In better times when Belize's economy was experiencing consistent growth, the chance for small and medium enterprises to access small loans from any of the four main commercial banks were mostly slim.
And now in 2010, when most nations economies are constricting from the current worldwide recession, it's proving even harder for this group of businesses to access any financing for growth and expansion.
That's why the Belize Trade and Investment Development Service along with the Inter-American Investment Corporation and Scotia Bank Belize have teamed up to sponsor a program, Innovative Financing for Small and Medium Enterprises as a diagnostic tool for SMEs to help them improve their competitiveness and facilitate their access to potential sources of financing. I found out more today.
Jim McFadzean Reporting
Thirteen companies are participating in the workshop being held at the Conference center of the Belize Chamber of Commerce and Industry office complex. Beltraide's Director of Small and Medium Enterprises, Jose Herrera says the companies' participation in the workshop doesn't guarantee the doors at the various financial institutions will automatically swing open for them.
Jose Hererra, Director, SMEs, BELTRAIDE
"These workshops will at the end of the day suppose to reflect on the businesses as to what they have done or taken from this workshop and implement it into their operations because when they go to seek financing from the commercial banks they need to not actually say that we attended such a workshop but they need to actually show a structure framework like today is human resource recruitment and training. Most of the people might not have a job specification in place at the moment for their employees but after this we expect that they do and these are things that they can show to the commercial banks, supporting a document which has been a result of the workshops."
And while the doors of Belize's financial institutions might not automatically swing open for these businesses, the development of a sound portfolio and business plan carrying the stamp of the Inter-American Investment Corporation just might make a difference.
Narae Lee, Facilitator, IIC
"Knowing your business well in strengthening your strong points and improving on your weak points should come first. What we are doing in the Caribbean region is to diagnostic service to SMEs and base on those diagnostics we provide technical assistance. They can bring the diagnostics to financial institution and tell them that we receive the diagnostics sponsor by Inter-American development Bank and Inter-American Investment Corporation and tell the financial that we have improve our business in this way and by doing so we hope that they could have better access to financing."
Scotia Bank which has partnered with the Inter-American Investment Corporation in sponsoring the workshops is not shy to say that it has a vested interest in the success of these workshops. The Bank's Marketing Manager, Josie Andrews says most start up enterprises carry risks that Banks are unlikely to take on. However, through these workshops, the SMEs as they are referred to, can improve their chances at accessing available funding.
Josie Andrews, Marketing Manager, Scotia Bank
"We know that in the past those SMEs are the ones that really have had a little more difficulty in getting the funding and we are very happy to partner along with the IIC because we realize the value of what they were doing, going into selective companies within their program and doing those diagnostics and seeing where the weak spots are and trying to help develop them and to bring them to a higher level so when they do come to financial institutions there is a sounder portfolio, a sounder business case, a sounder way that we can definitely see how we can help them become financially better off and achieve those goals that they are trying to achieve."
Today's workshop will complete phase two of a total of four technical workshops being funded by the IIC.
