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Quarterly Magazine of the Barbados Investment & Development Corporation January - March 2012 ISSN 2077-3382

Volume 8 #1

PG. 10Get on the Bus

PG. 12What Makes an Entrepreneur Entrepreneurial

PG. 14More registering with CAIPO

The 2020 Challenge

The 2020 Highway

NISE and New

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4 Barbados Business Catalyst • January - March 2012

January - March 2012Volume 8 #1

56 - 78 - 9

10 - 1112 - 13

14 15

16 - 1819 - 20

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Editor’s Desk - Trade Shows, Expos & ConferencesCEO’s DeskNISE and New!Get on The Bus: Destination 2020What Makes Entrepreneurs EntrepreneurialMore Businesses Registering with CAIPO Should You Be an Entrepreneur?The 2020 HighwayStandardisation2020 VisionProductivity in BarbadosBIDC Goes to SchoolThe Diaspora Is ComingBBC NotebookEcoScopeWhen In...The United Kingdom TradeScopeManufacts

Disclaimer:Some of the views expressed in this publication are the views of the writers and not necessarily those of the BIDC. © 2012 BIDC.

Printed By:COT Caribbean Graphics, #16 Newton Industrial Estate, Christ Church.Tel (246) 420 8550 • Fax (246) 420 8555 • Email: [email protected]

The BARBADOS BUSINESS CATALYSTis published quarterly by the Research, Information and Design Services Division of the Barbados Investment & Development Corporation.It offers information and advice on trade and commercial issues to the business community. Information contained herein may be reproduced if accredited to the BIDC. Items of interest to local manufacturers, exporters, entrepreneurs and potential investors are welcome.

Editor:Jane Brome, Email: [email protected]

Editorial Team:Fern Lewis, Email: [email protected] Hutchinson, Email: [email protected] Taitt, Email: [email protected]

Design & Layout:G&A Communications Inc. Cnr. Harts Gaps & Hastings Main Road, Christ Church.Tel: (246) 437-2214; Fax: (246) 228-5204;E-mail: [email protected]

Standardisation 2020 VisionPG. 19 PG. 21

BIDC Goes to School The Diaspora is ComingPG. 23 PG. 25

Contents

PG. 16The Road Ahead

5Barbados Business Catalyst • January - March 2012

This edition also explores issues of what makes an entrepreneur entrepreneurial as well as those characteristics required to be a successful entrepreneur. Successful entrepreneurship depends on many factors, including the characteristics of the entrepreneur and the entrepreneur’s economic environment. Of primary importance is a dedicated, talented, creative entrepreneur. The person who has the ideas, the energy, and the vision to create a new business is the cornerstone of any start-up. But the individual must have ready access to a variety of important resources in order to make the new venture more than just a good idea. He or she needs to develop a plan of action, a road map that will take the venture from the idea stage to a state of growth and institutionalization. He or she needs to put together a team of talented, experienced individuals to help manage the new venture’s operations. Entrepreneurship also depends on access to capital, whether it be human, technological, or financial and on a liberal business environment that enables innovative people to implement their ideas. In short, entrepreneurship is a process that involves planning, implementation, and management as well as the cooperation of others in order to exploit an opportunity for profit.

Are you keen on taking up the challenge?

In this edition, with the theme 2020 What’s In Sight, we put the spotlight on achieving

the goal of making Barbados the number one entrepreneurial hub by 2020.

It is a vision outlined by the Barbados Entrepreneurial Foundation (BEF) and elaborated on in these pages, in an in-depth Q&A with Mr. Peter Boos, Chairman of the BEF. The target is eight years away, suggesting a long and possibly treacherous road ahead but with numerous rewards at the end of the journey. We share with you first hand insight on the road to 2020.

In preparation of this journey we’ve also captured the views of Kim Tudor who leads the National Initiative for Service Excellence (NISE). She shares with readers her thoughts on revolutionising service, with a view to positioning Barbados as the number one entrepreneurial hub. The BIDC’s head of Entrepreneurial Development Mr. Michael Bynoe, meanwhile focuses on Government’s role in the pursuit and attainment of this goal.

Editor’s Desk

By Jane L. Brome

Trade Shows, Expos and ConferencesBMEX May 25-28, 2012BMEX, the Annual Trade Show put on by the Barbados Manufacturers’ Association (BMA), will be held from May 25th to 28th, 2012 at the Lloyd Erskine Sandiford Centre (LESC) under the theme ‘Our Products, Our Celebration’. This year’s BMEX has over 170 confirmed exhibitors, and will be open to the public from 10:00am to 10:00pm, Saturday May 26th to Monday May 28th.Contact: www.bmex.bb

Caribbean Fashion Week June 7-11, 2012This event has come to epitomize the essence of Caribbean style, This year’s show will be held at the National Indoor Sports Centre, St. Andrew, Jamaica from June 7-11, 2012.Contact: www.caribbeanfashionweek.com

Taste of the Caribbean June 20-24, 2012This is the one Caribbean food and beverage event and competition not to be missed; the one annual opportunity to network, polish professional skills and

cheer on colleagues in competition, before a large audience of industry peers and consumer culinary enthusiasts. But there’s much more to it than that. Taste of the Caribbean provides education and inspiration through seminars, workshops, tastings and demonstrations, created to enhance performance, style and profitability in food and beverage operations.Contact: www.caribbeanhotelandtourism.com

The Home Expo 2012 September 21-23, 2012The HOME EXPO is a three day event that will showcase terrific ideas, expert advice, top-quality products and first-rate services for home improvement projects. Discover groundbreaking ideas for your yard and garden. Learn about “smart” efficient technologies that will add new conveniences to your home.Contact: www.homexpobarbados.com



Entrepreneurial Development

Despite the efforts of successive governments, Barbados has not created a strong reputation in entrepreneurial development since the years of our grandparents. The

notion therefore of Barbados being the no.1 entrepreneurial hub of the world by 2020 has assumed significant prominence over the past 18 months. To say the least, the Barbados Entrepreneurial Foundation’s (BEF) goal is an ambitious one, yet one with proper acclaim.

Despite what cynics may say, entrepreneurship still remains a confused, misunderstood concept in our country. In the October 2011 edition of this journal I wrote, “There is a pervasive tendency to equate entrepreneurial development with self-employment. Many self-employed individuals in Barbados are indeed entrepreneurs, but the majority are not.” Reversing this trend is not a trouble-free task, but rather one that is hindered by numerous obstacles.

A stronger understanding of what constitutes entrepreneurship and the concepts of an entrepreneurial culture has potential for significantly changing this trend. Beginning with the school system, this culture could be developed or even enhanced by giving students the opportunity to explore entrepreneurial ideas and develop practical entrepreneurial skills. The more I think of this, primary and secondary schools should be integrating an entrepreneurial culture theme in their curriculum to better equip children for adult and business life.

Overall, what is needed is a cohesive national plan that would enable the entire island to work together closely to understand and implement a national strategy to meet the entrepreneurial challenge. A strong entrepreneurial culture is the foundation of a dynamic economy and eliminates or lessens the stigma associated with failure and recognizes the crucial role of entrepreneurs in creating employment. It reflects how a society supports the ideas and initiatives of entrepreneurs and how it can direct young

THE 2020 CHALLENGE

By Michael BynoeDirector Entrepreneurial Development, BIDC


Entrepreneurial Development

people in particular toward a career in business by enhancing their skills.

Entrepreneurs are vital to building our future and Barbados does not have enough of them. To motivate our best and brightest young people to become entrepreneurs and to accelerate their acquisition of the necessary skills, the Entrepreneurial Development Division of the BIDC has established an alliance with St James Secondary School, which offers an assisted entrepreneurial journey for students who are not only interested in learning about the theory, but also going through the experience of developing an actual business entity at the school to be managed by the students themselves. An ethos that values early development of entrepreneurship not only among students but teachers as well is at the core of this programme.

