private and public sector initiatives for the development of entrepreneurship in haiti:

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PRIVATE AND PUBLIC SECTOR INITIATIVES FOR THE DEVELOPMENT OF ENTREPRENEURSHIP IN HAITI: THE TOURISM INDUSTRY, SHOULD NOT IT BE THE PRIORITY? Dr Hugues SERAPHIN Lecturer in Event Management and Marketing (The University of Winchester) Associate researcher CREDDI-LEAD 2438 Guyane October 2012 [email protected] PhD PGCE MA

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Page 1: Private and public sector initiatives for the development of entrepreneurship in Haiti:

PRIVATE AND PUBLIC SECTOR INITIATIVES FOR THE DEVELOPMENT OF ENTREPRENEURSHIP IN HAITI:

THE TOURISM INDUSTRY, SHOULD NOT IT BE THE PRIORITY?

Dr Hugues SERAPHIN

Lecturer in Event Management and Marketing(The University of Winchester)

Associate researcher CREDDI-LEAD 2438 Guyane

October 2012

[email protected]

PhD PGCE MA

Page 2: Private and public sector initiatives for the development of entrepreneurship in Haiti:

1 – INTRODUCTION

2 – ENTREPRENEURSHIP IN HAITI

3 - ENTREPRENEURSHIP IN THE TOURISM SECTOR: THE WAY FORWARD FOR HAITI?

4 - CONCLUSION

CONTENTSPRIVATE AND PUBLIC SECTOR INITIATIVES

FOR THE DEVELOPMENT OF ENTREPRENEURSHIP IN HAITI:

THE TOURISM INDUSTRY, SHOULD NOT IT BE THE PRIORITY?

Page 3: Private and public sector initiatives for the development of entrepreneurship in Haiti:

INTRODUCTION

Before January 2010 earthquake, Haiti was:One of the poorest countries in the worldUnsafe destination due to its political instability (Thomson, 2004; Higate & Henry, 2009)

Difficult to:Build sustainable economic development Attract FDI(Barreau, 2012)

Entrepreneurship E.g. of public sector initiativeE.g. of private sector initiatives

Entrepreneurship plays a crucial role in social mobility (Casson, 1991) and has the ability to save the economy of a country(Louart, 1980)

Page 4: Private and public sector initiatives for the development of entrepreneurship in Haiti:

ENTREPRENEURSHIP IN HAITI Environmental overview of Haiti

Literature reviewMEMA project (public sector) Digicel Award (Private sector)

Page 5: Private and public sector initiatives for the development of entrepreneurship in Haiti:

Fragile state:Lack of political will/capacity to provide: Basic functions needed for poverty reduction and development Safeguard human rights of the populationPublic services

Haiti was once the richest French colony. Haiti was even called the ‘Pearl of the Antilles’ (Séraphin, 2011)

Vulnerable state:Public policiesEconomy Shaped by external forces

(Moita, Gautier, 2010)

ENVIRONMENTAL OVERVIEW OF HAITI

Page 6: Private and public sector initiatives for the development of entrepreneurship in Haiti:

LITERATURE REVIEWLiterature supporting the fact Haitians are not entrepreneurs

Entrepreneurs have to be:

Innovative (Schumpeter, 1934) Able to adapt to the market and manage risks (Cantillon, 1758)

Take action in the face of unknown future events(Knight,1921; Drucker, 1985))

Haitians are not entrepreneurs based on the fact they do not create or innovate. Their strategies are individual and short term. Moreover, their business are not operating with a strategy but as a need to survival (Van der Sterren, 2008).

Page 7: Private and public sector initiatives for the development of entrepreneurship in Haiti:

LITERATURE REVIEWLiterature supporting the fact Haitians are entrepreneursIn order to be considered as an entrepreneur, it is important to:

Think entrepreneurially (Sahlman, 1999)Be driven by opportunities without regard to the resources controlled (Timmons, Spinelli, 2008)

Many Haitians are self-employed have the venture (products, service, sales, ideas, etc.) but do not have access to the financial services (Van der Sterren, 2008), therefore rely of informal sources of finance to start their business (Bygrave, 2003).

