Senior Minister in the Office of the President with responsibility for Finance Dr. Ashni Singh has said the proposed Junior Stock Exchange could give Guyanese businesses another route to raise capital, but only if they can prove investors’ money will be protected and used for business growth.
Singh made the point on Friday at the Georgetown Chamber of Commerce and Industry’s Business Breakfast Seminar at the Guyana Marriott Hotel in Georgetown. He was addressing entrepreneurs and private sector representatives on access to financing, business growth, and the responsibilities that come with raising capital.
“No matter what we talk about, whether we talk about the Development Bank, commercial banks, whether we talk about the Junior Stock Exchange, if you’re going to list on the Junior Stock Exchange… you’re inviting the rest of the world to invest in your business,” Singh told the audience.
The Junior Stock Exchange is being pursued alongside other financing measures, including the Guyana Development Bank and efforts to improve access to capital through the banking sector. The government has said the Development Bank will provide loans of up to GY$3 million (US$14,400), free of collateral and interest, to entrepreneurs and small and medium-sized enterprises. But Singh warned that any business seeking capital, whether from a bank or the market, must show discipline and accountability.
“My dear brothers and sisters, you’re going to have to convince the providers of that kind that they are not financing your lifestyle,” he stated. Investors and lenders, he noted, must be assured that funds will go into the business being presented to them.
He also made clear that the Development Bank should not be treated as the final destination for business financing. The GY$3 million loan is intended to help entrepreneurs start or expand, then move into the formal financial system and access larger financing.
“This is the first step in the journey,” Singh said.
The government wants small businesses to grow into medium-sized businesses, and eventually into large companies. But that growth requires business plans, proper records, and formal banking relationships.
Singh said the government will continue to promote conditions for businesses to start, grow, and diversify, but entrepreneurs must also accept responsibility.
“We are going to ensure that the economy continues to grow, we will ensure that opportunities continue to abound,” he said. “But you have some responsibilities too in this journey.”
