Small & Medium scale Enterprises (SMEs)

 

Another aspect of the Department’s work programme is the promotion of polices to aid the small and medium scale enterprises (SMEs) in Guyana.

Small Business Act 2004 (53KB) [Download the free Adobe® Reader™]

On 31st March 2004 the President of the Cooperative Republic of Guyana, His Excellency Bharrat Jagdeo, assented to the Small Business Act. (Act No 2 of 2004).

This Act makes provision for a number of important issues (i) incentive regime for Small and Medium scale enterprises (SMEs), the establishment of the Small Business Council, the Small Business Bureau, and the Small Business Development Fund.

Nearly sixty (60) per cent of businesses that operate in Guyana can be classified as SMEs. These businesses play a vital role in terms of creating jobs for thousands of persons while many are exporters of locally produced goods and services which earn valuable foreign exchange.

The importance of promoting SMEs involves the creation of an enabling environment which not only facilitates business creation but allows businesses to thrive and expand.

Guyana is a developing country with a small population (estimated to be 750,000 in 2002) and the Government is challenged to seek innovative way to stimulate indigenous entrepreneurs into becoming more vibrant and to build a modern economy. This growth cannot take place overnight since the traditional sector is based primarily on utilizing our natural resources to produce primary produce for the global market. These industries are under severe pressure from competition globally from producers in more advanced countries. In view of this dilemma, Guyana must examine ways of diversifying its economic base in order to meet the challenges ahead.