The government’s recently announced initiatives focused on fostering local entrepreneurship drew a mixed reaction from Grand Bahama businesspersons still reeling from a sluggish economy caused by three major hurricanes in two years.
Governor General Arthur D. Hanna in the government’s Speech from the Throne on Wednesday announced that the creation of a Domestic Investment Board would cut red tape for Bahamian investors and create new opportunities for business ownership.
“Small businesses will also be supported by enhancing the relationship between the Development Bank, BAIC, the various government loan guarantee programmes and the government sponsored venture capital programme and the Board,” Mr. Hanna said.
While the government seeks to fuel the economy and usher in a new era of Bahamian entrepreneurs, one financial executive agrees that the Domestic Investment Board is a good idea “in principle” but doubts it has substantive benefits.
Darvin Russell, Chief Financial Officer of Freeport Concrete, told The Bahama Journal that the government’s various initiatives appear to be no more than “fractured hit or miss kinds of proposals.”
“[Initiatives] seem to be cobbled together in any fashion to make people believe there is some comprehensive small business or local domestic agenda for investors,” said Mr. Russell.
He is doubtful the new board will be successful, based on the government’s “past record.”
“In principle, although it’s a great idea, I think I’m just concerned about everything else, [especially] with the government’s [record of] execution,” he said.
“I don’t know why, with a country that is almost 35 years independent, we still only have one million dollars in a venture fund and no comprehensive plan to assist small businesses.”
Mr. Russell said that one solution could be found within existing departments available through government agencies, which could simply be made less bureaucratic.
“Why do you need another entity to do what supposedly [the Ministry of] Financial Services and all of the other entities in the government were supposed to do,” he said.
“To me, you could just reduce the red tape of the current process without creating another process for me to have to go through,” Mr. Russell said. “It still remains to be seen for me.”
The new Domestic Investment Board is expected to act as a primary catalyst for the management of applications to assist Bahamian entrepreneurs.
Mercynth Ferguson, Executive Director for the Chamber of Commerce, told The Journal that the initiative would provide “easement” during the entrepreneurial process.
“I think the Governor General’s remarks, as regards to this initiative, is timely because for far too long Grand Bahamians and Bahamians on the whole have been complaining of the bureaucracy and the length of time it takes to get approvals and to move the process forward,” said Ms. Ferguson.
According to the government, the country’s financial services industry continues to hold vast, untapped potential for the Bahamian economy and the Bahamian people.
“My government will continue its strategy of attracting high level international and domestic investment and greater emphasis will now be placed on providing incentives and concessions for a more rapid development of Bahamian entrepreneurial talent,” said Mr. Hanna in the Speech from the Throne.
“This will enable a new era of Bahamian entrepreneurs with talent and drive, the management expertise and the financial backing needed to succeed not only locally but in the highly competitive global environment.”
By: Daphne McIntosh, The Bahama Journal
