A platform for improving the internal dynamics of firms in Guyana
In 2017, the Private Sector Commission of Guyana (PSC) commenced a Business Summit which addressed the internal dynamics of the firm, that is, those factors which are related to business development. Figure 1 outlines the relationship of the Business Development Forum and how it maps into private sector development, and by extension, economic growth.
1. The Business Development Forum in Guyana’s Private Sector Development and Economic Growth
The Business Development Forum (BDF) was a two-day business forum which was intended to provide a platform for the growth of businesses. It catered for all businesses, irrespective of their size. It was originally conceptualized as a forum for small businesses. However, after discussions, research and analysis, it was realized that a forum to foster improvement of the internal dynamics of all firms in Guyana’s private sector was necessary.
It is with this in mind that the BDF sought to cover issues relating to private sector entities of all sizes, – Micro & Small businesses; Medium-sized businesses and large entities. To adequately address each of the aforementioned categories, a three-pronged approach has been designed.
1. Institutions & Agencies: Institutions and agencies relevant to the business growth of the specific category
2. Education & Academia: A theoretical perspective and the role of formal education presented by academia
3. Role Model: A role model or a success story by a company who has been able to grow from one category to another
2. Understanding the Method of the Business Development Forum
Primary Question: The primary question which the Business Development Forum attempted to address can be succinctly stated as – How does a company in Guyana grow from one category to another?
Answering the primary question: In order to answer the primary question, the Business Development Forum facilitated the following:
- Presentations: Presentations made from the institutions, agencies, academia and a role model for each category of business, describing in their specific area, how an entity can improve its business.
- Panel Discussions: Facilitated panel discussions with questions from the audience and healthy discourse on business development.
- Strategy Document: A single comprehensive document from the presentations and panel discussions on improving the internal dynamics of the firm in Guyana.
- Public Exhibition: A public exhibition by relevant agencies and institutions, which provided a space for information sharing and facilitating easy-access to experts.
- Networking: Industry experts, potential partners, clients and others in the supply chain will facilitate knowledge transfer, information sharing and industry-wide connections.
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- Objectives of the Business Development Forum
The primary objective of the Business Development Forum is to bring all the institutions which are relevant to a business at each stage of its development in one space for entities to understand different dimensions to unlocking their business growth. This will enable for categories of businesses to grow in accordance with the map depicted in Figure 3.
The secondary objectives of the Business Development Forum are to:
1. Provide a single, comprehensive event to facilitate business growth and strategy development.
2. Provide networking, support and capacity building opportunities for micro and small businesses.
3. Create a complete roadmap to developing entrepreneurs and growing businesses in Guyana.
4. Expanding the number of micro and small businesses subscribed to the Chamber of Commerce such that their business growth can be supported.
5. Provide a space for discussions on issues pertinent to business growth which will foster thinking in the private sector community.
6. Provide a space for relevant entities and agencies which interface with the business community to interact with businesses and the wider public.
7. Engender a sense of community and spirit of cooperation in the business community whilst maintaining a healthy dose of competition.
8. Providing an opportunity for companies which support business growth and development to display their products.
4. Understanding the context of the Businesses in Guyana
4.1 Developing and Vitalizing Large Businesses in Guyana
It became apparent that many of the largest firms in Guyana were dwarfed when compared with their Caribbean counterparts
– a fact substantiated by (Pasha, Wenner, & Bollers, 2018, p. 3) where it was noted that despite strong sales growth of the
Guyanese private sector, ‘Total Factor Productivity (TFP) of…firms are the third lowest of 12 [major] Caribbean countries.’ Further credence is given to this by the same IDB Publication, which states that 62 percent of mature firms are either in a state of stagnation or decline in Guyana. (Pasha, Wenner, & Bollers, 2018, p. 1)
The BDF sought to provide a platform for promoting expansion of large businesses in Guyana to become internationally competitive and penetrate new markets. The emergence of new dynamics in the international financial architecture, such as understanding Anti-Money Laundering Regulations, compounded by the limit of financial entities in Guyana to lend financing are just a few in a myriad of challenges.
4.2 Accelerating the growth of Micro, Small & Medium Enterprises
Micro, Small and Medium Enterprises (MSMEs) continue to remain pivotal to the development of the Guyanese economy. Twenty years ago, the sector accounted for 40 percent of total employment and contributed approximately 28 percent to Gross Domestic Product (GDP). (Wenner & Chalmers, 2001). Since then, the contributions of MSMEs have grown in their contribution to the economy, with the crafting of a legal and institutional framework to promote their development.
Several programmes have been undertaken by different Guyanese Governments. Notable programmes undertaken over
the past decade include: the Women of Worth (WOW) project, the Micro and Small Enterprises Development (MSED) project, the Agricultural Export Diversification (AED) project and the Rural Enterprises and Agricultural Development (READ) project.
However, despite efforts by Government, SMEs are still constrained by limited access to finance. According to the McGarrell Reports in 2009 on the needs of MSMEs in Guyana, the historically high failure rates of these firms explain the aversion of lending
institution to provide financial support to them. (McGarrell, 2009). (Rambarran & Shaw, 2018) maps the aversion of Guyanese lending institutions to provide financial support to MSMEs to nine
(9) primary reasons. These are:
1. Poor Business Plans – The inability of these entities to formulate properly researched and credible business plans;2. Financial Illiteracy – Financial illiteracy and poor financial practices in operations;
3. Educational Deficits – Lack of a capacity or engaging in an activity where not skilled or trained;
4. Reputational Absence – Absence of proven track record in and around the production;
5. Inefficient Management – Leading to inefficient production processes;
6. Lack of Information Sharing – Improper knowledge of markets including access to technology to do research;
7. Lack of Skill-set – Inability to forecast;
8. Market Standards – Inability to adapt or incorporate market standards such as quality assurance, packaging, environmental requirements, etc;9. Women Entrepreneurship – Intra-household dynamics for women entrepreneurs who often times have little or no help in their childrearing or child-bearing duties;
Further, (Gossai, 2016, pp. 15, 16) identifies that:
10. Trade Regulatory Education – “A platform for information sharing, networking, consultations, and feedback is vital to this effort.”11. Digital Marketing– “The importance of leveraging the digital economy to expand internationalization opportunities for MSMEs by widening access to the internet and building capacities to enable MSMEs to adopt internet-based models, such as Online-to-Offline
(O2O), utilizing e-commerce platforms and online portals that will enable them to explore and conduct cross-border transactions.”
12. The Role of Academia – “Partnerships, linkages and networking among innovation centers, research communities and academia, as well as those involving large and small businesses need to be supported and enhanced.”5. Response to the Business Development Forum
The inaugural Business Development Forum has been hailed as a success, being able to attract more than 140 participants from the private sector and approximately 35 presenters. Equally praised by the participants was the quality and relevance of the presentations, which were able to stimulate discussions examining firm-level inefficiencies and productivity constraints. The Forum will become an annual feature of the GCCI as it seeks to contribute to private sector development from a unique vantage point.
(For more information on partnering with the Chamber or supporting the Business Development Forum, one should make contact with the Chamber on telephone numbers 226-3519 or by email at [email protected].)