Business license turnaround time to be lowered; crowdfunding options introduced
Thompson: This initiative will launch Bahamas ahead in World Bank ease of doing business rankings
NASSAU, BAHAMAS — The government is looking at ways to further streamline the process of opening a business, according to State Finance Minister Senator Kwasi Thompson, as it expands the provisional licensing framework.
Thompson, while making a contribution in the Senate yesterday on the 2021/2022 budget, said: “We are going a step further to shore up this private sector support by expanding the provisional licensing framework.
“This framework allows low-risk-rated businesses to apply for and receive a temporary business license to operate while the requisite approvals are obtained from the relevant government agencies, such as the Ministry of Works and the Department of Physical Planning.
“The turnaround time for obtaining a business license has been reduced. What was once a potential hindrance to becoming a part of the formal economy has now been removed. We are certain that this expanding initiative will continue to launch us ahead in the ease of doing business rankings from the World Bank.
“This is just another step in tearing down the barriers to Bahamian ownership and, ultimately, economic growth.”
Thompson went on to note that the government has committed to allocating $250 million in financing over the next five years, with $30 million for small business support this upcoming fiscal year, and is also reinforcing the work of the Bahamas Development Bank with an additional $4 million funding per year for a two-year period.
According to Thompson, new crowdfunding rules will soon be released that will allow MSMEs to tap into a larger pool of financing.
“This type of financing vehicle would also provide another option for Bahamian entrepreneurs to obtain capital via a diverse pool of investors” said Thompson.
“Additionally, it also provides Bahamians an opportunity to diversify its investment portfolio by obtaining ownership in these SMEs. Bahamians can now invest in small startup businesses that would otherwise be unable to access financing through the traditional commercial banking route.
“Primarily, these new crowdfunding rules allow for entrepreneurs and small businesses to use technology and digital platforms to raise necessary funds up to $3 million from the general investor public to start or expand their business.
“This gives the entrepreneur a powerful new channel to get capital. At the same time, it provides greater opportunities for interested Bahamians to invest in and benefit from interesting and innovative business opportunities, which they otherwise would not be able to invest in.”
Adding environmental impact assessments to any plan to build a business in the Family Islands does not stream line anything or make it faster. As inspection teams have to fly in from Nassau , once every month or so, to then produce recommendations, it simpky makes the process longer and more tedious