Building Financial Resilience in SMEs – Part 2

Review inventory systems

This pandemic has disrupted global supply chains adversely affecting companies’ inventory levels. This brings inventory management to the fore as firms must balance having adequate stock levels to meet customer demands against holding too much stock which can have an adverse effect on cash flow. The cost of carrying inventory is usually higher than the cost of carrying accounts receivables. Therefore, focusing strategically on reducing inventory may improve a company’s bottom line. Moreover, studies have shown that improving inventory management processes can help businesses reduce spending by as much as 25%.

To strategically manage inventory in a way that creates fiscal space for the business, measurements such as monthly analyses of average inventory levels held in days, periodic inventory counts, and sales forecasts are useful. An optimum inventory level should be the goal as too much or too little can be costly to your business. There are useful formulae like SQRT (2SO/CP) which helps businesses to determine economic ordering quantities. While not a silver bullet, it helps to answer two critical questions regarding inventory levels: how much and how often should inventory be ordered? There are numerous types of inventory management systems available to SMEs. Because optimizing inventory levels is a key component of managing cash flow levels, it is important for building financial resilience in SMEs.

Leverage bank & government initiatives

Securing livelihoods and stimulating economic recovery are priorities for governments across the region and several initiatives to support businesses have already been announced. Similarly, banks are offering their business clients opportunities to improve liquidity through restructuring debt repayments and revising interest rates. Here are some of a few examples of what is happening across the region.

Debt Repayments: In the Dominican Republic, credit restructuring is in place to ensure that debtors’ credit ratings are not reduced because of payment arrears caused by the current situation. In Belize, the Central Bank has extended the time (from 3-6 months) to classify non-performing loans for certain companies such as restaurants, transportation, and distribution. Both banks and credit unions have been encouraged to provide grace periods for servicing interest and/or principal components of commercial loans.

Interest Rates: In Trinidad and Tobago the Central Bank has requested money lenders to arrange deferred payments and to reduce interest rates for members. Interest rates on credit cards are expected to be reduced by 10-17% of existing rates. The Bank of Guyana has also urged commercial banks to reduce interest rates on loans and allow deferral of repayments for businesses while in Grenada, businesses in the agro-processing, agriculture and fisheries sector are being offered an interest rate of 3% from the Small Business Development Fund (SBDF).

Liquidity Access: In Barbados a BDS $40 Million VAT Loan Fund has been created to support VAT registered companies with an annual turnover of BDS $200,000 in sales whose cash flows have been severely disrupted by the pandemic. In Jamaica the Business Employee Support and Transfer of Cash (BEST Cash) is a program set up to provide temporary cash transfers to registered businesses operating in the tourism industry which are licensed with the Jamaican Tourist Board. In addition, the Trinidad & Tobago government will provide TT $100 million to the credit union movement for liquidity support to small businesses that qualify for credit union loans. Meanwhile in Grenada, the SBDF has increased its maximum threshold to EC $40,000 while the threshold for unsecured loans is EC$10,000. Lastly in the Dominican Republic the government through the Employee Solidarity Assistance Fund is covering part of the salary expenses in companies experiencing economic difficulties.

Direct Support Grants

Caribbean Export Development Agency will be offering direct support grants to SMEs in CARIFORUM to support a several activities including business continuity via a new programme developed specifically to mitigate the impact of COVID-19 on business. This Direct Support Grant Programme is pegged to launch in July. Subscribe to our mailing list to be informed when the programme launches.


This list is by no means exhaustive and exporters are encouraged to explore the different types of support available in their respective countries. Building financial resilience must take place at the firm level through protecting cashflows, maintaining and using financial intelligence and strengthening inventory management. Fortunately, governments in the region have come to the aide of the private sector by creating the regulatory environment necessary to further strengthen private sector financial resilience.

Has your company reviewed and strengthened its financial management systems? Learn more about managing your cash flow in Building Financial Resilience in SMEs – Part 1.

Building a brand, from a bar of soap, to a bath and body line – the bahamaSpa™ story

Indira Weech owner of bahamaSpaâ„¢.

When Indira Weech returned home to the Bahamas after living in Europe, she started a movement.  Determined to offer tourists an authentic Bahamian experience, Indira decided to forego traditional souvenirs, opting for soap, which she dubbed the useful souvenir. 

Her handcrafted, skin-loving bars, formulated with indigenous botanicals and Caribbean scents, provide the perfect way for visitors to the Bahamas to take home a little piece of paradise.  And her focus on using natural ingredients and sustainable packaging has been at the forefront of her eco-coconscious living in the Bahamas, inspiring others to be more mindful of how much they throw away.

From just soaps in 2004, bahamaSpa™ has expanded to a full body and hair care range, including body scrubs, butters, creams, lotions, massage oils and shampoo bars. And at the root of the company’s success, is Indira’s passion.  As she tells it, she’s obsessed with formulating products that are good for both the user and the environment.

If you are going to be successful as an entrepreneur, it can’t just be about money, she said. The days and nights will be long, so you’ll need to find something you’re passionate about, and motivated to keep doing in spite of the failures you will encounter.

In addition to loving what you do, Indira implores aspiring entrepreneurs to train continuously.  Knowledge is key to remaining relevant, improving your product or service and perfecting your brand, she said.

Looking back on her own failures, Weech shared that there have been many, including the closing of her business and starting again from scratch. But she believes when entrepreneurs share their story, they should willingly share both the highs and the lows, so that those contemplating the journey have a true sense of what it can be like.

