Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698073532439.pdf (Guyana)
TABLE OF CONTENTS ACRONYMS .................................................................................................................................. 1 TRANSMITTAL LETTER TO THE MINISTER ......................................................................... 2 CHAIRMAN’S REVIEW ............................................................................................................... 3 INTRODUCTION .......................................................................................................................... 6 PART I: ........................................................................................................................................ 10 ADDRESSING DEVELOPMENTAL ISSUES AND STREAMLINING ADMINISTRATIVE PROCEDURES RELATING TO SMALL BUSINESSES .......................................................... 10 PART II........................................................................................................................................ 15 INITIATIVES UNDERTAKEN BY THE GOVERNMENT TO FACILITATE ACCESS TO FINANCING BY SMALL BUSINESSES ................................................................................... 15 PART III ...................................................................................................................................... 22 REVIEW OF SMALL BUSINESS SECTOR: 2014 .................................................................... 22 PART IV
22 PART IV ...................................................................................................................................... 25 REVIEW OF SBB’s OPERATION .............................................................................................. 25 ORGANIZATIONAL CHART .................................................................................................... 27 PART V ........................................................................................................................................ 28 INITIATIVES TO FOSTER THE SMALL BUSINESS SECTOR ............................................. 28 AGENCY INFORMATION ......................................................................................................... 46 FINANCIAL STATEMENTS ...................................................................................................... 47 LIST OF FIGURES ...................................................................................................................... 54 LIST OF TABLES ........................................................................................................................ 54 SUBJECT MINISTER AND MEMBERS OF THE SMALL BUSINESS COUNCIL (SBC) Minister of Business Mr. Sukrishnalall Pasha, Chairman Mr. Mohamed Qualander, Vice Chairman Mr. Derrick Cummings, Secretary Mr. Dhaneshwar Deonarine, Member SBB ANNUAL REPORT 2014 ii Ms. Donna Levi, Member Mr. Patrick Zephyr, Member Ms. Manjula Brijmohan, Member Mr. Patrick Sukhlal, Member
 Mr.Yogieraj Das, Member Mr. Kwabina Griffith, Member Mr.Daniel Gajie, Member Mr. Mohindra Chand, Member SBB ANNUAL REPORT 2014 iii ACRONYMS Association of Certified Chartered Accountant Amerindian Development Fund Business Development Services Caribbean Development Bank Cluster Development Programme Chief Executive Officer Common Facility Centre Conservation International Entrepreneurial Development Institute of India Entrepreneurship Development Programs Economic Commission for Latin America and the Caribbean Guyana Agro-processors Association ACCA ADF BDS CDB CDP CEO CFC CI EDI EDPs ECLAC GAPA GBTI Go-Invest Guyana Office for Investment GRA GRIF GMSA IMF IPED IDB LCDS LED MBA MOU MSBD Guyana Revenue Authority Guyana REDD+ Investment Fund Guyana Manufacturing & Services Association International Monetary Fund Institute of Private Enterprise Development Inter-American Development Bank Low Carbon Development Strategy Local Economic Development Master’s Degree in Business Administration Memoranda of Understanding Micro and Small Business Development Project.
Guyana Bank for Trade and Industry Commerce Micro and Small Enterprise Development Project MSED MSMEs Micro, Small and Medium Enterprises NPTAB PFIs PTIs RDC EAFRD SBB SBC SBDF SME’s UWI VAT WADNET Women’s Agro-Processors Development Network National Procurement and Tender Administration Board Partner Financial Institutions Partner Training Institutions Regional Democratic Council European Agricultural Fund for Rural Development Small Business Bureau Small Business Council Small Business Development Fund Small and Micro Enterprises University of the West Indies Value Added Tax SBB ANNUAL REPORT 2014 1 TRANSMITTAL LETTER TO THE MINISTER The Honourable Dominic Gaskin, M.P.
Minister of Business 229 South Road, Lacytown Georgetown Guyana Dear Minister, The Small Business Council (SBC) presents its compliments and has the honour to submit for your attention and presentation to the National Assembly the Annual Report on Small Businesses in Guyana for the period January 1st, 2014 to December 31, 2014.

The report is submitted in accordance with Section 4(1) (c) of the Small Business Act No.
2 of 2004 and covers the following:  progress made in addressing developmental issues and streamlining  administrative procedure relating to small businesses; initiatives by the Government to facilitate access to financing by small businesses; the status of procurement by the Government from small businesses the recommending of fiscal incentives to small businesses;    statistics relating to the small business sector.

Attached also is the draft statement of receipts and payments.
With warmest personal regards.

Yours sincerely, ………………………….. Mr. Sukrishnalall Pasha Chairman Small Business Council SBB ANNUAL REPORT 2014 2 CHAIRMAN’S REVIEW Consistent with its mandate, the Small Business Council (hereafter referred to as the Council) submitted its Small Business Policy and Reform Agenda to the Minister of Business for 2014 and 2015.

The Council also commissioned three (3) concept notes to support the small business sector.
The studies were completed during 2014 and forwarded to the Minister for his approval.

Through regular statutory meetings, the Council ensured the Small Business Bureau (hereafter referred to as the Bureau) was effectively supervised and managed as stipulated in the Small Business Act No.

2 of 2004.

Additionally, the Council approved and adopted an Accounting Policy and Procedure Manual to strengthen the governance framework of the Bureau.

2014 was a momentous year.


During this fiscal period the Bureau initiated the Mutual Guarantee Scheme under the Micro and Small Enterprises Development (MSED) Project that was officially launched one year ago.

Eighteen (18) Micro, Small and Medium Enterprises (MSMEs) qualified for collateral guarantees; paving the way for these businesses to access concessional finance.
Loans for twelve of these businesses - which amounted to $80.3 million - were approved by the three (3) Partner Financial Institutions (PFIs) during 2014.

SBB ANNUAL REPORT 2014 3 The Grant Committee was also officially established in August 2014 to administer the Grant Component of the MSED project.

For the four (4) months ending December 2014, the Grant Committee reviewed 80 grant packages and approved 25 totaling $7.4 million.
Through the grant scheme and mutual guarantee scheme approximately sixty seven (67) jobs were directly created and/or sustained.

During 2014 the Council established a Training Committee which assisted the Bureau in crafting a road map to accelerate the training component of the MSED Project.

A total of 830 persons were trained across Guyana in various areas such as basic record keeping, market research, water treatment, water sanitation, basic business management, and business proposal preparation.
Particular focus was placed on the latter to assist MSMEs to access the grants under the MSED project.

In an effort to improve its visibility and reach, the Bureau also conducted numerous public awareness sessions in the ten administrative regions in Guyana.

This was buttressed with a country-wide public communication campaign to sensitize MSMEs of the MSED Project.

These initiatives saw a marked expansion in the number of MSMEs registered with the Bureau.
During 2014, the number of registrants increased by eighty-nine percent (89%) bringing the total number of registrants of the Bureau up to 4,135.

The institutional capacity of the Bureau was enhanced through the provision of training to staff members.

The Training and Development Officer benefitted from specialized training in Cluster Management and Development from the SBB ANNUAL REPORT 2014 4 Entrepreneurial Development Institute of India (EDI).
Three additional staff members were recruited during 2014.

Outlook The economic outlook for Guyana remained positive.

