Entrepreneurship is the lifeblood of any thriving economy, and on St. Maarten, Qredits has proven to be a game-changer in fostering entrepreneurial growth and innovation. Under the leadership of CEO Elwin Groenevelt, Qredits has become a vital pillar of support for small businesses and start-ups, addressing critical gaps in financial access, mentorship, and business development.
Since its establishment in 2017, Qredits has gone beyond simply offering loans. With a mission deeply rooted in social impact, the organization has empowered aspiring entrepreneurs to break free from the limitations of traditional business molds. By highlighting the pressing challenge of “look-alike” businesses, Qredits champions innovation and originality, ensuring that St. Maarten’s entrepreneurial landscape could evolve with diverse, forward-thinking ventures.
The results speak for themselves: In 2023 alone, Qredits helped create 500 new jobs, significantly contributing to the island’s economy and workforce. More impressively, 65% of Qredits clients stated they would not have been able to start their businesses without its support, highlighting the organization’s indispensable role in turning aspirations into thriving realities.
This conversation with CEO Elwin Groenevelt delves into the challenges facing St. Maarten’s entrepreneurs, the strategic solutions Qredits offers, and the organization’s transformative vision for the island’s economic landscape.
In your view, what is the biggest hurdle facing entrepreneurs in St. Maarten today—access to finance, regulatory challenges, or something else?
The biggest hurdle facing entrepreneurs in St. Maarten today is the lack of business development and innovation. The island currently lacks incubators and a robust support system to foster creativity, resulting in many businesses being similar or “look-alikes.” There’s a critical need to prioritize innovation and create opportunities that encourage original business ideas.
Additionally, greater focus should be placed on supporting farmers to enhance local food production and improve food security—a key policy goal of the Minister of TEATT. Qredits has successfully introduced Agri-projects in Aruba and Curaçao, and there is hope that St. Maarten will follow suit by 2025. However, for such initiatives to succeed, a comprehensive Agri-policy is essential to provide farmers with the support needed to grow their businesses.
Another pressing challenge is the energy transition. St. Maarten needs to accelerate efforts in adopting renewable energy solutions, such as solar panels, and promoting the use of electric vehicles. In my view, the island is lagging behind in this area, presenting significant opportunities for improvement.
On a positive note, access to finance is not a primary barrier, as Qredits and other banks provide sufficient financial support. The key is to address these structural and policy challenges to unlock the island’s entrepreneurial potential.
How does Qredits tailor its services to mitigate these specific challenges?
Qredits addresses challenges in St. Maarten by offering specialized Energy Loans and Agri-Loans, introducing the
Agri Business Academy in 2025, and driving the development of an incubator platform to support innovative business ideas. Additionally, Qredits advocates for increased financial and policy support from the Netherlands and local policymakers to enhance innovation, food security, and the energy transition, empowering entrepreneurs to overcome key obstacles.
Does Qredits engage in advocacy with the St. Maarten government to reduce bureaucratic barriers for entrepreneurs? If so, what have been the key successes or setbacks?
Qredits maintains a strong, collaborative relationship with the St. Maarten government, focusing on supporting entrepreneurs and fostering economic growth. As a non-political institution, Qredits aims to cooperate with all governmental bodies to benefit the entrepreneurial community.
Key successes:
– The launch of Qredits on St. Maarten was made possible through the financial support of the local government, marking a strong foundation for our operations.
– The upcoming Agricultural Program for 2025 is another example of successful collaboration, developed in partnership with the Ministry of Tourism, Economic Affairs, Transport, and Telecommunications (TEATT). This initiative underscores the shared commitment to enhancing local food production and supporting agricultural entrepreneurs.
Key initiatives include:
– Increasing Credit Limits: Over the coming years, we plan to raise the maximum credit limit, providing businesses with greater access to the financial resources needed for growth and innovation.
– Support for Farmers: We aim to strengthen our focus on agricultural development, including initiatives like the upcoming Agri-Loan (2025) and the introduction of the Agri Business Academy, to empower farmers and enhance local food security.
– Energy Transition: To promote sustainability, we’ve introduced the Energy Loan at an attractive 4.95% interest rate. This product is designed to help businesses invest in solar panels, energy-efficient equipment, and electric vehicles, paving the way for a greener economy.
– Enhanced Business Support: Beyond financing, Qredits is committed to offering mentorship and guidance, including setting up an incubator platform to foster innovation and support start-ups.
Have you observed a significant increase or decline in entrepreneurial activity in St. Maarten in recent years? Are there specific industries where growth is more pronounced?
Since Qredits began operations in St. Maarten in September 2017, we have observed a significant increase in entrepreneurial activity, driven by a strong demand for training and business development support. With financial support from the government, we were able to establish our office on the island, providing a strong foundation for our services. Despite the devastation caused by Hurricane Irma shortly after our launch, Qredits quickly resumed operations, becoming the first financial institution to offer Recovery Loans with 2% interest to help businesses rebuild. Within nine months, we issued over 100 Recovery Loans, laying the foundation for our success.
Between 2018 and 2024, Qredits issued 580 loans totaling $13.5 million, focusing on supporting vulnerable individuals and fostering self-reliance through our core principles: trust, pride, and social impact. This commitment is reflected in our annual Social Impact Report.. Additionally, Qredits was the first Participating Financial Institution (PFI) to partner with the NRPB ESP program, further demonstrating our commitment to supporting entrepreneurs in St. Maarten.
