Young Entrepreneur Programme
A major initiative of the Office of the Prime Minister is the Youth Entrepreneurship Programme.
FACT SHEET - YOUNG ENTREPRENEUR PROGRAMME (YEP)
Why YEP?
YEP is the government of Jamaica's initiative to ensure that school leavers, at high school and tertiary levels, who demonstrate strong entrepreneurial spirit and drive will be able to benefit from training and access financing for viable projects. In his 2009/10 Budget Presentation in Parliament, Prime Minister the Hon. Bruce Golding announced a social safety initiative, the Young Entrepreneur Programme (YEP), to provide training and funding for these school leavers to develop small businesses.
What are the key elements of YEP?
•Seminars will be conducted across the island by a consortium of business development service providers including the Jamaica Business Development Centre (JBDC); HEART/NTA; Success Financial Services Ltd.
•Technical Assistance will be provided by agencies such as the Rural Agricultural Development Authority (RADA), the 4-H Clubs and Bureau of Standards.
•High school and tertiary school leavers will be trained in the basics of running a business; they will receive one on one support to finalise their business plans, when completed the students will be able to access funds from Microfinance institutions.
•$200 million will be made available by the Development Bank of Jamaica to Microfinance organisations JN Small Business Loans Limited; the Credit Union League; Nation Growth; Access Finance Services Ltd., Micro Credit Ltd. to on-lend to 2009 school leavers with viable business ideas.
What is the process?
You need to go through all steps of the YEP to be receive financial support and post loan support
•School leavers will be expected to attend one of 40 Orientation Sessions which will be held at training facilities across the island. The first cycle of sessions will begin on June 17th.
•The sessions will give young persons an opportunity to gain direct information about the programme and if interested to register for one of the three day entrepreneurship workshops which will follow. School leavers will need to register their interest at the end of the orientation session which they attend.
•Following this session those interested will be invited to attend three day workshops which will be held islandwide. A Business Counselor will lead interactive training on business management and the preparation of business plans. The first cycle of these workshops will begin on June 24th and run until July 30th
•Those who complete the three day session will receive additional one on one support to finalise their business plan from a Business Counselor.
•The young person will then present their business plan to a micro finance institution of their choice for review.
•The entire process from the attendance at the Orientation Session, Entrepreneurship Workshop, and Business Plan finalization is not expected to take more than 6 weeks.
•Review of business plans, borrower interviews and credit appraisal will be conducted by the MFI, in accordance with their normal credit policies. The MFIs commit to a processing time of 7 working days.
•If your initial submission has not been accepted an applicant, guided by the recommendations made by the MFIs will have the option of a) returning to the BDS provider for assistance or b) be provided by the BDS with some counseling on possible employment or further training opportunities.
•For the young entrepreneur s/he will receive extensive post loan support at three levels:
•o A Business Coach selected from a pool of private sector successful entrepreneurs
•o Business Advisory Services, record keeping,
•o Building the technical capacity of each entrepreneurs
Who is Eligible?
•You must be a June 2009 school leaver from a high school, community college or tertiary institution; this includes graduates of schools for students with disabilities.
•3% of facility will be reserved for entrepreneurs with disabilities
•You cannot be more than25 years; however school leavers with disability the age ceiling will be guided by the cognitive level of the school leaver and not the chronological age.
•You can only access one YEP Loan.
What documentation IS REQUIRED?
Mandatory
•Proof of age
•Two (2) recent passport sized photographs
•Tax Registration Number (TRN)
•Two (2) letters of reference, with at least one being a character reference from the educational institution attended by the school leaver, and the other from references such as a Justice of the Peace, Post-Mistress, Inspector of Police, Pastor/Priest , teacher for the area. All reference will be checked.
•Where a borrower is under the age of 18 years old, the parent or guardian will be required to sign the promissory note and other legal documentation.
Additional & Helpful
•Copies of utility bills (i.e. electricity, water or telephone) for at least six (6) months for parent's or guardian's residence.
•Copies of rent/mortgage or any hire purchase receipts for parent's or guardian's residence.
What can we borrow to do?
Working capital or fixed assets for a micro business in all sectors, distributive, manufacturing, agro processing, and agriculture. Here are some areas to consider:
Individual/Group Enterprises
•Beauty and Spa services
•Retail and trading
•Light manufacturing
•Fish Farming - ornamentals
•Apiculture
•Pets - Rabbit rearing
Group Projects
•Fish Farming - Food
•Livestock projects, e.g. pigs, goats and sheep production.
•Development of protected cultivation, such as green houses
•Apiculture
•Agro-processing - dried fruits, pickles etc.
What is important is that the project is viable, and that the cash flow indicates that they business can repay the loan.
WHAT ARE THE LOAN PRODUCT FEATURES?
•Maximum of J$100,000.00 per individual borrowing client
•Up to four (4) persons in a group are able to access a maximum of $400,000 for one project.
