Guyana Chronicle Business Letter

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3,000+ jobs Robust business environment as economy set to take off

Investment in people, sustainable enterprises, infrastructural vital for transforming Guyana


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GUYANA CHRONICLE MONDAY, NOVEMBER 30, 2020

–– as more than US$640M rolls out in hotel investments next year

By Navendra Seoraj A SINGLE investment is enough to reinvigorate a community or an entire sector through employment and other spill-off benefits; so, in about a year’s time,

when hoteliers pump close to US$640 (G$137B) million into the local economy, the benefits which would accrue to the country would undoubtedly be immense. Job and wealth creation are anticipated from the construc-

tion phase to the level of full operationalisation. And, based on available statistics, over 3,000 persons are expected to gain employment next year when mega hoteliers ‘land’ their multimillion-dollar investments in Guyana.

Several investors have already acquired private land to kick start their investments. The Guyana Chronicle understands that 10 developers have acquired such land and will start construction in the coming year.

collective US$640 million investment. There will also be indirect jobs and opportunities which would accrue to not only individuals, but also companies and small businesses. Chairman of the Private Sector Commission, Nicholas Boyer, has said that, come next year, once those investments materialise, there will first be benefits in the construction phase, then there will be other spill-off activities.

UG Head of Economics Department, Sydney Armstrong

While the names of those investors were not released, the Guyana Chronicle had reported that a business-friendly climate supplemented by the anticipated economic ascension is being credited for the attraction of major players in the hotel industry such as, Sheraton, The Element, Delta Marriott, Best Western Hotels and Resorts, the H-Tower Luxury Hotel, the Hyatt Hotels Corporation, the Radisson Hotels, and the Hilton Hotels and Resorts, among others. These potential investments are seen as timely, because Guyana, which sits on the edge of South America and has a population of about 750,000 people, is expected to ‘boom’ with its new-found oil wealth, which is expected to drive infrastructural development and other sectoral advancements. According to a study by Oxford Economics, hotels are extraordinary job creators in communities all across the nation. In addition to offering numerous entry-level positions, hotels also provide stepping stones for employees to quickly move up within the organisation. The same study found that a typical hotel with 100 occupied rooms per night supports 230 local jobs every year. And the nation’s hotel and lodging industry brings other important benefits to local communities. These businesses are a cornerstone for local economic activity, providing increased tax revenue, capital investment, tourism-related development and promotion, civic leadership, charitable contributions and sponsorship. Information shared with this publication shows that the developers, who acquired private land, will create close to 3,000 direct jobs through their

SPILL-OFF BENEFITS “As long as they hire local labour, you get a lot of spill-off benefits…you have more employment and those people, who are employed, spend more, so there is community development,” said Boyer in an invited comment on Sunday. Community development is inevitable once there are investments. And, from Boyer’s view, this will also be the case in the surrounding areas where the hotels will be constructed. Those benefits are, however, supplementary to the direct employment opportunities, such as service staff, janitorial services, and front desk operators, supervisors and managers, and, outside of the hotel, on a macro level, taxes. Critical in the advancement of those investments will be local content, because, while the opportunities will be there, it is left to the investors to hire Guyanese to “do the job”. Most of the investments are from indigenous companies, but excuses in the past -while not from these investors -- have been about Guyanese lacking the expertise to function effectively. This notion has since been cast out by officials, who have time and again said that more Guyanese are qualifying themselves. Head of the Department of Economics at the University of Guyana, Sydney Armstrong, has been one advocate for local content to be on the front burner of every investment made in Guyana. This increased attention that Guyana’s economy is witnessing is not unique, as it was observed in countries like Trinidad and Tobago, Nigeria, Ghana and even Suriname, where there have been discoveries of major oil resources. “What you find is, generally, in countries which have discovered oil and gas, you would see a lot of businesses coming to their doorsteps… TURN TO PAGE

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Strengthening bilateral relations