Indeed, the Honourable Minister of Finance in his Budget Presentation projected economic growth at 3.4 percent for 2015.

Coupled with the buoyancy in the economy, the successful implementation of the MSED project and other initiatives targeting MSMEs are expected to spur further growth and development in the small business sector.
Conclusion On behalf of the Council, I would like to take this opportunity to thank the staff of the Bureau for their unwavering commitment to the advancement of the small business sector in Guyana.

The success achieved during 2014 would not have been possible without the support from our clients and key partners such as the Partner Training Institutions (PTIs), Partner Financial Institutions (PFIs) and Inter-American Development Bank (IDB).

In this regard, we wish to thank our clients and partners.
SBB ANNUAL REPORT 2014 5 INTRODUCTION The second Annual Report of the small business sector is presented in accordance with Section 4(1) (c) of the Small Business Act No.

2 of 2004.

The report is structured thus: Part I discuss the progress made with respect to addressing developmental issues and streamlining administrative procedures relating to small businesses.

Part II reports on the initiatives undertaken by the Government to facilitate access to financing by small businesses.
Part III speaks to the status of procurement by the Government from small businesses.

Part IV outlines initiatives recommended by the Council to advance the small business sector.

Part V provides important statistics relating to the small business sector.

In March 2004, the Small Business Act No.

2 of 2004 (hereafter referred to as the Act) was enacted to establish the legal and institutional framework to stimulate the growth and expansion of the small business sector.
In particular, the Act created the Small Business Council (SBC), Small Business Bureau (SBB) and Small Business Development Fund (SBDF).
According to section 4 of the Act, the functions of the SBC are: (a) to review draft legislation proposed by the Government relating to small business or to matters of the private sector and economic development in which small business may become involved and submit comments thereon to the Minister; SBB ANNUAL REPORT 2014 6 (b) to prepare and submit annually to the Minister, a Small Business Policy and Administrative Reform Agenda, including recommendations for the addressing of developmental issues, the granting of incentives to small business and the facilitation of measures affecting them; (c) to prepare the Annual Report on Small Business in Guyana for submission to the Minister, not later than ninety days after the end of each financial year; the report shall contain information on – (i) progress made in addressing developmental issues and streamlining administrative procedures relating to small businesses; (ii) initiatives by the Government to facilitate access to financing by small businesses; (iii) the status of procurement by the Government from small businesses; (iv) the recommendation of fiscal incentives to small businesses; (v) statistics relating to the small business sector; (d) to maintain a register of approved small businesses under this Act; (e) to supervise, manage and give directions to the Small Business Bureau; (f) to establish contact and linkages with other organizations, both local and overseas, with similar goals and objectives; and (g) to pursue all legal and lawful courses in furtherance of the goals and fulfillment of this Act.
SBB ANNUAL REPORT 2014 7 Meanwhile, the Small Business Bureau (SBB) was established to be the secretariat of the SBC.
Based on Section 4(2) of the Act, the Bureau is responsible for the following: (a) promoting developmental issues relating to or affecting small business at the governmental level; (b) coordinating programmes for small business development with funding provided by the Government and other agencies; (c) monitoring and implementation of this Act; (d) reporting quarterly to the Small Business Council; (e) preparing for the approval of the Council the draft of the Annual Report on Small Business in Guyana; which shall include: (i) initiatives by the government to facilitate access to financing by small businesses; (ii) the level of procurement by the Government from small businesses; (iii) the recommending of fiscal incentives to small businesses; (iv) statistics relating to the small business sector As noted earlier, the Act created the Small Business Development Fund (SBDF) to provide for: (a) support and access to financing for small businesses; (b) non-financial services and assistance to help small businesses improve their productivity and competitiveness; SBB ANNUAL REPORT 2014 8 (c) institutional support for organizations representing, promoting, supporting and strengthening small business; (d) funding the expenses of the Council and the Bureau.
According to Section 7(2) of the Act, the fund shall consist of: (a) monies appropriated by Parliament for the benefit of the small business sector in furtherance of the objectives of this Act; (b) monies made available by the Government out of loans raised by the Government (c) grants made to the Fund; (d) monies accruing to the Fund out of investments made by the Fund; and (e) revenues raised by the Small Business Council for services rendered.
SBB ANNUAL REPORT 2014 9 PART I: ADDRESSING DEVELOPMENTAL ISSUES AND STREAMLINING ADMINISTRATIVE PROCEDURES RELATING TO SMALL BUSINESSES During the review period the Bureau, with the support and guidance of the Council, continued to forge alliances with strategic partners to promote the growth and development of the small business sector.
The Bureau initiated talks with the Guyana Revenue Authority (GRA), National Insurance Scheme (NIS) and Deeds Registry with the aim of facilitating the registration of MSMEs.

These negotiations will culminate with the signing of Memorandum of Understanding (MOU) during the first quarter of 2015; paving the way for MSMEs to be registered as well as become NIS and GRA compliant with minimal hiccups.

The Bureau also continued to aggressively expand its register of approved businesses as required by the Act.
During 2014 a total of 1,950 MSMEs were added to the register of approved businesses (see Figure 1).

The number of businesses added to the register during 2014 was more than five (5) times higher than the previous year.

As at end-December 2014 the total number of businesses registered with the Bureau stood at 3,951; compared with 556 businesses during 2010.
SBB ANNUAL REPORT 2014 10 d e r e t s i g g e R s E M S M f o r e b m u N 4500 4000 3500 3000 2500 2000 1500 1000 500 0 3951 2001 1950 1621 1060 556 504 561 380 2010 2011 2012 2013 2014 Year of Registration with Cumulative Figure 1: Businesses registered with the Bureau; 2010-2014 Source: Small Business Bureau (SBB) The largest number of new registrants were involved in the cultivation of fruits and vegetables (724), followed by Low Carbon Agriculture and Agro-Processing (499); and professional and business services (312).
Together these businesses accounted 78.8 percent of the total number of new registrants.

Table 1 show the registrants of the Bureau based on economic sectors between 2010 and 2014.
SBB collaborates with CUSO and IICA to host awareness session in Region SBB ANNUAL REPORT 2014 11 Table 1: New Registrants based on economic sectors; 2010-2014 Economic Sectors Fruit and Vegetables Agro-processing Apiculture Aquaculture Arts and Craft Internet and Computer based services Sustainable mining Low Carbon Agriculture and Agro-processing (excluding livestock) Eco-Tourism Energy efficient transportation and logistics Professional and business Services Sustainable forestry and wood processing Business process outsourcing Bio-ethanol Low carbon energy production and/or distribution Low carbon manufacturing activities Publishing and printing Entertainment, music and performing arts Others Total Source: Small Business Bureau (SBB) SBB ANNUAL REPORT 2014 12 Most of the new registrants operate in Regions 4, 5 and 6.
The total number of new registrants from these regions approximated 76 percent of the new registrants (Table 2).
Table 2: New Registrants by Administrative Regions; 2010-2014 Administrative Regions Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 Total Source: Small Business Bureau (SBB) Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 Figure 2: Graph Showing Regional Distribution of the SBB’s Registrants form 2010 -2014 The new registrants added to the Bureau’s database were almost equally represented in terms of gender.
Table 3 shows that 49.9 percent of the new registrants were male and 49.8 percent female and the remainder not stated.
SBB ANNUAL REPORT 2014 13 Table 3: Distribution of new registrants by Gender Gender Male Female Not stated Total Source: Small Business Bureau (SBB) Not stated Female Male 32 193 331 31 132 338 29 180 352 14 172 194 2010 2011 2012 2013 2014 Figure 3: Graph Showing Distribution of Registrants by Gender from 2010-2014 The vast majority of businesses added to the database were not registered.
Table 4 shows that 57.0 percent of the new registrants were not formally registered.

