Almost 14,000 SMEs launched since 2017, reveals Ministry of Finance

The Ministry of Finance revealed yesterday that 13,986 small and medium-sized enterprises (SMEs) have been launched since 2017, representing growth of 58 percent.

Since coming into office, the Minnis administration has approved $60.5 million in funding to support SMEs through the Small Business Development Centre (SBDC).

“This funding was largely allocated as part of the Resilient Bahamas budget plan for fiscal year (FY) 2020/21, which focused in part on keeping small businesses afloat,” the ministry noted in a statement yesterday.

“Support for this crucial area of development will continue through a number of initiatives within the Accelerated Bahamas Recovery Plan for FY2021/22. Over the next five years, the government has committed to $250 million in financing for the SBDC, with the first injection of $35 million being allocated in the 2021/2022 budget.”

During the 2021/2022 budget communication, Prime Minister Dr. Hubert Minnis reaffirmed the government’s commitment to making $250 million in financing available to the SBDC over the next five years, starting with the first injection of $35 million in this upcoming fiscal year.

The bulk of funding through the SBDC has been disbursed in the past year since the onset of the COVID-19 pandemic, when more than 1,000 small businesses were approved for loan and grant financing as part of the government’s COVID-19 program in the amount of $45 million.

Businesses in the fisheries sector were provided with $5 million in loan and grant financing; just over $800,000 was disbursed to 41 applicants as part of the pre-school grant program; another $1.6 million was provided to 164 new and existing businesses as a part of the government’s standalone grant program; and another $1.5 million in equity financing was provided to small businesses via the Bahamas Entrepreneurial Venture Capital Fund.

Minister of State for Finance Senator Kwasi Thompson said yesterday that the government has prioritized private sector development because it understands that SMEs are crucial for sustainable economic growth.

“We are not only relying on direct financing. Our budget is leveraging the use of tax concessions to promote the continued development of the private sector. We’re providing incentives to expand your business operations through duty-free imports of first stock inventory and other products necessary to a small business’ development,” he said in the statement.

“Specifically in our southern Family Islands, we’ve created tax-free zones to encourage economic growth by way of concessions on materials needed for residential and commercial development and tax breaks on business license fees.”

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source https://thenassauguardian.com/almost-14000-smes-launched-since-2017-reveals-ministry-of-finance/