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RESIDENT, Dr. Irfaan Ali, and a high-level team of ministers from Guyana visited Suriname last week to join in that country’s Independence Day celebrations and discuss matters of mutual importance. The outcomes of the three-day engagement are as follows: > Signing of a Strategic Dialogue and Cooperation Agreement between the two countries- this agreement reaffirmed both countries’ commitment to strengthening areas of bilateral cooperation. > Signing of a Memorandum of Understanding for the proposed construction of a bridge across the Corentyne River, connecting Guyana and Suriname. > The proposed formulation of a bilateral Business Facilitation Unit, which will strengthen commercial relations between the two countries. The commitment by both countries to work collaboratively on advancing foreign relations, public infrastructure and transport, health, the environment, oil and gas, education, agriculture, trade, security, tourism, culture, youth and sport and private sector initiatives. > Assessment of the impacts of the novel coronavirus (COVID-19) pandemic on both countries, and a pledge to work together with sympathetic states, governments, Non-Governmental Organisations (NGOs) and multilateral institutions to ensure that developing countries have access to vaccines when they are made available.

President, Dr. Irfaan Ali, and the President of Suriname, Chandrikapersad Santokhi (Office of the President photo)

Guyana’s Minister of Foreign Affairs and International Cooperation, Hugh Todd, and Suriname’s Minister of Foreign Affairs, International Business and International Politics, Albert Ramdin, after signing the historic agreement for strategic dialogue and cooperation, in neighbouring Suriname, on Tuesday (Office of the President photo)

> Both countries also agreed that, as soon as it is safe to do so, the border between the two countries will be opened, but maintained that the health and safety of the general population of both states must take precedence over the reopening of the border.

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contingent from Brazil comprising the country’s Minister of External Relations, Ernesto Araújo, and other high-ranking officials visited Guyana on Thursday. The team, while here, met with President, Dr. Irfaan Ali; Vice-President, Bharrat Jagdeo; Minister of Foreign Affairs, Hugh Todd; Attorney General, Anil Nandlall; Minister of Public Works, Juan Edghill; Minister of Agriculture, Zulfikar Mustapha; and Minister of Home Affairs, Robeson Benn. The two sides reviewed the existing programme of cooperation between Guyana and Brazil and agreed to the implementation of a number of measures, aimed at expanding and strengthening collaboration at the bilateral and regional levels within the context of existing cooperation mechanisms. Following the discussions, they agreed on modalities for advancing the cooperation agenda in the areas of infrastructure, trade and investment, health, agriculture, energy, tourism and security. In this regard the following decisions were taken: * To resume discussions on the completion of the Guyana-Brazil Road Project as well as the implementation of the “International Road Transport Agreement.”

* To advance discussions on energy cooperation, including environmental aspects, through the exchange of technical missions and information. * To pursue greater collaboration between the health officials as both states continue to grapple with the ill effects of COVID-19. * To implement the Memorandum of Understanding (MOU) for the “Technical Feasability Studies for the Installation of Optical Network from Boa Vista, Brazil to Georgetown, Guyana”, signed during the visit, while recognising the importance of establishing digital connectivity infrastructure between the two countries. TURN TO PAGE

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Brazil’s Minister of External Relations, Ernesto Araújo, is all smiles as President, Dr Irfaan Ali, is greeted by an official from the Brazilian delegation at the Pegasus Hotel, on Thursday (Department of Public Information photo)


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Investment in people, sustainable enterprises, infrastructural vital for transforming Guyana –– PSC Chairman By Vishani Ragobeer

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S developmental efforts in Guyana continue to increase, entrepreneurs, who are supported, will be able to make significant, sustainable investments, according to the Chairman of the Private Sector Commission (PSC), Nicholas Boyer. At a recent forum organised by the World Wildlife Fund (WWF)- Guianas, Boyer highlighted that there are challenges which could plague Guyana’s long-term growth and development if sustainability is not a key focus. He emphasised that the exploitation of finite resources, such as oil and gas, should not be the sole developmental focus. “We have to spend the funds coming in from the oil offshore, and spend it in a

way that unlocks infrastructure and the power of our human capital,” Boyer said. Importantly he emphasised: “I really believe we have solid entrepreneurs, and once we give them the tools, in terms of infrastructure (including) roads, potable water, electricity, Information and Communication Technology (ICT) and being able to have that capable infrastructure, we will allow our entrepreneurs to find new avenues of doing more sustainable business, whether it is agro-processing and finding more export markets.” Research has shown that entrepreneurs, called “calculated risk-takers”, are often drivers of innovation, creating novel business solutions and positioning themselves to tap into largely unexplored markets. Cognisant of the role

entrepreneurs can play in spurring innovation and contributing to economic development, the Government has taken a step to establish a National Entrepreneurship and Innovation Council which, it believes, will serve as a conduit for transformation and innovation. “This body will radically reform the culture of entrepreneurship and encourage the emergence of new entrepreneurs while supporting existing ones,” said President Irfaan Ali during the American Chamber of Commerce’s (AMCHAM’s) virtual Annual General Meeting (AGM), earlier in November. This initiative is seen as part of the overarching vision to create an enabling environment for business development. As it is now, there is a seven-point plan which includes preserving the rule of law and democracy; improving the ease of doing business; enhancing