The Haitians are promoters (as opposed to ‘trustee’ as they are driven only by their perception of the opportunities that exist in their environment. This strategic orientation requires being creative and innovative (Sahlman, 1999). The Haitians are therefore entrepreneurs.

Page 8: Private and public sector initiatives for the development of entrepreneurship in Haiti:

OPPORTUNITIES

MEMA (Mon Entreprise Mon Avenir) project

Funded by the Clinton Bush Haiti FundTurn Haitians’ ventures into profitable businesses

To be short-listed, the projects must be:SustainableInnovativeinclusive

http://memahaiti.org/qparticiper.php

Page 9: Private and public sector initiatives for the development of entrepreneurship in Haiti:

OPPORTUNITIES

The Digicel Entrepreneur of the Year programme

Build new economic foundations for HaitiRewarding and cultivating the new business leaders of Haiti

To be short-listed, the projects must:Show a clear strategic directionBe innovativeHave a positive impact on the local community

Page 10: Private and public sector initiatives for the development of entrepreneurship in Haiti:

MEMA / DIGICEL

Both projects are supposed to be inclusive

HOWEVERApplication requires a ‘Business plan’

50% of the population in Haiti is illiterate65% of the population in Haiti lives below the threshold of poverty(Roc, 2008) In South Africa, Kristen and Rogerson (2002), noticed a limited involvement of the locals in entrepreneurship programmes because of the limited education of most of the localsThere is no financial product (Micro Finance Institutions) orientated towards micro and small-scale enterprises in Haiti. The MFI deliver credit to micro and small enterprises and contributes to poverty reduction by providing poor people access to financial services (Van der Sterren, 2008). Limited personal and family savings and an absence of financial innovation severely limit the growth prospects of promising start-ups in developing countries (Lingelbach, 2005)

Page 11: Private and public sector initiatives for the development of entrepreneurship in Haiti:

ENTREPRENEURSHIP IN THE TOURISM SECTOR: THE WAY FORWARD FOR HAITI?

6 reasons why the tourism sector should be the priority of the government in terms of implementation of entrepreneurship programmes

Page 12: Private and public sector initiatives for the development of entrepreneurship in Haiti:

WHY THE TOURISM SECTOR

1. Principle 7 of the Port-au-Prince declaration, 2011: Development of MSTEs

2. In the world the tourism industry is made up of mostly small and medium enterprises run by people inexperienced in business(Cooper, Hall, 2008) and their innovativeness is limited (Hjalager, 2009)

3. Haiti is almost virgin and full of opportunities for investment in general and tourism related activates in particular (Chauvet, 2010)

4. MSE can increase the participation of the poor in the tourism industry (Manyara, Jones, 2005)

5. When enterprises are owned by locals, there is a high likelihood of purchase of local supplies (Shah, 2000).

6. Entrepreneurial development by local residents occur spontaneously in response to growth in tourist demand (Butler, 1980)

Page 13: Private and public sector initiatives for the development of entrepreneurship in Haiti:

CONCLUSION

Innovation is a contextual concept. Moreover, entrepreneurship in developing countries is distinctive from that practiced in developed countries (Lingelbach, et al. 2005)

The tourism sector and entrepreneurship seem to be highly compatible

It is also very important that the Haitian government rethinks its financial system. The lack of funding has constraining impacts on the development of social enterprises (Karatas-Ozkan & Manville, 2011).

Page 14: Private and public sector initiatives for the development of entrepreneurship in Haiti:

PRIVATE AND PUBLIC SECTOR INITIATIVES FOR THE DEVELOPMENT OF ENTREPRENEURSHIP IN HAITI:

THE TOURISM INDUSTRY, SHOULD NOT IT BE THE PRIORITY?

Dr Hugues SERAPHIN

Lecturer in Event Management and Marketing(The University of Winchester)

Associate researcher CREDDI-LEAD 2438 Guyane

October 2012

[email protected]

PhD PGCE MA

THANK YOU FOR YOUR ATTENTION!

ANY QUESTION?