Small businesses in Linden have gotten a new lease on life after government finally appointed a seven-member board to run the affairs of the Linden Enterprise Network (LEN) on Wednesday.
After being in existence for approximately four years, LEN, the successor to the Linden Economic Advancement Project (LEAP), was inaugurated at an official ceremony in the mining town.
The board comprises Chairman Dunstan Barrow, Andrew Forsythe, Nolan Walton, Yolanda Hilliman, Tarachand Balgobin, Basil Jaipaul and Patrick Dublin. Valerie Patterson serves as coordinator.
The inauguration took place inside the Region 10 Business Centre, Macaw conference room. It saw the attendance of Finance Minister, Dr Ashni Singh; Minister within the Finance Ministry Juan Edghill, Region 10 Chairman Sharma Solomon, Linden Interim Management Committee (IMC) Chairman Orrin Gordon and various stakeholders, among other special invitees.
In his feature address, Dr Singh stated that it is the hope of government that the resuscitation and appointment of the new LEN board will bring a reinvigorated micro enterprise lending and small business environment in Linden, from which members of the community will benefit.
“I wish to assure you that government will remain committed to facilitating more inward investment in Linden.
“The long-term prosperity of Linden will not only come from external investors…but will also come from economic diversification…from investment by Lindeners themselves.
LEAF
“When LEAF (Linden Economic Advancement Fund (LEAF) which ended in 2009) was conceptualised, this was precisely its intention, investment in infrastructure; investment in institutional capacity, that is the building capacity in the business organisation; business incubation… mentoring and encouraging small businesses to be established or to grow and expand their operations; and financing – micro credit, lending for business development…
“Under LEAF, more than Gy$700 million was lent to Region 10 entrepreneurs, principally Linden.
“In fact, 701 entrepreneurs, would have benefited, loans would have been granted, totalling in excess of Gy$736 million …as a means of encouraging and promoting growth of these small businesses,” he noted.
Dr Singh further stated that the sectors were more varied and included agriculture; forestry; hospitality (small hotels, restaurants); manufacturing; mining; services; and vending. He stressed that the amount of money was not insignificant and the intention at the time was that it would serve as a revolving fund.
The finance minister added that it was also intended that those who would have borrowed would either establish or expand their businesses.
LEAP
“Bearing in mind, these were small business ideas conceptualised by entrepreneurs in Linden… good business ideas conceptualised by Linden entrepreneurs that was intended to generate profit, create jobs; in fact, by our account, by account of the LEAP office, these 701 loans with a value of Gy$736 million would have created 3095 jobs,” he stated.
The finance minister emphasised that the LEAP facility was intended to be self-sustainable, in that persons would continuously borrow and repay loans, thus graduating from the micro-credit sector into the formal banking system.
This would make it easier for them to acquire loans from banks in an effort to expand their businesses, even at the international level.
He pointed out that his ministry is convinced that micro enterprise and small business development is one of the most effective ways of improving lives and livelihood.
LEN
He noted that LEN is not only about lending, but will also provide business incubation and business facilitation and advisory services which are very important. Lending for the purpose of small business development, he noted, is high on the LEN agenda.
While there were a number of good borrowers under the LEAP initiative, Dr Singh stated that regrettably it is no secret that there were also a number of bad ones who were less enthusiastic about repayment of small business loans.
He also urged future and defaulting borrowers of loans to be responsible, so as to benefit from repeat loans and not deny others the same opportunity.
“If you took a loan under LEAP and did not repay, you are denying yourself the opportunity to borrow again and the truth of the matter is that to the extent if the fund does not revolve, you are also denying your fellow Lindeners an opportunity to borrow themselves… the fund is dependent on repayment.