As with most things associated with entrepreneurial development, the pilot project has had some minor setbacks in terms of deadline dates, but is progressing towards the ultimate opening date before the school year ends. To enhance this initiative, the Division has already had discussions with two other secondary schools interested in the same concept.

Barbados is a small state with big ambitions of becoming ‘a fully developed society that is prosperous, socially just and globally competitive’. This ambition speaks to a combination of both economic and social criteria. Assisting the economic recovery process and marching towards the mandate of Barbados being the entrepreneurial hub by 2020, will depend on the private sector and Government agencies developing one new enterprise after another for the next few years.

I am not fully aware if society is conscious of it, but the prospect of being the entrepreneurial hub is slowly beginning to emerge in Barbados. Notwithstanding the efforts of the BEF itself in accomplishing islandwide Wi-Fi access in Barbados since November 2011, a number of major initiatives have been effected or become operational within the last 18 months; all with Government’s endorsement:

• Limegrove, the Caribbean’s newest lifestyle super complex, incorporating many of the world’s designer branded retailers, is now almost fully functional. Upon completion, it purports to offer the most stylish place to shop, dine and lime for all visitors and residents of Barbados.

• Bridgetown Revitalisation, transforming Bridgetown into a night and day city of diversity, including commerce, culture, entertainment, accommodation, heritage, sports tourism and education.

• World Heritage Status - from Historic Bridgetown and its Garrison being listed as a World Heritage Site. Historian Dr Karl Watson noted jobs, cash, more tourism earnings and a load of national pride, as the benefits expected to flow from this initiative. He added that “a door has been opened” for Barbadians to offer a range of goods and services, catering to what is sure to be an increase in the number of heritage tourism visitors.

Successive Governments have played an important role in igniting entrepreneurship through the provision of technical assistance and special technical assistance funding. Additionally, Government has created some of the vital infrastructure in driving innovation itself through the sponsorship of the annual innovation competition, designed not only to provide a cash incentive, but to ignite creative thinking and connect entrepreneurs to a network of support, including mentors and others who can assist them in the growth of their businesses. But successes in these areas have been difficult.

We can do more to ensure that Barbados becomes a truly vibrant entrepreneurial hub. To achieve this, effort should be focused on some key areas: • Raising equity capital• Loan financing• Easier access to raw materials• The issue of World Trade Organisation (WTO) requirements

(TRIPS and TRIMS)

To build on our achievements mentioned earlier, we need to look at some fundamental questions: Can our businesses achieve success outside of Barbados? Have we got the right strategy in place to assist this initiative? Are supporting agencies willing to come on board?

For a country so focused on being the entrepreneurial hub of the world by 2020, and that has great social stability, notwithstanding the sterling efforts of some private sector partners, the lack of venture capitalists is very noticeable. Given some of the interesting projects being conceptualized, one would have thought that venture capitalists from around the world would be anxious to get involved. Instead, it still seems like Government through its various agencies is expected to take most of the risk in capital investment. Nevertheless, if for some unexplained reason Barbados is unable to achieve its full mandate of being the entrepreneurial hub of the World by 2020, but realises an improvement in the entrepreneurial culture by at least 70%, to my mind the country would have achieved its objective.

“ Overall, what is needed is a cohesive national plan that would enable the entire island to work together closely to understand and implement a national strategy to meet the entrepreneurial challenge.”


With advances in ICT (Information and Communication Technologies) opening up new local and international business opportunities for Barbadians, there has never

been a better time for the Government and people of Barbados to embrace entrepreneurship.

We can do this as a people, in part because we have a stable economy and a well-educated workforce built upon the Right Excellent Errol Barrow’s legacy of universal education. However, sound academic and professional training must be married with creativity and innovation to create Barbados’ next generation of entrepreneurs.

Core competencies for Successful EntrepreneursEntrepreneurs entering a cluttered marketplace with creativity and innovation as core competencies are more likely to differentiate themselves from their competition and succeed.

These entrepreneurs revolutionise service by constantly seeking, refining and implementing the best ways to improve their customers’ experience, recognising that delivering accurate, enjoyable customer service is an inside-out process where employees – their internal customers – often hold the keys to resolving challenges, increasing efficiencies and refining the internal processes that can make or break customer service delivery.

Differentiate

“To raise new questions, new possibilities, to regard old problems from a new angle, requires creative imagination and marks real advance(s) ….”

— Albert Einstein

By Kim TudorCEO, NISE

NISE and New! How revolutionising service can take us to the next hub


When you, as an entrepreneur or as business leader, actively seek to evaluate and implement your employees’ worthy suggestions to improve efficiency, operational processes, the work environment or internal and external customer service delivery, you fully harness the talents, imagination, ingenuity and passion of your people. This can only enhance employee engagement and productivity, as well as improve the business’ brand equity, service quality and culture.

Clearly, creativity and innovation are prerequisites for business success, and even survival. While logic and linear thinking will remain important, creativity and innovation have become, and are likely to remain, the most important factors impacting your business’ ability to establish and maintain a competitive advantage, whether your marketplace is local, regional or global. Be assured, world-class organisations have put these competencies at the top of the agenda. No matter the size or scope of your business, you should too.

Teaching Our People To Create & InnovateAs a small island developing state with an economy built on a few dominant, industrial sectors and long established societal mores trending toward structure and continuity rather than adaptability and change, Barbados will not come naturally to a culture of creativity and innovation necessary to support entrepreneurship.

Instead, we must commit to a conscious effort to teach, model, nurture and celebrate creativity and innovation in every sphere of Barbadian life, including commerce, government, education and society. Over time, this new outlook will make us open to developing and sharing the new ideas that become commercially viable products and services customers are willing to try and buy, and that financiers are willing to invest in them.

NISE helping to develop a creativity and innovation work cultureNISE has been doing its part to support this cultural shift toward creativity and innovation in the workplace through initiatives such as NISE’s 100 Improvements in 100 Days challenge.

With over 100 public and private sector organisations formally and informally participating in the national challenge, NISE was heartened but not surprised to see many frontline employees suggesting and implementing creative, often inexpensive ways to improve upon their organisations’ performance in the areas of safety, efficiency and cost savings as well as internal and external customer service.

With many organisations selecting young employees to champion their part in the challenge, potential entrepreneurs among them gained invaluable experience in finding unique, new ways to conceive and implement 100 improvements. Several relatively new enterprises also participated in the three-month programme, using the challenge to review their business policies and practices. One two-person enterprise identified and implemented over 75 low-cost, high-value ways to improve internal efficiency and performance, impacting positively on service quality and responsiveness, as well as customers’ and associates’ positive general impression of their brand image and professionalism.

NISE is optimistic that, as more organisations and working individuals embrace creativity and innovation as a way of life and we commit to the inevitability of change and the benefits of continuous improvement, Barbados will develop the cultural attributes necessary to become the entrepreneurship hub of the Caribbean.

Differentiate


On The Move

Are we there yet? Not for some time I would venture to say, but the wheels are turning and efforts are under way to convert this 166 square miles of modest wealth

and limited resources into the no.1 entrepreneurial hub in the world by 2020. A most ambitious project for such a tiny country you may be thinking, but so were many of the world’s greatest success stories.

The vision of becoming the preferred entrepreneurial location is certainly not unique to Barbados since several countries have gone this route before. Chile, for example, launched its bid to become the innovation and entrepreneurial hub of Latin America in 2010 with an exciting and highly successful ‘Start Up Chile’ programme. Simple in design, it seeks to attract high potential entrepreneurs from around the world by providing equity-free seed capital, access to very active and dynamic social and capital networks and the opportunity for participants to share product ideas and business plans. In just under two years, this initiative has attracted over 220 foreign start-ups to Chile. The idea has been gaining traction and countries like Australia, Venezuela, US, Italy, Britain and Greece are actively seeking to replicate the programme.

