BIDC Business Catalyst 6 #4.indd 1 2/23/11 5:33:43 PM · BIDC Business Catalyst 6 #4.indd 3 2/23/11 5:33:46 PM 4 Barbados Business Catalyst • October - December 2010 Barbados Business

BIDC Business Catalyst 6 #4.indd 1 2/23/11 5:33:43 PM


3Barbados Business Catalyst • October - December 2010

Recent Developments

Barbadian small and medium sized enterprises (SMEs) operating in high potential export sectors are in for a boost.

This comes with the launch of the FINPYME ExportPlus programme here.

The programme, an initiative of the Inter-American Investment Corporation (IIC) was officially rolled out on December 2 at the Lloyd Erskine Sandiford Centre, in collaboration with the Barbados Investment and Development Corporation (BIDC), the Barbados Chamber of Commerce and Industry, the Barbados Manufacturers Association (BMA), the Small Business Association (SBA), the Barbados Coalition of Services Industries (BCSI), Caribbean Export, Scotiabank and the Cave Hill School of Business. This followed similar launches in the Bahamas, Guyana and Suriname. FINPYME ExportPlus seeks to support SME competitiveness internationally and complements the Inter American Development Bank’s (IDB) programmes related to the World Trade Organisation’s (WTO) Aid for Trade Initiative. The programme operates on three fronts: First market research is undertaken to identify key sectors where SMEs are active and have the potential to boost exports if they can become more efficient and gain access to new markets. Data is then gathered on SMEs operating in these sectors to identify those that could benefit most from technical assistance services. Eligible SMEs are then selected to receive support for their export-related activities. Their operations and business plans are analysed and they are offered technical assistance oriented towards the strengthening of their export capabilities.

As Steven Reed, Deputy General Manager at IIC explained, “The first aspect is to identify the areas of economic activity, identify themes and clusters and then create tailor-made programmes; also identifying the most attractive export markets. The ultimate goal is that we would like the businesses that didn’t have the resources, knowledge and capability to begin to export, to find export channels and ensure the product has a receptive market, and therefore increase the level of exports coming out of the participants that go through this technical training.”

To be eligible for FINPYME ExportPlus, companies should have been operating for at least three years; have annual sales of at least US$200 000; operate in IIC eligible sectors and operate in compliance with environmental and occupational safety laws and regulations. SMEs can start applying for the programme from February 1, 2011.

Application forms are available at http://www.finpyme.org.

FINPYMEEXPORT PLUS


4 Barbados Business Catalyst • October - December 2010

Barbados Business Catalyst October - December 2010 Vol. 6 #4

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FINPYME Export PlusTable of ContentsEditor’s Desk - Trade Shows, Expos & ConferencesCEO’s DeskThe French Caribbean - the New OpportunityBMA Pushing Ahead for 2011When Opportunity Knocks, Think TwiceWhen Opportunity Knocks... How the BIDC can helpIndustries of the FutureNew Small Business FacilityHome and Accessories ShowNew Export DriversBenefits to Buy IntoManagement Entrepreneurs NeededAbusStarEconomic Outlook 2011BBC NotebookBIDC Gets Green LightEcoscope - A Journey Through Bajan FaunaTradescopeManuFacts

Disclaimer:Some of the views expressed in this publication are the views of the writers and not necessarily those of the BIDC. © 2010 BIDC.

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

PG. 6

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:Sonja Trotman, Email: [email protected] Gooding, Email: [email protected]

Ecoscope Coodinator:Paula Bourne, 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]

When Opportunity Knocks

The French Caribbean:The New Opportunity

BMA Pushes AheadFor 2011

PG. 8 PG. 10

Barbados Furnishings and Accessories On Show

A Journey ThoughBajan Fauna

PG. 18 PG. 31


5Barbados Business Catalyst • April - June 2010

Editor’s Desk

For entrepreneurs, trends present an incredible world of opportunities.

Once they’ve identified a specific trend, then all their imagination and creative ability can go into generating products and services to satisfy the demand which that trend creates.

Keeping on top of emerging trends is like having a window into the future where you get to discover today the direction of tomorrow’s consumer demand.

For the most part, success in taking advantage of emerging opportunities requires a keen sense of curiosity, along with a determination to understand the opportunity and to follow your nose. Sometimes a smattering of serendipity intervenes to speed the progression along. But the difference between success and failure lies really in recognising an opportunity and seizing it. If you believe in yourself and the possibilities before you, there’s nowhere to go but up.

So what are you doing to keep yourself open to possibilities?

In this issue we hope to explore some of the options available to take advantage of opportunities emerging in trade, new ventures, and business expansion. We will share with you research findings on the industries of the future and will offer some insight into the benefits and incentives available to persons interested in starting a new venture or expanding their current business portfolio. We will also explore some of the pitfalls to avoid in the pursuit of opportunistic endeavours.

We hope you find this issue as intriguing as we did in putting it together.

By Jane L. Brome

Trade Shows, Expos and ConferencesFebruary 25th - 27th, 2011, AgrofestThe National Agricultural Exhibition, more popularly known as Agrofest, is gearing up to be even bigger and better for 2011. The seven-year-old exhibition will run from Friday, February 25, to Sunday, February 27, 2011 in Queen’s Park, Bridgetown. Agrofest is coordinated and hosted by the Barbados Agricultural Society (BAS).CONTACT: www.basonevoice.org

March 13th - 15th, 2011, CICA International ConferenceThe Captive Insurance Companies Association (CICA) continues to work to provide the foremost education, networking and leadership for captive and risk retention group professionals. Its annual international conference delivers the latest information from leading industry experts on the factors and trends shaping the captive and risk retention industry, Key players from domiciles all over the world connecting and conducting business, Top industry service providers, including Barbados based professionals showcasing innovation solutions and services in the Exhibit Area and Interactive sessions and dynamic panel presentations exploring real-world solutions and trends.CONTACT: [email protected]

March 21st - March 25th, 2011, BIDC Trade MissionThe Barbados Investment & Development Corporation (BIDC) is coordinating a trade mission to some of its key markets with CARICOM. Participating delegates which will be drawn from a cross section of Barbadian manufacturing companies, are expected to visit St. Lucia; St. Vincent; Grenada. The mission is intended not only to showcase Barbados’ product offering but also to explore neighbouring countries as source markets and joint venture partners.CONTACT: [email protected]

April 23rd - 24th, 2011, Re-Discover the Caribbean Trade ShowOver 100 exhibitors representing 20 Caribbean destinations will showcase all that’s the best in tourism industry during this year’s Re-Discover the Caribbean Show. The event will also highlight which will also showcase the latest in international professional standards is expected to attract a number of buyers.CONTACT: www.rediscoverthecaribbean.com




CEO’s Desk

Mark Twain has famously confessed, “I was seldom able to see an opportunity

until it had ceased to be one.”