Only 9.9 percent of these businesses were registered while 32.9 percent were in the process of being registered.
Table 4: New Registrants classified by status of business; 2010-2014 Status of Business Registered Not registered Not stated Total Source: Small Business Bureau (SBB) 2010 2011 2012 2013 2014 38 517 1 556 9 487 5 501 13 543 5 561 82 295 3 380 193 1,112 642 1950 SBB ANNUAL REPORT 2014 14 The increase in the number of registrants may be attributed to the country-wide public awareness sessions undertaken by the Bureau during 2015 (see Part 5 where the activities of the Bureau are discussed).
Data Collection Exercise – Onderneeming Village, West Coast Berbic PART II INITIATIVES UNDERTAKEN BY THE GOVERNMENT TO FACILITATE ACCESS TO FINANCING BY SMALL BUSINESSES SBB ANNUAL REPORT 2014 15 Numerous initiatives were pursued by the Government to enhance access to finance by small businesses.

Some of the notable initiatives include the Women of Worth (WoW), Agricultural Export Diversification (AED) and MSED Project.
The Small Business Bureau was tasked with the successful implementation of the MSED Project; which seeks to encourage the expansion of low carbon businesses thereby supporting Guyana’s thrust to a “green economy”.

Specifically, the MSED project offers approved MSMEs the following:  Collateral guarantees of up to forty percent (40 percent) of the loan amount secured from Partner Financial Institutions (PFIs).
In an effort to encourage participation by PFIs the Government of Guyana (GOG) granted these institutions various concessions.

The interest rate MSMEs are required to pay for loans under this scheme is six (6 percent).

 Interest subsidies not exceeding 5 percent.

 Grants not exceeding G$300,000 for eligible start-up businesses and businesses which are desirous of recapitalizing.

 Multi-faceted training that is tailored to meet the needs of eligible MSMEs.
SBB ANNUAL REPORT 2014 16 Collateral Guarantees During 2014, the Bureau signed Loan Agreements with two new Partner Financial Institutions, namely, Republic Bank (Guyana) Limited (RBL) and Institute of Private Enterprise Development (IPED).

This brought the total number of PFIs up to three (3) at end-2014.

Together the financial institutions allocated GY$590 million for the collateral guarantee scheme with GBTI, RBL and IPED allocating $100 million, $200 million and $290 million respectively.
Table 5: Partner Financial Institutions (PFIs) Disbursement Ceiling Partner Financial Institutions Guyana Bank for Trade and Industry (GBTI) Republic Bank (Guyana) Limited (RBL) Institute of Private Enterprise Development (IPED) Total Disbursement Limit 100,000,000 200,000,000 290,000,000 590,000,000 During the period under review twelve (12) MSMEs benefitted from low interest loans under the collateral guarantee scheme.

The total value of these loans was G$80.32 million.
Figure 2 shows the distribution of the beneficiaries by economic sectors.

It is evident that MSMEs in the fruits and vegetable and low carbon manufacturing activities were the most significant beneficiaries (29 percent each).

This was followed by low-carbon agriculture sub-sector with 14 percent of total loans.

The vast majority of beneficiaries came from Regions 3 and 4.

Eleven of the beneficiaries - which accounted for 89.7 percent of the loans – operated in these regions (see Figure 3).
SBB ANNUAL REPORT 2014 17 Figure 4: Distribution of loans approved in 2014 by economic sectors Loans Approaved by Sector 7% 29% Fruits & Vegetables - Farming & Processing 29% Arts & Crafts Low Carbon Agriculture & Agro-Processing (excluding livestock) 7% Eco-Tourism 7% 7% 14% Professional & Business Services Table 6: Distribution of loans approved in 2014 by administrative regions SBB ANNUAL REPORT 2014 18 CodeSectorsNo.MFAmountCurrent Jobs1Fruits & Vegetables - Farming & Processing4 2 2 12,737,000 7 2Apiculture- - - - 3Aquaculture- - - - 4Arts & Crafts1 1 - 3,000,000 4 5Internet & Computer-Based Services- - - - 6Sustainable Mining- - - - 7Low Carbon Agriculture & Agro-Processing (excluding livestock)2 1 1 1,250,000 4 8Eco-Tourism1 1 - 30,000,000 10 9Energy-Efficient Transportation & Logistics- - - - 10Professional & Business Services1 - 1 3,068,000 2 11Sustainable Forestry & Wood Processing- - - - 12Business Process Outsourcing- - - - 13Bio-Ethanol- - - - 14Low Carbon Energy Production and/or Distribution- - - - 15Low Carbon Manufacturing Activities4 4 - 36,900,000 9 16Publishing & Printing- - - - 17Entertainment, Music & Performing Arts1 - 1 3,600,000 4 Total GYD14 9 5 90,555,000 40 Figure 5: Distribution of loans approved in 2014 by administrative regions Value of Loans by Region 2% 1% 7% 45% 45% Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 Region 9 Region 10 Table 7: Distribution of loans approved in 2014 by administrative regions SBB ANNUAL REPORT 2014 19 Admin
 RegionNo.MFAmountCurrent JobsRegion 1Region 22 1 1 1,150,000 1 Region 33 2 1 40,337,000 3 Region 46 3 3 40,368,000 23 Region 5Region 62 2 - 6,700,000 10 Region 7Region 8Region 91 1 - 2,000,000 3 Region 10Total 14 9 5 90,555,000 40 Grants The Grant Committee (GC) was officially formed in August 2014.
A Grant manual was also developed and approved during the year.

For the four months ending December 2014, the GC approved twenty three (23) grant applications from 80 which were reviewed.

The total sum approved in grants was approximately seven million, four hundred thousand ($7.4 million).
Figure 4 shows that the fruits and vegetable and low-carbon agriculture sectors accounted for the largest share of grants; approximately fifty nine percent (59 percent) of the total grants went to businesses in these sectors.
Figure 6: Distribution of grants approved in 2014 by economic sectors 4% 8% 8% 4% Internet & computer based services Eco-tourism 25% 17% Professional & business services Low carbon agriculture Fruit & vegetables - Farming & processing Apiculture Sustainable forestry & wood processing 34% Together the Collateral Guarantee and Grant schemes created/sustained approximately 67 jobs.
SBB ANNUAL REPORT 2014 20 MSED Training During 2014 the Bureau signed MOUs with two Partner Training Institutions (PTIs), the Kuru- Kuru Co-operative College and Partners of the Americas (Guyana) Chapter, paving the way for the training of MSMEs in Basic Business Management, Business Plan writing, Food Safety, Market Research, Packaging and Labelling, Basic Record Keeping and Financial Management, Shelf Life, Taking your Business to the next Level, Vision to Venture, Venture Out for Women.
Nine Hundred and Twenty Six clients from the SBB register benefitted from training under the programme for 2014.

