FUNDING YOUR BUSINESS IN A PANDEMIC

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by Suzette Campbell

Access to financing remains a major challenge for entrepreneurs and this may have been compounded by the events of the past year. Melissa Barrett, Business Advisory Services Manager at the Jamaica Business Development Corporation (JBDC) says now more than ever, funders and entrepreneurs need to explore creative ways of coming together to drive innovation and growth. “Numerous partnerships need to be forged that look at identifying opportunities, developing solutions, testing and learning to support the development of new or improved product and service offerings for the local, regional and international markets. Formation of multiskilled teams are critical to take advantage of any opportunities discovered. Knowledge of markets and marketing, product/service development, operations, technology, finance and legal are some of the key areas,” she said. Mrs. Barrett adds that funders need to look at options such as performancebased funding to support these in teams. “The Development Band of Jamaica (DBJ) has done an excellent job of introducing funding opportunities such as Voucher for Technical Assistance for capacity building, Innovation Grant from New Ideas to Entrepreneurship (IGNITE) and their recent call for proposal to support Business Incubator and Business Accelerator programmes,” she said.

Voucher for Technical Assistance

Small and medium-sized businesses (SMEs) in the productive sectors can apply for vouchers in various denominations to be used to access capacity-building services from business development organisations (BDOs). Entrepreneurs who operate businesses in all the traditional industries as well as those operating in emerging industries qualify for assistance under the programme. Traditional industries are agriculture, agro-processing, tourism, energy, manufacturing, mining, and services while emerging industries include animation and information technology. The DBJ notes that an entrepreneur who does not wish to access a loan but wishes to improve his/her business operations, or prepare for other types of investment, may apply for a voucher online on the DBJ’s website. If approved, the DBJ and its partners will monitor the activities of the beneficiaries, as technical assistance should not only improve the ability to access funding but should also assist in maintaining a sustainable business operation.

Support for Business Incubators and Business Accelerators

Under this programme, applications are invited from business development organisations operating Business Incubator (BI) and Business Accelerator (BA) programmes targeting Jamaican startups and MSMEs operating in high-growth potential industries. Businesses that are introducing innovative products or services are encouraged to be part of the client pool for these programmes. The DBJ will provide non-reimbursable matching grant funding of up to US$200,000 (maximum of US$100,000 for Incubator programmes) to institutions executing best-practice acceleration and incubation programmes to support the growth of entrepreneurs, start-ups, and scale-ups in Jamaica.

IGNITE

The DBJ officially launched IGNITE on October 21, 2015, with a budget of J$75 million to undertake capacity development initiatives targeted at micro and small enterprises. Through IGNITE, the Bank assisted locally registered start-ups with innovative business ideas to access grant funds to facilitate commercializing of their products or services. IGNITE provided development funding ranging from J$1 million to J$4 million to 27 entrepreneurs, over an 18-month period, to implement activities that improved their business development and growth as start-ups with innovation projects across various sectors. The DBJ recently opened applications for Cohort III of IGNITE, which is set to disburse up to J$7 million each to micro and small enterprises (MSEs), reflecting an increase from previous cohorts. IGNTIE III provides technical assistance and grants to eligible innovative start-up entrepreneurs and small businesses to assist in idea development, commercialization or scaling of new products/service, innovation ventures, business models, or penetration of new markets. Entrepreneurs may seek to participate through the ideation window or commercialisation window. The ideation window is designed for startup entrepreneurs and small businesses in the idea stage of their product development. Funding is provided to complete testing and to create a minimum viable working prototype of their ideas or scale their business. Businesses in the Idea Stage are eligible for up to J$3 million in grant financing. The commercialisation window will support emerging technologies at the early stage of commercialization, looking to transform their scientific discovery into market-ready products and services or penetrate new market. Businesses in the Early Stage are eligible for up to J$7 million in grant financing. Eligible categories for IGNITE III include: 1. Software and ICT Industries 2. Artisan products and Creative Industries 3. Agri-Tech 4. Light-Manufacturing 5. Climate change, 6. Gender inclusion and 7. Innovation in emerging technologies (including Big Data, Manufacturing,

Electronics, Biotechnology Artificial Intelligence, Cybersecurity, etc.).

The DBJ points out that it is important to note that women entrepreneurs and women-led start-ups with innovation project ideas solving problems in the following areas in Jamaica and the region are being prioritised. The JBDC is among 5 Business Service Intermediaries (BSIs) involved in IGNITE. The other BSIs include Jamaica Manufacturer’s and Exporters Association, Scientific Research Council, University of Technology and Sisters’ Ink Jamaica Limited. These entities channel grant funds to the entrepreneurs, provided coaching and mentorship, and project management support. Applications are currently being reviewed. Once selected, the participants will benefit from handholding over a period of 12 months. Mrs. Barrett hopes that other funding entities will come up with innovative ways to meet the current needs of entrepreneurs.