Conventional institutions, even insurance companies and others with a long horizon, may not be the best sources of funds for SMEs in their initial years. New firms should start with equity funding, so as to avoid debt service obligations during the formative period of the enterprise, before it has a regular clientele and a dependable cash flow.
Some new firms have been successful in finding equity, in spite of the absence of an organised market for venture capital in Barbados, and some capital has been provided, over the years, by NGOs and others. We need to continue the search for better arrangements for equity funding of new ventures.