St Thomas Co-operative Credit Union Limited (STCCU), a non-profit financial cooperative based in southeastern Jamaica, launched its Micro and Small Enterprise (MSE) unit. The initiative is funded by Private Sector Development Programme (PSDP), a five year technical assistance programme co-funded by the European Union and the Government of Jamaica. In addition to providing financial assistance, the unit will also provide technical assistance including micro-enterprise training programmes and business counselling.
The total budget of the PSDP is USD 44.2 million and the main beneficiaries are private sector operations (PSO) and micro, small and medium-sized enterprises (MSMEs). According to PSDP’s quarterly published newsletter, The Competitive Edge, as of 2007, PSDP approved grants for 120 MSMEs, valued at USD 5.03 million, and 43 PSOs, valued at USD 4.97 million. STCCU had been awarded a grant under PSO Capacity Building Scheme in 2007 to launch a MSE unit; the financial details of funding has not been released.
According to Caribbean Labor Statistics of International Labor Organization (ILO), an agency of the United Nations, 34% (367,500 people) of the total employed force in Jamaica, work on their own account, a category that is majorily composed of MSEs. Recently, Hon Michael Stern, the Minister of State, Industry, Investment and Commerce stated that in 2008/09 fiscal year USD 3.8 billion would be made available to MSME sector. The Jamaica Business Development Center (JBDC), a cooperative arrangement among Government Agencies and the private sector, has been mandated to lead the Government’s initiative to facilitate the development of MSMEs.
STCCU’s newly launched unit will also form alliance with JBDC and Jamaica Business Information Center (JAMBIC), a government-owned website that delivers Government information and services to businesses. Therefore the unit will also act as a reference point where the entrepreneurs may be directed to other entities for further technical assistance.
STCCU was formed in 1973 from the amalgamation of nine Co-operatives and societies in St Thomas. It’s main purpose is to function as a member-owned credit union where members often earn higher returns on their savings while paying lower rates for loans. The union has 15,000 shareholders and to qualify for membership in the in the union one is required to purchase a minimum of 750 Permanent Shares at a par value of USD 2.00 each. Information about the annual budget of the union is not available.
By Ipek Kuran, Research Assistant
Additional Resources:
Jamaica: Country Profile – Microfinance Gateway
Jamaica: Country Profile – Inter-American Development Bank
Private Sector Development Programme Jamaica
Jamaica Business Information Center
International Year of MicroCredit 2005 – Social and Economic Background of Jamaica
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