While few may want to admit, it is very likely that a lot more are sitting in the good company of Twain on this.

If your business strategy includes waiting until you see opportunities that you can pounce on, it might be time to consider a new approach. This particular strategy is flawed largely because you could first of all be very wrong about what you consider an opportunity, and second, if you’re right, you’ll be too late to capitalize on it. Either way, you’ll come out the loser.

Admittedly, it is unlikely that an opportunity will just fall into your lap. And for some companies caught in the momentum of high-demand, high-growth industries, they may be content to forgo the active pursuit of any other opportunities. When that industry matures and growth begins to slow however, those once successful companies may find themselves unable to sustain the growth rates of previous years and failing to deliver the performances they have come to expect. And if you are one of those companies, you’re going to have to give up on waiting for opportunity to knock and develop a strategy for identifying where high-potential areas of opportunities may exist.

Consider for a moment that many of the greatest achievements in history came not as a result of long-planned goals or carefully thought-out strategies, but rather by way of leveraging opportunities. Researchers tracking some of the most successful international companies say that for many, real growth opportunities come with the creation of new growth platforms on which a company can build families of products and services and extend its capabilities into multiple domains. Identifying new growth platforms forces business executives to challenge their conventional wisdom and approach to innovation. It means devoting a considerable amount of time to identifying and using existing company knowledge and information, intellectual property, processes and assets and tapping into company talent to capitalize on opportunities beyond the current mix of business.

It must be remembered that whatever the nature of your business, the environment in which you operate changes almost daily. These changes manifest in the form of new competitors, products, technologies, market demands and requirements and of course, new challenges. All these are bound to impact on the decisions you make and the direction in which you lead your

By Wilbur “Basil” Lavine

When

knocksOpportunity



CEO’s Desk

company. The most effective safeguard to ensuring you make the right choices therefore is to boost the competitive intelligence-gathering capabilities of your company.

A large part of the effort involves keeping an eye on competitors. The objective though is not to steal a competitor’s trade secrets or other proprietary property. Rather it is to gather in a systematic manner a wide range of information that when collated and analysed, provides a better understanding of a competitor firm’s structure, culture, behaviour, capabilities and weaknesses. Competitive intelligence also extends to keeping track of industry and market trends, political and economic changes, legal and regulatory changes, technological developments, suppliers and materials. It is about positioning a business to maximise the value of the capabilities that distinguishes it from its competitors and is more concerned with doing the right thing than doing the thing right. The benefits shine through in improved market knowledge, improved

It must be remembered that whatever the nature of your business, the environment in which you operate changes almost daily.

7

cross functional relationships within the organisation, greater confidence in making strategic plans, improvements in product quality against the competition, and overall improved business performance as a result of doing this better.

Whether you’re fashioning new corporate strategies, creating new products or services, entering new markets, considering a merger or acquisition or charting a new path to profitability, being aware of critical issues and having the relevant information are critical to any decision you make. It is essential too that in your efforts to strive for clear goals and planned activities that you also leave room for experimental efforts where rules are relaxed and the pursuit of opportunity can reign over conservatism. Sometimes the benefits may far outweigh the risks.

It should be remembered that the ultimate goal of being in business is to be successful. If you want to be successful in business, you need to take risks by believing in and acting on your own ideas and intuition. That’s the entire principle of entrepreneurship, in a nutshell. If you wait for opportunity to knock, it’ll likely be too late.



Trade & Commerce

multi-sectoral trade mission led by the Barbados Investment & Development Corporation (BIDC) and the Barbados Coalition of Services Industries (BCSI) has unveiled significant opportunities for trade and investment between Barbados and the islands of

Martinique and Guadeloupe.

The 16 companies which participated in the venture returned home, some having secured direct and immediate business opportunities and others having forged relationships and exchanged dialogue in pursuit of strengthening commercial ties. Representing firms from Barbados’ construction, food and beverages, apparel and accessories, information communication technology, cultural industries and financial services sectors, the group reported positive outcomes and high-potential prospects for doing business with the French territories.

They were able to initiate discussions with prospective business partners while showcasing their product and service offerings during the pre-arranged business-to-business (B2B)meetings and networking receptions. Approximately 100 such B2B meetings were facilitated during the November 17-24 visit, through the efforts of consulting firms Nouvelle Dynamique Martiniquaise (NOUDYMA) and La Tribu, who were contracted to organize the business matchmaking and mission logistics in Martinique and Guadeloupe respectively. Both the BIDC and the BCSI are committed to active follow-up and engagement of the participants to ensure that the initial in-market discussions translate into successful projects.

The presence of the Barbadian delegation attracted much attention and was covered extensively in both the print and electronic media. The delegation was warmly welcomed by representatives from the Regional Council, the Chambers of Commerce, business support organizations and the business community in both territories, all expressing a keen interest and desire to enhance commercial relations with Barbados. Discussions centred mainly on efforts necessary to conquer language and cultural barriers and initiatives which could be explored to build strategic alliances, facilitate increased bi-lateral trade and investment and support cultural exchanges between Barbados and the French Caribbean. Following on the success of the mission it is envisioned that Barbados, Martinique and Guadeloupe will establish wider country-level cooperation, beyond increased market penetration and enhanced business linkages. For more information on Martinique and Guadeloupe, please visit our website www.bidc.com and have a look at our market research reports.

The NewOpportunity

THE FRENCH CARIBBEAN



Trade & Commerce

Commerical Manager of Banks Holding Limited Henry Yearwood (right), shares a taste of Barbados with Consultant Fabrice Birba (left) and an unidentified guest during the networking reception.

Head of the Foreign Trade Department at the Martinique Chamber of Commerce, Marie-Noelle Catayée (right) and International Business development Consultant, Doris Dunon (left) also with the Martinique Chamber pose with some members of the Barbados delegation.

George Hierso (second from left), of the Martinique Customs Authority makes a point to representatives of the Preconco Group of Companies, Ziad Kazan (left) and Anna Clarke (sitting) while, Michelle Bebel of the Martinique solar water heater distribution company Giordano, looks on.

The Barbados delegation attracted much media interest, here Berger Paints’ Andrea Duguid, is interviewed by Radio Caraibes International’s Laurence Baptiste Salomon.



