Growth & Jobs | MSMEs need more than capital, technology to thrive

AS JAMAICA’S micro, small, and medium-sized enterprises (MSMEs) continue to demonstrate resilience navigating economic shocks, natural disasters and market fluctuations while driving innovation and employment across the island, a leading MSME financier has stressed that sustainable growth in the sector depends on more than access to capital and digital solutions.

Gillian Hyde, deputy managing director of JN Bank, says MSMEs require partnerships with financial allies who are invested in not only lending them funds but also understanding their unique challenges. She said financiers must be able to anticipate obstacles and co-create solutions with enterprises to strengthen their long-term viability.

She was addressing fellow financiers and small and medium enterprise owners at the ‘EmpowerJa’ forum hosted by the Private Sector Organisation of Jamaica (PSOJ) and the Inter-American Development Bank (IDB) at the Jamaica Pegasus Hotel recently.

“The solutions these businesses require, beyond the ease and efficiency of digital technology, are not simply money, but partnerships and collaborations that make sense and that help to inform financial solutions. What they need and are seeking are not merely institutions but financial partners who understand their vision, are willing to listen to the mission and who are not just willing to lend funds, but to guide and facilitate ideas,” said Hyde, who, for many years, has been leading JN Bank Small Business Loans division.

She said accessible, tailored and collaborative financial solutions are key to the formula that will help unlock the potential of local MSMEs and ultimately the economy.

Highlighting JN Bank’s transformational support to the sector, she noted that the institution’s small business loans division continues to engage MSMEs beyond transactions, offering operational guidance and support to navigate changing environments. She said this commitment and service has not only helped to create more than 200,000 jobs across Jamaica over the past 25 years, but also in their recovery of MSME’s from the COVID-19 pandemic.

Hyde explained that the bank’s MSME portfolio sharply declined in 2020 as businesses shuttered or scaled back operations due to the pandemic, but she said the institution has worked directly with each client throughout the fallout, offering hands-on support and personalised services that have allowed the vast majority to rebuild.

“I remember March 2020 when the first COVID case was identified in Jamaica and that pandemic had our booming micro-finance portfolio basically tumble in front of us. But we worked with our entrepreneurs over the last four years and I can say that 90 per cent of that portfolio is back up and running,” she disclosed. “Those entrepreneurs are resilient and it remains a vivid part of my experience in the area and certainly something that continues to propel me to serve in this area,” she added.

JN Bank currently extends 70 per cent of its small business loans to women, with another 70 per cent benefiting rural communities. Mrs Hyde underscored the institution’s role in driving inclusive growth and ensuring clients are supported during critical times.

“These loans help entrepreneurs grow their businesses in meaningful ways, enabling them to create jobs and positively impact not only their families but their wider communities,” she explained.

“As an indigenous bank and financial conglomerate, we have been closely engaged in the small business sector for a quarter of a century, and for more than 150 years we have acted as a financial partner to generations of Jamaicans. This long-standing experience gives us a deep understanding of the local market and the nuances of the sector,” she added, noting that the bank continues to evolve alongside its business operators, who are also adapting and growing.

EmpowerJa, sponsored by JN Bank, was held under the theme: The New Finance Frontier – Empowering SMEs with Tailored Capital Solutions. It featured panel discussions and a fireside chat with business stakeholders and industry leaders.