurs who want to acquire funds at reasonable interest rates, and favourable terms of re-payment; however, many do not meet the collateral requirements for loans. Because most of them do not have a sufficient asset base; and, many financial institutions are averse to disbursing loans for start-ups, because of the high risk,” he said.

“Most micro entrepreneurs don’t have reports and comprehensive business plans; therefore minimal data is available for financial institutions to fully understand the scope of their business, hence their applications are often rejected,” he said.

In addition, he said that many micro entrepreneurs also do not own the assets that are traditionally required to secure loans, such as real estate, motor vehicles and savings.

“There are many entrepreneurs with great ideas who simply need people and organisations who believe in them and are willing to provide support, hence we have established this facility to assist in honing those ideas into successful businesses,” he said.