Industry News

The Barbados Manufacturers’ Association (BMA) is moving into 2011 with an action plan intended to better position local producers to take advantage of emerging export and business opportunities.

And top of the agenda is the issue of enhancing the availability of inter-regional transport.

Executive Director of the BMA, Ms. Bobbi McKay, in sharing her organisation’s top priorities for the coming year with the Barbados Business Catalyst, said “the movement of goods within the region has for a long time been one of the biggest challenges for us”. And recognising that improved accessibility to inter-regional transport options is critical to export growth, she said the BMA has sought after a company that currently operates three ships within the Caribbean and is now negotiating for an agent to bring Barbados on board its shipping schedule.

“For us this is really urgent as it is an immediate way of increasing exports within the region,” she said.

With the service on schedule it could very well eliminate the need for locally produced goods to travel outside of the region to major shipping hubs like Miami before they can be forward to their intended destination within the Caribbean, and it could also lower shipping costs. According to McKay, the service will initially call in port every 10 days and will be able to accommodate both dry and refrigerated cargo.

Beyond tackling intra-regional transport logistics, McKay said the BMA will also be moving to strengthen industry linkages between manufacturing and tourism. While acknowledging much appreciated support from some local hotels for items like furniture and uniforms, she said “there are still some strange hurdles and misconceptions that we can’t produce what is needed by the sector.” Another bugbear she said is that too often, requests are presented to local producers at short notice or only in cases where things are broken and need to be fixed.

McKay is adamant that “mutual respect is a necessary must to enhancing relations between the sectors”.

She therefore insisted, “When we manufacturers get the opportunities to supply we also have to step up to the plate and

BMA

2011PUSHES AHEAD FOR

“For us this is really urgent as it is an immediate way of increasing exports within the region.”

- Ms. Bobbi McKay, Executive Director of the Barbados Manufacturers’ Association.

Ms. Bobbi McKay




Industry News

give people what they want. If we can deliver, then that will ensure that they buy more...If you’re talking about uniforms for example, we have to make sure we use nice fabrics, consider finishing touches and consider conveniences like more pockets and draw strings.”

Of course the “buy local” and “support local” campaign will continue but the executive director said “one of our priorities this year is to ensure that we really do walk the walk and talk the talk. Who are we to tell people to buy local when we never do it ourselves?

In the same way that manufacturers want others to support them they must be willing to do the same for others whether it’s food, drinks, dishwashing liquid, toilet paper, whatever. We really need to show that we can and we do use each other’s goods.”

To this end, McKay explained “we will be stepping up the campaign to our local manufacturers”.

Local producers are also in for knowledge development. McKay revealed that the association is hoping to host two workshops in the coming months on costing and pricing and the importance of marketing and marketing tools as a means of assisting companies in enhancing their competitiveness.

In addition, she said the BMA will be initiating a drive to improve product packaging.

“Our products are of a really good quality but we do need to improve our packaging to international standards...and that in itself will help us to improve our local and export sales.”

Turning her attention to what she considers to be some of the critical success factors in the year ahead, the BMA head said it will be important for local producers to look inwardly at their company structures to determine any support services needed.

“Small and medium sized enterprises (SMEs) in particular need to admit that they do need assistance and ask for it...Too many companies are coming to us when they’re in trouble. We need to be working with them all along and giving them support before this happens,” she said.

McKay is also urging producers to take a really good look at their products and ask themselves some questions “about the products itself, its quality, packaging, colour and really be honest about the answers”.

The creation of more strategic alliances is also to be encouraged particularly among companies who may be lacking production capacity. McKay said the BMA has been assisting a number of home-based micro businesses in establishing relations with other companies to facilitate production and co-packaging and she noted that the Association is more than willing to extend this assistance to other companies in need.

“Small and medium sized enterprises (SMEs) in particular need to admit that they do need assistance and ask for it.”

- Ms. Bobbi McKay, Executive Director of the Barbados Manufacturers’ Association.




BIDC Appointments

There’s a new face in charge of driving Barbados’ export development. It’s Ms. Sonja S. Trotman, who took up the post of Director effective August 1, 2010, following the retirement of Ms. Cora

Clarke. Trotman, who previously served as Manager and later Director of the BIDC’s Research Information and Design Services, is a qualified Economist and Administrator, with over twenty years experience in the promotion and development of international trade and business. With specialized training at the national, regional and international levels, her experience also extends to business facilitation, strategic planning, formulation and implementation of corporate and national policy. She shares her views on advancing opportunities for Barbados’ export growth with the Barbados Business Catalyst.

Q. What is your assessment of the trading environment and opportunities for exports?A. Manufacturers today operate in a very competitive environment, even in their domestic markets as they face increasing competition from foreign companies at home. Many have recognised increased competition on all trading

platforms and have accepted that if they are indeed to survive and grow that they must respond to the challenges of trade liberalization and globalization. In many instances, they are being forced to go global because of the competition.

Even though the recent economic crisis would have had a negative impact on the Caribbean, there remain several opportunities for Barbadian producers to market their products both regionally and extra-regionally. We recognise however that this must be guided by market intelligence. It is not necessarily a question of selling products in export markets in large quantities, but rather focusing in on niches and specialisation by adding value that consumers demand. In the international marketplace company size is not a major factor as small firms can be just as effective as large firms. Many of our exporters are considered small in global terms; therefore the option to carve our market niches in some of the bigger markets still provides good returns.

Q. What in your opinion are some of the major challenges confronting Barbados’ export sector?A. The challenges confronting our export sector are not unique to Barbados, neither are they new. The high cost of

NewExport Driver

Ms. Sonja S. Trotman



BIDC Appointments

production and access to financing have always been cited as major challenges. These impact all areas of exporting from the initial market research to overcoming non-tariff barriers. Exporting requires substantial up-front investment in the form of market analysis, trips to the target market to secure the required relationships, and ongoing support of export activities with promotional campaigns. Additional areas related to exporting that require significant expenditure include health, safety and technical certifications, compliance with local laws and modification of existing products to meet market needs. Then, in successfully entering a market, no export market is free from challenges, including lost shipments, delays, cultural issues, corruption, competition, political upheaval, arbitrary government action, sudden changes to regulations and other risks. Working with strategic partners such as distributors, market representatives and trade facilitation agencies that bring expertise and connections in the market can help to minimize such risk. Exporting companies or companies wishing to export must therefore conduct a careful assessment before they even venture into a market to ensure that they are ready to overcome the challenges.

