South Pacific Business Development: A Path to Economic Growth

The South Pacific region is a treasure trove of economic opportunities, with a combined GDP of over $150 billion. This vast market offers a unique chance for businesses to tap into the region's growth potential.

The region's diverse economy is driven by industries such as tourism, agriculture, and mining. The Solomon Islands, for example, are rich in gold and copper deposits.

Tourism is a significant contributor to the region's economy, with over 10 million visitors per year. This influx of tourists generates billions of dollars in revenue for local businesses.

The region's natural resources, including fisheries and forests, also hold significant economic value.

South Pacific Business Development has a rich history that spans over two decades. It all started in 2000 in Samoa, where Gregory F. Casagrande created a microfinance organization to provide economic opportunities to women in poor communities.

The organization's mission is to improve the lifestyle and well-being of these women and their families. Several years later, in July 2009, SPBD established a replication in Tonga, named SPBD Microfinance (Tonga) Ltd.

By the end of 2010, another successful replication was launched in Fiji, SPBD Microfinance (Fiji) Ltd. This expansion was a testament to the organization's commitment to providing economic opportunities to women in the Pacific Islands.

The University of Guam Pacific Islands Small Business Development Center Network (PISBDCN) has a similar mission to support the growth and economic development of the U.S. affiliated Pacific Islands. Their mission is to provide high-quality training and one-on-one confidential counseling to existing and prospective small businesses.

PISBDCN's vision is to establish a well-established and respected Small Business Development Center network that provides high-quality business counseling, training, and information.

The South Pacific Business Development (SPBD) has achieved some remarkable milestones.

In the Solomon Islands, SPBD has provided loans to over 2,000 women, with a repayment rate of 99.8%. This impressive figure is a testament to the trust and confidence that borrowers have in the organization.

With a focus on empowering women, SPBD has also established a network of 22 community-based organizations across the Pacific. These organizations provide training and support to help women build their financial skills and confidence.

SPBD has disbursed over $50 million in loans to date, with a significant portion going to small and medium-sized enterprises (SMEs). This has helped to stimulate economic growth and create jobs in the region.

In Vanuatu, SPBD has partnered with the local government to provide financial services to rural communities. This has helped to increase access to financial services for people who previously had limited access.

SPBD's commitment to sustainability has led to the creation of a revolving fund, which allows the organization to re-lend money to new borrowers. This has helped to reduce the organization's reliance on external funding and increase its self-sufficiency.

Greg Casagrande, the founder and president of the South Pacific Business Development Foundation (SPBD), had to make a tough decision about who to hire as the next general manager. He had to choose between a local Samoan or a foreigner, known as a palegi.

The SPBD is a microfinance institution that provides financial services to poor people in Samoa. Casagrande founded it in January 2000 and initially hired a Samoan general manager with an MBA from the US. However, the manager was later found to be engaging in fraudulent activities, which led to Casagrande stepping in to directly manage the organization.

Casagrande's reforms, including lending to women only, put the SPBD back on track. He later hired Minh Lai, a Vietnamese-Canadian investment banker, as the general manager in 2002. Lai expanded the client base and introduced new products, including a savings product.

SPBD, the South Pacific Business Development Foundation, meets two key criteria. It's a microfinance institution (MFI) providing financial services to poor people. Greg Casagrande founded SPBD in January 2000 in Samoa.

SPBD was initially led by a Samoan general manager with an MBA from the US. However, the manager was later found to be engaging in fraudulent activities. Casagrande had to step in and institute reforms, including lending only to women.

Minh Lai, a Vietnamese-Canadian investment banker, was hired as the new general manager in 2002. Lai expanded the client base and introduced new products, including a savings product.

Building the network is a crucial step in business development, and it's fascinating to see how South Pacific Business Development (SPBD) approached this challenge.

In 2010, SPBD created a holding company in the United States, specifically in Delaware, to serve as a gateway for US investors to put their money into the SPBD Network.

This Delaware-based entity is a limited liability company, which provides a level of protection for investors.

The Singapore-based holding company, South Pacific Business Development Microfinance Holdings Pte. Limited, was established to operate as a regional microfinance platform in the Pacific.

It owns and operates SPBD Samoa, SPBD Tonga, and SPBD Fiji, and has plans to launch greenfield microfinance operations in other Pacific Island countries, including the Solomon Islands at the end of 2012.

All of SPBD's microfinance institutions are registered as non-bank financial institutions (NBFIs), which means they operate outside of traditional banking regulations.

SPBD Samoa recently transformed from a non-governmental organization (NGO) status to a registered NFI, marking a significant step in its development.

SPBD has been making a significant impact since its inception, distributing its first micro-enterprise loan in January 2000.

Over 31,000 loans worth approximately US$15,000,000 have been provided by SPBD.

This has created opportunities for about 14,000 Samoan families.

These families are from 415 villages, and have been able to build small businesses thanks to SPBD's support.