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
PhD PGCE MA
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?
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)
ENTREPRENEURSHIP IN HAITI Environmental overview of Haiti
Literature reviewMEMA project (public sector) Digicel Award (Private sector)
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
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).
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.
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
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
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)
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
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)
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).
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
PhD PGCE MA
THANK YOU FOR YOUR ATTENTION!
ANY QUESTION?