Q. How could these challenges be tackled?A. I first wish to state that exporting should always be viewed as a long-term, strategic direction for a company. More often than not, exporting positively affects company performance and justifies the up-front planning, risk and investment required. In some industries there is a need for re-tooling and a new approach to production. There is also the need to take advantage of niche market opportunities and the employment of innovative approaches at both the micro and the macro levels.Manufacturing is evolving into very technologically-advanced, high-value activities. Given our operating environment, our manufacturing sector if it is to be successful, must be knowledge, capital and skills-intensive, and should be led by an understanding of market and customer needs. We need to ensure that firms are making the changes necessary to be at the leading edge in terms of production processes, global business models, organizational structures and human resource practices. Firms will need to invest in innovative mechanisms to increase productivity, invest in re-skilling their workforce, and in building a world-class management capability. These requirements confirm why exporting companies must be adequately financed and in receiving market acceptance, must be consistent in the supply and production of their products.

Q. What are your top priorities for export promotion and development in the coming year?A. In the face of increasing international competition, the BIDC will continue to focus on capacity building and extending export development services to our clients in an effort to assist them to achieve their export goals. Export promotion and development is costly and represents just one use of public sector funding.

Given the scarcity of resources, it is vital that expenditures be closely monitored to ascertain that resources are being well invested and to determine whether the policy initiatives financed have the anticipated impact of realize increased exports.

I believe that the BIDC must demonstrate the value it delivers in driving economic development and growth. We will therefore be moving to systematically record and report on the impact our services have had on the performance of beneficiary companies. Measuring and monitoring initiatives should serve to justify our existence and will advise our future direction in offering assistance.

CARICOM is Barbados’ major export market, consistently absorbing more than half of our domestic exports for the last decade. Consolidating our presence in this region is therefore paramount as we intensify our promotional thrust to reverse our recent decline in exports to this region. Barbadian companies are generally comfortable in these markets. They are likely to remain the most accessible export destinations for smaller companies and the likely first targets of companies exporting

for the first time. While building markets elsewhere is very important, we should take care not to neglect this important source of business for many companies.

The traditional, extra regional target markets of the USA, Canada and the UK will continue to be targeted for Barbadian specialty foods, beverages and craft and we will further be extending our reach to the French Caribbean and strengthening our trading relationships with Latin America.

Considerable emphasis will be placed on exporter development as we introduce programmes aimed at building capacity in companies to ensure that they become consistent suppliers to the export markets.

Q. What is your vision for the sector?A. I see the BIDC as an organization which must bring about change in Barbados’ business sector particularly as it relates to export. We need to articulate workable policies and impress upon our staff to always perform at their maximum to achieve our objectives. Several initiatives will be undertaken to change and innovate the sector and should bring about the following results: A diversified sector where companies are able to quickly adjust to meet the requirements of foreign markets; A focus on value versus volume and the integration of our products into global supply chains; Introduction of new technology to help companies leapfrog and transform their operations; An expanded and diversified product base; An ‘educated sector’ where persons know more about their processes and the competition; Exporter awareness of the challenges, not just specific to their operations, but to the industry as a whole and use of knowledge to plan and execute company and sector policies.

‘I see the BIDC as an organization

which must bring about change in Barbados’

business sector particularly as it

relates to export.’- Ms. Sonja S. Trotman, Director of Export



BIDC Assistance

The Barbados Investment and Development Corporation (BIDC) is the agency of Government, with special responsibility for export promotion and for facilitating the

establishment or expansion of business enterprises in Barbados. The BIDC also administers the Government’s incentive programme for industry.

Whatever stage of development your business is at, the Corporation aims to offer the support that you need to expand and prosper. Through a range of unique services, including participation at selected trade fairs, outward trade missions and the provision of market and business intelligence, we can help you in penetrating foreign markets. Providing expert trade advice and practical support to Barbadian businesses, we can also help you every step of the way in establishing and growing your business here at home.

The BIDC’s major functions are: to advise on, promote and facilitate the development of export trade; to encourage and facilitate the establishment and expansion of enterprises to engage in the production of goods and services including small enterprises; and to provide technical and other assistance to enterprises engaged in investment, production of goods and services to improve their efficiency and productivity;

So when opportunity knocks for you to a new market consider our unique range of export development services which includes participation at selected trade fairs, outward trade missions and the provision of market and business intelligence. We can help you in penetrating foreign markets through our market development programme and we can assist you in getting export ready through our export readiness initiative. We also provide expert trade advice and practical support from a core of business development officers and we act as a liaison between overseas buyers and Barbadian exporters of goods and services.

When opportunity knocks for you to grow your business, check out our Special Technical Assistance Programme for production and managerial improvements. The BIDC also offers assistance in co-coordinating joint venture efforts between local and overseas interests.

When opportunity knocks for you to pursue a new venture visit our Small Business and New Enterprise centre where you can access a full suite of specialized technical assistance in conceptualizing, planning and implementing new ventures. Our design advisory and assistance service can assist you in establishing your corporate identity and getting your packaging

and labeling just right. We also provide operating space on a lease/purchase basis along with technical advice on factory erection and location. In addition to our properties spread across 12 industrial estates, there is the Pelican Craft Centre, the largest of facility of its kind in the Caribbean, dedicated entirely to arts and crafts. The Centre is divided into retail and workshop sections and there is also a gallery and annex, a wine bar & bistro, a restaurant and an artist wall.

The BIDC also executes specialized programmes in which clients can enroll like our innovation support initiative which aims to ensure that no good ideas are lost due to a lack of financial, technical or other means of pursuing the development of new products/services with good commercial potential; the mentorship programme intended to help small business persons to benefit from the knowledge and experience of well-established and leading professionals and educators; and the incubator initiative intended to house new and emerging businesses and to improve their chances of success. The incubator has both a residential element where companies can stay for up to 3 years and a virtual element where home-based companies like the resident incubatees, can access a full range of support services, facilities and in-house consulting services.

For your everyday business needs, we offer an information service on the social, political and economic life of the island. There is also a well-maintained trade and industry information services centre with over 8,000 publications available to those seeking business opportunities, overseas contacts and related information.

For information on how you can benefit from any of these services contact us at email [email protected] or telephone (246) 427-5350.

When Opportunity Knocks...How the BIDC can help

BIDC Business Catalyst 6 #4.indd 14 3/1/11 9:28:27 AM


For as long as he could remember Paul Waithe has always had an interest in international trade.

