By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
The Bahamas Entrepreneurial Venture Fund’s chairman said yesterday that efforts to promote financing opportunities in the Family Islands had met with little success, as entrepreneurs appeared to lack confidence to apply for funding.
Michael Cunningham, while addressing the Abaco Business Outlook conference in Marsh Harbour, said financing through the Venture Fund was either by loan or equity, with the latter providing the greatest concentration.
“The spread of loans throughout the islands is 80 per cent concentration in New Providence, 12 per cent in Grand Bahama and 8 per cent in the Family Islands. As to equity, 96 per cent is in New Providence and 3.5 per cent in Grand Bahama,” said Mr Cunningham.
“At present, the split between loan and equity is 44 per cent of our entire portfolio represented with loans, and 56 per cent represented by way of equity, and we have not had a very good experience.”
Mr Cunningham said: “The mentality, it’s sad to say, of our people is that once they realise that it’s coming from government, they try to abuse and misuse the system.
“They would rely on and use their MP to their advantage in trying to get the Fund to provide funding for their institution.
“We have experienced a few situations whereby individuals would come and present a plan which is just one sheet of paper.
“When they are asked about it they reply that their MP sent them, and when we send them away to produce a proposal the message gets back to their MP that the Fund is not doing what it is supposed to do and it’s our money.”
Mr Cunningham said many Bahamian entrepreneurs have seen their ventures fail for reasons that being the failure to effectively market the business.
“Many Bahamians feel as though they can just go around and market their business by word of mouth.
“They don’t believe in marketing and advertising their business, and competitors come into the market and, before you know it, they are knocking on our doors for additional funding,” he said.
Mr Cunningham said that in an effort to create awareness about the Fund, a promotional push in the Family Islands has been undertaken.
“These visits have not yielded much positive results.
“It appears that entrepreneurs are still not confident in accessing funding to start their businesses Mr Cunningham said.
“Over the years the Government has given the fund strong financial support to carry out its mandate, and we see no reason why this should not continue in the future.”
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