The Tribune

By YOURI KEMP

Tribune Business

Reporter

ykemp@tribunemedia.net

ENTREPRENEUR financing facilitated by the Small Business Development Centre (SBDC) has slowed drastically since the Davis administration took office with just $2m, or 2.7 percent, of funds disbursed to-date occurring since the election.

Samantha Rolle, the SBDC (Access Accelerator’s) interim executive director, said that despite the seeming slowdown the agency is still working on fulfilling its mandate to finance start-ups and existing micro, small and medium-sized (MSME) businesses. She added that the data was also somewhat deceptive since much of the previous financing was arranged as part of small business support initiatives during the COVID-19 pandemic.

“Utilising our economic impact survey, we have been able to collect data around monies that are funded, around clients and how they’re successfully progressing within their business journey,” Ms Rolle said. “As of to-date, the SBDC have funded about $73m to business owners, and that equates to about 19,136 businesses.

“Specifically, if we wanted to break that up in terms of within the year since this administration has come in, it would be approximately $2m to-date. But we look at it as a whole because government support, as well as our founding partners such as the Chamber of Commerce and the University of Bahamas, work as a team and it’s a collaborative effort. So funding is ongoing to support MSMEs on a national level.”

She continued: “If you compare $2m in one year to $73m over the course of four years, there are a couple of different variables. So we would have received an uptick, certainly within the year of 2021 [and 2020] having to do with the pandemic, so that’s one aspect of it.

“The other aspect is looking at how we properly streamline the way that we assess business plans, the quality of the business plans, and providing business development to our entrepreneurs to make sure that they are successful. It is one thing to give away money; it’s another thing to make sure that it is sustainable.”

Despite the decline in funding approved via the SBDC, which acts as a facilitator and liaison between the business and actual lender, the agency has seen a 40 percent uptick in client applications year-to-date. Ms Rolle said: “We have received over 600 requests between funding programmes, advisory services and mentorship opportunities throughout seven islands.

“As we seek to expand our presence in the Family Islands, and by enhancing our service offerings, streamlining processes and continuing to forge strategic partnerships, we anticipate the exponential increase in our client base.”

The SBDC has also implemented new initiatives to reach the small business community, one of which is the “Bridge programme”. This is designed to help MSMEs that are already established. Ms Rolle explained: “The bridge programme is designed to assist start-ups as well as existing businesses.

“We know that, with any business, they just sometimes need some assistance to get over the hump, whether they’re expanding to add to their inventory, to add to their equipment, and so the bridge programme was set up to assist those who would apply and who would meet the eligibility criteria as well as the application requirements. Once approved, that would help them to, one, either start-up, or two, expand.

“It is structured to where funding can be available between $5,000 up to $25,000. Again, based on the assessment of the adjudication committee, that’s why we have an overwhelming response to that and we are currently reviewing the first tranche of those applications.”