Following on his academic training where he gained a BSc in Science and a MSc. in International Trade Policy, Waithe’s entrepreneurial pursuits led to the establishment of an import distribution agri-business and saw him undertaking work beyond Barbados and into Tobago, Grenada, St. Vincent, Guyana and the Dominican Republic with an impressive list of major retailers as clientele.

His appointment as Manager of Export Promotion and Development (EPD) at the Barbados Investment & Development Corporation (BIDC) could therefore be seen as a natural progression on the career development path.

Waithe, a former director of the Barbados Water Authority and the Barbados Agricultural Society, taking time out from his first days in office to speak to the Barbados Business Catalyst, said he now has a great opportunity to work with companies in developing Barbados’ true export potential.

He is particularly keen on “consolidating Barbados’ position in our main export markets across CARICOM, maximising our reach and then expanding beyond that”.

Expansion in his view means a greater emphasis on new product development to better “articulate sophistication and product diversification of the export base”.

BIDC Appointments

When Opportunity Knocks...How the BIDC can help

This, he added, will also extend to tackling capacity constraints to ensure sustainability of supply and developing a new cadre of exporters.

New market penetration is also high on his agenda and so Waithe is eager to work with local producers to ensure they meet international standards compliance and certification. Beyond target markets in Europe, he is keen on exploring market niches in South and Central America, “focusing on these markets not only as outlets for sales, but also as source markets for raw materials that would allow us greater product diversification”.

Waithe, whose background also includes merchandising and product promotion, is also looking to develop a new suite of electronic promotional materials to highlight Barbados export products. And beyond this he is open to exploring “more high tech ways of interacting with the public” as part of efforts to improve the delivery of BIDC export assistance.

Of course participation in major trade shows and expos is on the agenda and in time, Waithe is hoping to see the BIDC and Barbados by extension participating in events like the London 2012 Olympic and Paralympic Games.

He reasoned, “The focus may be on the athletes but this presents a perfect opportunity to highlight Barbados and the products of Barbados.”

Expansion in his view means a greater emphasis on new product development to better “articulate sophistication and product diversification of the export base.”

- Mr. Paul Waithe, Manager of Export Promotion and Development, BIDC

Managing Export

GrowthManager of Export Development and Promotion, Paul Waithe.



Looking to the Future

A recent analysis of industry indicators suggests that several sectors of manufacturing are deemed to be uncompetitive, with some old products lacking appeal.

Foreign exchange earnings remain limited and there is an urgent need for economic diversification. Moving towards a more dynamic future requires a new strategic approach driven by entrepreneurial and innovation-led initiatives that utilise scientific approaches, take advantage of emerging technologies, emphasize creative thinking and reinforce competitiveness.

We envision a future for the manufacturing sector that: is dynamic, sustainable, and boundless; transcends traditional industries and that promotes national economic growth. The BIDC has therefore undertaken research in support of moving Barbados closer toward the realization of this vision. The research, based largely on trend analysis, has pointed to several new high-potential growth industries which if pursued and developed can better position Barbados’ productive sectors. The research was undertaken in line with Government’s vision of transforming the island into a green economy and in accordance with Barbados developmental goals. It also took into consideration Barbados’ changing demographics, its population characteristics, changing consumer preferences and infrastructural resources and capabilities. It also takes into account our resource base namely our educational and human resources, largely untapped knowledge of tradition,rich biodiversity and under-exploited wind/solar energy.

These are the industries of the future.

ENVIRONMENTAL TECHNOLOGIESRenewable energy technologies are increasingly being sought after as alternative energy sources to combat the effects of global warming, minimize pollution and reduce the reliance on fossil fuels. Demand is increasing for products and processes that reduce energy consumption, encourage more efficient

use of resources and increase production efficiency. Given the increasing demand for energy efficient improvements, there is scope for establishing eco-innovation industries to produce:• Cleaner transport e.g solar, natural gas powered • Alternative energy production systems e.g photovoltaic panels

for generating electricity, wind turbines for power • Smart meters for measuring electricity and water usage to

reduce consumption and cost • Water saving devices to reduce consumption and cost • Photovoltaic lighting systems including security and street

lighting to reduce consumption and costs • Energy efficient cooling and heating systems for all types of

buildings• Building insulation to reduce heat• Industrial equipment such as pumps and valves that conserve

energy in production plants• Eco-friendly products with minimal impact e.g natural cleaning

agents, pesticides, packaging• Sustainable waste management & recycling – promoting

materials management by providing solutions to reduce, reuse and recycle waste and promote use of renewable raw materials

• Pollution control & monitoring – providing solutions to eliminate or reduce pollution and enable effective pollution management

• Ecosystem resource management – promoting sustainable use of land and coastal regions, as well as critical ecosystem resources

• Sustainability/environmental consulting – providing advice on good practices and solutions for tackling sustainability and environmental impacts

HEALTH & WELLNESSBarbados is moving closer toward an ageing population. Some 31% of the population will be classified as elderly by 2025. More than 50% of females and 30% males are considered to be obese. It is estimated that 1 in 5 persons will have a non-communicable

Industries of the

FutureBy Jane L. Brome



Looking to the Future

chronic disease (diabetes/hypertension) by 2025. Given these statistics, it is projected that goods and services which help people live longer, healthier lives will be in demand. Already there is increasing interest being shown in:• Organic/natural foods e.g specialty flours, spices, fresh/dried

herbs & fruit• Healthier alternatives e.g low-sodium, unsweetened, no-

cholesterol options• Functional foods that promote physical and dietary well-being

e.g purifying herbal teas; extracts like sorrel for high blood pressure; pomegranate for heart disease.