Chairman of the Private Sector Commission (PSC), Nicholas Boyer

national competitiveness; facilitating trade and investment; and supporting small businesses. Additionally, entrepreneurs are known to contribute to local, community economies by first tapping into their networks and spheres of influence before expanding operations, once successful. And Boyer was optimistic that, with adequate support, local entrepreneurs could

take advantage of the opportunities which are being presented as Guyana develops alongside its burgeoning oil and gas sector. ‘Not impossible’ Boyer also said that, with the increased development taking place, there is scope for investing in wholly renewable projects. He reminded that the cost of energy locally is exorbitant, more so when compared to the rest of

the Caribbean region. And of the enticing oil and gas projects has been the proposal to bring natural gas onshore and use it to supply cheaper, cleaner energy to Guyana. But that’s not all. With energy costs driven downwards, more downstream activities could be created or developed. As these activities flourish and revenues are garnered, Boyer explained that large projects such as the Amaila Falls hydropower project would begin to seem more achievable. From the preliminary estimates, the Amaila Falls Hydro Project (AFHP) is expected to cost just under US$1 billion and will be able to generate 165 megawatts of stable and reliable electricity for 11 solid months of the year, with the additional month during the dry season being used for scheduled maintenance. And Boyer was upbeat that, with the right investment climate and requisite development in place, this project which was shelved by the previous administration, is not impossible.

Strengthening bilateral ...

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Minister of Foreign Affairs and International Cooperation, Hugh Todd, welcomes Brazil’s Minister of External Relations, Ernesto Araújo (Office of the President photo) * To intensify collaboration in the area of security and the fight against illicit activities and organised crime through the exchange of information and expertise. To this end, the two sides signed the “International Technical Cooperation Agreement between the Customs Anti-Narcotic Unit of the Cooperative Republic of Guyana and the Federal Police of the Federative Republic of Brazil” * To increase collaboration in agricultural matters, including technical cooperation in pest and disease management, as exemplified by the ongoing joint Carambola Fruit Fly (CFF) monitoring activities. * To convene, in Georgetown, in January 2021 a meeting of the Guyana/Brazil Group on Consular Cooperation * To convene a Technical Committee Meeting, under the aegis of the Partial Scope Agreement, with a view to expand trade and investment. * To continue political coordination and dialogue on regional issues, with an emphasis on the promotion of democracy and shared prosperity


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Scenes from an oil and gas exhibition in Georgetown, Guyana (OilNOW photo)

Robust business environment as economy set to take off G

UYANA’S President, Dr. Irfaan Ali, has promised that the new administration will work towards the development of a robust business environment that promotes wealth and job creation. He voiced this commitment recently during an address to the members of the American Chamber of Commerce (AmCham) Guyana. AmCham is an organisation which represents and provides support for U.S. enterprises doing business in Guyana and helps to build mutually beneficial relations between Guyanese and American companies. Several firms operating in the oil and gas industry are

necessary to support businesses. “We aim to build, in the shortest possible time, a truly modern Guyana with world class infrastructure that improves connectivity and unlocks the vast potential of our economy and of the Guyanese people,” he stated, adding that they will also ensure that the required supportive infrastructure is provided. “Our plan includes ensuring the availability of a highly skilled workforce and state institutions that encourage and facilitate rather than hinder and frustrate the operations of the private sector,” Dr. Singh said, adding: “In this regard, reducing