•Loan security to include a Promissory Note, plus lien on fixed asset or equipment purchased using the loan. [Note: In the event that the entrepreneur is below 18 her/his parent will be required to sign the Promissory Note.]
•Rate to end user: 10.0% p.a, on reducing balance, and fixed for the life of the loan
•Loan Payments may be disbursed against suppliers' invoices for all purchases. Payments will be made directly to the suppliers, where possible.
WHAT ARE THE CONDITIONS OF REPAYMENT
•Repayment period for individual loans will be up to 24 months including a maximum of 6 months moratorium on principal.
•Repayment period for group loans is to be determined by the MFI and will not exceed 24 months.
•Principal and interest must be serviced, based on the enterprise and its cash flows.
•Repayment cycle for borrower: weekly, monthly, quarterly or semi-annually according to enterprise's cash flow.
•In the event that a young entrepreneur defaults on her/his loan in addition to the efforts which will made to collect, the entrepreneur will now have a negative credit score which will impact on the ability to do things later in life, purchase furniture on hire purchase, access a student loan etc.
FREQUENTLY ASKED QUESTIONS
1.Can I join with my friends or other persons to access a loan, and if yes for how much?
•Yes you can join with friends
•You can get a maximum of up to J$400K
•However all the persons in your business must be June 2009 school leavers to get the maximum amount
2. Can I borrow money and put it into an existing family business?
•Yes you can borrow up to your maximum if you are eligible to put in an existing business
However:
•Ø The business plan must indicate how the loan will generate additional income to pay for the loan
•Ø Yep must be convinced that with this loan you will have involvement in the business
•Ø The main proprietor must sign a commitment to making you a ‘partner' based on the level of your contribution via this loan
3. What if I miss the orientation sessions held in my community how do I get involved.
•We will ask you to register at the Heart/NTA centre closest to you and then ensure you are invited to the second round of orientation sessions.
4. I will need to ask questions about the training and workshops, who will I speak to?
•At the end of the Orientation Session you will be given a contact number/contact numbers for your Parish. Call those numbers if you have follow up questions about the training activities, finalizing your business plan and other similar support.
5. What if I don' t have an idea for a business can I get some suggestions?
•When you attend the orientation sessions we will give you a form to complete to help you to determine what business you are best suited to undertake. So if you do not have a business idea but you believe you have the ability to be an entrepreneur come to the orientation session and learn more.
6. I don't have a TRN.
•Getting a TRN is a simple process, however when you come to the Orientation Sessions you can collect a form, we will explain the process and then you can go to your nearest tax office to submit your application.
A major initiative of the Office of the Prime Minister is the Youth Entrepreneurship Programme.
FACT SHEET - YOUNG ENTREPRENEUR PROGRAMME (YEP)
Why YEP?
YEP is the government of Jamaica's initiative to ensure that school leavers, at high school and tertiary levels, who demonstrate strong entrepreneurial spirit and drive will be able to benefit from training and access financing for viable projects. In his 2009/10 Budget Presentation in Parliament, Prime Minister the Hon. Bruce Golding announced a social safety initiative, the Young Entrepreneur Programme (YEP), to provide training and funding for these school leavers to develop small businesses.
What are the key elements of YEP?
•Seminars will be conducted across the island by a consortium of business development service providers including the Jamaica Business Development Centre (JBDC); HEART/NTA; Success Financial Services Ltd.
•Technical Assistance will be provided by agencies such as the Rural Agricultural Development Authority (RADA), the 4-H Clubs and Bureau of Standards.
•High school and tertiary school leavers will be trained in the basics of running a business; they will receive one on one support to finalise their business plans, when completed the students will be able to access funds from Microfinance institutions.
•$200 million will be made available by the Development Bank of Jamaica to Microfinance organisations JN Small Business Loans Limited; the Credit Union League; Nation Growth; Access Finance Services Ltd., Micro Credit Ltd. to on-lend to 2009 school leavers with viable business ideas.
What is the process?
You need to go through all steps of the YEP to be receive financial support and post loan support
•School leavers will be expected to attend one of 40 Orientation Sessions which will be held at training facilities across the island. The first cycle of sessions will begin on June 17th.
•The sessions will give young persons an opportunity to gain direct information about the programme and if interested to register for one of the three day entrepreneurship workshops which will follow. School leavers will need to register their interest at the end of the orientation session which they attend.
•Following this session those interested will be invited to attend three day workshops which will be held islandwide. A Business Counselor will lead interactive training on business management and the preparation of business plans. The first cycle of these workshops will begin on June 24th and run until July 30th
•Those who complete the three day session will receive additional one on one support to finalise their business plan from a Business Counselor.
•The young person will then present their business plan to a micro finance institution of their choice for review.
•The entire process from the attendance at the Orientation Session, Entrepreneurship Workshop, and Business Plan finalization is not expected to take more than 6 weeks.
•Review of business plans, borrower interviews and credit appraisal will be conducted by the MFI, in accordance with their normal credit policies. The MFIs commit to a processing time of 7 working days.