A total of GY$23.42 million dollars was expended under this component of the MSED project.

SBB conducts technical training in Kabakaburi, Region Two SBB ANNUAL REPORT 2014 21 PART III REVIEW OF SMALL BUSINESS SECTOR: 2014 The small business sector contributes significantly to the social and economic development of Guyana.
According to Wenner and Chalmers (2001), MSMEs accounted for 40 percent of total employment and contributed approximately 28 percent of Gross Domestic Product (GDP) in 1998.

Like many countries in Latin America and the Caribbean, SMEs are stymied by numerous constraints, among which include the high cost of borrowing, inadequate advisory services and limited capacity of owners to manage their businesses.
The relatively high failure rate of MSMEs is responsible for the aversion of lending institutions to extend credit to these businesses (Pasha, 2015).

In Guyana, MSMEs access funds from commercial banks, micro-finance institutions, private lenders, and various initiatives developed and implemented by the Government of Guyana.
Micro-finance institutions The Institute of Private Enterprise Development (IPED) and Small Business Development Trust (SBDF) are the two micro-credit agencies which supports MSMEs in Guyana.

During the review period, these institutions offered approximately 6,009 loans to MSMEs.

More than 90 percent of the loans were provided by IPED and the reminder by SBDF.
SBB ANNUAL REPORT 2014 22 Table 8: Number of loans by micro-finance Institutions IPED Men Women Joint - Men and Women SBDF Men Women Joint - Men and Women Total Men Women Joint - Men and Women - 597 215 278 104 5,704 3,450 2,150 104 2014 5,472 3,383 2,089 - 537 184 249 104 6,009 3,567 2,338 104 The total value of loans approved during 2014 amounted to $3,580 million of which IPED granted $3,142 million and SBDF extended $439 million (Table 7).
The average loan size for the IPED was $574.1 thousand and $803.5 thousand for SBDF (Table 7).
Table 9: Value of loans by micro-finance Institutions Value of loans approved (Millions) 2010 2011 2012 2013 2014 IPED SBDF Total 1,937 2,399 2,716 2,661 3,142 274 409 440 440 439 2,211 2,808 3,157 3,101 3,580 Average size of loans (Thousands) IPED SBDF 355.0 479.6 564.3 521.0 574.1 400.3 576.2 610.1 737.4 803.5 SBB ANNUAL REPORT 2014 23 According to Table 8 approximately 59.4 percent of the loans were extended to businesses owned by men and 38.9 percent went to businesses owned by women during 2014.
Only 1.7 percent of the loans were extended to businesses jointly owned by men and women (Table 8).
Table 10: Classification of loans by recipient IPED Men Women Joint - Men and Women SBDF Men Women Joint - Men and Women Total Men Women Joint - Men and Women - 100 36.0 46.6 17.4 100 60.5 37.7 1.8 2014 100 61.8 38.2 - 100 34.3 46.4 19.4 100 59.4 38.9 1.7 The loans provided by the micro-finance institutions created and/or sustained approximately 13,542 jobs during 2014, 19.1 percent higher than the 11,371 jobs created/sustained in 2013.
Table 11: Number of jobs created/sustained 2010 2011 2012 2013 2014 IPED 10,140 9,974 9,628 9,489 10,342 SBDF 1,886 2,207 2,207 1,882 3,200 Total 12,026 12,181 11,835 11,371 13,542 SBB ANNUAL REPORT 2014 24 PART IV REVIEW OF SBB’s OPERATION Financial Operation The Government of Guyana allocated approximately twenty nine million dollars ($29 million) for the SBB during the financial year 2014; an increase of 26.9 percent over the allocation of approximately twenty three million dollars ($23 million) one year prior.
The figure below depicts the increase in budgetary allocations.

100% 80% 60% 40% 20% 0% 35 30 25 20 15 10 5 - s n o i l l i M 2013 2014 Employment Costs Training and Marketing Costs General Office Expenses Other Operating Expenses Total Receipts Figure 7: Comparative Expenditure - 2013 and 2014 During the 2014 fiscal year employment cost accounted for 75.2 percent of total expenditure of the Bureau.
Other operating expenses (which include local travel and subsistence, other goods and services purchased, refreshment and meals) accounted for 20.7 percent of total expenditure while training and marketing costs and general office expenses represented 2.5 percent and 1.7 percent of total expenditure respectively during the period under review.
SBB ANNUAL REPORT 2014 25 The Bureau’s operational activities revolved around the following core areas:  strengthening the institutional capacity of the Bureau and governance system  successful implementation of the MSED project to support access to affordable finance by MSMEs  creating strategic alliances  streamlining the administrative procedures relating to small businesses  marketing and public awareness  Institutional Strengthening The Bureau added four new staff members in 2014.
A Fund Administrator, Data Entry Clerk, Finance Assistant and Office Assistant/Driver were added to the Bureau’s establishment.

This move was aimed at enhancing the capacity of the Bureau to deliver on its mandate as set out in the Act.

Due to the expansion in the operational activities associated with the implementation of the MSED project, the Bureau is still working with a staff complement that is below what is considered optimal.

For the MSED Project two positions remains vacant.


In the coming year the Council and Bureau will work towards filling the vacant positions.

An assessment will also be undertaken in 2015/2016 to determine the future staffing needs of the Bureau to cope with its additional responsibilities from the MSED project and those prescribed by the Council.

To ensure greater operational efficiency and accountability, the Council approved an Accounting Policy and Procedure Manual during 2014.
This manual will be reviewed and updated every year to cater for new and emerging issues that relates to the operation of the Bureau.

SBB ANNUAL REPORT 2014 26 ORGANIZATIONAL CHART SBB ANNUAL REPORT 2014 27 PART V INITIATIVES TO FOSTER THE SMALL BUSINESS SECTOR During 2014, the Small Business Council formulated a multi-year Small Business Policy and Reform Agenda that would serve to promote MSMEs locally.

The document was submitted to the Minister for onward transmittal to Cabinet.
The Small Business Policy and Reform Agenda essentially sought to: 1.

Develop a comprehensive legal and institutional framework to support the creation and expansion of small businesses 2.

Expand the range of funding options available to SMEs 3.

Foster entrepreneurship across the country to accelerate the creation and expansion of small businesses 4.

Empower disadvantaged communities 5.

Support the creation of business cluster so as to improve the survivability and growth of small businesses 6.
Establish robust database on SMEs to support the preparation of annual report and evidenced based research that would aid policy formulation SBB ANNUAL REPORT 2014 28 1.

Develop a comprehensive legal and institutional framework The small business sector is governed primarily by the Small Business Act of 2004 and other legislation; which directly impact on the creation and expansion of Small and Medium Scale Enterprises (SMEs).
Over the next two years, the Small Business Council (SBC) proposes to review all the existing local legislation in conjunction with similar legislation and best practices within and outside of the Caribbean.
The review exercise, which is aimed at developing a comprehensive legal and institutional framework, will focus on:  converting the Small Business Bureau (SBB) into a ‘one-stop shop’ that would provide all the information and support services to the small business sector;  simplifying the procedures for establishing (or registering) small businesses;  extending the range of fiscal incentives for small businesses;  strengthening the existing institutional and regulatory framework to support the creation and expansion of small businesses;  strengthening coordination among key stakeholders with responsibility for the small business sector;  lobbying for the adoption of the ‘Small Business Test’ - that is, a rule which requires that all new legislation should be examined to ensure they are not injurious to small businesses;  simplifying the existing procurement guidelines with respect to Government contracts for products and services in order to ensure that small businesses benefit fully from section 11 of the Small Business Act of 2004.
SBB ANNUAL REPORT 2014 29 2.

