Dear Editor,
I write in response to the recent remarks attributed to Ms. Kathy Smith, President of the Georgetown Chamber of Commerce and Industry (GCCI), in which she urges local entrepreneurs to formalize their businesses in order to access financing from the Development Bank. While the intent behind such counsel is not entirely without merit, the substance — or more precisely, the lack thereof — leaves much to be desired, particularly given the audience she is attempting to reach.
Entrepreneurs operating in the informal sector are not unaware that formalization exists as a pathway. They are, in the overwhelming majority of cases, acutely aware of it. What they require is not a reminder that the door exists, but a substantive roadmap for how to walk through it — one that acknowledges the very real structural, financial, and bureaucratic barriers that have kept them outside of it. Ms. Smith’s remarks, as reported, offer none of this.
For starters, what does formalization actually cost a micro or small entrepreneur in Guyana today — in registration fees, compliance obligations, accounting requirements, and lost productive time? What specific Development Bank products are available, at what interest rates, on what collateral terms, and with what realistic approval timelines? What technical assistance, if any, is GCCI itself prepared to offer to guide entrepreneurs through the process? These are the questions a president of a chamber of commerce should be positioned to answer. A vague exhortation to “formalize” without addressing any of these realities is not leadership — it is rhetoric.
There is also a troubling implication in the framing of such advice: that informality is a choice borne of ignorance or laziness, rather than a rational response to an environment where the costs and risks of formalization frequently outweigh the perceived benefits. Many small business operators in this country have watched peers formalize, incur new tax obligations, and find themselves no better positioned to access credit — because their turnover, assets, or credit history still fall short of bank thresholds. Ms. Smith’s call, absent any acknowledgment of these realities, risks being dismissive of the very constituency she claims to serve.
The GCCI, as the country’s premier private sector body, has both the platform and the responsibility to do more than issue surface-level encouragement. If Ms. Smith and the GCCI are genuinely committed to expanding access to development financing for entrepreneurs, we would welcome a concrete action plan: structured formalization clinics in collaboration with the Deeds Registry and GRA, advocacy with the Development Bank to revisit its lending criteria for micro-enterprises, and transparent public communication on what realistic financing packages look like for small operators at various stages of business development.
Entrepreneurs in this country deserve guidance that is specific, honest, and actionable. They deserve leaders who speak to their circumstances with the depth of understanding those circumstances demand. A headline-worthy sound bite is easy to produce. A policy that actually moves the needle for the informal sector is considerably harder — and considerably more important.
Respectfully,
Keith Bernard
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