MINISTER for Infrastructure, Ports, Energy, and Labour Stephenson King has said that there is a necessity for business management training for burgeoning entrepreneurs.
Speaking in Parliament Tuesday, King explained that while he commends the effort to increase access to financing for micro, small and medium enterprises (MSMEs), government should also provide peripheral small business assistance.
“Invariably, people get into business either because they have an idea, they have knowledge, or they have money, but one critical element that is lacking is financial and business management counseling for those going into business,” King was quoted by the Government Information Service (GIS) as saying.
“It doesn’t mean that because you have an idea that you will be successful in running a business. What is most important is your knowledge, discipline, and understanding of business that will make you successful.”
The minister lamented the fact that too many startups eventually fail, and suggested a two-fold approach to lessening such incidences.
“I hope that we will be able to put in place within the education system a guidance and counseling program; and in the private sector, the necessary processes to ensure that those accessing loans will receive training that would guarantee that the rate of failure is kept at a minimum.
He continued: “The difficulties we have in accessing the banking sector is, many times, due to bad judgement in business, or not having the necessary training to get into business.
“The BELfund was an excellent initiative which still exists, but I’m sure if you look at BELfund’s records, [you will discover] a number of businesses were failing; and that influences the banking system’s rules, regulations and policies, which make it more difficult for young people to go into business.”
Mr King concluded by stressing his support for the financing project.
“It is a wonderful idea but I’m hoping that in the architecture of putting together those loans that we train young people to understand what they are getting into, and how to run business in a manner that will guarantee success.”
The minister’s comments were made during the parliamentary debate Tuesday on a request by Prime Minister and Minister for Finance, Allen Chastanet, that Parliament authorize the borrowing of US$2,000,000 from the International Development Association (IDA), to finance the OECS Micro, Small and Medium-Sized Enterprise Guarantee Facility Project.