An important ‘Informational Guide’ is now available to Small Business operators and the general public.
Launched as the “ultimate assistance” to entrepreneurs by the Bahamas Agricultural and Industrial Corporation (BAIC), the guide serves to promote excellence in goods and services through education and adequate funding.
Addressing members of the press at BAIC headquarters on Tuesday, Chairman of BAIC, Sidney Stubbs said the guide is a one-stop information and procedural manual for persons already in business, persons just starting out and persons who are becoming interested in having their own business.
The chairman stated that there are a number of legislation and regulations, which relate to getting started in business. Moreover, particulars such as proper licensing requirements, respective governmental inspections, certificates of inspection, banking & financial services, loan assistance programmes and specifics on franchising are dealt with. And, international or regional agencies are prepared to assist and can assist as well.
Noting that BAIC is zealously advocating “Domestic Investment” as a necessary pillar and accouterment to foreign investment, Mr. Stubbs said the Government has charged the corporation with the responsibility of shepherding the route of economic empowerment for the Bahamian people.
“Once we do our job, and do our job right, small businesses can thrive in a healthy economy and small businesses become less prone to disaster and failure and our country cuts down significantly on imported goods, services and products as the local job market finds a staple and burgeoning muscle of growth,” said Stubbs.
For the last three months, the Member of Parliament for Holy Cross said BAIC head office in New Providence and its Freeport regional office have jointly co-coordinated Small Business Seminars to provide constructive advice on a daily basis for the most intricate of businesses to ‘mom and pop shops’, bonefish lodges, internet cafes, auto mechanics, perfume and costume jewelry manufacturing, bottled condiments and packaged native herbal teas, jams and sauces.
“We want to see the business dream of every Bahamian fulfilled,” he said. “We want to see Bahamian employees standing tall and proud in these businesses and knowing that if it could have happened for their employer, then it can also happen for them.
Emphasising that a number of the country’s top commercial banks as well as the Bahamas Development Bank have given BAIC’s Project Services Department good marks in every proposal submitted, Mr. Stubbs said the very best assistance and technical help is given for every aspect of business.
Furthermore, he said once a small Bahamian business is up and running strong, it is a good indication of patriotic duty and nationalistic duty that not only show Bahamians are committed to owning homes, a car, or paying bills, but shows that they also own part of the Bahamian economy.
“It is our hope that this Information Guide for Small Businesses will answer all of the most asked questions and prove a worthy facilitator of all of the nuances involved in our Bahamian business people getting started and staying in business,” he said.
The corporation anticipates the publication of a magazine on ‘Domestic Investment’ next year and will sponsor a number of radio and television programmes to get the nation excited over participating in the Bahamian economy.
Vital data compiled in the guide, shows that The Bahamas has experienced a significant growth in its agriculture industry and is now valued at about $70 million annually.
Likewise, its fisheries sector earns over $50 million a year mostly from lobster exports. The Government is attempting to diversify the industry to exploit the country’s resources of scale fish, stone crab and other marine products in abundance.
The guide reveals that any entrepreneur who have a sound business proposal and who may lack the usual equity or collateral required to obtain a loan to start a small business or expand an existing one, can apply for a Guarantee Loan.
The Small Business Guarantee Loan programme defines a small business as a business, which employs less than 25 persons or has annual gross revenue of not more than one million dollars.
The small business must be engaged in agriculture industry, tourism, in the operation of public transportation services via air, sea or land, or a service-oriented enterprise to qualify. Maximum loan given is $250,000. The Government may guarantee up to 80 percent of the loan. The maximum loan term is 10 years and the maximum interest rate is the current Prime Rate plus two percent.
For Tourism related loans, the maximum loan amount is $500,000. The government may guarantee up to 75 percent of the loan. The maximum loan term is 15 years.
The guide shows that funding is also provided by the Bahamas Development Bank, which criteria for lending suggests the candidate have significant Bahamian ownership, have Bahamian value added content, expand small business base which creates employment, conserve foreign exchange and or favourably impact balance of payments, be economically viable and demonstrate potential to meet operational obligations and service its debt, sponsor must contribute acceptable equity and sponsor must provide acceptable collateral.
Businesses with turnovers of more than $250,000 are required under the Business License Act of The Bahamas to have their accounts audited, the guide states, and any business with revenues of $50,000 or over have to pay a licensing fee of $250 to as high as one percent of its turnover if its revenues are $500,000 and over.
Potential business owners are educated on who must register business name, its fees and who is exempted.
Of special note in the guide, are helpful hints on your business plan. The business plan as it states, is an essential planning and tracking tool. It is your overall strategic plan. It is also a summary of your mission, mandate and method. It is your basic reference document to tell your customers, suppliers, bankers and partners about your track record, your tactics and your targets.
Giving thanks to the hardworking team of BAIC in successfully producing the information guide, General Manager of BAIC, Emerson Luther Smith, said the corporation is on a new wicket.
“We have been re-energised by our focus on Domestic Investment and as we take this message and organised plan throughout the Commonwealth of The Bahamas,” Mr. Smith said. “We have been impressed and excited over the enthusiasm of the Bahamian people to embrace economic empowerment opportunities.”
Speaking highly of the excellent development of the handicraft souvenir industry in Exuma, Mr. Smith said BAIC, through its commitment to promoting this valuable trade, conducted an intensive handicraft and souvenir-training programme on that island.
“BAIC is pleased to present this Information Guide to the general public with the hope that more and more of our people will begin to take advantage of the services that we offer here at this Corporation,” he said, “and in so doing, we can move our country, move our people and bring about a shift in economic diversification and import substitution.”
BAIC is comprised of a Business Planning Development Department, which is responsible for developing business ideas into projects and business plans for possible funding by lending institutions. Other functions include preparing project proposals and business plans for possible funding by the Bahamas Development Bank or other banks as well as identifying viable business ideas that can be developed into successful enterprises.
Its Business Advisory Services Department is responsible for coordinating funding for developed projects and advising/counselling business in the early stages of their development. This includes ensuring that the funds allocated for projects are spent wisely and for the intended purpose.
The Marketing and Public Relations Department is responsible for promotion of the BAIC and local businesses. Its Handicraft Department was established to focus on the development and promotion of handicraft throughout The Bahamas. Assistance with marketing of products is also available.
Other valuable and helpful data for budding entrepreneurs or business owners within the guide include knowledge of necessary accounting usage, info on Agriculture and fisheries opportunities, criteria for loans with the Bahamas Government, criteria for loans with the Bahamas Development Bank, privileges of the Bahamas Technical & Vocational Institute, bankers, banking, business organisations and the types of businesses found in The Bahamas, usage of Business Licenses, forming proper business plans, Crown land ownership, employment, Facts on the Chamber of Commerce, freight and foreign exchange information, immigration facts, Incentive legislation, facts on insurance industry and the conduct of international business companies, manufacturing, National Insurance policies, taxation, tax exemption etc.
By Lisa Albury, The Nassau Guardian
