Growth & Jobs| Strategic investments critical to MSME growth- JN Bank

As micro, small and medium-sized enterprises (MSMEs) operate amid rising costs and increasing competition, entrepreneurs are being encouraged to make deliberate investments in their businesses to remain competitive and achieve sustainable growth according to JN Bank.

Gillian Hyde, deputy managing director, JN Bank, said, although entrepreneurs continue to play an important role in creating jobs and strengthening communities, long-term success depends on their willingness to channel resources in areas that improve productivity, efficiency and customer service.

“Many entrepreneurs focus on meeting the day-to-day demands of running their businesses, but success comes from making strategic investments that position the business for future growth,” she emphasised.

Hyde noted that business operators who do not invest in developing their businesses may find it difficult to remain competitive. In light of this, she urged entrepreneurs to view investment as a long-term commitment to strengthening and growing their businesses.

She recommended that MSMEs prioritise investment in upgraded equipment, technology, new products and services, and employee development.

Investing in modern equipment, she explained, can significantly improve productivity while reducing operating costs.

“A dressmaker who upgrades to industrial sewing machines, for example, can complete her sewing more quickly and therefore take on additional orders, which will increase earnings during busy periods such as the back-to-school season,” she pointed out.

Hyde also encouraged entrepreneurs to embrace digital technology to improve operations and better serve customers.

“Adopting solutions such as point-of-sale systems, mobile payment options or online payment platforms can strengthen record-keeping and enhance customer convenience,” she advised.

She added that MSMEs should also continuously evaluate opportunities to introduce new products or improve existing services in response to changing customer needs, as well as to provide employees with the requisite training to improve their deliverables.

“Employees are a business’ greatest asset. Therefore, investing in their development will result in beneficial returns such as increased productivity and enhanced customer service,” she said.

Financial solutions

Hyde pointed out that entrepreneurs may consider financing from JN Bank to carry out their business investments or to pursue other undertakings, such as to start new businesses, expand existing enterprises or to recover from setbacks caused by a disaster.

“Access to funding is about empowering entrepreneurs to innovate, grow their businesses, create jobs, strengthen communities, and contribute to a more prosperous Jamaica,” she said.

She advised that entrepreneurs first develop a clear vision for their businesses to assess how borrowed funds will support growth.

“Financial institutions want to see that you have a well-defined plan and that the funding will generate measurable results,” she explained, while underscoring the importance of maintaining accurate financial records, including information on sales, expenses, cash flow and profitability.

“Good record-keeping reflects strong financial management and enables lenders to assess the viability of the business and its ability to repay the loan.”

She also stressed the importance of responsible borrowing, noting that making loan repayments on time strengthens the relationship between borrowers and lenders while building the financial credibility needed to access future financing.

“Honouring the loan agreement builds the track record that can open the door to future financing and long-term business success,” she maintained.

Avoid common mistakes

Hyde cautioned that one of the most common mistakes entrepreneurs make is seeking financing only after experiencing financial difficulties.

“Financing is most effective when it is used strategically to support growth, not simply as a last resort to resolve cash flow problems,” she said.

She cautioned against mixing personal and business finances, noting that doing so makes it difficult to accurately determine a company’s financial performance.

Equally important, she added, is communicating early with lenders if repayment challenges arise.

“If you’re struggling to make payments, reach out to your financial institution early. There’s often more help available than people realise, but the key is to act before things spiral out of control,” she emphasised.