Looking ahead, future plans for bahamaSpa

It’s been 11 years since Indira started building the bahamaSpa brand, and many of them have been spent learning about product formulation and about the beneficial properties of plants and herbs.  The focus on, and investment in continuous education has been worth it.  Her palm, phthalate and paraben free products are receiving rave reviews, and have found their way into luxury spas across the Bahamas.

The demand for this healthier, environmentally friendly skin care option has been so high, that keeping up supply has been challenging.  And, because many of the tourists who try Weech’s souvenirs want more than a one-off experience, her focus is now on getting export ready.

bahamaSpa is one of 20 women-owned Caribbean businesses making up the first cohort of participants in the Women Empowered through Export (WE-Xport) programme, which is designed to support Caribbean women in business to start exporting, or increase the exports of their products and services. 

Inspired by the sights, sounds and smells of Paris while exploring the city as a child, Weech knew then she wanted to be a creator.  She wanted to produce something beautiful and artistic that brought pleasure to its users, and she wanted it to be on display in one of the luxurious Parisian storefronts she peered into and fell in love with.  bahamaSpa, with support from the WE-Xport programme, is at the beginning of the realization of that dream, and Indira is confident, that she will one day walk the streets of Paris, and see her products looking back at her from the other side of the glass.

Visit the We-Xport booth at Bmex in June 2019 to see the bahamaSpa range of products.

Kreyòl Essence: The Luxury Beauty Product Changing the Image of Haiti

Haiti is still recovering from a devastating earthquake which occurred in January 2010 and killed almost 150,000 people. The natural disaster left hundreds of thousands reliant on foreign aid and charity and set back economic development for decades. Entrepreneur and social activist Yve-Car Momperousse was on the verge of launching her beauty business when the quake hit, she immediately put her dreams on hold and set about raising relief funds. Three years later she finally got Kreyòl Essence up and running and now she’s using her company to empower Haitian people and provide a means by which they can help themselves.

Yve-Car Momperousse began researching plans for a Haiti-based beauty business in 2009 but her progress was sadly cut short just a few months later when that Caribbean country was left reeling by one of the world’s worst ever natural disasters.

Ms Momperousse stopped everything to provide assistance including raising $500,000 (US) dollars in cash and supplies to put towards immediate humanitarian efforts, and it would be over a year and a half after the quake before she returned to her business idea.

“My mother in her wisdom said, ‘I know you’ve been concentrating on relief but that’s not sustainable. When the cameras are gone, and there’s no longer a focus on Haiti because of the tragedy, people will still need to work’. So because of that I started to look again at the business.”

Kreyòl Essence was officially launched in 2013 and its winning formula of sustainable social impact alongside 100 per cent natural products has seen it develop over the past four years into a trusted beauty supplier. Described as ‘natural with a purpose’, the company has tapped into the growing desire among consumers for businesses to create ethical offerings while also espousing a positive message and making a real difference.

Ms Momperousse explains: “The company cemented my love for beauty products as well as social impact. When we plant castor seeds it helps with the environment – soil erosion, deforestation, greenhouse gas emissions, and we provide work primarily for women, so the company is truly women led and run. And by selling a luxury beauty product we hope to change the image and discourse coming out of Haiti.”

Now Kreyòl Essence is fast approaching its goal of selling over 40,000 Haitian Black Castor Oil bottles in one year after partnering with powerhouse group Whole Foods Market which has seen its products sold in hundreds of stores across the US and Canada, and soon it will also be available in the UK.

Ms Momperousse secured the deal with Whole Foods after “knocking on doors” and admits that she never thought her business would be working with such a substantial industry player so soon after launching.

She says: “I went into stores and did demos on our product line to make sure buyers had an experience with the product and understood our story. Initially we started selling in about six stores and that grew to 52 in three months and six months after that we’re doing 250 stores, and soon we’ll be in 450.”

Ms Momperousse estimates that the Whole Foods deal will help Kreyòl Essence’s sales grow by 50 – 60 per cent and lead to significant scaling up of production which will enable the company to sustain jobs for 50 female production staff and 300 Haitian farmers. “I like to say that the social impact drives my focus on sales because none of the social impact can happen if we are not a financially healthy company”, she states. “So I have to focus on profit margins and I would like sales to reach, in the next five to eight years, the $10 million (US) dollar mark to cement the seriousness of the company”.

So what has been the secret to Ms Momperousse’s success so far?

“You need the right type of environment in order to thrive. So you need people who are like-minded, driven and understand how to support you as a business owner. You also need family to support you as an individual because being an entrepreneur is mentally, as well as physically, taxing. Persistence is key because you cannot take no for an answer, and you need to believe that there is always an answer to whatever you are trying to figure out, so do not stop.”

Ms Momperousse was named the Caribbean Export Development Agency’s ‘Female Exporter of the Year’ in December 2016 and she’s hoping to use the award to get more attention for her business. She adds: “I applied because I wanted to show that women are involved in the agriculture space as well as exports. I also thought it was important to represent Haiti because the press associated with my country often does not showcase the positivity and the beauty that we have to offer.”

Ms Momperousse has also benefited from a Caribbean Export workshop in Jamaica which explained the impact and advantages of ‘angel investors’ and her business partner attended the annual Havana International Fair (FIHAV) in Cuba.

“The event in Jamaica was wonderful because it helped me to review what it takes to become an investable company with a spin on the Caribbean where angel investor networks are not as common. It was good to have those discussions and to hear what was coming up in terms of engaging with angel investors.”

Ms Momperousse is currently looking for increased capital investment to fund Kreyòl Essence’s ambitious plans for expansion.

“My end goal is to create jobs for 1,000 Haitian farmers and women so that we can truly see that they are getting amazing pay and benefits and a steady income.”

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