What will 2020 look like? So with several locations vying for the top spot what will set Barbados apart? The entrepreneur of 2020 will be agile, moving from idea to vision to action in a fast-paced, high-tech working environment. Our present business model must be adapted to meet these demands. The entrepreneurial landscape must reflect the image of an island that delivers more than its competitors; so in addition to the claim of being the no.1 place to invest, which is what many countries are selling, we must augment this boast with a strong sense of security, authenticity, premium quality, topped off with the reassurance that there is no better place to live, play, work and invest!

Leading entrepreneurial locations thrive where entrepreneurship is a way of life. The picture of Barbados in eight years must be of an island transformed from easy and laid back to one that works on every level, one that maintains its quaintness but enriches that with precision and excellence. We must clearly define that elusive image of Barbados that makes us distinct. As I reflect on it, I think it lies in the fact that we are small but robust in our determination, resilience and resourcefulness. That translates into quite an attractive message for entrepreneurs with little money, lots of risks and uncertainty but determined to succeed.

Get on the Bus:DESTINATION 2020

By Fern LewisManager, Research & Information Services, BIDC


On The Move

“Simply put, success will depend on getting the right people on the bus. Not only the strategists and planners who carry the vision but young entrepreneurs who are zero gravity thinkers”

So, what do we need to get there? The obvious answer to this question is money, talent and infrastructure. Even more critical I believe is a workforce that will deliver excellence and customer satisfaction at every point of business, through every transaction and engagement. If we build the infrastructure and the technology, yet fail to deliver excellence all along the value chain, it can dilute the authenticity of our claim to be the “island that works”. So it really matters whether those who facilitate and support business transactions get on the bus along with the architects of this programme.

Simply put, success will depend on getting the right people on the bus. Not only the strategists and planners who carry the vision but young entrepreneurs who are ‘zero gravity thinkers’, or as author Cynthia Barton Rabe suggests, individuals who are not weighed down by politics, tradition or failure; who refuse to let what they know, the way it has always been,

limit what they can imagine. This type of mindset unleashes the innovative spirit that can drive new ideas, products and small businesses. Students, teachers, policy-makers, investors, entrepreneurs, consumers, retirees, thinkers, movers and shakers, all have a part to play in the effort to make us a successful entrepreneurial location.

Despite that nationalistic appeal, the reality check is – what’s in it for me? Apart from the obvious benefits of employment creation, export revenue, new skills and exciting business opportunities, there is a sense of pride and fierce resolve that comes from knowing that with enough tenacity and creativity, the constraints of size and scarce resources are not insurmountable. With the right people on board, critical resources, passion and perseverance, I believe we can successfully navigate our way to 2020 and beyond.


Her research suggests that “Successful entrepreneurs know that such right people are not on the job market waiting for jobs and incentives the entrepreneurs can offer them. They know the right people need emotional ownership in the goals and objectives of the endeavour and can only be incentivized by the belief that the effects they create will embody their deepest passions and aspirations while enabling them to achieve their best potential.”

“Great entrepreneurs realise something more about the central role of people. They understand that they cannot wait around to find the right people all the time. Besides continually striving to attract the right people they learn also to nurture and grow them in their own backyards.” She states.

Endeavour

Quite apart from academic theory, Sarasvathy suggests that “Entrepreneurs are entrepreneurial, as differentiated from managerial or strategic, because they think effectively: they believe in a yet-to-be-made future than can substantially be shaped by human action.”

Entrepreneurs, she said, choose to view the future through effectual logic. “Consciously or unconsciously they act as if they believe that the future is not out there to be discovered, but that it gets created through the very strategies of the players”, she states.

The paper acknowledges that surprises will happen along the way but notes that “the unexpected is the stuff of entrepreneurial experience and transforming unpredictable into the utterly mundane is the special domain of the expert entrepreneur.”According to Sarasvathy, “seasoned entrepreneurs know that surprises are not deviations from the path. Instead they are the norm, the flora and fauna of the landscape from which one learns to forge a path through the jungle.”

While it has never been disputed that finding and leading the right people is key to creating an enduring venture, the author’s research suggests that entrepreneurs embrace this alot tighter.

One of the most thought-provoking articles on entrepreneurship has got to be one written by Saras D Sarasvathy, University of Washington, 2001 on what makes entrepreneurs entrepreneurial.This paper sought to uncover the characteristics, habits and behaviours of entrepreneurs and answers

to questions of whether there is a teachable core to being an entrepreneur or such a thing as entrepreneurial thinking that can be applied.

WHAT MAKES ENTREPRENEURS ENTREPRENEURIAL?


Entrepreneurial DNA

• Successful entrepreneurs have an unwavering, total belief in themselves and never allow anyone or anything to dispel that belief.

• Entrepreneurs are self-motivated; they don’t need anyone or anything other than their goals to motivate them.

• Successful entrepreneurs are not people who never fail but all successful entrepreneurs have the capacity to bounce back after failure. Most will talk about their failures as part of their learning curve.

• Entrepreneurs are driven by a manic need to succeed. This can take the form of money, recognition, fame or power.

• Successful entrepreneurs are the world’s worst losers. They have to win at all costs.

• Entrepreneurs are decisive, they take risks, they act impulsively on gut feelings.

• The most successful entrepreneurs know their limitations and surround themselves with people who have the skills they lack.

• Entrepreneurs are driven and focused on their sales targets at all times.

• Successful entrepreneurs are prepared to make personal sacrifices in order to succeed.

• Entrepreneurs are intuitive, recognising niche markets and business opportunities that others fail to see.

• The most successful entrepreneurs are multi-taskers with the capacity to cope and deal with several ideas and projects at one time.

• Entrepreneurs are organised, not necessarily on paper but in their heads and able to maintain information and monitor progress at all times.

• Entrepreneurs make things happen, they do not spend their time dreaming about success. They get an idea and act swiftly.

• Entrepreneurs do not recognise limits of boundaries, they set high targets, achieve them and set further goals. They are never satisfied no matter their level of success.

• Successful entrepreneurs are determined to succeed no matter what it takes.

• Entrepreneurs are persistent and able to endure rejection and set backs.

• The most successful entrepreneurs do their research to ensure they have the answers before problems arise.

• Entrepreneurs are open minded and prepared to listen and learn from everyone.

• Successful entrepreneurs are professional in their approach to business at all times.

• The most successful entrepreneurs never stop thinking about business, ideas and business opportunities.

HAvE yOU GOT WHAT IT TAkES TO BE A SUCCESSFUL ENTREPRENEUR?


Corporate Affairs

The number of people registering businesses is on the increase. This was confirmed by Deputy Registrar at the Corporate Affairs and Intellectual Property Office

(CAIPO), Kevin Hunte, who noted that there were already 809 applications so far this year.

This compares to 2, 393 applications received last year; 2, 251 received in 2010; and 2, 351 received in 2009. “If this continues, we will probably surpass last year’s applications,” Hunte said, adding the age ranges varied.

He attributed the increase to a combination of the present economic climate and Barbadians becoming more industrious. “I think the economic climate has a significant part to play, and people are looking for more and more ways to make a living even if they have a substantive job. People are putting their skills to use, so a person who bakes well will create a business and sell cakes on weekends,” Hunte explained.

The Deputy Director said there was also a change in people operating businesses with names that were not registered. He attributed that change to education and Barbados becoming a more structured society.

Hunte drew the scenario that someone may start with a contract to supply a supermarket with cakes after giving them a sample. But, he said, there will come a point in time when the business entity would not want to write a cheque to an individual name, but to a business name, especially for accounting purposes.

“Most companies, if they are doing business, want to do business with a business entity,” he explained. As a result, he noted, people were registering their businesses and establishing business accounts at banks to make themselves competitive in the business environment.

“It lends itself to the idea that you [the entrepreneur] are more serious in terms of having a business as a going concern,” he stated.

Mr. Hunte added that as registered businesses became more successful, their owners were taking the next step and having them incorporated.

