Seeking to pioneer new ground in the development of the small business sector, the Institute of Private Enterprise Development Limited (IPED) has set aside half a billion to support non-traditional agriculture, ventures by persons under 30 and the creative industries over the next two years.
“It is IPED’s determination to continue to forge ahead in pioneering new ground and developing small businesses to fulfil their potential. I am, therefore pleased to announce that IPED has set aside $50 million to provide support to the creative industries, $300 million for the support of non-traditional agriculture and $150 million for the support of business ideas and ventures of young persons below the age of 30,” CEO of IPED Ramesh Persaud said on Friday, when the organisation marked its 30th year in operation.
Speaking at the company’s anniversary dinner, hosted at the Pegasus Hotel, Persaud credited the organisation’s years of success to Chairman of the Board of Directors Dr Yesu Persaud.
The CEO described Persaud as a businessman with a track record of success and resilience, who envisioned the need to grow and develop small businesses as the basis of contributing to a turnaround of the economy before mobilising a team of other successful peers to support and implement his vison.
“It was Dr Persaud who moved IPED from an idea to the success story that it is today. I believe that he is more than deserving of our thanks for his vison, his inspiration and the indefatigable work he has done to bring IPED this far. Thirty years and going strong,” the CEO said.
The institute commenced operations on April 1, 1986 as the Institute of Small Enterprise Development Limited (ISED) and subsequently changed its name to the Institute of Private Enterprise Development Limited. Persaud noted that over the years, the organisation has focused on improving livelihoods through sustainable micro and small business development, while adding that support is given through the medium of finance, technology, mentoring and training.
Persaud explained that in thirty years, IPED has disbursed 100,000 loans for a value of $30 billion with a repayment rate of 97% and currently supports 4,500 micro-and small-businesses employing in excess of 10,000 persons. Moreover, the profits and employment cost generated from the small businesses supported by IPED are estimated to be in the range of 2-3% of the annual Gross Domestic Product.
President David Granger, who was in attendance at the function, also recognised the hard work and dedication of Persaud. “Dr Persaud recognised the importance of stimulating the development of privately owned, local enterprises as a means of reversing unemployment and boasting entrepreneurship,” he said.
President Granger noted that IPED has enabled individuals to own and operate small business by providing access to capital and it has also made an impact in reducing unemployment, inequality and poverty.
“We are keen to ensure that micro-financing can be available in every capital town of this country. We want to promote human development by providing the poor with access to education and access to credit. We want to reduce the gap in income between rural and urban areas and between hinterland and coastland.
We expect to achieve this by stimulating businesses and by creating employment through investment,” Granger said.
IPED’s experience is evidence of the effect that micro-financing can have on human development. Access to credit creates opportunities for empowerment and for transformation of the lives of the ordinary man and women,” he added.
The CEO noted that IPED loans can be as small as $40,000 or as much as $20 million. He explained that the terms are customised to the needs of the small businesses, while non-traditional collateral is used when necessary. Paperwork is simplified as business plans and financial statements are not required for most applicants; all business and financial information is derived from interviews and discussions with the beneficiaries.
Additionally, training in small business management, project management, marketing, record keeping and financial literacy are also provided periodically. “Every entrepreneur that accesses our services benefits from mentoring and business counselling through frequent supervisory visits by our officers,” he explained.
IPED’s services are available countywide, with branches in Mabaruma, Port Kaituma, Anna Regina, Charity, Parika, Vreed-en-Hoop, Georgetown, Rosignol, New Amsterdam, Port Mourant , Corriverton, Lethem and Linden. IPED officers also conduct visits to Annai, Mahdia and Bartica regularly.