• Orthopaedic products for the elderly and persons with special needs like diabetics

• Botanicals/cosmeceuticals e.g natural products for younger, clearer skin, organic hair care & dyes, aromatherapy essential oils

• New and improved traditional products • Social care solutions for the elderly and those with specialist

needs e.g hospices, day/night care • Sports, athletic, fitness & nutritional centres • Organic farming (food)• The cultivation and sale of medicinal plants

FASHIONIt is often said that the start to any great outfit is an inside job.This has seen demand increasing for foundation garments that temporarily alter the body shape to achieve a more flattering figure. The fastest growth is occurring in the plus size segment but on the whole demand continues to climb for:

• Shapewear (body suits)• Control briefs (girdles)• Control slips• Control camisoles• Push up brassieres• Corsets• No-show panties• Design• Fabric Supply• Accessories Supply

GIFT & DECORATIVE ACCESSORIESMany sceptics would probably think that in these economic times there would hardly be a lot to shout about in the gift and decorative accessories industry. Research has however shown

that businesses in the gift industry have been enjoying a distinct advantage. Inspite of the recession, consumers have continuously been focused on enhancing their homes with the purchase of accent pieces. Beyond that, major growth segments are showing in: cultural goods spurred by growth in international tourism/ increased focus on interior decoration;global-styled products that combine ethnic elements of craft with contemporary design; and eco-products as more consumers are demanding environmentally-friendly items that are beautiful and functional. This in turn has seen demand increasing for:• Home accessories & décor products (functional & decorative)

e.g. furniture, tableware, wall decor • Hotel, restaurant, office accessories (functional & decorative)

e.g. furniture, tableware, wall decor • Garden and outdoor living accessories (functional & decorative)

e.g. planters, seating • Indigenous art• Souvenirs that are unique, functional and decorative

KNOWLEDGEAccess to education and training can lead to economic prosperity and an improvement in the quality of life. Individuals are living longer, changing occupations more frequently and switching between different types of work more often. All of this is leading to greater demand for skills training services and technological innovation in delivery mechanisms like:

• E-learning solutions and supporting software e.g online courses for working adults

• E-books for easy download by children and adults• Electronic educational games to stimulate learning and improve

cognitive abilities• Education & training – providing solutions for post-secondary

education, language & corporate training

SAFETY & SECURITYMinimising risks of incidents at work, at home and in the community has emerged a top priority. Increasing attention is being paid to prevention against: theft, fire, natural disasters (hurricanes) and accidents. This in turn has fuelled demand for products to support:

• Occupational safety - reducing risks of exposure to harmful substances or dangerous processes in the workplace e.g protective gear.

• Residential & commercial safety- securing property e.g monitoring/alarm systems, security locks/devices, hurricane shutters.

• Personal safety- self-defence products• Product safety – improving consumer products through better

testing and controls.

We envision a future for the manufacturing sector that: is dynamic, sustainable, and boundless; transcends traditional industries and that promotes national and economic growth.



Barbados on Display

The 2010 Holiday and Home Furnishings and Decorative

Accessories Expo may have succeeded in winning over merchandisers from the hotel, villa and realtor segment and convincing them that local manufacturers have a lot to offer.

Executive Director of the Barbados Manufacturers Association (BMA), Ms. Bobbi McKay said the three-day expo, hosted November 24-26 at the Lloyd Erskine Sandiford Centre, generated “a lot of business for participants with substantial contracts being offered and appointments being made with hoteliers and villa owners who are keen on refurbishing their properties in the summer”.

And she attributed this to the fact that “the manufacturers were willing to bring something new and out of the box by engaging the use of different colours and textures”.

McKay explained that three designers were hired to assist in coordinating the show and the result, was that “everybody is really excited about the possibilities”.

BARBADOSFURNISHINGS & ACCESSORIESON SHOW

She said the expo really highlighted the importance of being innovative and aggressive with the launch of new lines and new products. The product range exhibited especially for the accommodation sector, home, office, school and restaurant sector included furniture, decorative accessories, and functional artistic pieces like baskets and table ware.

The Barbados Investment & Development Corporation (BIDC) partnered with the BMA and the Council for Investment, Exports, Foreign Exchange and the Diaspora (CIEX), within the Ministry of Foreign Affairs and Foreign Trade, in hosting the expo.



Barbados on Display




Entrepreneurs are ambitious and imaginative. Their bold motivation and willingness to try new things are very helpful traits. But sometimes, the opportunity to pursue fascinations can lead them astray.

If you’re an entrepreneur confronting decisions on growth and expansion, the key is to decide whether you aspire for breadth or depth in your industry, and then act accordingly. As you seize new opportunities in your business, you do so at a cost. Of course, there are the literal costs with spreading yourself too thin or losing your focus. But there is also a perception cost. You become a little less of an “expert” in one thing as you start to focus on other things.

Most opportunities tend to come with risks. They may involve financial uncertainties that you may not be totally comfortable with. Or they may lead to changes in your lifestyle that you may have to think twice about. Opportunities also have a way of disrupting your perfectly laid out plan. You might have planned a carefully designed budget that suddenly becomes totally unmanageable. Or you may have put together a retirement plan that will have to be reconsidered. These decisions are never easy to make. We are not talking about taking imprudent risks here. We are talking about making a decision with the understanding that there are calculated risks involved in every situation that presents potential rewards. An efficient due diligence process can save companies from making costly mistakes that may have profound consequences for the firm’s other operational areas and/or its corporate reputation. Due diligence is a programme of critical analysis that companies undertake prior to making business decisions in such areas as mergers/acquisitions or major product purchases/sales. The due diligence process, whether outsourced or executed in-house, is in essence an attempt to provide business owners and managers with reliable and complete background information on proposed business deals so that they can make informed decisions about whether to go forward with the business action. The process can involve everything from reading the fine print in corporate legal and financial documents, to interviewing customers, corporate officers and key developers. The ultimate

Entrepreneurship

Think Twice

An efficient due diligence process can save companies from making costly mistakes that may have profound consequences for the firm’s other operational areasand/or its corporate reputation.

Think TwiceThink TwiceWhen opportunity knocks,



Entrepreneurship

goal of such activities is to make sure that there are no hidden drawbacks or traps associated with the business action under consideration.

A business feasibility analysis can help you to see whether the commitment of time, money and effort to your business idea is justified, given the high failure rate of new business ventures Typically it requires that you: 1. Review and document your personal objectives, skills,

experience and personal financial resources. 2. Describe your product or service. 3. Describe your customers - Who are they? What is their

demographic range - increasing or decreasing? How many are they? When will they buy? Where are they?

4. Describe the competition - Who are they? Where are they? What are the trends? What are their strengths and weaknesses? What are the market barriers?

5. Describe your sales and distribution process in detail, from the start of sales generation, to the distribution methods and facilities required.

6. Describe the management requirements, and what hours and skills will be required to supply what the business needs. Analyze successful competitors to determine the top-ranking skills requirements for the industry.

7. Sales forecast - on the basis of objective evidence (not opinion or guesswork), describe the price and expected volume of

sales for at least 12 months, the uniqueness of your offering, the relationship with competitors and overall market size (e.g. do you need to steal market share - if so, how?), impact of seasons, fashion, competitors’ likely response to your presence in the market, and comparisons of your forecasts to industry benchmarks.

8. Compile a list of start-up and ongoing expenditure, including where applicable, inventory costs and receivables.

9. Prepare an operating budget and cash flow for the business for a reasonable period (at least 12 months), and compare the results to industry benchmarks.