Widening the range of funding options for SMES One of most significant binding constraints to the small business sector is access to finance on terms and conditions which are reasonable.

It is envisaged that this constraint will be addressed with the implementation of the Micro and Small Enterprises Development (MSED) project.
Notwithstanding, the Small Business Council (SBC) proposes to actively explore avenues for expanding the Small Business Development Fund in accordance with the Small Business Act of 2004.

Additionally, the Small Business Council (SBC) proposes to explore avenues for expanding the range of financing options available to the small business sector such as: leases, grants from external sources, etc.

3.

Fostering Entrepreneurship I.


Section 11 of the Small Business Act of 2004 states that government will use its best endeavour to ensure that at least twenty (20) percent of the procurement of goods and services required annually by the Government is obtained from small businesses.

II.

The MSED Project is a GRIF (Guyana REDD+Investment Fund) funded project established to support small businesses involved in low carbon type economic activities.
Under the project, small businesses would benefit from collateral guarantees for loans not exceeding $30 million, interest subsidy and grants.

III.

According to section 7(2) the Small Business Act of 2004, the Small Business Development Fund shall consist of: monies appropriated by Parliament; loans raised by the Government, grants made to the Fund, revenues raised by the Small Business Council for services rendered and monies accruing to the Fund out of investments made.
SBB ANNUAL REPORT 2014 30 The Small Business Bureau (SBB) currently provides an extensive range of Business Development Services which includes business management skills training and technical skills training.

This is essential for enhancing the management capacity and entrepreneurial spirit of small business owners; which in turn have implications for the level of new business creation.
In an effort to further develop the management capacity of small business owners, as well as, the entrepreneurship spirit across Guyana, the Small Business Council (SBC) will:  lobby for entrepreneurship training at all levels in the educational systems, particularly at secondary, technical and tertiary institutions;  encourage modular approaches to training that considers the level of development and training needs of business owners who approach the Small Business Bureau for training;  encourage the adoption of a holistic approach to training by the Bureau that will ensure the simultaneous development of various skills by small business such as: managerial skills, technical skills and personal (or life) skills;  encourage ‘customized’ training programmes tailored for low carbon economic activities; and  utilized distance learning modalities where possible to ensure maximum reach.
4.

Empowering disadvantaged groups and communities It is widely accepted that small businesses are an effective vehicle for alleviating poverty and improving the livelihood of poor or disadvantaged groups/communities.

In this regard, the Small Business Council (SBC) will collaborate with other relevant institutions and agencies to ensure that poor communities access the various facilities offered by the Small Business Bureau (SBB).
SBB ANNUAL REPORT 2014 31 In this regard, the Small Business Council (SBC) will:  accelerate its small business outreach programmes in poor communities;    introduce community-based business programmes in poor communities; introduce matching grants to be drawn from the Small Business Development Fund; involve community-based groups/entities, non-governmental organization and local government agencies in the formulation and implementation of community-based business projects; and  collaborate with other agencies to establish business incubators in regions with communities which are considered poor and/or vulnerable.
5.

Supporting the development of business clusters throughout the country In order to ensure the survival of small businesses the Small Business Council (SBC) will work to establish business clusters throughout the country.
It is envisaged that the clusters will provide:  a vehicle for the promotion of social integration as they will comprise members with varying background;  avenues for individuals to improve their standard of living based on collective effort rather than individual effort;  opportunities for job creation and poverty alleviation; and  improve the survivability and growth of small businesses Community-based groups/entities, non-governmental and local government agencies will be involved to identify and create viable clusters.
Additionally, members of the clusters will be SBB ANNUAL REPORT 2014 32 provided with relevant training and support to ensure the clusters operate effectively and are competitive.

Further, the clusters will be promoted as an alternative to other forms of businesses such as, sole proprietorships, partnerships and public enterprises which often seek to maximizing profits or shareholders’ wealth.

6.
6.

Establish robust database on Small and Medium Scale Enterprises (SMEs) The Small Business Council (SBC) is required by section 4(1) (2) of the Small Business Act of 2004 to prepare Annual Reports on the small business sector in Guyana.
Based on the Small Business Act of 2004, the Annual Reports should provide information on:  progress made in addressing developmental issues and streamlining administrative procedures relating to small businesses  initiatives by the Government to facilitate access to financing by small businesses  status of procurement by the government from small businesses  the recommending of fiscal incentives to small businesses  statistics relating to the small business sector Consistent with this statutory obligation, the Small Business Bureau (SBB) will conduct annual surveys to capture relevant information on the small business sector.
Additionally, the Small Business Bureau (SBB) will develop a Memoranda of Understanding on Information Sharing with the following agencies that collect data from small business: SBB ANNUAL REPORT 2014 33 a) Deeds Registry l) Ministry of Social Protection b) Financial Institutions with microcredit m) Ministry of Education windows n) Ministry of Agriculture c) Bank of Guyana o) Guyana Small Business Association d) National Insurance Scheme (NIS) p) Chambers of Commerce e) Guyana Revenue Authority (GRA) q) Skills and Knowledge for Youth f) Bureau of Statistics Employment (SKYE) g) Institute of Private Enterprise r) Guyana Agro-processors Association Development (IPED) (GAPA) SBB collaborates with GCCI to host seminar – June 2014 h) Small Business Development Finance s) The New Guyana Marketing Cooperation (GMC) Trust (SBDFT) i) Regional Democratic Council j) Neighbourhood Democratic Council k) Ministry of Communities t) Private Sector Commission (PSC) u) Inter – American Institute for Cooperation on Agriculture ( IICA) v) Canadian Executive Service Organization (CESO) The information collected will be used to develop a comprehensive database to support the preparation of the Bureau’s Annual Reports as well as evidenced based research to guide policies related to the small business sector in Guyana.
SBB ANNUAL REPORT 2014 34 7.

Progress made in implementing the Small Business Procurement Programme Resident in the Small Business Act No.
2 of 2004 (Section III, Sub-section 11, and Para (1) to (3) – Procurement of Government from Small Businesses) is the provision that:  (1) The Government shall use its best endeavours to ensure that at least twenty percent of the procurement of goods and services required annually by the Government is obtained from small businesses and for this purpose, the council shall prepare annually a Small Business Procurement Programme.
 (2) Procurement shall be at competitive prices and in accordance with the provisions of the Procurement Act 2003 and the regulations in force.

 (3) For the purpose of giving effect to subsection (1), the Council shall prepare annually for submission to the Minister an annual report on the progress made in implementing the Small Business Procurement Programme, forming part of the Annual Report on Small Businesses.