Business names are registered at CAIPO’s Corporate Registry at its Belmont Road, St. Michael office at a cost of $104. Once successful, registration certificates can be collected within 24 hours. (BGIS)

More Businesses Being Registered With CAIPO

“people were registering their businesses and establishing business accounts at banks to make themselves competitive in the business environment.”


Entrepreneur Test

T here are strong internal drivers that compel people to create their own business. Daniel Isenberg has developed a 2-minute Isenberg Entrepreneur Test to help you find

out. Just answer yes or no. Be honest with yourself. Remember the worst lies are the ones we tell ourselves.

1. I don’t like being told what to do by people who are less capable than I am.

2. I like challenging myself. 3. I like to win. 4. I like being my own boss. 5. I always look for new and better ways to do things. 6. I like to question conventional wisdom. 7. I like to get people together in order to get things done. 8. People get excited by my ideas. 9. I am rarely satisfied or complacent. 10. I can’t sit still.11. I can usually work my way out of a difficult situation. 12. I would rather fail at my own thing than succeed at someone

else’s.13. Whenever there is a problem, I am ready to jump right in. 14. I think old dogs can learn, even invent new tricks. 15. Members of my family run their own businesses. 16. I have friends who run their own businesses. 17. I worked after school and during vacations when I was

growing up.18. I get an adrenaline rush from selling things. 19. I am exhilarated by achieving results. 20. I could have written a better test than Isenberg (and here is

what I would change ....)

If you answered “yes” on 17 or more of these questions, look at your pay cheque (if you are lucky enough to still get one). If the company that issued the check isn’t owned by you, it is time for some soul searching: Do you have debts to pay? Kids in college? Want to take it easy? Maybe better to wait. Do you have a little extra cash in the bank and several credit cards? Do you have a spouse, partner, friends, or kids who will cheer you on? If so, start thinking about what kind of business you want to set up. It doesn’t matter what age you are. Talk to people who have made the plunge, learn how to plan and deliver a product or service, think about that small business you might buy, talk to people with whom you would like to work, and talk to customers.

Daniel Isenberg is the Professor of Management Practice at Babson Global, Founder and Executive Director of the Babson Entrepreneurship Ecosystem Project, and author of the Harvard Business Review article, “How to Start an Entrepreneurial Revolution “ (June 2010).

Follow Daniel Isenberg on Twitter: www.twitter.com/danisen

Should You Be An Entrepreneur?

TAkE THIS TEST


2020 vision

Effective change requires proper explanation of the new destination to generate excitement in those who need to embrace the change. They must see the target, identify with the goal and work backwards, understanding what must be done today to achieve the result tomorrow. The BEF is framing the structure of 2020 today so that Barbados may chart the path to achieving the target. The five pillars – finance, government policy, business facilitation, education and mentorship must be driven deep to form a solid foundation.

The BEF is outlining the ideals with the help of international experts – what Barbados as its best looks like. Answers must be sought to the questions: “Which territories perform best in specific areas?” and “Where is Barbados today relative to the best practice?” This will identify gaps that need to be filled. Targets will be set for the next 12 months. A clear set of measures is being generated and a road map will be rolled out in the next three months for Barbados. BEF Chairman Mr. Peter Boos sat down with the Barbados Business Catalyst to discuss the road to 2020.

Mr. Peter BoosChairman, BEF

T he Barbados Entrepreneurship Foundation (BEF) has set the goal of making Barbados the no.1 entrepreneurial hub by 2020. The BEF views its role as preparing the field “to foster a holistic

approach to entrepreneurship in Barbados that will enable the achievement of the island’s potential as a global business hub.

THE 2020 HIGHWAy: The road ahead for Barbados’

entrepreneurial drive


2020 vision

Q. What in your view is the role of an entrepreneur in the economic development of Barbados?

A. There must be much more involvement of Barbadians of every ilk in the ownership of businesses if the country is to attain sustainable economic development. There is a need to engage in global business. Barbados cannot be myopic and focus only on the small local market.

The practice of law as a career cannot be sustainable if lawyers confine their focus to Barbados only. Lawyers must develop niche skills and get involved in international firms. They must get involved in global business, in global transactions. They must develop specialties. Legal outsourcing has tremendous potential and generates exports of legal services.

There is much potential in the export of education services because of the brand associated with the country. If properly marketed, education service exports can generate substantial income for the country as many persons would venture to study in Barbados because of its reputation and brand.“Make it easy to do business! Encourage as many start-ups as possible.” These are the suggestions of the Kaufmann Foundation.

Q. What are some of the initiatives that are necessary to promote and drive start-up enterprises?

A. Make access to finance easy for companies. In addition, access to good, qualified mentors is also necessary. The BEF is setting up an online facility for entrepreneurs to connect with capable mentors. Local entrepreneurs will be able to locate entrepreneurs with experience in their field of interest and learn from them.

Q. Research has suggested the following as critical success factors to entrepreneurial development:

• Anexplicitpolicymandatingandenablingyouthentrepreneurship education

• Schoolteachersasimplementers,integratingentrepreneurship into the core subjects

• Stronggovernmentalsupportatthehighestlevels• Closepartnershipswithmultiplestakeholders• Adedicatednationalfundingsource

What are your thoughts on these and what is your assessment on the existence of such factors here in Barbados?

A. One of the biggest concerns that face the Barbadian economy is a lack of foreign exchange. Much of the foreign policy of the country is to protect the foreign exchange. Government must create the enabling environment for entrepreneurship.

Having the vision of Barbados as the no.1 entrepreneurial hub by 2020 enshrined in Protocol VI is a step in the right direction.

However, processes and procedures that promote business facilitation must be embraced by the civil service. It cannot take exorbitant lengths of time to have an application approved by the Town and Country Development Planning Office. The process of establishing a business or having a driver’s licence approved must not impede the conduct of business.

The BEF has been promoting the education component of entrepreneurship. The Foundation recognises that a culture of entrepreneurship must be developed in the youth if the vision is going to be achieved. Under the Education Pillar, it seeks to “challenge the aspirations of young people in Barbados”; “challenge the impression of entrepreneurs among young people”; and “bring entrepreneurs out from behind closed doors”.

Q.Whataresomeofthethingsyouhaveidentifiedthat keep potential entrepreneurs from succeeding and fulfillingtheirpotential?

A. The size of the civil service in Barbados is too large. This creates a strain on the funds available for business. In addition, it results in a lengthy bureaucratic process. Business facilitation processes that are managed by agencies within the civil service are counter-productive, creating substantial delays for entrepreneurs.Lack of adequate mentorship is also a challenge for local entrepreneurs. Many persons entering into business may be skilled and have various competencies but are not properly equipped to run their own businesses. They do not enjoy networking advantages. Access to mentors will help these persons to make decisions that are based on the experiences of established and thriving businesses.

Q. Elaborate on your vision of Barbados in 2020. What does the no. 1 Entrepreneurial hub look like? What is at the core?

A. By 2020, per capita GDP will have doubled, going from U $13,000 to US $26,000. Barbados will be ranked by the World Economic Forum (WEF) amongst the top 20 of the world’s most competitive countries – up from 43rd currently. The number of global companies, i.e those with an annual turnover of at least US$50 million, with headquarters in Barbados will have grown to at least 50 companies. These companies will deliver annual revenue of at least $5 billion. Barbados will register an increase in the WEF Productivity Index to 30th globally and will place enterprise at the heart of education development.

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2020 vision

In 2020, Barbados will be seen as the “entrepreneur’s island”. Any entrepreneur should find it a great experience to set up a business in Barbados. All the resources are here. There is clarity, there is transparency, the infrastructure works and there is a much bigger bandwidth in the country.

To this end, international entrepreneurs complementary with Barbadian entrepreneurs should be pursued strategically and invited to set up in Barbados.

Q. Two years into the BEF’s efforts to create the environment favourable to entrepreneurial development, areyousatisfiedthatthevisionhasbeensufficientlyembraced?

