The Editor, Sir:

I listened to the speech made by our Prime Minister on Sunday, and parts of it gives me great concern. She announced that the government would be guaranteeing loans on behalf of small businesspersons, who do not have the collateral to secure these loans. I truly wish that someone will advise the Prime Minister not to be engaged in this folly.

It is the responsibility of entrepreneurs to seek funding for their businesses, if they do not have collateral for loans; they can enter into partnerships with others who have the resources to help them.

Unsecured loans in Jamaica do not work, it ends up becoming a grant. UTech recently published a study showing extremely high failure rates of new business in the first year of operations.

Through my experience, both as an entrepreneur as well as working with small business development agencies, I have recognised that though small business can be the engine of growth, creativity and diversity for an economy, success in loan repayment is surer if it is the entrepreneurs' collateral that is at stake.

I am, etc.,

SAM HARPER

samuel_harper@hotmail.com

Bridgeport

St. Catherine

Via Go-Jamaica