2009-12-11
‘Intellectual Property Important to SME Credit Worthiness……..’
Minister of Industry, Investment & Commerce Karl Samuda is urging lending institutions to take into consideration “the valuable factor of Intellectual Property” when assessing the credit-worthiness of entrepreneurs and investors in the Small and Medium Enterprise (SME) sector.
Addressing this morning’s opening session of a one-day CARICOM and Latin American Forum on “Access to Credit and Financing for SMEs,” Minister Samuda pointed to the difficulties faced by small business owners in accessing credit, even in the face of Government’s efforts to provide adequate loan financing for that sector.
He told the Regional delegates that financial entities insist that SMEs provide adequate fiscal collateral when seeking loans, and pointed out that “most of the Region’s talented people do not have hard collateral.” That is why “we’ve sought to encourage institutions to value the most important asset – intellectual property – as part of the consideration when creating a portfolio for a potential investor,” the Minister said.
Mr. Samuda noted that China has dominated the world by manufacturing goods at competitive prices, but that the preponderance of recognition – some 60% - is accorded to the innovator of a product. This he said, gives just and deserving recognition to the Intellectual Property value of the product.
Pointing to the SME sector’s significant contribution to Jamaica’s GDP, the Minister suggested that other regional countries may have similar positive reports about their own small business sector. He urged CARICOM countries to implement the necessary mechanisms to protect and support small businesses so that they can grow, develop and become more competitive. In addition, he urged that the significance of this sector be taken into account in the development of any Regional economic plan.
Today’s forum, held at the Jamaica Pegasus in Kingston, brought together more than 150 small business representatives from Trinidad, Jamaica, St. Lucia, Bahamas, Venezuela, El Salvador, Mexico, St. Maarten and the USA, to discuss and make recommendations on a range of SME matters including: “Institutional Support for SMEs”; the Competitiveness of Micro, Small & Medium Enterprises;’ and “Policy Challenges of Financing Micro and Small Businesses.”