A. Yes and no. Much lobbying has been carried out by the BEF among the stakeholders. As a result, the vision of Barbados as the no. 1 entrepreneurial hub by 2020 has been enshrined in Protocol VI. While this is good, there has not yet been universal acceptance by all stakeholders across Barbados. Furthermore, there are severe resource constraints within the BEF, both in terms of finances and people. The Foundation has only one full-time employee and is dependent on time and effort of volunteers. It is estimated that approximately Bds$5 million of time has been volunteered in 2011.

There have been a number of successful entrepreneurs across Barbados who believe that the BEF has a difficult challenge

A.

ahead. Persons with much to contribute have grave reservations because of Government and private sector inertia among other reasons and, as a result, are reluctant to commit to the vision.

Q. What is your assessment of the pace at which Barbados is moving towards the attainment of this goal of being the no. 1 entrepreneurial hub?

A. The vision can still be achieved but it requires great leadership. 2020 was strategically chosen because it gives the country sufficient time to achieve the targets without allowing the country to lapse into a period of complacency because it is too long.

Government exerts tremendous influence in the economy and will need to be a key player in the realisation of the vision. If Government isn’t participating sufficiently in areas such as policy and business facilitation, it will be practically impossible for the vision to be realised.

Barbados cannot afford to project itself as the greatest place to conduct business and when foreign investors are invited here, the reality is not what is promised. Government departments and service providers must offer the most efficient services possible that investors would not turn away and look to other economies.

A.

A thriving entrepreneurial culture

A pool of highly educated workers

A highly productive and proactive workforce

A modern and responsive public service with empowered citizens

High value and rewarding jobs

Magnet for international talent

An economy based on clean and efficient energy

A favourable tax environment for citizens and foreign investors

High quality infrastructure with modern technology

Low costs of doing business and minimal red tape

Effective and efficient regulation

A high quality living environment

An attractive incubation environment for entrepreneurs

Strong civic engagement

CHECkLIST FOR 2020


Standardisation

Standards, simply defined, are guiding principles. We use them as a reference to determine acceptable quality and value. They govern many facets of daily life, and that includes

how we conduct our business.

In a recent interview, Chief Technical Officer with the Barbados National Standards Institution (BNSI), Fabian Scott, explained that the standards his organisation offered were tangible; namely “document[s] published by a recognised body to address a problem, need or demand by business, government or society with which compliance is voluntary”.

He explained that the development of these standards documents was facilitated by “the stakeholders, not the BNSI. It is these Technical Committees made up of stakeholders whom are interested in the subject that determine the minimum requirements which are published in a standard.”

Mr. Scott further explained that “once the committee has

reached consensus, they recommend the standard for national adoption to the BNSI Board. Once approved by the Board and signed-off by the Minister, the standard is published in the Official Gazette as a Barbados National Standard.”

The subject matter which may be featured in these standards is virtually limitless - current standards open for public comment on the BNSI website, http://www.bnsi.bb/, range from ISO/DIS 10377 Consumer Product Safety - Guidelines for Suppliers to BNS 148 Canned Corn Beef.

In essence, a standard may be created for any good or service to ensure that an established benchmark may be used for one product or service and applied by multiple businesses across the globe.

These documents, the Chief Technical Officer noted, were borne out of necessity - that is, standards are developed because there was a need or demand for them. Mr. Scott underscored

“there are cases of small businesses in Barbados who have implemented standards to reduce their costs and improve the quality of their products. The cost of purchasing the standard was insignificant in comparison to the savings and increased profitability of the business. Standards should be seen as business tools that seek to improve the economic viability of a business.”

STANDARDS PROVIDE TANGIBLE RESULTS

FOR BUSINESS


Standardisation

that “standards are inherently voluntary. [However], where the Government seeks to protect national security; public health; safety of persons; the environment; or some other legitimate objective, it can make the requirements in a standard legally binding. This is normally referred to as compulsory or mandatory standards,” he revealed.

Examples of these mandatory standards include BNS 38:1981 Hollow Concrete Blocks; BNS 39:1994, Whole Chicken and Chicken Parts; and BNS 5:Part 1:1974 Labelling for Commodities, which all address matters related to consumer protection and public safety; and because of the impact that both these and voluntary standards could have on the population, the process of creating a standard - from acknowledging its need to producing a finished, physical document - is a detailed, eight stage process. Implementing any standard within a business will also demand similar effort; however, Mr. Scott declared that the process would ultimately aid the company in its quest to define its offerings and refine its output.

“BNSI has access to over 18,500 standards, covering numerous subject areas. Whether it’s a Barbados National Standard, CARICOM Regional Standard, or International Standard, they are available for purchase. Securing the information in a standard is only the first step, the organisation then needs to determine what its objectives are when they implement the standard. Most of the work can be done internally; however, there will be a time when external help is required to move the organisation to a position that prepares it for final certification in conformance to that standard,” he explained.

No operation is too small to benefit from standards application, and Mr Scott revealed that “there are cases of small businesses in Barbados who have implemented standards to reduce their costs and improve the quality of their products. The cost of purchasing the standard was insignificant in comparison to the savings and increased profitability of the business. Standards should be seen as business tools that seek to improve the economic viability of a business.”

Giving the example of Clejo’s Enterprises, which manufactures the Amanda’s brand of dry spices and sauces, Mr. Scott emphasised that the advantages to attaining standards certification were many.

“[They have] implemented the CARICOM Regional Standard CRS 35 Spices and Sauces and [have] demonstrated a reduction in the cost of manufacturing as well as improved quality of their product. Additionally, the labelling now conforms to labelling regulations such that Clejo’s is now able to access the CARICOM markets when it is ready to do so,” he said.

Mr. Scott added that even well established companies stood to benefit from introducing standards, which would assist the business increase profitability and product/service marketability; reduce cost of operations; and improve efficiencies and internal communication.

For additional information on available standards and how to implement them, persons are advised to contact Chief Technical Officer, Fabian Scott at 426-3870. (BGIS)



Executive Coaching

Entrepreneurs are frequently referred to as risk-takers. This moniker is quite apposite given that the alternative option to employing their minds and hands usually comes packaged

in a job with a client list, production and service systems, strategies , policies and procedures, a ‘guaranteed’ pay packet, sometimes benefits, national insurance and a pre-designed work plan. Therefore, the decision to run and own a business requires courage, vision, some talent, innovation and commitment.

With a national vision to become the no. 1 entrepreneurial hub by 2020, many entrepreneurs and would-be entrepreneurs will not only have to visit the optician to alter the vision for their businesses but they will also need to significantly adjust their abilities to personally adapt to change and how they position their businesses in a global market. The year 2020 is only 8 years away. Will we make it?

Perhaps to achieve this goal we need to be looking beyond 2020 so that the year registers a marker of achievement on our way to sustaining our country as a hub, rather than a goal in itself. I make this point because, when we study many Asian economies like Singapore, China and Japan, we learn that their planning extends to 50-year cycles. This is not a practice that we maintain in the region though it has found its way in our discourse for many years, albeit in vain.

In his book, Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By, Scott Shane quoting Census Bureau statistics produced for the Office of Advocacy of the U.S. Small Business Administration in the USA states that 70% of businesses starting today are likely to fail by 2020. These odds have therefore been beaten by 30% of businesses. Our focus should be two-fold. We need to increase the survival statistic. We must also focus on nurturing creative ideas through to their manifestation and onto the creative exploration of new channels of distribution of our ideas, products and services.