“My administration will not be neglectful or indifferent towards business. We will ensure a robust business environment in order to sustainably generate wealth and create jobs,” the President told members of the body during their virtual Annual General Meeting. members of the Chamber, including ExxonMobil, Hess, Baker Hughes and Total. “My administration will not be neglectful or indifferent towards business. We will ensure a robust business environment in order to sustainably generate wealth and create jobs,” the President told members of the body during their virtual Annual General Meeting. Meanwhile, Guyana’s new Senior Minister with responsibility for Finance, Dr. Ashni Singh, who previously served in a similar capacity under the People’s Progressive Party/Civic (PPP/C) Government, pre-2015, said the administration will work towards modernising the country’s infrastructure and advancing the institutions

bureaucracy and removing bottlenecks to doing business will be an important pillar of our institutional reforms.” The International Monetary Fund’s revised 2020 growth figure of 26 per cent for new oil producer Guyana is still the fastest in the world with growth in 2021 and 2022 projected to be eight per cent and 29 per cent respectively. This unprecedented economic take-off, fueled by the multi-billion-barrel hydrocarbon resources discovered offshore, is set to transform the South American country, making the ease of doing a business a critical area of focus for the new government. (OilNOW)


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Texila partners with Ponce University to boost E-learning

By Vishani Ragobeer

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TUDENTS attending the Texila American University (TAU) have been benefitting from a curriculum licensing agreement with the Ponce Health Sciences University (PHSU), which has allowed for an easier transition to online learning, according to the university’s Chief Executive Officer (CEO), Syam Kumar. The Texila American University (TAU), which has been in Guyana for ten years now, has entered into a partnership with the PHSU, a university in Puerto Rico. Through this partnership, the Puerto Rican university would have provided curriculum support to the doctor of medicine programme. “Our students, with this partnership, have access to

all the (PHSU) resources that are only accessible to Ponce students. This is quite unique to our students and this is quite an accomplishment, the way we see it,” Kumar told the Guyana Chronicle in a recent interview. And this has allowed for the medicine students to be taught through a “flipped classroom” model, in which students view short video lectures at home prior to class sessions. During the inclass session, students would engage in exercises, projects and discussions. “The way we have approached this pandemic is quite significant; we started our plans way back in March when everybody was still adjusting and we moved to online classes, Kumar said. Importantly, this university already integrated online services into its regular curriculum. This, as explained

by the CEO, allowed for a “seamless transition” to virtual teaching and learning, which also retained all students. The university has its digital library, Texila Digipedia, as well; this provides accurate and up-to-date content to the students with more than 8,000 collections. In March, schools and most other institutions were closed in an attempt to mitigate the spread and impact of the novel coronavirus. Even now, eight months later, schools have only been reopened to allow a small number of students to return. Safety protocols are still in place. While the university was able to adapt quickly to the online environment, Kumar related that one difficulty has been students’ practical exposure in the hospital setting being hampered. But Kumar remained upbeat that every-

thing would “bounce back”. Wi t h t h e s u c c e s s f u l partnership with the Ponce University, TAU’s Director Recruitment and Public Relation, Sreebalakumar, highlighted that the university also plans to have International School extension campuses in Guyana. Currently, the school has partnered with Franklin University. Now, the CEO related that discussions are underway for a partnership with the Monroe College, in New York, for the business programmes. “Students can stay in Guyana and pursue the degree, or even in the second year they can go to Monroe to complete their programmes and graduate,” Kumar said. Chief Executive Officer (CEO) of the Texila American University (TAU), Syam Kumar

Over 3,000 ... oil and gas is a lot of money and businesses are going to try to get in on that money,” said Armstrong during a recent interview with the Guyana Chronicle. But Guyana, unlike other countries, has other lucrative resources like land, minerals, fresh water and other things which are very attractive to investors. So, as Guyana prepares to absorb those opportunities and attention, Armstrong advises that the country must develop a local content policy, to serve as not just a safeguard, but as a conduit for persons to capitalise on the potential opportunities. “The local content policy needs to specify in terms of components of labour, especially when we talk about massive hotels… Guyanese must be able to benefit from the construction process and also be a part of not just lower levels of the general operations, but also be managers, supervisors and so on,” said the economist. DRAFT LOCAL CONTENT POLICY There is, however, a high level of confidence that this will no longer be the case, as the Minister of Natural Resources, Vickram Bharrat, has said that President Ali will receive a draft Local Content Policy soon. The Government, in September, had established an advisory panel on local content. The panel was tasked with undertaking a review of all existing initiatives and policies relating to local content in the petroleum sector and to provide guidance for the development of Guyana’s Local Content Policy and

