When a nation
experiences loss of jobs due to economic declines. When a nation’s graduates cannot
secure work in their chosen and practiced field of endeavor. When a nation’s
operations must transform in response to industry disruptions and personnel
must find new employment. Many of these unemployed turn to highly risky, non-criminal,
undertakings, to support themselves and their families. Such a person seeking; to
generate income, based on new or traditional Ideas, to expand operations, based
on formal education or practiced skill, and to be in control of resources, cash
and equipment, must find financial support. NEDCO, the National Entrepreneurship Development Company
Limited was founded and funded by taxpayers for these exact circumstances.
The traditional
Commercial Banking Sector has experience disruptions to parts of its Business
Model, noting that, lending was its chief revenue driver. Long-term lending for
Industry, Infrastructure and Housing has been seriously infiltrated by
Insurance Companies and Pension Plans, reducing bank’s profits. Medium term
lending for Equipment, Machinery and Vehicles are been financed directly by the
Manufacturer and Maintenance Agencies, causing more reductions. Even, the
short-term lending for Pay-Day Loans, Furniture and Fixtures have been
infiltrated by Store operators and supplier’s payment plans. Such profit
reductions are caused by commercial banking policies still requiring assets
backed securities; Debentures, Fix Assets and Cash Equivalencies.
The un or under
employed wishing to create jobs or as they are often referred to as Small and
Medium Enterprises (SME), could not independently qualify for commercial loans.
Such installment loans design for salary employees, or overdraft facilities for
trade operations, from For-Profit financial institutions would immediately damage
credit ratings and list them as bad risk or other negative terms. What was
needed is a Lending to Create Jobs strategy. The nation first tried a
Government Guarantor program using Commercial Bank loans to fund enterprise
creation, only to be paying the same For-Profit rates. NEDCO, first initiative,
saw the Government borrowing from the said Commercial Banks at favored rates,
and lending to SMEs at very near the same low rates.
Non-Profit, asset
backed lending, provided a solution for some, only creating one job, SMEs whose
operations are heavily backed by tangible and insurable assets. Creating many
Owner/Operator Enterprises, such as a Taxi Driver, would not build medium or
long-term Organizations which could contribute back to Government revenues. For
Enterprises to create more employment would require more unsecured funding,
money that would hire trained and experienced personnel. Moving to a 50% asset
backed lending ratio allowed Enterprises to create more jobs, but left NEDCO
unprepared for the greater financial risks exposure. The solution, to more job
creation and with less lending risks, was to be found in tighter loan supervision
and a rigorous approval process.
National
Integrated Business Incubation System (IBIS), Grant Funding
to incubate Enterprises into Organizations, is NEDCO’s, second initiative.
Seeking to develop lucrative industries, build essential long-term
Organizations and create near to permanent employment. Industries are powered
by natural and human resources, organized to fuel increase standards of living
and to improve the environment. Organizations only exist to satisfy a need,
fill a want and solve a problem, not to guarantee permanent employment and retirement
benefits. Employment is a creature of growing demand, oversupply is a destroyer
of development, hence, a balance must be found to cause Sustainable Economic
Development. Such grant funds, inclusive of incubation cost, must be recycled,
where a few Organizations can fund, via taxes, numerous ideas to produce many
new taxpaying Jobs.
Research & Written
by:
Disclosure & Declaration:
Mr. Jennings
presented a paper titled, Small and Medium Enterprises and Exporting, to
the T&T Prime Minister’s Forum on Small & Medium Enterprises, as
a guest speaker of SBDC Small Business Development Company Limited.
Mr. Jennings was one
of the originators of the Micro-Enterprise program and the first
coordinator, designing and presenting Training the Business Tutors, a
current course at YTEPP the Youth Training & Employment Partnership
Programme.
Mr. Jennings
designed, developed and presented CONTROL a full computerized management
system to enter, maintain and report on all business transactions and linked records,
to the Board of Directors of NEDCO the National Entrepreneurship Development Company
Limited.
Mr. Jennings wrote, promoted and established (Business Direct) business courses, which are a crucial part in the Master Entrepreneur
Curriculum, structured in three sections; Business
Literacy, designed to expose its audience to and present a basic
understanding of the subject matter, Business
Theory, a more detailed tutorial on each topic while promoting the
consultation with professionals in all relevant areas, and Business Model, focusing on successful examples that proves the
point of the related topic
Mr. Jennings wrote
and presented the
Society for Entrepreneur and Economic
Development (SEED), Proposal
and Website to the Minister of Planning, and to the Director
of Enterprise Development Division in the Ministry of Labour and Small and
Micro Enterprise Development (MOLSMED).
Mr. Jennings was one
of the designers and drafters of the Draft Enterprise Development through Business Incubation Policy Document which led to the
formation of National Integrated Business Incubation System (IBIS) overseen by NEDCO the National Entrepreneurship Development Company
Limited.
Mr.
Jennings is engaging efforts to bring the Micro-Enterprise program, CONTROL and Business Direct under National
Integrated Business Incubation System (IBIS) supervised by SEED members.
(For Entrepreneurs, By Entrepreneurs)