Cultivating a culture of risk among a larger segment of our community is an imperative. A society can only produce the quality entrepreneur that matches the environment within which that entrepreneur has been raised. We have educational,

religious and familial systems that encourage conformity and low exposure to risk. Failure is frowned upon. Children are told their dreams are too big. Employees are reprimanded for mistakes and society is tightfisted with second chances when it comes to the recalcitrant. We are scared to let our children play outside even when we are supervising; they can’t run too far. What has this to do with achieving our 2020 vision? Everything! Unless our hopes and optimism are backed by small to major adjustments in our perceptions, beliefs and actions, we will not make it. So we must:

• be clear on our vision• Sanitise our external environment: the national systems and

structures that stymie entrepreneurs must be re-invented• Re-imagine our internal environment (our minds) by making it

fearless• Transcend our island boundaries and see ourselves as valid

competitors in the international arena• Create a more powerful Internet presence• Accept that failing is a key ingredient in success• Let our children fail in businesses before they reach ten

The goal is possible. My reservation is, “Have we the national and entrepreneurial courage to break away from the norm to risk going after this national dream?”

In addition to long term planning we need to cultivate a culture of commitment to the long haul. We live in an era of the 24-hour news cycle and bite-sized pieces of information. The immediacy with which our desires are met, has made us impatient and has rendered disciplines like delayed gratification, artifacts.

Cheryl Gittens is a Lecturer (UWI), Master Executive Life Coach, Business Coach and founder of Connect With your Passion Coaching. visit www.connectwithyourpassion.com or reach her on 1-243-3853 or 1-301-45-85-485.

2020 vISION: I THINk WE CAN

“Companies achieve competitive advantage through acts of innovation. They approach innovation in its broadest sense, including both new technologies & new ways of doings things” - Michael Porter

By Cheryl Gittens


Productivity

In the face of external competitive pressures occasioned by the onslaught of globalisation, no organisation can afford to have employees who are not operating at their optimum levels.

In fact, workers are being encouraged to inculcate a spirit of productivity into their psyche as the impetus to improving the company’s bottom line and maintaining employment levels.Given this situation, Chief Programmme Manager at the Productivity Council, Anthony Sobers, underscored the need for Barbadian workers to be more productive or run the risk of being left behind in the struggle for survival in the global market. He sounded this warning during a media conference to release the findings of the Macro Productivity Indicators survey at the Council’s Enright House, 2nd Avenue Belleville, St. Michael location recently. The survey examined productivity levels in five sectors: tourism, financial services, construction, manufacturing and wholesale and retail trade.

Giving an insight into the data, Sobers revealed that the island recorded 3.7% in national growth in 2010, compared with a negative growth of 3.1% recorded in 2009. Additionally, there was a 1.1% growth in tourism and the financial services sectors.However, the results for the construction, manufacturing and wholesale and retail trade were disheartening. The Chief Programme Manager noted that productivity growth in construction declined by 29%; wholesale and retail trade dipped by 6.4%; while manufacturing was down by 5%.Sobers, though heartened by the overall growth in national productivity despite the prevailing economic situation, said the Council was still not satisfied with current productive levels.

“We [Productivity Council] are not totally satisfied so, this year we are renewing our spirits and putting more focus on process management and analysis to see how productivity can be enhanced.

“Overtime, productivity is expected to drive economic growth. Poor productive performance slows aggregate demand for goods and services, which keeps productive capacity idle and underemployed and creates lags in investment,” Sobers underlined.

Akin to achieving improved productivity he added, was employing effective human resources practices that would lead to higher productivity and growth levels while at the same time, maintaining our standard of living.

“Our business environment must be characterised by efficiency, rapid market response, good management and employee relationships. The link between management and employees at different levels of the production process must incorporate

incentives to maximise productivity growth and competitiveness, if the country is to be a major player in the global world,” Sobers surmised.

Meanwhile, Senior Productivity Officer at the Productivity Council, Joanne Mapp, mentioned the need to implement performance pay schemes especially during recessionary times, when employees are being asked to give back more to their respective enterprises.

“At present, we are seeing a freeze on salary increases but we are asking a lot more of our employees and, therefore, they must be compensated for the improved performance and that’s where the performance pay systems become relevant.

“Even though we are not seeing the type of salary increases that we have seen traditionally we however recommend that organisations look at some aspect of performance pay when the company improves its bottom line or have achieved specific measures while taking individual employee performance into consideration, when such schemes are being conceptualised,” she emphasised.

Mapp said compensation packages had played a role in employers’ efforts to “mitigate against low level salary increases and maintaining staff levels”.

She also credited the Social Partnership Agreement for helping to reduce layoffs by putting other measures in place to cushion the impact.

Sobers added that in the future, companies must “create the requisite framework and apply a level of discipline. On the other hand, employers must be encouraged through discussion, training and leadership,to perform at the highest levels at all time”. If this prescription is followed, Barbadian companies and human resources practitioners by extension, would be satisfied that efforts to transform their labour practices in line with the new millennium have borne fruit. (BGIS)

Productivity In Barbados – A Survey Of Five Sectors


Sowing The Seeds

23

With just enough nurturing and support, every seed can bloom into a fruit-bearing success story. The Barbados Investment and Development Corporation (BIDC) firmly believes that and so

took a team of business development officers to the Irving Wilson school at Pine Plantation Road, to plant not only opportunities for entrepreneurship amongst the students there, but also pride and industry in a new and dynamic way.

This effort is one of the Corporation’s Explore To Grow initiative and gives students with disabilities the opportunity to learn artisanal skills in a number of areas. Nine students at the Irving Wilson School participated in the opening day of a 12-week jewellery-making workshop.

Under the watchful eye of tutor Sandra Stanley of De Verte Pappier, the Irving Wilson students eagerly participated in the exercise fashioning pieces of jewellery from recycled paper.

The workshop gave the students hands-on skills training, exposure to the basic tenets of entrepreneurship and an opportunity for immersion into the world of craft. It was coordinated by BIDC Officers, Sheena Thorne and Chauntel Thomas. The initiative will be conducted also at the Ann Hill School, First Base and the Challenor School.

BIDC Goes To SchoolTutor Sandra Stanley gives some of the students a helping hand.

EXPLORE TO GROW


CRAFTSMEN OF OUR FATE

To many Barbadians, the phrase “Craftsmen of our fate” suggests more than fashioning our future through hard work and dedication.

A look at the students of the Ann Hill School gives an even clearer perspective on this. Through the intervention of the BIDC the school is shining the light on pottery as an exciting avenue for young people to express their creative talents. BIDC’s donation of a kiln and other pottery equipment to the school, has allowed students to pour that latent creativity into unique works of craft. By opening the door to the world of crafts through this pottery programme the Corporation is hoping to give students a deeper appreciation for crafts while unlocking employment possibilities in the future.

In a drive to sustain the faltering pottery sub-sector, the Corporation also made donations of kilns to the St. Michael School and the Lodge School. The “Craftsmen of our Fate” initiative will take crafts across the island to primary and secondary schools and will highlight the Crafts Industry as a viable and worthwhile area of enterprise for young people.

Sowing the Seeds

One of the donated kilns

Some of the students’ work in progress

FROM IDEA TO ENTERPRISE

The opportunity to move from idea to enterprise is one which the BIDC is planting at secondary schools across the island. The pilot project for this initiative was started at the St James Secondary School in September 2011 and offers an assisted entrepreneurial journey for students who are not only interested in learning about the theory but also going through the experience of developing and managing an actual business entity at the school.

Students are challenged to take a business idea from conception to the marketplace. Director of the BIDC’s Entrepreneurship Development Division Michael Bynoe believes this initiative will yield tremendous returns. He noted that efforts are underway to roll out this programme to two other schools within the new school term.


Global Reach

Barbadians and Barbadian descendents residing in the USA, Canada, Europe, Cuba and Latin America will be converging in Barbados in August for the second biennial Diaspora Conference, officially known as The Barbados

Network Consultation 2012.

The conference presents a significant opportunity for those keen to grow and expand their businesses beyond these shores. Open to all Barbadians, Barbadian descendents and friends of Barbados overseas and in Barbados, it will be held at the Lloyd Erskine Sandiford Centre from August 2-10, 2012. It will feature an attractive package of seminars, workshops, social and cultural activities and will culminate with an awards gala where outstanding Barbadians from the Diaspora will be honoured.