Depending on the results it may prove not viable, viable, or viable if certain conditions are met. This may or may not involve further research to help reduce the perceived risk.

That being said, we also recognize that quite unfortunately, it’s just as easy to dilute your own opportunities by adding to them as it is by ignoring them. Act too quickly and you might wish you hadn’t. Perhaps it’s a matter of fate. Sometimes you’re damned if you do and damned if you don’t.

But given the environment of uncertainty and disruptive economic forces that currently exists, the best advice we can give is: when opportunity knocks, think twice.

the start of sales generation, to the distribution methods and facilities required.

6. Describe the management requirements, and what hours and skills will be required to supply what the business needs. Analyze successful competitors to determine the top-ranking skills requirements for the industry.

7. Sales forecast - on the basis of objective evidence (not opinion

Think Twice



Manufacturing Incentives

Duties and TaxesSince 1994, all companies in the manufacturing, agricultural and fishing sectors have been granted a waiver of customs duties and taxes payable on inputs. Eligible inputs include raw materials, machinery, equipment and spares. It does not however include motor vehicles.

Effective November 1, 2008 the Ministry of Finance announced that all imports of raw materials, packaging and equipment used by registered manufacturers would be zero-rated for Value Added Tax (VAT) purposes.

Small Business Development ActDuty-free concessions for small manufacturers are contained in the Small Business Development Act (1999). Approved small businesses are accorded the following benefits:

• Exemption from the payments of import duties and stamp duty on plant and equipment for use in their business

• Exemption from withholding tax on dividends and interest earned on any investments

• Exemption from the payment of stamp duty on all documents related to the business where registration of the document is required by law

• A deduction of corporate tax of an amount equal to 20% of actual expenditure incurred in respect of use of technology, market research and any other activity that is in the opinion of the Commissioner of Inland Revenue directly related to the development of the business

• Payment of corporate tax at a rate of 25% on profits

Fiscal Incentives ActThe Fiscal Incentives (Amendment) Act (2001) provides a maximum 15-year tax holiday* to any manufacturer of an approved product, provided that it meets the definition of an enclave enterprise: manufacturing exclusively for export outside of CARICOM; manufacturing approved products containing a specified percentage of local value added; or being highly capital intensive.

Under the Fiscal Incentives Act, such enterprises are classified as follows:

Classification Criterion Tax Holiday

Group I Enterprise Local value added is ≥ 50%

15 years

Group II Enterprise Local Value Added is ≥ 25% but < 50%

13 years

Group III Enterprise

Local Value Added is ≥ 10% but < 25%

11 years

Enclave Enterprise Enterprise produces exclusively for export to countries outside of CARICOM

15 years

If you’re a manufacturer thinking about a new business venture or you’re considering expanding into another area, you should know that Government has enacted several pieces of legislation to encourage investment and has provided a number of tax incentives from which you may stand to benefit:

Benefits to Buy Into

* expires 2015 in line with Barbados’ WTO compliance obligations.

BIDC Business Catalyst 6 #4.indd 22 3/1/11 9:30:30 AM



Such enterprises may import duty-free equipment, spare parts, and raw materials from outside CARICOM. Exemptions from VAT are also available to approved enterprises. Dividends and other distributions to shareholders during the tax holiday are also exempt from the payment of income tax. Non-resident shareholders liable to tax in their country of residence are subject to Barbados withholding tax at a lower rate. To qualify for these incentives, the enterprise must apply to the Ministry of Agriculture, Food, Fisheries, Industry and Small Business Development.

The Fiscal Incentives (Amendment) Act, 2007 provides for a five-year extension of benefits contingent upon new investment by an approved enterprise or the provision of a new regime of benefits based on the production of new products. To qualify for the five year extension, the approved enterprise, under Section 11A of the Act, must have invested in equipment or technology or innovative methods of production and management amounting to $1 million or more during a three year period prior to application for the extension. To qualify for the new regime of benefits, the approved enterprise, under Section 11B of the Act, must prove that it intends to manufacture or is engaged in the manufacture of a new product that qualifies for approval.

An approved enterprise whose period of tax holiday has expired on or before the commencement of the Amended Act is still eligible to apply for an additional five-year tax holiday, where the enterprise meets the requirements set out in Section 11A or 11B of the Act.

Export AllowanceEnterprises not obtaining benefits under the Fiscal Incentives Act and generating export profits (other than from exports within CARICOM) may receive an Export Allowance under the Income Tax Act, expressed as a rebate of corporation tax (between 35-93%) on profits. The maximum rebate of 93% applies if more than 81% of an enterprise’s profits result from extra-regional exports. Enterprises are entitled to a rebate of Corporation Tax on profits as follows:

Export Profits as a % of total profits

Rebate of Income Tax as a % of income tax on export profits

Up to 20 35

21-40 45

41-60 64

61-80 79

81 and up 93

The Export Development Allowance permits a company to deduct from taxable income an additional 50% of what the company spends in developing export markets outside CARICOM.

Investment AllowanceManufacturing businesses may also qualify for an investment allowance of 20% on plant machinery which is new or imported into Barbados for the first time. Businesses entitled to the export allowance may claim a 40% investment allowance instead of the usual initial allowance of 20%.

Market Research and Development AllowanceIn addition manufacturers are entitled to an allowance of 150% of the expenditure incurred for the purpose of promoting export sales to regions outside of CARICOM or for market research and development. Section 12D of the Income Tax Act sets out the types of expenditure which qualify. It includes salaries and wages, traveling and accommodation, advertising and sales promotion. A certificate must be obtained from the BIDC confirming the person is engaged in the business of export, to substantiate the claim.

International Business Company ActManufacturing companies classified as International Business Companies under the International Business Companies Act (1991) are also afforded benefits. Benefits under the Act include:

• Tax on income on a sliding scale from a maximum of 2.5% to a minimum of 1%.

• Exemption from capital gains tax or estate duty.• Tax credits in respect of taxes paid outside of Barbados but

insofar as it does not reduce the tax payable in Barbados to less than 1%.

• Freedom from exchange control.• Tax concessions for specially qualified persons.• Imports of equipment and machinery free of customs duty,

consumption tax, VAT and other like duties.

In addition, international business companies may apply for a guarantee that all or any of the benefits and exemptions in the Act will be valid for 15 years. In order to benefit from these incentives however, companies must apply to the Ministry of International Business and International Transport for a licence to conduct international business. The licence must be renewed annually. A company classified as an International Business Company must not trade within Barbados.