The aforementioned implies the following:  The SBA No.
2 of 2004 expressly states that ‘goods and services’ are the focus of the intended programme  That preparation of a Small Business Procurement Programme (SBPP) is required annually  The Procurement Act of 2003 the reference point of the SBPP; and the clauses expressed and related to the SBPP in the SBA 2004 is secondary to the said Procurement Act of 2003.
 That a report on the progress made in implementing the Small Business Procurement Programme is required annually SBB ANNUAL REPORT 2014 35 The definitions for the terms ‘goods and services’ in accordance to the primary legislation as it relates to the SBPP are as follows:  Part I, Section 2, Subsection (g) of the Procurement Act No.
8 of 2003 defines goods as: “goods” includes raw materials, products, equipment and other physical objects of every kind and description, whether in solid, liquid, or gaseous form, and electricity.

 Part I, Section 2, Subsection (o) of the Procurement Act No.

8 of 2003 defines services as: “services” means services of a general nature other than consulting and construction services.
The aforementioned implies that even though commentators and stakeholders see the intent of the SBPP leading to the provisions for procurement goods, services (inclusive of consulting services) and infrastructural works; the act clearly limits the provisions to goods and services only.
This gave rise to the need for consultations to occur in 2015/2016, with the view of informing policy and administrative reforms for the purpose of submission to the Minister of Business for tabling in parliament by the close of 2016.
SBB ANNUAL REPORT 2014 36 Initiatives for 2015/2016 with a Preview of the Council’s 2020 Vision Goal Objective 2015/2016 Activities 1 Raise the visibility of small businesses and the SBB 1 Develop and implement a marketing and communications strategy for promotion of SBB’s services and programmes To have the Bureau’s services known and accessed throughout Guyana Benefits or other information (High impact activities highlighted in Purple)  Assurance of best implementation of media mix for maximum impact of dissemination of information 2020 Vision  Clients fully aware of services offered by the Bureau and benefits derived  Opportunity to monitor our strategy’s impact/contribution to potential client response  Fully functional web based platform for small businesses to benefit from the following: o A remote interface for interim registration o Access to information regarding procurement and procurement opportunities, and o Road maps for start- ups in the various sectors and subsectors  Have the country fully aware and convinced of the great benefits of a Micro and Small Enterprises registering with the Bureau 2 Launch interactive website for  Remote mode of interface with clients increased interface, information dissemination and gathering 3 Participate in and facilitate participation of small businesses in local and regional expositions 4 Compile Annual Report for Minister of Business’s presentation to Parliament offered  Opportunity to pre-register on line (pending confirmation by SBB staff)  Road map to
 startup in various sectors and subsectors provided  Information on procurement opportunities and government procurement system offered  Opportunity to assess emerging business climate and identify innovative startups for nurturing (5 High growth MSEs will be identified and promoted locally and regionally)  Enable subsistence and fledgling operators to showcase their product  250 Annual Reports disseminated  Stakeholders and public awareness of Bureau’s successes, initiatives and SBB ANNUAL REPORT 2014
 37 5 Mobilize participants and host awareness sessions in regions which has a low ratio of Registrant Count to Population Count in the Bureau’s database To facilitate clear directions and ease of entry into the various sectors and subsectors for MSEs 2 Make it easier for small businesses to access government services and permits to start up operations 1 Create and constantly review road map for start-ups to negotiate/enter into the various sectors and sub-sectors of business within Guyana 2 Utilize existing MoUs with Deeds Registry, NIS and GRA to facilitate access to basic services of these entities which small businesses may consider obstacles intended interventions  Visits to Regions One and Seven (Mabaruma, Bartica and Kamarang)  Visits to Regions Three, Seven and Nine  Twenty four sessions held countrywide in the next Fifteen Months  More Business, Groups and Associations aware of the Bureau’s programmes  Number of innovative proposals being channeled through the Bureau increased  Website populated with interim information by February 2016  Startups more aware of the entire process to get into the relevant sector thereby increasing their ability to plan effectively and increasing their probability of success  Deeds Registry/SBB MoU allows for verification and exchange of Business registration information (Status: active or struck off etc.)
 NIS/SBB MoU allows for ease of registration for MSEs into Guyana’s Social Security System.

 SBB has nevertheless, realized that the current minimum National Insurance  Easy and secured access to information from NIS, GRA, & Deeds Registry through the e-governance initiative in order to validate the level of compliance and business status of MSEs SBB ANNUAL REPORT 2014 38 payment for Small Businesses may be onerous for our seasonal operators (small scale poultry etc.)

or part-time time operators.
A representation will be made for resolution within the next fifteen months  GRA/SBB MoU allows for training of our clients, ease in registration for startups and considerations for forgiveness for existing operations or allowance for easy payment terms  Within the next six months the Bureau will be benchmarking its sister agency within the region with the view of developing the framework for continuous and constant review of all legislation and policies that affect small businesses  Build a register of legislation and policies which adversely and positively affect MSEs  Ventilate through the Small Business Policy and Reform agenda those which affect small businesses adversely and make recommendations  Advertise and promote benefits that facilitate an enabling environment for the MSEs 3 Policy advocacy for an improved environment for small businesses 1 Create framework for review of policy and legislation which affect small businesses and the small business environment 2 Identify immediate policies and legislations which affect small businesses that need reform To have a policy framework which addresses the adversities of MSEs and accentuates the enabling climate which exists 3 Explore or conduct assessment of government’s expenditure or procurement of goods, services  Identify categories and trends of expenditure that will allow for easy channeling of MSEs towards SBB ANNUAL REPORT 2014 39  Advance at least three policy initiatives through the Small Business Policy and Administrative Reform Agenda  Publish annually at the beginning of the year, as required by the SBA 2004, Government’s procurement activities for that year and in the Annual Report for that year the level/percentage of procurement of goods and services from Small Businesses and civil works 4 Explore mechanisms and  Identify mechanisms that can be used possible policy initiatives/reforms needed for measurement of the level/percentage of procurement from government 4 Implement programs to encourage small businesses to grow and develop,
 providing more value-added and jobs Provide support programmes and incentive regimes to facilitate Small Business Growth and Developmen t 1 Continue administration of the Council and Bureau 2 Conduct annual needs assessments of small business sector to inform targeted approach for policy initiatives and training 3 Expose clients to general business development and technical skills training to measure level/percentage of procurement from government  Facilitate preparation of a white paper on each possible policy initiative/reform for stakeholder review, contribution and discussions  Submit Small Business Policy and Administrative Reform Agenda on 20% procurement to Minister of Business to be tabled in Parliament  Council and its secretariat continues operations, fulfillment of its mandate and introduction of new programmes and initiatives  Run general query in the database to identify the pervading constraints and training needs indicated by clients  Conduct bi-annual country wide survey to assess the small business climate and understand general small business needs  Design training programmes and other business development initiatives to target results of assessments  Expose 830 clients to basic business development training and 530 clients to technical skills training  Continue to provide pre- requisite  Fully operationalized Small Business Development/Resource center realized  Active grant fund maintained in order to incentivize entrepreneurs for innovative start up initiatives and incentivize existing small businesses to tap into our credit guarantee scheme (greater impact on jobs created)  Perfect the processes of cluster creation and SBB ANNUAL REPORT 2014 40 4 Develop and improve staff capacity to implement programmes for small business development through training and exposure fostering with specific emphasis on the mechanisms that causes clusters to succeed training for grant recipients  Provide access to training for SBC and SBB in the
 following within the next six months: o “how-to” of helping people to become entrepreneurs (youth and in general), o Climate technology, o Leadership development, o Networking/clustering, o Establishing Resource/Innovation Centers (what works and what does not work), o Technology and its benefits.
5 Provide Credit Guarantees to  Fifty (50) Loans disbursed as a result small business owners requiring financial assistance, through partner financial institutions of the guarantee scheme (15 within the next six months)  Increased production by beneficiary 6 Review the current design of the interest support scheme to increase uptake businesses  Seventy (75) Jobs created/sustained.
 MSEs brought into formal financial system  Uptake of loans through partnership with Micro Financial Institutions increased  Twenty Five (25) Loans disbursed  Thirty Eight (38) Jobs created/sustained.