The event is being spearheaded by the Ministry of Foreign Affairs and Foreign Trade in collaboration with a number of stakeholder agencies and Ministries including; the Barbados Tourism Association (BTA), BIDC, BHTA, NCF and the ministries of Culture, Industry and Tourism.

Minister of Foreign Affairs and Foreign Trade Senator the Hon. Maxine McClean has stressed that the BNC 2012 will provide the ‘market space’ for the sharing of information and ideas, for creative initiatives to be discussed and for networking, all in support of Barbados’ development. It will feature an Innovation Room for showcasing novel Barbadians inventions and a speed networking segment which will serve to put local producers in contact with potential buyers.

And the scheduled exhibition affords an excellent opportunity to promote locally made products and/or services to the Barbadian Diaspora community and to establish linkages with them that will serve long term market interests. Persons interested in advertising products and services to hundreds of Barbadians from all walks of life and from all over the world in just four short days - August 7-10th, 2012 are being urged to contact Shennel Richards on (246) 431 2286 or [email protected].

The conference theme this year is “Linking Generations – Embracing Our Youth”. This is in keeping with a recommendation from the BNC 2010 that in 2012 the conference be youth centred and that it aims to maintain and increase the interest of first, second and third generation youth of Barbadian descent in things Barbadian and to connect Barbadian youth at home and abroad.

Implicit in the theme is a clear statement that the BNC 2012 is for all age groups – those passing the baton and those receiving the baton.

Members of the Young Barbadian Professional Society based in New York, will assume a key role in coordinating a career showcase, putting the spotlight on high potential career options Barbadian youth may not be aware of.

For more information on participating in this event please visit the website www.foreign.gov.bb/barbadosnetwork

The Diaspora Is Coming! ARE yOU READy?

Minister McClean addresses participants in the press conference announcing the hosting of BNC 2012.


News to Note

The BIDC has a new Board of Directors. The new Board was appointed effective Feb 1, 2012. It is led by Mr. Ashley Toppin as Chairman along with Mr. Michael Allamby, Deputy Chairman. Other members are Mr. Lewis Kirton, Mrs. Muriel Robertson, Mr. Henderson Holmes, Mrs. Samantha Rock, A Representative of the Barbados Workers’ Union, A Representative of the Barbados Manufacturers’ Association, The Permanent Secretary of the Ministry of Industry, Small Business and Rural Development.

NEW BIDC BOARD

Barbados can now exchange international business information with the United Kingdom (UK) following the signing of the Convention for the Avoidance of Double

Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on capital.

The Convention was signed recently by Minister of International Business and International Transport, George Hutson, and Minister of State in the UK Foreign and Commonwealth Office, Henry Bellingham, at Government Headquarters, in Bay Street, St. Michael.

Minister Hutson stressed that the Convention addressed observations made in the Global Forum’s Phase 1 Peer Review Report of Barbados, which indicated that this country did not exchange information on international business entities with the UK because they were excluded from the existing Agreement which dated back to 1970.

“With the update of the exchange of information provisions, the international business entities are now covered by the Convention and Barbados can, therefore, exchange information on these entities,” the Minister said.

He added that the signing of the Agreement continued the strong and positive relationship for Barbados and the UK as it updated the exchange of information Article of the existing Convention to bring it in line with current international standards on transparency and exchange of information for tax purposes.

And, as Barbados moves onto Phase 2 of the Review scheduled for the first quarter of next year, the Minister pointed out the revised Convention would unquestionably enhance the investment framework between the two countries and contribute to the expedition of trade and investment activity.

“This is, therefore, an important step in deepening

mutual co-operation in matters of international taxation and would

further bolster relations between Barbados and the United Kingdom,” Hutson said.

He stressed that both governments had a responsibility to ensure that the Agreement worked to the benefit of the two countries.During the signing, Bellingham stated that the Agreement sent a clear signal that Barbados and the UK were serious about increasing trade. But, he said, it would be a work in progress.He added that the Agreement would also reduce the level of bureaucracy and burden on international businesses coming to Barbados, and those seeking to export to the UK.

“Businesses [engaged in trade] need taxation arrangements that are fit for purpose,” Bellingham said. He pointed out that Barbados and the UK had relatively low competitive taxes for companies and personal taxes.

“We believe in having the right conditions for enterprise and business, and the important framework is to have in place a tax system that is fit for purpose and that meets international standards, and gives businesses comfort. [In addition], both governments must be able to raise the tax that is due,” the UK Minister indicated. (BGIS)

BARBADOS Uk DOUBLE TAXATION AGREEMENT


Ecoscope

Barbados is taking steps to improve the way it handles harmful chemicals.

This was stated by Environmental Technical Officer at the Environmental Protection Department (EPD), Philip Pile, who said the country needed to improve the mechanism of protecting human health and the environment from the potential negative impact of chemicals.

In an effort to address this, Pile said Barbados was undertaking a project to establish nationwide standardisation through the Globally Harmonised System of Classification and Labelling of Chemicals (GHS).

To facilitate the process of implementation, the EPD is being assisted by the United Nations Institute for Training and Research (UNITAR).

“GHS is a system to determine the type of hazard a chemical will cause, and communicate that hazard to the people using it,” he noted. He explained that “armed with greater awareness of the hazards, we could expect to see safer use of chemicals in the workplace and in the home, and a greater demonstration of environmental stewardship when disposing chemicals”.

He added that as a part of the project, Barbados would develop a draft National GHS Implementation Strategy which would outline the goals, activities and suggested implementation mechanisms for the actions needed to achieve its effectiveness in the GHS target areas.

Pile pointed out that agriculture, transport, industrial workplaces and consumer products were the key areas being focused on, as they were the ones where people were more likely to come into contact with chemicals.

Initial surveys conducted by the EPD showed that those who dealt with chemicals had misconceptions about the meaning of some of the GHS hazard communication elements.

“Generally, respondents from all the sectors were not using the labels effectively, and were relying on their own knowledge and experience to determine how they should handle chemicals,” the Environmental Technical Officer said.

He suggested that pictograms such as the Exclamation Mark, Gas Cylinder, Flame Over Circle and Health Hazard were largely misinterpreted.

Pile also noted that the survey highlighted a need for training in the use of GHS Safety Data Sheets in industrial workplaces and the agricultural sector, as well as increased public education programmes for consumers.

He promised that the EPD would endeavour to develop such programmes. (BGIS)

BARBADOS MOVING TOWARDS GHS INTERNATIONAL STANDARDS

“armed with greater awareness of the hazards, we could expect to see safer use of chemicals in the workplace and in the home, and a greater demonstration of environmental stewardship when disposing chemicals”.


Cultural Etiquette

LanguageThe United Kingdom (UK) is comprised of four countries: England, Scotland, Wales, and Northern Ireland. It is important not only to be aware of these geographical distinctions, but also the strong sense of identity and nationalism felt by the populations of these four nations. The terms ‘English’ and ‘British’ do not mean the same thing. ‘British’ denotes someone who is from England, Scotland, Wales or Northern Ireland. ‘English’ refers to people from England. People from Scotland are ‘Scots’, from Wales ‘Welsh’ and from Northern Ireland ‘Irish’. Be sure not to call someone Welsh, Scots, or Northern Irish ‘English’.

GreetingsA firm handshake is the norm. People shake upon meeting and leaving. Maintain eye contact during the greeting but avoid anything prolonged. Most people use the courtesy titles or Mr, Mrs or Miss and their surname. Wait until invited before moving to a first-name basis. People under the age of 35 may make this move more rapidly than older British. Business CardsBusiness cards are exchanged at the initial introduction without formal ritual. The business card may be put away with only a cursory glance so don’t be offended if not much attention is paid to it. Business cards are often exchanged at the end of meetings. However, exchanges can occur at the start also. Not everyone has business cards or carries them. If someone fails to produce one, do not take it personally.

