Financial Services and Investments Minister Vincent Peet this week assured that the Bahamian entrepreneur is still a high priority for the government.
The minister also outlined some of the more common reasons Bahamian businesses fail.
[Bahamas B2B Editor’s Note: ﾠOf course, the real reason there are so many business failures funded by government entities is because loans are made to corrupt cronies who have no right even applying for the money. ﾠThe “businesses” are created solely for the purpose of obtaining the loan, which everyone involved knows will never get paid back.]
“Part of the problem has been the business plan and the preparation for business. There might be a good idea, but there’s not been that professional assistance in preparing a business plan to make that good idea come to life,” Mr. Peet said.
“There’s also the question of land, because most of the applications [to] the Domestic Investment Board for tourist or other types of businesses would be attached to crown land, so we are working with the Office of the Prime Minister to work out the formula to access crown land, which is necessary certainly for Family Island projects.”
The board, Mr. Peet assured, is addressing these challenges. The government’s position, according to the minister, is that with a proper structure, business plan and proper guidance, the failure rate of Bahamian start-ups would “go down.”
Along those same lines, Mr. Peet explained that the Ministry has two consultants whose jobs are to “speak hard facts, speak truth to applicants.” Those consultants may suggest modification of projects that are unrealistic, or reassessment of projects and reassignment of resources.
“The Bahamas Development Bank would be a testament to the high failure rate in the past, and so we are learning from their experiences also, because there have been many, many loans awarded and never repaid because nothing ever happened. (The proposed project) was doomed to fail from day one – good idea, enthusiastic, but not properly guided,” he said.
“And so we have learned from that experience, and as part of the Domestic Investment Board mandate we are now calling in all those experts from those different agencies who have gone through this to meet with applicants and to show them what is the best method of moving forward and giving (their project) the best chance of success.”
Mr. Peet made the comments on the occasion of a celebration of the elevation of Nathaniel Beneby Jr. to the top job at Royal Bank of Canada’s [RBC’s] operation in The Bahamas.
Mr. Beneby will assume the reins as Royal Bank’s Vice President and Country Head on November 6. He laid out his own idea of how his bank might play a role in the new era.
“We don’t only want to provide the funding – that’s the no-brainer side of it, the easy part of it. It’s really about providing education, informing, teaching them, helping them to understand management, the difference between sales and cash flow,” Mr. Beneby said.
“We have the in-house expertise to be able to provide the kind of guidance, and so that is really a top priority, and we are excited, very excited about helping with domestic investment and small business development in our country.”
Mr. Peet lauded Mr. Beneby’s appointment to the top job at RBC in The Bahamas, suggesting that it was a practical example of Bahamianization in action. He added that such a move is, in his view, a good example of good corporate citizenship.
The minister also suggested that Bahamian professionals ought to seek career experience outside The Bahamas in order to round out their portfolios – the experience would better place them as candidates for top jobs, he said.
Mr. Beneby now holds the highest post in Royal Bank of Canada that a Bahamian has held. Scotiabank and Barclay’s Bank both had Bahamians in the top spot.
Of his bank’s future intentions, Mr. Beneby said “we are entrenched in the market here, we are well placed.”
“We will continue to seek opportunities to build on our success to date, and really partner as best we can in all aspects of financial services with the government.”
He said he was truly looking forward to the new challenge, after 33 years with the organization – 29 years with RBC, and the last four as Managing Director of Finco.
By Quincy Parker, The Bahama Journal
