Guyana’s business environment has seen a notable advancement with the introduction of the Bankability Fund for Women. This pioneering endeavor aims to bolster and uplift businesses led by women by offering equity finance, thereby nurturing growth and resilience within the entrepreneurial sphere.
Equity Finance Tailored for Success
The Bankability Fund for Women offers equity finance to women-led businesses, providing crucial financial support with terms that are both fair and encouraging for long-term success. The equity finance is structured to be repayable over a 36-month period. A key feature of this funding is that it aims to ensure that the Fund’s ownership remains below 50% of the shares in the businesses it supports. This allows women entrepreneurs to maintain significant control over their ventures while benefiting from the financial injection needed to scale their operations.
Opportunities Beyond Funding
Eligible entrepreneurs have various pathways for financial and operational growth through this Fund. They may be considered for:
- Debt Financing: Access to additional loans under favorable terms to support business expansion.
- Sale of Their Business: Assistance in finding buyers if they choose to sell their business, ensuring a smooth transition and fair valuation.
- Repurchase of Their Shares: An option to buy back shares after the repayment period, enabling them to regain full ownership and control of their business.
These flexible options ensure that women entrepreneurs can tailor their business strategies according to their unique goals and circumstances.
A Collaborative Effort
The Bankability Fund for Women is a result of a strategic co-financing collaboration among three key organizations:
- ActionINVEST Caribbean Inc (ACI): A regional leader in investment and economic development initiatives.
- The Cherie Blair Foundation for Women (CBFW): A globally recognized foundation dedicated to empowering women entrepreneurs.
- IDB Lab: The innovation laboratory of the Inter-American Development Bank Group, which focuses on developing innovative solutions for inclusive growth.
This powerful partnership brings together financial resources, expertise, and a commitment to fostering gender equality in the business sector.
Eligibility Criteria for Equity Financing
To be eligible for equity financing, businesses must meet several criteria. They must successfully complete the Road to Growth, Road to Finance (with a compelling pitch at the end), and Road to Leadership programs. Additionally, businesses should have annual revenues between USD $150,000 and $300,000 and employ 12 to 25 staff members. They must demonstrate high growth potential, as assessed by ACI, and be either incorporated or willing to incorporate. The minimum projected annual return on investment should be 25% over a maximum investment period of three years. The Fund will invest between USD $10,000 and $30,000, and the business must have the capacity to repurchase its shares.
Governance and Oversight
To ensure the effective operation and impact of the Fund, a Steering Committee has been established. This committee is responsible for overseeing the Fund’s activities, ensuring that the financial support provided leads to measurable positive outcomes for women entrepreneurs. The committee’s role includes monitoring the progress of funded businesses, providing strategic guidance, and ensuring transparency and accountability in the Fund’s operations.
Conclusion
The Bankability Fund for Women marks a significant milestone in supporting women-led businesses in Guyana. By providing equitable finance options and flexible pathways for growth and ownership, the Fund not only empowers individual entrepreneurs but also contributes to the broader economic development of the region. With strong oversight and a collaborative approach, the Fund is well-positioned to make a lasting impact on the entrepreneurial landscape in Guyana. To learn more, visit our website