•If your initial submission has not been accepted an applicant, guided by the recommendations made by the MFIs will have the option of a) returning to the BDS provider for assistance or b) be provided by the BDS with some counseling on possible employment or further training opportunities.
•For the young entrepreneur s/he will receive extensive post loan support at three levels:
•o A Business Coach selected from a pool of private sector successful entrepreneurs
•o Business Advisory Services, record keeping,
•o Building the technical capacity of each entrepreneurs
Who is Eligible?
•You must be a June 2009 school leaver from a high school, community college or tertiary institution; this includes graduates of schools for students with disabilities.
•3% of facility will be reserved for entrepreneurs with disabilities
•You cannot be more than25 years; however school leavers with disability the age ceiling will be guided by the cognitive level of the school leaver and not the chronological age.
•You can only access one YEP Loan.
What documentation IS REQUIRED?
Mandatory
•Proof of age
•Two (2) recent passport sized photographs
•Tax Registration Number (TRN)
•Two (2) letters of reference, with at least one being a character reference from the educational institution attended by the school leaver, and the other from references such as a Justice of the Peace, Post-Mistress, Inspector of Police, Pastor/Priest , teacher for the area. All reference will be checked.
•Where a borrower is under the age of 18 years old, the parent or guardian will be required to sign the promissory note and other legal documentation.
Additional & Helpful
•Copies of utility bills (i.e. electricity, water or telephone) for at least six (6) months for parent's or guardian's residence.
•Copies of rent/mortgage or any hire purchase receipts for parent's or guardian's residence.
What can we borrow to do?
Working capital or fixed assets for a micro business in all sectors, distributive, manufacturing, agro processing, and agriculture. Here are some areas to consider:
Individual/Group Enterprises
•Beauty and Spa services
•Retail and trading
•Light manufacturing
•Fish Farming - ornamentals
•Apiculture
•Pets - Rabbit rearing
Group Projects
•Fish Farming - Food
•Livestock projects, e.g. pigs, goats and sheep production.
•Development of protected cultivation, such as green houses
•Apiculture
•Agro-processing - dried fruits, pickles etc.
What is important is that the project is viable, and that the cash flow indicates that they business can repay the loan.
WHAT ARE THE LOAN PRODUCT FEATURES?
•Maximum of J$100,000.00 per individual borrowing client
•Up to four (4) persons in a group are able to access a maximum of $400,000 for one project.
•Loan security to include a Promissory Note, plus lien on fixed asset or equipment purchased using the loan. [Note: In the event that the entrepreneur is below 18 her/his parent will be required to sign the Promissory Note.]
•Rate to end user: 10.0% p.a, on reducing balance, and fixed for the life of the loan
•Loan Payments may be disbursed against suppliers' invoices for all purchases. Payments will be made directly to the suppliers, where possible.
WHAT ARE THE CONDITIONS OF REPAYMENT
•Repayment period for individual loans will be up to 24 months including a maximum of 6 months moratorium on principal.
•Repayment period for group loans is to be determined by the MFI and will not exceed 24 months.
•Principal and interest must be serviced, based on the enterprise and its cash flows.
•Repayment cycle for borrower: weekly, monthly, quarterly or semi-annually according to enterprise's cash flow.
•In the event that a young entrepreneur defaults on her/his loan in addition to the efforts which will made to collect, the entrepreneur will now have a negative credit score which will impact on the ability to do things later in life, purchase furniture on hire purchase, access a student loan etc.
FREQUENTLY ASKED QUESTIONS
1.Can I join with my friends or other persons to access a loan, and if yes for how much?
•Yes you can join with friends
•You can get a maximum of up to J$400K
•However all the persons in your business must be June 2009 school leavers to get the maximum amount
2. Can I borrow money and put it into an existing family business?
•Yes you can borrow up to your maximum if you are eligible to put in an existing business
However:
•Ø The business plan must indicate how the loan will generate additional income to pay for the loan
•Ø Yep must be convinced that with this loan you will have involvement in the business
•Ø The main proprietor must sign a commitment to making you a ‘partner' based on the level of your contribution via this loan
3. What if I miss the orientation sessions held in my community how do I get involved.
•We will ask you to register at the Heart/NTA centre closest to you and then ensure you are invited to the second round of orientation sessions.
4. I will need to ask questions about the training and workshops, who will I speak to?
•At the end of the Orientation Session you will be given a contact number/contact numbers for your Parish. Call those numbers if you have follow up questions about the training activities, finalizing your business plan and other similar support.
5. What if I don' t have an idea for a business can I get some suggestions?
•When you attend the orientation sessions we will give you a form to complete to help you to determine what business you are best suited to undertake. So if you do not have a business idea but you believe you have the ability to be an entrepreneur come to the orientation session and learn more.
6. I don't have a TRN.
•Getting a TRN is a simple process, however when you come to the Orientation Sessions you can collect a form, we will explain the process and then you can go to your nearest tax office to submit your application.