CDA, NMC join hands to facilitate growth in small business activities

The Commonwealth Development Authority and the Northern Marianas College have agreed to synthesize efforts in order to facilitate the growth of economic activities in the Northern Marianas through the increased participation of small businesses.

Under the current setup, which is more of an informal partnership between the two agencies, NMC’s Small Business Development Center provides the necessary counseling and consultation for hopeful local entrepreneurs while CDA provides the needed capital to start up a business.

Officials of the two agencies strengthened their partnership during a meeting yesterday with Gov. Pedro P. Tenorio who declared June as the CNMI Small Business Development Month.

The governor said government efforts should be fortified in order to guide the Commonwealth economy out of the more than two-year-old financial upheavals in Asia that fanned toward the Northern Marianas, leaving local businesses severely hurt.

Mr. Tenorio mentioned the importance of small businesses in fostering economic growth since these are considered the backbone of the Northern Marianas economy.

NMC-SBDC acting director Eric Plinske said the program assists local entrepreneurs determine the feasibility of a particular business activity that includes counseling and consultation on how well a specific area of investment can work in a given economic condition.

“This is something which we are giving emphasis on because of the significant slowdown in the local economy. Many small businesses are hurting due to the downturn in the tourism sector,” Mr. Plinske said.

The College’s SBDC has counseled more than 250 local entrepreneurs and small business owners, and conducted more than 50 workshops with over 1,000 participants since January 1998.

Mr. Plinske noted that gray areas in the handling of small businesses include the financial management aspect, adding that some owners have to be advised when and how to go slow on their spending.

In fact, CDA Executive Director Marylou S. Ada said a series of consultations with owners of small- and medium-scale businesses in the CNMI disclosed that a big number of failed investments were caused by their failure to keep track of their finances.

She added that experts mobilized by the development authority to do consultation sessions with managers of distressed businesses who seek CDA assistance have started pointing out the value of good bookkeeping.

“Most of them don’t keep good records of their income and expenses so in the end, they could not tell where did the capital go and what really went wrong,” she explained.

According to Mr. Plinske, plans are now underway for NMC-SBDC to extend its services to small business owners and potential entrepreneurs in Rota and Tinian.

At the same time, Ms. Ada said makes it sure CDA has enough funds available for local small businesses as works are now being undertaken to expand the government lending agency’s risk.

“We make it sure there is money readily available for start up capital and supplemental funds for existing businesses that need additional money in order to keep afloat,” she pointed out.

NMC and CDA are working together with the United States Department of Agriculture and local chambers of commerce in developing workshops and seminars aimed at helping entrepreneurs and established small business owners learn and increase competencies in business management to help them become more competitive.