Local operators of micro, small and medium-sized enterprises (MSMEs) will soon have access to shared-use facilities to mass produce items. They will also have at their disposal, a new digital bank facility from which to access funds to help them export their products and services.
Minister of Industry, Innovation, Science and Technology Davidson Ishmael and Chief Executive Officer of Export Barbados (BIDC) Mark Hill shared the development on Wednesday as they responded to questions from lawmakers during the 2022/2023 Estimates debate.
Ishmael gave the assurance that his ministry would be embarking on several initiatives aimed at increasing innovation and driving economic enfranchisement.
“The ministry has a view to develop and build out the capacity of our smaller companies – micro, small and medium-sized enterprises – to encourage them and to be able to lift their standard in being able to produce at higher levels and higher volumes, in particular so they will be able to drive exports,” said Ishmael.
He explained that the shared-use facilities will be for “individuals, entrepreneurs, sole proprietors who may not have the capacity to build out their own infrastructure and therefore not be able to have the capacity to produce at the volumes required for local demand and . . . the export demand”.
“We are going to allow those individuals to have access to shared-use facilities that would allow them to have a more even playing field with the larger producers,” he said.
He said in addition to a food science centre catering to individuals in the agro-processing industry they have already identified the need for a “shared-use facility relative to mechanics bay and spray centre”.
He also pointed to a planned national challenge that he said would help to drive innovation, starting at the primary school level.
In relation to the export bank facility, Ishmael said it will provide MSME operators with access to capital, information and capacity-building to help them improve their export potential.
Chief Executive Officer of Export Barbados (BIDC) Mark Hill said his organisation has already started to put things in place to better assist the MSME sector in that area.
“We have implemented for example, an export rating system; a scorecard based on four parameters for all businesses across the island – is it real bankable business that you are pursuing? Can it win? Is the technology or systems needed to be there to support your delivery system in place? Is this doable and finally, is it worth it, is it going to make some money?” he outlined.
Stating that this rating card system has been in place for the past nine months, Hill said it will provide necessary data to show how various sectors were performing when it came to export.
Hill said Export Barbados has decided to expand the special technical assistance programme into an export bank solution that would provide cash flow for businesses seeking to export products and services.
Explaining how this facility will work, Hill said “If you have your order from your overseas company you can come to the bank with your purchase order, your proforma invoice and the bank releases the operating capital that you need to meet your order . When the invoice comes to the bank, the bank takes out what it lent you and you get the rest”.
“That way we believe we can create a lot more millionaires in Barbados by them going out into the international market space. They only now have to focus on really marketing . . . This is not only for people producing goods, but this is also for persons producing services,” said Hill.
He said Export Barbados was in the process of fine-tuning some aspects of the digital platform for the digital export bank solution.
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