Legislation. The panel comprises Shyam Nokta (chair), Carl Greenidge, Anthony Paul, Kevin Ramnarine, Carvil Duncan and Floyd Haynes. The team handed over its report to the Minister of Natural Resources, Vickram Bharrat, on Tuesday. The policy, once ratified, will pave the way for an inclusive environment, amidst increasing foreign investment and interest in Guyana. A local content policy, in addition to outlining the measures for direct benefits, must also establish grounds for Guyanese to capitalise on the spill-off benefits. In Armstrong’s view, they must be able to supply food, water, and other locally produced items which will be on demand based on the operations of the hotels. This is needed especially because of Guyana’s high rate of unemployment. From 2017 to 2019, the unemployment rate in Guyana increased from 12.2 per cent to 13.4 per cent, but the new Government aims to reverse this over the next five years through the creation of 50,000 jobs. FASTER RECOVERY EXPECTED The impending investment for 2021 will not only serve as a means of reducing the unemployment, but it will help Guyana to recover from the effects of the dreaded novel coronavirus (COVID-19) pandemic. The International Labour Organisation (ILO) has warned of the need to adopt immediate strategies to face the labour crisis caused by COVID-19, which has led to

the loss of at least 34 million jobs in Latin America and the Caribbean. “We face an unprecedented challenge, that of rebuilding the region’s labour markets, which implies facing structural failures that have worsened with the pandemic, such as low productivity, high informality, and inequality of income and opportunities of decent work,” said Vinícius Pinheiro, Director of the ILO Regional Office for Latin America and the Caribbean. The Labour Overview said that during this crisis “34 million workers lost their jobs (some temporarily)”, according to available information from nine countries that represent more than 80 per cent of the economically-active population of the region. It also noted that employment rate reached 51.1 per cent in the first quarter, representing a strong reduction of 5.4 percentage points compared to the data for the same period of the previous year, which represents “a historical minimum value”. Guyana could possibly recover faster than other nations, as President, Dr. Irfaan Ali, has said already that progress is expected on all fronts in 2021, which has since been designated as the Year of Investments and Development. “What you will see next year is a flurry of development; there will be active work on the new Demerara Harbour Bridge, the new four-lane road, new hotels, and the creation of 50,000 homes,” said the President. He said work will com-

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mence the construction and rehabilitation of roads in hun-

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dreds of communities; new infrastructure will be created,

and there will be major developments in every sector.


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– Making waves in the permanent makeup industry

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HE Lash Browtique is a three-yearold dynamic, full service lash extension and microblading studio that offers clients beautiful lashes and perfectly shaped brows, along with a full menu of other beauty and permanent makeup services such as lip blushing, hairline microblading, permanent eyeliner and so much more. Sarahjane Arjune, business owner of The Lash Browtique, has always had a passion for the beauty industry. Growing up, she was obsessed with makeup, eyebrows and lashes and eventually evolved into the industry and launched The Lash Browtique. She noted, “It was a very exciting and scary journey for me because I was worried how people would respond to the services I wanted to offer.” Some people in Guyana were already familiar with the services but for others who were not, they were happy and reassured to know that she was trained and certified in the United States. She further added, “what people don’t know is that I also Studied Biology at the University of Guyana, I wanted to get into the medical field but I ended up pursuing my passion in the beauty industry and became very captivated by it.” Her business targets mostly female clients, but she also has male clients who come for facials and permanent makeup such as dark lip correction and hairline microblading. LOVE WHAT I DO Sarahjane became an entrepreneur because she enjoys the flexibility that comes with owning her own business while simultaneously doing what she truly loves. With a good business plan and a lot of hard work, consistency and dedication, any newly trained artist can succeed. Before opening her studio in Guyana, she had planned on doing lashes and microblading part time to supplement her income. And, after realizing how demanding the services were, she found herself spiraling into what is now her passion and not just a career. Sarahjane cited, “I LOVE what I do, and I love every single one of my clients and the experience we exchange during their sessions. This business requires a passion to learn and practise nonstop!” The startup of any business does not come without challenges. Sarahjane noted that customer service is very important in a business; it impacts the standard of your business and determines whether someone will come back, refer, or even promote your business. Customers are the real force behind startup success. Their word-of-mouth power and their presence on social media can give each startup an edge against all the traditional businesses. As a business owner, it is important to always be switched “on”. You must always be available to your clients. Whether it is to reassure them of the quality of the service, find them an appointment time or answer any questions they may have. Sarahjane cited, “As entrepreneurs, we are born to hustle, we don’t have the luxury of only being available during “business hours” when starting out. Although it is hard, I am grateful and wouldn’t have it any other way.” SUPPORT Sarahjane’s accounts her greatest influences in her business success to be her better half for always believing in and pushing her to become independent and owning her own