 Execute and develop financial instruments which will allow for businesses to graduate from micro to small then unto medium.
SBB ANNUAL REPORT 2014 41  Partner with all major Financial Institutions and Micro-Financial Institutions in-order meet businesses at their respective geographical location and level of business operation  Implement  benchmarked initiatives from regional and international entities in order to cultivate and foster the following: Innovation and technology  Value built and sustained in a supply chain for an identified Sector/Subsector 7 Provide grants to start-ups and micro businesses that are not able to meet the banks’ requirements 8 Increase the number of Partner Financial Institutions by at minimum 1 and expand outreach of existing Financial Institutions.
9 Create networks and linkages with similar entities regionally and internationally 1 0 1 1 Create and foster clusters and associations in vulnerable or disadvantaged groups and fledgling subsectors Commence first phase of Small Business Resource Centre offering administrative and research assistance  Two hundred (200) grants disbursed (60 within the next six months)  Two Hundred (200) jobs created/sustained  Business graduated from the limitations of self-financing and family financing to a accessing fund from formal financial institutions  A widened network for provision of low cost loans to MSEs  The additional Financial Institution to be partnered with within the next three months  Benefit from lessons learnt and unique techniques derived for creating entrepreneurs  Benchmarking of entities that have had success in areas the Bureau endeavours to address  Coordinate visits and exchanges to learn from best practices in small business development  Develop ten (10) clusters and or association with a specific focus on disadvantaged / vulnerable groups within the next fifteen months  Development of entrepreneurship skills through co-dependency in these communities  Offer print, internet research, scanning and photocopying facilities for MSEs SBB ANNUAL REPORT 2014 42 1 2 Undertake and complete a five year costed strategic plan 1 3 1 4 Review performance of current Low Carbon Micro and Small Enterprise Development Project Design and develop a second phase intervention for the Low Carbon Micro and Small Enterprise Development Project  Continue to offer guidance on proposal writing and other technical assistance as required  A costed strategy and detailed guide for the next five (5) years operations to be developed  A baseline for comparative for actual activities conducted and targets achieved against planned developed  Issues, weaknesses and strengths identified to inform second phase intervention  Best practices from first phase brought forward  Gaps and issues addressed from first phase  Robust
 design developed for second phase To be the Information hub for Guyana’s small business sector 5 Serve as a point agency for expertise and data on small businesses 1 Solicit consideration through  Determination of Clients GRA Minister of Business for a direct lobby for inclusion of the Small Business Bureau to be linked to the e-governance database which seeks to link and make possible information sharing between GRA, NIS, Deeds Registry and GOINVEST compliance, NIS Compliance and Business Registration status can thereafter be determined by the click of a button when the project is completed  Have a robust management information system which can allow for ease of design of responsive policy initiatives, trend analysis, and a representative status of the small business sector 2 Continue to foster linkages with entities like GRA, Deeds Registry, NIS, Chambers of  Environment for information sharing beneficial for research fostered and developed SBB ANNUAL REPORT 2014 43 Commerce, NDC’s and the Community Development Council to improve the information sharing mechanism  Research conducted to implement empirically driven interventions 3 Conduct a country wide  A countrywide mapping of the baseline survey of the small business sector 4 Compile monthly information on targets for various activities/interventions disaggregated at minimum by administrative region, gender and business sector 5 Complete Management information system with web based interface and reporting functionality for effective data storage and analysis business sector disaggregated by business sector and administrative region at minimum to be completed within the next six months  The Bureau’s database populated with new registrants  Bureau has empirical data to drive training interventions and other targeted business development services  A baseline exist for subsequent impact assessment of interventions  Monthly information produced for management appraisal and decisions  Clearer picture is
 painted on the successes or deficiencies of the interventions/activities  Redesign of activities within which gaps and deficiencies identified can be facilitated  MIS and Website to be completed by January of 2016  A framework/shell of the website already exists for review and the database without the reporting functionality also already exists  Excel database currently being sanitized for data migration SBB ANNUAL REPORT 2014 44 SBB ANNUAL REPORT 2014 45 AGENCY INFORMATION Mr. Derrick Cummings Chief Executive Officer Mr. Sven Wills Finance Officer Ms. Christina Samaroo Research & Marketing Officer Ms. Audrey Gomes Training & Development Officer Ms. Rita Mohabir Executive Assistant Ms. Gillian Edwards - Credit Guarantee Fund Manager Mr. Christopher Vandeyar Procurement Officer Ms. Karrisia Couchman Data Entry Clerk Mr. Alwick Prowel Driver/ Office Assistant SBB ANNUAL REPORT 2014 46 FINANCIAL STATEMENTS SBB ANNUAL REPORT 2014 47 SMALL BUSINESS BUREAU STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 31 DECEMBER, 2014 Notes 2014 G$ 2013 G$ Receipts Government Subventions - Current Other Income Total Receipts Payments Employment Costs Training & Marketing Costs General Office Expenses Other Operating Expenses 29,148,194 18,920 22,968,387 - 29,167,114 22,968,387 20,232,481 18,544,304 664,133 1,450,639 459,723 657,712 5,562,803 2,336,902 Total Payments 26,919,140 22,989,557 Increase/(Decrease) in cash 2,247,974 (21,170) Cash at the beginning of the
 year Net Increase/(Decrease) in cash 84,980 106,150 2,247,974 (21,170) Cash at end of the year 10 2,332,954 84,980 SBB ANNUAL REPORT 2014 48 SBB ANNUAL REPORT 2014 49 1.
Background of the Entity2.

Basis of Accounting3.

Council Members and Key Management Personnel Remuneration20142013G$G$1.Mr.

Sukrishnalall PashaChairman100,000 90,000 2.Mr.

Dhaneshwar DeonarineMember52,500 45,000 3.Ms.

Donna LeviMember60,000 60,000 4.Mr.

Rajeshwar RamrattanFormer Member- - 5.Small Business Dev.

Finance Trust c/o Ms. Manjula BrijmohanMember37,500 37,500 6.Mr.

Patrick ZephyrMember67,500 60,000 7.Mr.

Daniel GajiMember30,000 - 8.Mr.

Ramesh PersaudFormer Member- 7,500 9.Mr.


Kwabina GriffithMember37,500 22,500 10.Mr.

Mohamed QualanerMember- 7,500 11.Mr.

Mohindra ChandMember7,500 30,000 12.Mr.

Derrick CummingsMember52,500 52,500 13Mr.

Patrick SukhlallMember15,000 - 14Mr.

