Give entrepreneurs some flexibility

THE Government’s intervention to assist the micro and small to medium enterprises (MSME) sector through financing partnership agreement with the Bank South Pacific and National Development Bank is commendable.
This timely support comes as a relief to many MSMEs operators trying to keep their business afloat in this tough economic times.
The Government is doing the right thing as it is obliged to assist citizens to maintain their existing businesses.
The objective of the SME policy 2016 was to support and grow the SME sector in order to create new employment opportunities, achieve sustainable economic growth outside the resources sector and achieve a fair and equitable distribution of wealth.
While we appreciate this investment, rural farmers who wish to acquire loan as startup capital won’t just approach these two banks and enquire as the current loan terms were decided by the banks alone.
The Government as the guarantor has put in the money but does not have a say on how small people will access funding.
This K200 million for instance will only benefit existing businesses and not those who wish to startup new businesses. There should be some flexibility to allow interested entrepreneurs to access startup capital.
Most people lack the knowledge on the processes and procedures involved in business registration and financial literacy therefore agencies such as the Investment Promotion Authority and the Internal Revenue Commission should play their part and conduct awareness on processes and procedures of registering businesses and obtaining tax identification numbers.
The Internal Revenue Commissoin and Investment Promotion Authority play a vital role in businesses regulation and revenue collection in the country.
Banks’ require evidence to allow customers to access loans and people cannot easily access loans without providing these requirements from the Investment Promotion Authority and the Internal Revenue Commission.

Hanam Bill Sandu
Lae