Sarahjane Arjune

business, her best friend for always supporting her even when people did not believe in her business idea, and her family for being there when she needed support to practise to perfect her art. To think that The Lash Browtique’s services are not dynamic enough, Sarahjane is working on introducing newer services such as scar camouflage where she can use permanent makeup to cover up scars and stretch marks. She has already introduced hair microblading and will soon add scalp micropigmentation to cover up bald spots and receding hairlines. The number one business goal is to make The Lash Browtique a household name. Sarahjane intends to be number one in the permanent makeup and lash extension beauty industries in Guyana. Ever since COVID-19 struck, Sarahjane made sure “As entrepreneurs, we are born to hustle, we she did her research on how to keep her clients safe. And don’t have the luxury of only being available to further reassure the safety during “business hours” when starting out. of her clients and herself, she became certified in proper Although it is hard, I am grateful and wouldn’t care and sanitation of the have it any other way.” workspace. During her downtime, she loves to explore the outdoors, travel, meet new people and learn new things which always help her be a better person day by day. Sarahjane has met a lot of amazing people along her journey and she now considers many of her clients as friends. She is truly grateful for the love and support she has received from her clients and others in the community. She is constantly learning and evolving as she feels it is important to continue her education on permanent makeup. The learning never stops. The best way to connect with the The Lash Browtique is via Instagram and Facebook by simply searching for Thelashbrowtiqueguyana or Whatsapp via mobile Sarahjane Arjune at work on a regular day number 592-603-4444.


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Sisters turn ‘bond’ into business --say entrepreneurship is gateway to financial freedom

Customers benefitting from one of the business’ promotions

By Indra Nateram BEING an entrepreneur is oftentimes challenging because of the need for constant change and innovation, but three sisters have managed to turn their sisterly bond into a fruitful business which has, so far, been producing positive results. Yashoda, Rohine and Sushiela Chowtie of Aberdeen, on the Essequibo Coast, took a bold step when they decided to step out of their comfort zones and open a boutique on August 13, 2017. The boutique, which offers trendy clothing, cosmetics and jewellery, gained popularity quickly in the community of Aberdeen and on social media. In an interview with this publication, one of the sisters said owning a business was the best path they had taken, without any regrets. The sisters collectively agreed that being self-employed had its advantage and disadvantage, but the freedom was an important aspect of their choice and responsibilities are shared in order to manage the business successfully and efficiently. Since establishing, the sisters have been importing trendy fashion to the Pomeroon-Supenaam Region, giving customers more options, something which was lacking. The businesswomen said that they focus mainly on branded clothing and bringing it at an affordable price for their customers and clients. Their business currently supplies US-made dresses for all occasions, ladies and gents casual clothing, baby and toddler outfits, branded handbags and watches, beauty products and branded footwear for all ages. Recently the store launched its special backdrops and decors section. It is the only place that has every item for birthdays, anniversaries, baby showers, and weddings. The boutique is known also for its giveaways. Only recently customers got the opportunity to win purchases and also backdrops. The businesswomen said that productivity is the key to success and their ordering depends solely on internet connectivity. They said due to the poor internet connections on the Essequibo Coast it is sometimes very tiring when it comes to online orders. “The internet is so bad at times, but we don’t want to disappoint our customers so we would stay up late trying to select the latest, trendy items for our customers” they related. The sisters said that they plan to improve the delivery services of their items across the country. They currently have customers from Berbice, Bartica, Leguan, Wakenaam, Georgetown, and the West Coast of Demerara. “We post on our Facebook page, so when people see their order and we try to get it for them, wherever they live, we find joy in serving and delivering products and items ordered to our customers,” Sushelia said. The “Chowtie girls” are advising those persons who have a passion for business to make the sacrifice and go after it by investing energy, time and money. They said the most successful startups are founded by people who are passionate about what they do.

The Chowtie sisters


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