Yogieraj DasMember45,000 - 505,000 412,500 SMALL BUSINESS BUREAUNOTES TO THE FINANCIAL STATEMENTFOR THE YEAR ENDED 31 DECEMBER, 2014TheSmallBusinessBureauwasestablishedasthesecretariatoftheSmallBusinessCouncilviaActNo.
02 of 2004 dated 31 March, 2004 and came into operation on the 31st March 2005 via Order No.
15of2005.TheBureauisthesecretariatoftheCouncilanditsresponsibilitiesincludetheachievement of the goals and fulfillment of the functions of the Council.TheFinancialStatementshavebeenpreparedfromtheBureau'srecordsinaccordancewithInternationalPublicSectorAccountingPrinciples(IPSAS).ThetransactionsarerecordedinGuyanaDollars using the cash basis of accounting.No.Name of Council MemberPositionSmallBusinessCouncil:TheCouncilwascomprisedoftwelve(12)membersfortheperiodunderreview.
Remuneration for the year amounted to $505,000 and details are as follows:ItsmissionistoenablesustainedgrowthanduniformeddiversificationofMicroandSmallEnterprises(MSEs)withinlocalsectors;withaviewtocreatepositivemeasureableimpactsthroughexpertguidance,effectivelychanneledresources,comprehensivenetworkingandprovisionofasupporting environment for maximised performance.
Inordertoachieveitsmission,theBureauendeavourstoenabledevelopmentoftheMicroandSmallBusinesssectorstotheiroptimum;throughcultivationofentrepreneurship,fosteringbusinesscooperation, and solidifying the value chain for maximum contribution to the mainstream economy.

SBB ANNUAL REPORT 2014 50 3.


Council Members and Key Management Personnel Remuneration (cont'd)20142013G$G$Chief Executive Officer - Annual Salary3,863,160 3,863,160 Chief Executive Officer - Benefits & Allowances2,576,614 2,324,243 Total6,439,774 6,187,403 4.

Receipts: Subventions - Current20142013G$G$Subventions received during the year 28,357,000 22,272,000 Subvention for Revision of Wages791,194 696,387 Total Subventions as at 31/12/201429,148,194 22,968,387 5.
Receipts: Other Income20142013G$G$Sales18,920 - Total proceeds as at 31/12/201418,920 - 6.
Expenditures: Employment Costs20142013G$G$6116Contracted Employees - Salaries12,382,620 11,123,300 6117Temporary Employees - Salaries- 180,000 6133Benefits and Allowances6,321,841 6,002,228 6134National Insurance748,165 682,986 6141Revision of Wages & Salaries779,855 555,790 Total20,232,481 18,544,304 Key Management Personnel: Remuneration paid during the period under review is detailed below.DescriptionCurrentSubventionsrepresentfundsappropriatedbyParliamentthroughtheMinistryofTourism,Industry & Commerce, which is the Budget Agency.DescriptionLine ItemDescriptionTheOtherIncomeforthisfiscalperiodrepresentsaninitiativebyformerMinister(ag)toassistthesubsistenceproducersoftheWomen'sAgro-ProcessorsDevelopmentNetworkinfindingaccesstomarkets.Assuch,asmallquantityoftheirproductswerepurchasedandplacedintheMinistry'slobby for resale.Description SBB ANNUAL REPORT 2014 51 7.
Expenditures: Training & Marketing Costs20142013G$G$6224Print & Non-Print Mat.149,794 755,008 6291National & Other Events- 559,943 6302Training (Including Scholarships)*514,339 135,688 Total664,133 1,450,639 20142013G$G$Internal Audit Training (Client)24,000 - Business Plan Writing (Training)490,339 - Collaborated TFO/CESO/GACPA Craft Training- 39,000 Staff Training - Administrative Asst.- Minutes Taking- 42,400 Taxi Association Training - Code of Conduct - 54,288 514,339 135,688 8.
Expenditures: General Office Expenses20142013G$G$6223Office Materials & Supplies205,949 515,796 6243Janitorial & Cleaning Supplies182,374 39,174 6271Telephone Charges- 16,782 6282Equipment Maintenance45,400 65,960 6283Cleaning & Extermination26,000 20,000 Total459,723 657,712 Line ItemDescriptionLine ItemDescription*Trainingwascarriedoutinthefollowingareasduringtheperiodunderreviewasfollows:-Description SBB ANNUAL REPORT 2014 52 9.
Expenditures: Other Operating Expenses- 20142013G$G$6261Local Travel and Subsistence1,282,484 555,080 6284Other Goods & Services Purchased 11,602,006 - 6293Refreshments and Meals1,617,518 470,562 6294Other Operating Expenses 21,060,795 1,311,260 Total5,562,803 2,336,902 1Details of amounts categorised as "Other Goods & Services Purchased" are as follows:20142013G$G$Short Term Contract for Services875,100 - Memorabilia for Expositions212,816 - Colaborative Expenses - Business Associations219,600 - Events - Dinners et al64,000 - Miscellaneous Goods and Services75,230 - Purchases from WAD Network to resell155,260 - Total1,602,006 - 2Details of amounts categorised as "Other Operating Expenses" are as follows:20142013G$G$Support to Clusters, Associations et al449,857 588,110 Council Honorarium505,000 405,000 Quantities and CAD for proposed office space- 220,000 Miscellaneous Operating Expenses105,938 98,150 Total1,060,795 1,311,260 Line ItemDescriptionDescriptionDescription SBB ANNUAL REPORT 2014 53 10.
Cash & Cash Equivalents ThesumofTwoMillion,ThreeHundredandThirtyTwoThousand,NineHundredandFiftyFourDollars($2,332,954.

)reflectedasCashattheendofthefinancialyear31December,2014equatesto the reconciled balance of cash held in the bank account at the Bank of Guyana at that date.
LIST OF FIGURES Table 1: New Registrants based on economic sectors; 2010-2014 _______________________ 12 Table 2: New Registrants by Administrative Regions; 2010-2014 ______________________ 13 Table 3: Distribution of new registrants by Gender __________________________________ 14 Table 4: New Registrants classified by status of business; 2010-2014 ___________________ 14 Table 5: Partner Financial Institutions (PFIs) Disbursement Ceiling _____________________ 17 Table 6: Distribution of loans approved in 2014 by administrative regions________________ 18 Table 7: Distribution of loans approved in 2014 by administrative regions________________ 19 Table 8: Number of loans by micro-finance Institutions ______________________________ 23 Table 9: Value of loans by micro-finance Institutions ________________________________ 23 Table 10: Classification of loans by recipient _______________________________________ 24 Table 11: Number of jobs created/sustained ________________________________________ 24 LIST OF TABLES Figure 1: Businesses registered with the Bureau; 2010-2014 ___________________________ 11 Figure 2: Graph Showing Regional Distribution of the SBB’s Registrants form 2010 -2014 __ 13 Figure 3: Graph Showing Distribution of Registrants by Gender from 2010-2014 __________ 14 Figure 4: Distribution of loans approved in 2014 by economic sectors ___________________ 18 Figure 5: Distribution of loans approved in 2014 by administrative regions _______________ 19 Figure 6: Distribution of grants approved in 2014 by economic sectors __________________ 20 Figure 7: Comparative Expenditure - 2013 and 2014 _________________________________ 25 SBB ANNUAL REPORT 2014 54