The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamas Chamber of Commerce and Employers Confederation (BCCEC) is hoping its pilot mentorship and training programme will improve entrepreneurs’ chances of success, given that 70 per cent of Bahamian small business ventures end in failure.

The initial six-month Small and Medium Sized Enterprise (SME) pilot programme, spearheaded by the BCCEC and the Government-sponsored venture capital fund, is designed to provide entrepreneurs with key technical support.

Speaking at the launch yesterday, Chamber chairman, Chester Cooper, said: “Nationally, of the 20,000 registered businesses more than 80 per cent of them are small businesses bringing in less than $50,000 a year in sales.

“Seventy per cent of the BCCEC’s members are classified as small businesses. These are everyday Bahamians driven by the spirit of entrepreneurship, seeking to lay claim to their own piece of the Bahamian economy.

“Coincidentally, 70 per cent of all small business ventures in the Bahamas end in failure. The Bahamas Development Bank is running very high delinquencies, and more than 50 per cent of businesses funded by our venture capital fund are facing challenges. This clearly demonstrates that whilst capital is important, technical support is critical.”

Mr Cooper said the BCCEC had made the SME mentorship and training programme its signature initiative for 2013-2014. “Our aim is to improve the chance of success for new entrepreneurs in this currently struggling sector of the economy, not only though the provision of the capital but also through the provision of technical support,” he added.

“The end result is an increase in economic activity and the creation of much-needed jobs to counter the current unemployment levels.

“Commercial banks have clearly demonstrated their aversion to this sector over many years. We will be engaging the Clearing Banks Association shortly, and will hopefully be able to demonstrate to them that this mentorship programme will not only assist in making their existing clients better, but create a bigger pool of qualified potential clients,” said Mr Cooper.

“We fully expect that this will be a win-win proposition in many respects. Initially we are identifying and pairing 100 small business owners with experienced business professionals, who can use their expertise to guide these fledgling entrepreneurs through the start-up process and, hopefully, to a successful, sustainable business model.”

Michael Cunningham, the Bahamas Entrepreneurial Venture Fund’s chairman, said that despite access to capital, many small businesses continue to struggle to gain a foothold in the marketplace.

“As chairman of the the Bahamas Entrepreneurial Venture Fund, I’ve watched as countless local small businesses, despite gaining access to capital, continued to struggle to gain a foothold in the market as a new business entity,” he said.

“In fact, more than 60 per cent - that is the number of businesses funded by the venture capital fund - have struggled with the pressure of a sluggish economy, a competitive marketplace and ineffective management skills in running a business.

“This suggests that, even when a business is financially equipped during its start-up process, there are still common flaws that must be addressed in order to maintain levels of successfully launched small businesses.”

Christian Sawyer, the BCCEC’s SME division chairman, said the programme will begin on July 22. “The applications will be available, but there is about a six weeks gap from when we assess those applicants and pair mentees and mentors,” he explained.

“We are hoping that the first week of September is when they pair up and work hand-in-hand. Basically, each mentor is asked to give a minimum of six hours per month to each candidate. That will be a hands-on approach they will have when they sit down with the mentee and go through what challenges they have.

“Every six weeks the mentee and the mentor will be coming and meeting with our SME mentorship committee, where we will be evaluating the progress of how that relationship is going and address any issues or concerns they may have,” said Mr Sawyer.

Michael Halkitis, minister of state for finance, and Khaalis Rolle, minister of state for investments, both lauded the initiative.

“The beauty of this programme is that it satisfies the needs of both the private sector and Government as it helps small businesses. Providing technical, financial and hands-on assistance, it has the potential to transform what could be a struggle into survival, and survival into success,” said Mr Rolle.