Georgetown Chamber of Commerce and Industry (GCCI) President Kathy Smith has warned local entrepreneurs that Guyana’s new Development Bank will not be a source of easy money, even as it is expected to open wider access to financing for small businesses.
Smith made the point on Thursday at the GCCI Business Breakfast Seminar at the Guyana Marriott Hotel in Georgetown, where she urged micro, small and medium-sized enterprises (MSME) to get their records in order before applying for support.
“It’s not free money. Yes, your interest, no collateral, but you have to ensure that you are bankable,” Smith said.
The government is moving to establish the Guyana Development Bank to support entrepreneurs and SMEs through financing, training, mentorship and business support. The institution is intended to help local businesses overcome traditional barriers to credit, including collateral requirements, and position more entrepreneurs to access opportunities in Guyana’s growing oil and gas economy.
Smith welcomed the bank as a response to years of calls from the private sector for better access to finance. But she said businesses must also do their part.
“You cannot expect this new development bank to invest in you if they cannot trace you like all other financial institutions in Guyana,” she warned.
Smith urged entrepreneurs to separate business and personal finances, open business accounts, keep invoices and quotations, and maintain proper payroll systems.
“If you are doing business, we want to see your source documents. If you are selling, we want to see your quotation. If you’re receiving money, we want to see your invoice. If you are paying yourself, we want to see you on payroll,” she said.
She warned that poor financial discipline could shut businesses out of the very support created to help them grow.
“The company’s money does not belong to you because you set the company up,” Smith said. “If your business is to survive and live and prosper for the next 20, 30 years, you must ensure that your documents are recorded and people can trust you.”
Smith outlined that investment in MSMEs is also investment in communities, jobs and long-term wealth creation.
“You become a catalyst for the creation of generational wealth and economic development,” Smith noted.
The GCCI President said the Chamber will continue to provide platforms for business development, but entrepreneurs must take the practical steps needed to enter formal financing systems.
“GCCI will continue to provide platforms for your upliftment and open the doors for you, but you must take necessary action to enter the room,” Smith said.
