Small businesses are the foundation of new economic growth and has a strong role to play in improving livelihoods through income and employment generation.
The Fiji Development Bank launched its Small Business Award with key sponsors from the business community today.
The Ministry of Finance permanent secretary Mr Filimone Waqabaca said small businesses improved living standards and families were able to enjoy the basic necessities in life, like a roof over their heads, food on their table, educated children, proper sanitation and clothing.
“Fiji will support the establishment and development of micro, small and medium enterprises in Fiji through tailor made and packaged financial products that best suit such operations or businesses,” Mr Waqabaca said.
He said major retailers like Tappoo, Punjas and Motibhai started from very humble beginnings and have grown into big businesses.
“When these small businesses grow, they support our exports, use our local resources, help reduce unemployment and add to investment,” Mr Waqabaca said.
Many small businesses face challenges such as access to affordable finance and FDB’s role in the provision of finance has greatly supported this sector.
Government’s own funding initiatives provided through the FDB under the following subsidy schemes recognizes the true potential of Small and Medium Enterprises (SMEs):
· Subsidy Grant to all citizens ($2.5m);
· Interest subsidy for Northern Development Projects
($0.55m);
· Interest Subsidy for Small Business Scheme ($0.45m); and
· Subsidy Grant for Economic Rehabilitation Package (ERP)
($0.3m).
Government also provides income tax exemption for SMEs in agriculture & fishing, tourism, community & social services and supportive projects to the Tourism Industry, with a maximum turnover of $300,000.
The Reserve Bank of Fiji (RBF) is working with commercial banks on the provision of loans to SMEs and financial literacy services.
Commercial banks have also set up microfinance units in all branches beginning in 2010.
-End-