Small businesses need financing to grow, but barriers to funding—and their vulnerability to climate risks—are prompting calls for closer collaboration between entrepreneurs and lenders in Saint Lucia.
Those challenges were the focus of an October 27 forum hosted by the Global Green Growth Institute (GGGI) and the Bankers Association of Saint Lucia, in collaboration with the Ministry of Economic Development.
The event brought together entrepreneurs, financial institutions and policymakers to explore ways to improve access to finance for micro, small and medium enterprises (MSMEs).
Stephanie Matthew, GGGI’s Eastern Caribbean Programme Officer, said the initiative grew out of research into the obstacles small businesses face when seeking funding. The research also considered how climate risks could affect their operations and financing needs.
“And what was unique about this, we also wanted to look at the fact that MSMEs are vulnerable to climate risks as well,” Matthew said.
She explained that the challenges extend to banks and credit unions seeking to provide suitable financing.
“We’ve noted the challenges both in the lending space with the banks, with the credit unions, and also the MSMEs with how they access that finance,” she said.
By bringing entrepreneurs and lenders together, organisers hoped to build a clearer understanding of those difficulties and identify practical responses.
“We’re hoping the forum, bringing both of them together, they can have a better understanding of their challenges and come up with the type of solutions that are necessary,” Matthew said.
One possibility she identified was the development of green financial products that could help small businesses access funding while addressing environmental risks.
Tishanna Jeffers, Chairperson of the Activities Committee of the Bankers Association of Saint Lucia, said the partnership supported the association’s work to improve access to financial services and education.
“When we were approached by GGGI for this partnership it was a no-brainer because we exist to ensure that our customers wherever they are we can meet them in terms of education, in terms of access,” Jeffers said.
She linked the development of small businesses to broader national growth. “This was a no-brainer for us for this partnership as it would help our MSMEs to further develop themselves which would in turn further develop our country,” she added.
Jeffers also highlighted financial education as part of the association’s outreach. Through Financial Information Month, undertaken in partnership with the Eastern Caribbean Central Bank, financial institutions engage adults and children on financial matters.
She said school visits have focused on encouraging children to save and develop sound financial habits early. “Because when you start them young those disciplines carry them throughout life,” Jeffers said.
