Mobile biz units to drive rural growth

Dayton Campbell, Guest Columnist

Undoubtedly, starting a business can be one of the most tedious processes that one can undertake in today's Jamaica. Yet, almost paradoxically, everyone can concede that small businesses and start-ups are what will grow our economy to prosperity.

As such, provisions must be made to encourage and facilitate the natural entrepreneurial instincts of Jamaicans. In this case, I am proposing the implementation of mobile business units. These are mobile offices with the sole purpose of making the process of starting a business more efficient and less daunting to the common man.

The residents of St Ann North Western and other rural constituencies and communities would benefit greatly from a mobile business unit. This is a challenge that we are throwing out to the minister of investment, industry and commerce. The mobile business unit would roll into our major town once per month and would be equipped with personnel from the Jamaica Business De-velopment Corporation, Companies Office, Stamp Office, Bureau of Standards Jamaica, Scientific Research Council, tax office and business students at the master's level in our universities. Thus, at the mobile business unit, one would be able to have feasibility studies and business plans done as well as, of course, have their business registered.

On completion, the Government would promise to stand guarantee for 40 per cent of the start-up capital with the rest from private institutions. We have to start thinking outside the box. In this regard, another method to pursue is a proper microfinancing model set forward by government stakeholders. This has been done with great success in Bangladesh where the Grameen Bank (GB) has reversed conventional banking practices by removing the need for collateral and created a banking system based on mutual trust, accountability, par-ticipation and creativity.

GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost-effective weapon to fight poverty and it serves as a catalyst in the overall development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable.

financial resources

Professor Muhammad Yunus, the founder of Grameen Bank and its managing director, reasoned that if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, "these millions of small people, with their millions of small pursuits, can add up to create the biggest development wonder".

Grameen Bank's positive impact on its poor and formerly poor borrowers has been documented in many independent studies carried out by external agencies, including the World Bank, the International Food Research Policy Institute and the Bangladesh Institute of Development Studies.

As a true egalitarian, my desire and dream is to see the widest cross section of our population being able to redeem themselves from the ills of slavery and the post-slavery period. A critical plank in this proposal is for all participants to also receive the necessary entrepreneurial training and certification to ensure that the businesses that are developed through this process remain viable and profitable.

fostering growth

Additionally, in order to foster growth, there should be no company tax for companies with less than $2 million in profits per year. This does not mean that these new companies would not contribute to growing our economy. Contrary to that myopic view, they would catalyse growth through increased levels of em-ployment and aggregate demand.

It is also critical that we look to JAMPRO for marketing, or engage a private company, e.g., Grace-Kennedy, to do marketing for a commission. This is of paramount importance as we look to not only capture the local market but to also narrow the trade deficits regionally and internationally.

Just imagine a small farmer in Bamboo or Muirhouse or Sturge Town, the second free village in Jamaica, who would be able to formalise his business, go all the way along the value chain with agro-processing and exportation of the finished product; the possibilities are endless.

This, therefore, gives me reason to believe in this country and its future well-being.

Dayton Campbell is MP for St Ann North Western. Email feedback to columns@gleanerjm.com.