Atlantic - Protecting Human Capital - A case study

Atlantic’s Loan for Enterprise and Network Development (LEND) micro-financing agency was established to promote the economic welfare of residents in the south-west peninsula. Through the provision of loans, it aims to encourage entrepreneurial ventures outside of the traditional oil and gas sector, to promote sustainable growth and development among members of the rural communities it serves. These persons may not qualify for financial assistance from traditional banking institutions, and so this venture creates another avenue for the protection of human capital and livelihoods. Since 2014, the agency has worked successfully to assist in transforming lives and enabling the business aspirations of those who wish to become entrepreneurs leading small and medium-sized enterprises.

New Horizons

Renny Birbal, a farmer residing in Los Iros, was one of LEND’s earliest clients. Cultivating a variety of crops on less than 2 acres of land, he often set his sights on a brighter future. After hearing about the LEND agency from a friend, Renny explored the option of accessing additional funding that could help him to expand and increase the profitability of his agricultural enterprise. He successfully applied to LEND, and with the support of the agency Renny was able to increase his access to agricultural land and significantly expand his range and quantity of crops produced. A longstanding client of the LEND agency, Renny’s farming business now covers approximately 7.5 acres of land, and he has extended to growing new crops as well as fruits. Due to his immense success, Renny was not only able to purchase his own vehicle, but even branch out to opening a second business, an agrochemical shop, which is also doing extremely well.

Speaking of the impact of LEND, Renny said, “LEND has played a major role in my success and development as a business owner. Seeing my farming business grow to what it is today, I am filled with pride and satisfaction, and I now employ up to six persons depending on the various stages of production. This success has also allowed me to start a second business which is also producing excellent returns. Thanks to LEND, I have become even more ambitious, because it has opened new horizons in my life.”

From Friends to Business Partners

Another of these success stories is that of Anderson St. John Junior, a resident of Point Fortin who approached LEND with his dream of becoming an entrepreneur. Although employed, Anderson envisioned owning his own business one day as a means to achieving greater flexibility, financial rewards, and the opportunity to become self-sufficient. Entrepreneurship already existed in Anderson’s family, as his brother owned and ran a tyre shop and hardware. It was upon his brother’s emigration and the subsequent closure of his business however, that Anderson embraced the opportunity to make his own dream a reality. He approached next door neighbour and childhood friend Ravi Sanichara to become a business partner in opening a new tyre shop in the previous location, and together they began the journey to becoming business owners. Having some but not all the capital required to get started, the co-owners would approach LEND with their dream of becoming entrepreneurs.

In 2019, the friends presented a business plan to open the tyre shop and received approval for the purchase of stock. It was the first financing institution to consider their proposal. Heartened by the support and guidance they received, they put in the required effort to ensure the profitability of their new venture and opened the 316 Tyre Shop. On the heels of their success, the new business owners once again approached the agency seeking to expand their services and were granted a second loan to purchase an alignment system towards the venture. Today, the shop not only completes suspension works, but provides full auto repair services to their customers. With the expansion of the business, the owners were even able to permanently hire two employees.

Renny Birbal sits in his agro supply shop.

Ravi Sanichara & Anderson St. John at their business.

Speaking of their success three years later, Anderson said, “LEND has helped us to start and move along the journey to achieving greater things in life – things we only dreamed of, have become a reality. Our enterprise has grown and become very successful, not just because of the loan but the business development guidance given to us by the agency. Because of their support, we can dream of achieving even greater things.” Co-owner Ravi, who manages the shop on a daily basis said, “The LEND agency has brought a level of stability to our lives and families which we did not have before. Particularly with the uncertainty experienced in recent times, being independent and in control of our livelihoods has made this journey even more rewarding.”

Since its inception, LEND has issued some 696 loans across the manufacturing, services, retail agriculture and fishing sectors, at a value of TTD $24.5M. In 2020, LEND achieved its largest cumulative loan to MSMEs, with 120 loans valuing TTD $7M. In addition to financial assistance in the form of loans, training interventions for their development are provided to LEND clients, to ensure that their businesses can become economically independent and self-sustaining. With this objective at the heart of its operations, Atlantic’s LEND agency embraced the opportunity to make a positive impact by providing support to its clients when economic disruptions occurred due to COVID19. To curb the negative impact on these businesses due to reduced income, the agency worked to extend leniency within existing credit arrangements, offering restructured loans as well as moratoriums to clients. This level of support would not only have directly benefitted the MSMEs funded by LEND, but also were made in an effort to protect the livelihoods of some 500 persons employed within these businesses across the region.

As a more direct means of supporting incomes during the pandemic, Atlantic has also worked alongside the agency to source produce from LEND clients, as part of care packages to community groups and homes that continue to support the most at-risks persons in their community. These efforts not only provide a measure of comfort to clients struggling to deal with the economic fallout of the pandemic but support long-term customer value and business resilience by allowing businesses to continue earning income during this challenging period. This is at the heart of protecting human capital and successfully stimulates sustainability and growth for those involved in keeping their businesses afloat, their staff employed or even those venturing into establishing new businesses – all with a helping hand from LEND.

Despite the economic fallout, the agency was able to realize an increase in new businesses, through their ongoing networking and business development sessions with organisations within the region. Over the period, 11 new MSMEs were established, most of these belonging to the fishing sector. This growth included the establishment of small businesses by persons who lost employment as a direct result of the downturn. Atlantic’s LEND agency remains committed to working as a force for good, and a beacon to those navigating the economic fallout of the Covid-19 pandemic.

The LEND agency has brought a level of stability to our lives and families which we did not have before. Particularly with the uncertainty experienced in recent times, being independent and in control of our livelihoods has made this journey even more rewarding.