Grenada Today - The National Newspaper of Grenada, Carriacou & Petite Martinique

Minister Boatswain The Government of Grenada has allocated two million dollars for the newly launched Micro Enterprise Development Unit Small Business Development Project to resuscitate the country's economy.

The initiative was launched last Tuesday at the Ministry of Education at the Botanical Gardens in Tanteen under the theme "Building Entrepreneurship and creating an Enabling Environment for the Development of Small Business."

The scheme will help finance the development or improvement of existing or emerging small or micro businesses by providing start-up working capital, purchasing tools, spares and relevant inputs, as well as provide training programmes.

The aim of the project is to create meaningful employment opportunities for unemployed persons in Grenada, to facilitate easy access to soft loans to unemployed persons in rural communities, and to foster the entrepreneurial spirit among Grenadians among others.

In speaking at the launch, Minister of Finance Anthony Boatswain noted that countries that have successfully made the transformation from underdeveloped to develop, first established a well-defined and a well-developed small micro unit.

"If we are to build a strong and viable economy we have to ensure that the small business unit is indeed, strong, viable and sustainable", he said. "This is a very important initiative that seeks to address the fundamental deficiencies of the development of the small and micro business in Grenada", he added.

Minister Boatswain pointed out that the launch of the Development Project is an attempt by government to address the critical issue of development financing by providing a medium through which small and micro businesses can access much needed financing on more favourable terms and conditions than those currently offered through traditional financing institutions like commercial banks.

"In our communities there are people with great ideas but lack the ability to transform these ideas into income generating careers", he remarked. The senior government minister noted that Hurricane Ivan which swept through Grenada last September has caused a severe blow to small business enterprises, where damages to buildings, equipment and inventory were estimated as 75 per cent.

In addition, he said the majority of small business owners were either underinsured or uninsured. Minister Boatswain told the gathering that small business owners and managers have immediate needs for technical and financial assistance in order to get their businesses up and running in the shortest time possible.

Individuals eligible for loans under the scheme are small farmers, agro processors, poultry operators, bee keepers, fishermen, and shop keepers among others.

Applicants will have to meet all the legal and other contractual obligations established by the Unit. The maximum loan being granted under the scheme will not exceed $20,000 for the Micro Enterprise sector (business with less than 5 persons) and $40,000 for Small Enterprises (employing not more than 15 persons).

Boatswain informed the Board of Directors, Management and Staff of the small enterprise unit that "accountability and transparency (should) be the key watch words (for) the operations of this fund."

The minister's ruling New National Party (NNP) government has often been criticised for its lack of accountability and transparency in executing a number of projects. Boatswain indicated that the scheme is a revolving fund and that "those who borrow must repay". "We demand nothing less", he remarked.

He warned that too often "we believe once something is Government-owned there is no obligation to repay, this is wrong." Those who are successful in receiving the loan will be allowed a maximum of five years to repay the money.

The projects will be monitored by field officers of the Unit under the supervision of a Project Supervisor. Chairman of the Unit, Orgias Campbell, a political activist of the ruling party pointed out that there is tendency in the country that once funds come through government it can be taken and and not used properly.

"....And even when it (the money) is used properly, very often it is not paid back on time or at all", he added.

Campbell thanked his government for "recognising the need for such a project and most importantly taking the initiative in order to ensure that this project .....assists citizens of this our beloved country in the rebuilding process."