Starting a business in Belize can be daunting, but some resources can help.
The Word at Work has organized a sewing project in Belize designed to allow single mothers and women to start small-scale sewing businesses of their own. They will receive sewing machines on credit as part of this nonprofit initiative.
Credit
As part of your business venture or expansion plans, accessing credit is paramount to its success. Belize offers small businesses several financing options – loans and grants alike – but it’s essential that they understand the specific rules that pertain to them in order to make informed decisions when applying for financing.
Belize’s banking system resembles that of Europe and North America, featuring four commercial banks regulated by the Central Bank of Belize. Though domestic financial performance continues to improve based on non-performing loan recovery rates and capital adequacy ratios, correspondent banking relationships still present problems, often leading to delays and reduced services at higher costs for customers.
Belize does not currently possess a stock exchange; however, the Central Bank of Belize allows foreign portfolio investment transactions and offers deposit and loan products. Furthermore, they regulate monetary policy as well as work to strengthen regulatory oversight over the financial sector.
The Belize Chamber of Commerce and Industry (BCCI) is the country’s leading private membership-based organization geared to fostering local business. Boasting an expert research and development team that can assist businesses in setting up operations here, as well as various support services including training programs, seminars, and workshops, helps facilitate local companies. Furthermore, BCCI can connect businesses to potential customers or partners.
Belize offers investors great returns, with low taxes and a welcoming regulatory environment making it a desirable location for small business owners. Furthermore, its small size and flourishing tourism industry create an advantageous business climate. Furthermore, the country is part of CARICOM Single Market and Economy as well as bilateral trade agreements with key markets, including Canada; moreover, it participates in several regional Economic Partnership Agreements which protect investors against investor-state disputes.
At the center of any new business venture is having an effective plan that creates value for both customers and investors. Furthermore, developing strong networks is also important. Be aware of any regulations applicable in Belize before beginning to plan your new endeavor.
Loans
Belize is a small nation blessed with abundant natural resources and an English-speaking population, making it an attractive investment location thanks to relatively affordable land and its closeness to the United States. Belize also offers various incentive programs designed to spur investment in key sectors, including agriculture and agro-processing, logistics and light manufacturing, offshore outsourcing and sustainable energy investments. Furthermore, with a favorable political climate, vibrant tourism industry and attractive tax regime, it makes a fantastic environment for small businesses.
Small business owners in Belize have access to several financial options for financing, including loans and venture capital investments. The Belize Business Development Corporation (BDC) offers loans to Belizean enterprises through their loan portfolio of more than 60 enterprises; applicants must meet specific criteria in order to be approved, such as having a business plan and proof of concept in place; furthermore, BDC requires ownership by a citizen of Belize as one requirement of funding eligibility.
The Central Bank of Belize oversees banks to ensure they meet national banking standards. Belize’s top banks offer an array of financial services that range from personal and business banking, foreign exchange services, wire transfers, card products merchant services certificates of deposit financing online cheque imaging etc – these services can be utilized both domestically as well as internationally.
Belize has strict bank secrecy laws that safeguard the privacy of private data; however, creditors and law enforcement agencies can access such information with a valid court order. This safeguard helps safeguard against money laundering and terrorist financing in Belize.
Belize stands out with an extensive infrastructure for business operations, with an expansive road network and seaports, membership in the World Trade Organization, vibrant tourism sector, free-trade zone initiative to draw foreign investment, reduced corporate income tax rate as well as excellent educational system and highly skilled workforce.
Grants
Belize’s government offers grants and financing options tailored specifically to small businesses, with grants such as National Export Promotion Council’s (NEPC) offering incentives for companies looking to establish themselves here such as free land, reduced taxes and other financial benefits. Furthermore, this agency collaborates with other government agencies in promoting Belize as an investment destination.
NEPC also administers various programs designed to assist foreign investors and entrepreneurs in starting and expanding their businesses in Belize, such as the Business Development Center which offers assistance and advice to entrepreneurs across Belize, and incubator programs that support new companies within Belize.
Small businesses in Belize can also turn to the Belize Bureau of Standards (BBS), which sets and enforces standards for goods and services by WTO Agreement on Technical Barriers to Trade as well as CARICOM Regional Organization for Standards and Quality.
Belize Tourism Board has unveiled a grant program designed to provide financial incentives to small and medium-sized enterprises (SMEs) operating within the tourism sector. The aim is to encourage such businesses to implement projects which contribute to sustainability of Belize’s ecosystem as well as local communities.
Private sector SMEs account for more than 70% of employment in Belize; yet they face numerous hurdles to financing their businesses, such as access to credit, high costs of doing business and inefficient government procedures.
The EIB’s EUR 8 million loan to the Development Finance Corporation will help Belize overcome these hurdles by increasing DFC’s capacity to provide long-term finance solutions to small, medium and micro enterprises across Belize.
Legal environments in Belize can be complicated and disorienting, yet business owners must understand its rules and regulations before starting up in business here. You should also find an experienced attorney to assist with any legal matters should arise during operation, stay abreast of industry trends to remain ahead of competitors, and become part of their local communities – this will only serve to benefit their success and help yours too!
Microfinance
Microfinance programs aim to enhance the lives of poor people by offering loans for small businesses, often through solidarity groups that lend money between themselves. Microfinance is particularly useful in rural areas where credit is scarce and formal banking services do not exist, providing much-needed financial assistance as well as being the sole source of support for women within households.
In Belize, many women reside alone and depend on informal employment for survival needs. Microenterprises have increased women’s income and nutrition intake but do not meet survival requirements optimally; rather they should be encouraged to enter formal economic activities that provide access to social safety nets as well as improved economic activities.
Belize’s government has launched a microcredit program designed to support artisans, farmers and small and medium-sized enterprises (SME). The purpose is to give them access to financing that will allow their businesses to grow while also creating jobs – part of an effort by Belize to increase financial inclusion within their borders.
Microcredit programs should take into account cultural/area specifics when devising their outreach strategy to reach the most vulnerable members of a country’s society. A more targeted approach may better meet cultural requirements and maximize the impact of microlending programs.
Not only can these programs offer financing to entrepreneurs, they may also provide training. For instance, Word at Work non-profit is working with a local sewing company to train women entrepreneurs on how to run their own micro businesses. Furthermore, the Inter-American Development Bank’s microfinance program supports gender-specific products and services for Belizean women, implemented through Development Finance Corporation Belize as state-owned development bank.
IDB recently signed a four-year agreement with Belize Credit Union League (BCUL), to provide its 380 members with climate-smart technology that will increase food production while decreasing greenhouse gas emissions. Furthermore, they will establish a risk modeling framework and conduct gender analysis of BCUL’s loan portfolio to identify any barriers preventing women from accessing credit.