One of our most impactful initiatives was the introduction of the Small Business Academy (SBA) in 2021. This accessible 10-week program equips participants with essential business skills, covering topics like bookkeeping, marketing, and financial planning. Since its inception, we have conducted 18 SBA courses with 325 participants, many of whom started innovative businesses with Qredits’ loans. Due to its success, the SBA has inspired similar programs in Aruba, Curaçao, and Bonaire.
Looking ahead, we plan to organize four additional SBA courses in 2025, continuing our mission to empower entrepreneurs with the knowledge and resources they need to thrive. Business development remains our priority, as we believe success starts with a strong business plan—the loan is simply the final step in the process.
Can you share data on the number of loans disbursed annually and how these figures have changed over the past three years?
On average, Qredits disburses around 80 loans per year, managed efficiently by our small team of three loan advisors. Over the past three years, the average loan amount has increased significantly, from $20,000 to $45,000.
While the number of loans disbursed has remained stable, our focus has shifted towards enhancing loan quality and expanding our offerings. We have introduced innovative loan products such as the Energy Loan (2024) and the upcoming Agri-Loan (2025). Additionally, in recent years, we have actively contributed to the NRPB program, further diversifying our impact and support for entrepreneurs.
What percentage of these loans is allocated to start-ups versus established businesses?
Approximately 45% of our loans are allocated to start-ups, while 55% are directed toward established businesses. As part of our strategy, we are gradually increasing our maximum loan limits to better serve entrepreneurs. Initially capped at $25,000, the limit was raised to $50,000 and will soon increase to $100,000. This step-by-step approach is particularly advantageous for existing businesses on the island, enabling them to access greater financial support to grow and thrive.
What is the current delinquency rate for small business loans in St. Maarten? How does this compare to other Caribbean territories Qredits operates in?
The delinquency rate for small business loans in St. Maarten is approximately 15%. However, this does not mean that all customers with payment delays will fail to repay their loans. Delays often occur due to slower business performance or personal challenges. As a social lender, Qredits prioritizes flexibility and works with customers who are communicative and transparent about their situations. Nonetheless, it is important for borrowers to understand that all loans must be repaid. In cases where a customer is unresponsive and significant delays occur, we take legal action to recover the loan amount.
Thanks to our supportive approach and flexibility, Qredits maintains a low write-off rate.
The delinquency rate on St. Maarten is slightly higher compared to other Caribbean territories where Qredits operates. This is largely due to the challenging circumstances on the island, particularly the severe impact of COVID-19, which disrupted many business sectors.
What percentage of applications for this facility are approved, and what is the typical profile of a successful applicant?
Approximately 65%. A typical successful applicant for a start-up is someone who is well-prepared and innovative. While relevant industry experience is advantageous, it is not a strict requirement. As we offer mentorship and guidance to help applicants develop the necessary skills and knowledge to succeed in their ventures. In the past, we observed that people often copied business ideas, which is never a good strategy. However, since the introduction of the SBA, we have seen a significant improvement in the quality of business plans and a surge in innovative ideas. This is why we made the SBA a mandatory requirement for start-up loans. If an applicant successfully completes the SBA and delivers a strong pitch for their business plan, the chances of loan approval are significantly higher.
More About Qredits
Elwin Groenevelt (Founder and CEO)
Elwin founded Qredits in 2009 after 15 years in commercial banking. Qredits is the only nationally operating microfinance organization in the Netherlands offering microcredit loans, SME loans, Flexible credit, mentoring, Qredits Academy and an array of business development tools. Qredits also has offices in the Caribbean Netherlands, i.e. on Bonaire, Aruba, St. Maarten and Curaçao. Qredits is working with 150 employees, developed a profitable business-model and provided business loans to more than 42.000 entrepreneurs for in total €875M. Elwin is also one of the promotors and a board member of MicroEurope. From 2013-2021 Elwin was Treasurer and President of the European Microfinance Network
The Start
Qredits Microfinanciering Nederland (Qredits Netherlands) started in 2009 as an alternative credit provider for small and medium enterprises in the Netherlands. The organization is a foundation with an ANBI classification (National recognition for contributing to the common good) and is financed by the Ministry of Economic Affairs (€100mln), four commercial banks in the Netherlands (ABN Amro, ING, Triodos, Volksbank, Rabobank) (€70mln), Bank for Dutch municipalities (€50mln), the European Investment Fund (€ 15mln), the European Investment Bank (€100mln), BNP Paribas (€30mln), and the Council of Europe Bank (€70mln). In recent years, Qredits has developed into the leading alternative financing channel for entrepreneurs in the Netherlands with more than 42,000 loans disbursed for a total of 875,000,000.
Qredits received more than 130 new applications every working day. The organization has 150 professional employees and in addition works with over 600 volunteers who staff the mentoring programs. Qredits is financially sustainable and internationally known as one of the best practice models in Europe.
Qredits Caribbean
In 2015 Qredits started a branch in Bonaire in order to encourage entrepreneurship on the island. For this purpose Qredits signed a cooperation agreement with the local government in Bonaire. In 2017 a similar branch is started in Aruba and Sint Maarten in close cooperation with the local government and the Chamber of Commerce. On Sint Maarten Qredits is cooperating with The WorldBank to support entrepreneurs with one of the recovery projects after Hurricane Irma. In April 2018 on a further rollout took take place to Curaçao. The loan process on every island is fully supported by the credit support and risk management departments of Qredits in the Netherlands. Local business advisors have been hired to maintain contact with the customers. The maximum credit limit is $100,000 (ANG 200,000). Almost 2,000 loans ($ 42mln) have already been issued on Qredits Caribbean locations.
Source: The Peoples Tribune https://www.thepeoplestribunesxm.com
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