Communication The British have an interesting mix of communication styles encompassing both understatement and direct communication. Many older businesspeople or those from the ‘upper class’ rely heavily upon formal use of established protocol. Most British are masters of understatement and do not use effusive language. If anything, they have a marked tendency to use qualifiers such as ‘perhaps’, ‘possibly’ or ‘it could be’. Remember that, illustrative of British courteousness, instructions are often disguised as polite requests.

When communicating with people they see as equal to themselves in rank or class, the British are direct, but modest. If communicating with someone they know well, their style may be more informal, although they will still be reserved. Written communication follows strict rules of protocol. How a letter is closed varies depending upon how well the writer knows the recipient. Written communication is always addressed using the person’s title and their surname. First names are not generally used in written communication, unless you know the person well. E-mail remains more formal, at least initially, than in many other countries. Most British will not use slang or abbreviations and will think negatively if your communication appears overly familiar.

Building Relationships The British can be quite formal and sometimes prefer to work with people and companies they know or who are known to their associates. The younger generation however is very different; they do not need long-standing personal relationships before they do business with people

Modern business is global and demands people travel to foreign countries and mix with foreign clients, colleagues or customers. Each one of those cultures will also have their own etiquette rules, many of them unwritten. When two or more different cultures mix, it is easy for small etiquette mistakes to be made that could have negative

consequences. Not understanding the etiquette of another culture can and does lead to soured relationships, lost deals and in the end poor business results. The Barbados Business Catalyst explains the etiquette behind business dealings with the United Kingdom.

When in….THE UNITED kINGDOMThe Cultural Etiquette Critical for Success

and do not require an intermediary to make business introductions. Nonetheless, networking and relationship building are often key to long-term business success. Most British look for long-term relationships with people they do business with and will be cautious if you appear to be going after a quick deal. Building Meetings If you plan to use an agenda, be sure to forward it to your British colleagues in sufficient time for them to review it and recommend any changes.

Punctuality is important in business situations. In most cases, the people you are meeting will be on time. Call if you will be even 5 minutes later than agreed and offer your apologies. If you are kept waiting a few minutes, do not make an issue of it.

How meetings are conducted is often determined by the composition of people attending: If everyone is at the same level, there is generally a free flow of ideas and opinions. If there is a senior ranking person in the room, that person will do most of the speaking.

In general, meetings will be rather formal: Meetings always have a clearly defined purpose, which may include an agenda. There will be a brief amount of small talk before getting down to the business at hand. If you make a presentation, avoid making exaggerated claims. Make certain your presentation and any materials provided appear professional and well thought out.Be prepared to back up your claims with facts and figures. The British rely on facts, rather than emotions, to make decisions. Maintain eye contact and a few feet of personal space. After a meeting, send a letter summarizing what was decided and the next steps to be taken DiningUnlike many European cultures, the British enjoy entertaining people in their homes. If you are invited to a British colleague’s home, or any British home, it is quite usual to bring flowers, chocolates or wine for the hosts. You may arrive 10-15 minutes later than invited to dinner. However, if going to a restaurant, be on time. Remain standing until invited to sit down. You may be shown to a particular seat. Do not rest your elbows on the table. If you have not finished eating, cross your knife and fork on your plate with the fork over the knife. Indicate you have finished eating by laying your knife and fork parallel across the right side of your plate. Toasts are given at formal meals. When in a pub, it is common practice to pay for a round of drinks for everyone in your group. If invited to a meal at a restaurant, the person extending the invitation usually pays. Do not argue about the cheque; simply reciprocate at a later time.

Gifts The British exchange gifts between family members and close friends for birthdays and Christmas. The gift need not be expensive, but it should usually demonstrate an attempt to find something that’s related to the recipient’s interests. Gifts are opened when received.



Trading Developments

The Economic Partnership Agreement (EPA) between the European Union and the Caribbean Forum of African Caribbean and Pacific States (CARIFORUM)

provides a comprehensive framework to improve the flow of investments between the two parties. This is according to a new report commissioned by the Caribbean Community (CARICOM) Secretariat-based EPA Implementation Unit.

This was one of many findings of the just-completed report, tasked with a review of the legal framework in CARIFORUM States with respect to investment and the flow of investment between CARIFORUM States and the EU for consistency with their commitments in international agreements. CARIFORUM and the EU are to review their investment legal framework, and related areas, in accordance with Article 74 of the EPA.

As a result of national consultations, CARIFORUM States had indicated the need to determine the impact of their liberalization commitments in the EPA towards ensuring that the benefits to be derived under the Agreement are obtained as well as to make informed decisions on additional areas for further liberalization. In response, a project was launched by the EPA Implementation Unit. This included hiring of a Consultant to provide appropriate technical guidance to allow informed decisions to be taken in respect of the Region’s obligations under the Investment and Commercial Presence obligations of the EPA. The consultancy took account of the investment legal framework, investment environment and the flow of investment from the EU to CARIFORUM. Cognizant of the importance of monitoring and evaluating to assess the impact of commitments, the Consultant was also tasked to provide recommendations on an instrument to monitor the flow of investment between CARIFORUM and the EU.

“Having a better appreciation of the realities in States is crucial to making decisions to ensure that the benefits to be derived

under the agreement are obtained,” said the Regional Unit’s Trade in Services and Investment Specialist, Ms S.H. Allyson Francis. She further stated, “the findings are enlightening and form a good basis to better focus our minds on the task at hand, which is improving the investment climate and the flow of investment between the EU and CARIFORUM.”

While some of the findings were encouraging, they were tempered by some stark assessments with respect to the EPA. Of note, the report underscored that there is little awareness of EPA/foreign direct investment (FDI) tied advantages among the private sector in CARIFORUM States and within the EU. It was found that this lack of knowledge extended to EU investors as well.

Particular note was made that the legal framework of CARIFORUM States is in need of harmonization to cope with the FDI commitments of the EPA. With respect to national legislation pertaining to foreign investment, asymmetries were revealed in their respective legal systems and the level of regulation that needs to be addressed in order to create a reliable framework for investors. Government bureaucracy and the lack of a common policy among CARIFORUM States on investment promotion were also cited as areas of concern.

The report’s recommendations included the call to increase awareness of the EPA, as well as its commitments and advantages, among the business community, in particular through: (i) education; (ii) sharing of best practices; (iii) showcasing successful regional FDI models; and (iv) implementing a methodology to collect and process statistical information on FDI in CARIFORUM States.

Advancing the recommendations is a top priority for the EPA Implementation Unit and the expected result is an improved climate and flow of investment from the EU to CARIFORUM.

The CARICOM Regional Organisation for Standards and Quality (CROSQ) and the Caribbean Development Bank (CDB) have partnered in an

initiative which is designed to assist the region’s exporters in accessing opportunities in the European Union (EU).

The three year project, entitled Strengthening the Capabilities of Testing Laboratories in the Caribbean to Reduce Technical Barriers to Trade, was established with CROSQ’s signing of a Grant Agreement from the CDB, through its Caribbean Aid for Trade and Regional Integration Trust Fund (CART Fund). As part of the project, the two organisations hosted a workshop series to assess the needs of exporters.

The project’s focus will be on strengthening regional testing laboratories, to ensure products to be introduced

in to the EU market meet the requisite standards. It also aims to alleviate existing technical barriers to trade, which include requirements such as product testing and certification from accredited laboratories.

These programmes are expected to benefit regional and local markets, as more cost efficient, international standard testing will be made available. In addition, they will also serve the interests of those exporters who hope to reach additional international markets.

The workshop series is the first activity of the CROSQ/CDB CART Fund project and will assist CROSQ in identifying the necessary laboratory services for exporters, and ultimately assist three regional laboratories to achieve accreditation.

EPA PROvIDES FRAMEWORk TO IMPROvE FLOW OF INvESTMENTS

REDUCING BARRIERS TO TRADE


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