Special Technical Assistance ProgrammeThis programme seeks to address inherent problems associated with high cost of production, inappropriate technology and management and production systems and other associated problems. This fund, administered by the BIDC, is intended to assist in helping companies to become globally competitive and to improve their level of exports.

Export Credit Insurance SchemeThis Scheme was established to promote and facilitate the growth of Barbados’ manufactured exports. This Scheme provides insurance cover against losses as a result of the non-payment for Barbadian exports by foreign buyers. It offers a

Continued on Page 24



number of facilities and is administered by the Central Bank of Barbados.

Enhanced Credit Guarantee SchemeThe Central Bank of Barbados established an Enhanced Credit Guarantee Scheme for enterprises in the foreign exchange earning sectors, under the following terms:

Any credit institution desirous of participating in the Scheme may apply to the Central Bank to do so and, upon approval, provide credit facilities to eligible borrowers.

The borrower may be an individual, partnership, a corporate body, or an association of individuals, and must have the ability to contract loans and other credit facilities.To qualify the borrowers must meet the following criteria:-(a) The enterprise must be in the foreign exchange earning

sectors, or be a direct supplier to an enterprise earning foreign exchange.

(b) Sales in foreign currencies must be at least 75% of gross revenue, or at least 75% of gross revenue must be supplied to enterprises earning foreign exchange.

Under the scheme:• Credit facilities to be guaranteed shall be the net amount of

new credit advanced to the enterprise.• The maximum amount of credit facilities to be guaranteed

shall not exceed 80% of the loan from the credit institution or Bds$2.0 million, whichever is lower.

• Guarantees may be provided for working capital facilities up to a maximum maturity of three (3) years.

• Guarantees for long-term facilities may be provided up to a maximum of twelve (12) years.

• Credit facilities which may be guaranteed include demand loans, term loans, overdraft, discounts, letters of credit, acceptances, payment guarantees, tender bids and contract bonds.

Export Finance Guarantee SchemeThis Scheme is designed to remove the laborious systems involved in accessing financing for exporters fulfilling the production of goods for export. The Scheme covers both pre and post-shipment costs and evidence of a firm contract or agreement of sale with a foreign buyer is required. This Scheme is offered by the Central Bank of Barbados.

Export Rediscount FacilityThe Central Bank has sponsored this facility to assist in the promotion of non-traditional exports from Barbados. The Facility will allow exporters to obtain export finance at minimum cost. All commercial banks operating in Barbados which maintain a reserve account with the Central Bank of Barbados are eligible to participate. All exporters who possess bills receivable for the exportation of non-traditional goods, wholly or partially manufactured in Barbados, are eligible to participate in the Facility. The Central Bank reserves the right to impose discount limits for individual exporters. Only bills with credit periods not

in excess of 180 days will be considered for rediscount. Advances against sight bills will be considered upon request.

Barbados Investment FundThe Barbados Investment Fund (BIF) is a close-ended equity fund administered by the Caribbean Financial Services Corporation (CFSC). The Fund provides equity financing for small and medium sized businesses operating in Barbados and engaged in manufacturing, agro-industry, tourism and several services sub-sectors. The BIF will provide funds for capital costs as well as working capital. Requests for financing through the BIF should be directed to the CFSC.

Enterprise Growth Fund Ltd. Range of FundsThe Enterprise Growth Fund Ltd. (EGFL) provides Barbadian companies in the productive sector with loan financing, venture capital and technical assistance through a range of funds, including:

• Loans & Equity for Small and Medium Sized Businesses• Small Hotels Investment Fund (SHIF)• Tourism Loan Fund (TLF)• Agricultural Development Fund (ADF)• Industrial Investment and Employment Fund (IIEF)• Innovation Fund (IF)

Applicants for grant financing are required to submit a comprehensive project proposal including details of the project’s contribution to the development of new or expanded export markets and their long-term sustainability; potential foreign exchange earnings; employment creation and project costs. The maximum funding per application has been set at Bds$1 million. Qualifying private companies are required to contribute 20% of the total cost of the project to be financed. That contribution may, in exceptional cases, be waived by the fund’s management committee.

Tourism and Manufacturing Guarantee Facility(formerly Small Business Guarantee Scheme)Effective February 2009, the Central Bank announced a widening of the range of entities eligible for credit guarantees under the Small Business Guarantee Scheme to include medium sized companies in the tourism and manufacturing sectors. Companies with capital of Bds$2 million (formerly $1 million) and companies with gross revenue of Bds$4 million (formerly (Bds$2 million) are now eligible to access the facility. The Central Bank is prepared to guarantee facilities of up to Bds$150 000 for short-term and Bds$300 000 for medium-term use. This does not however apply to past-due debts.

Businesses which make use of the facilities provided under this Scheme could derive substantial benefits, including:

• Adequate security for loans • Increased working capital • Expansion of fixed assets, machinery and equipment• Increased cash flow• Increased sales and profits




• Lower rates of interest• Expansion and diversification of operations• Opportunity to employ more people and new skills • New technology• New products

In addition, the Central Bank will guarantee technical assistance loans up to a limit of Bds$50,000 for any one borrower (i.e. within the overall cost of BDS$300,000 for medium term facilities), where such facilities are for the purpose of market or product research, marketing, product costing, promotion, production/plant layout, accounting and/or information systems, staff training, management/entrepreneurial training, business reorganisation/restructuring or any other relevant areas of technical assistance. A technical assistance grant may be made available to persons who qualify. The criteria for this grant are as follows: -

• Grants may be given up to $5,000 and should not exceed 50% of the cost of the business plan, etc.

• Consultant should have performed a number of previous consultancies.

• Consultant should have a degree in a relevant discipline.• Invoice from consultant should be submitted to the

Central Bank of Barbados to verify the cost.• The grant will normally only be considered in connection

with a loan under a Small Business Guarantee or an Industrial Credit Fund loan.

• In exceptional cases a grant may be considered apart from a credit guarantee or ICF loan.

Industrial Credit Fund Technical Assistance GrantThe Central Bank in February 2009 introduced a Technical Assistance Grant to be administered under the Industrial Credit Fund (ICF).

• Grants can be given up to $5,000 and not exceeding 50% of the cost of the business plan, market research etc.

• Consultant should have performed a number of previous consultancies.

• Consultant should have a degree in a relevant discipline.• Invoice from consultant should be submitted to the

Central Bank to verify the cost.• The grant will normally only be considered in connection

with a loan under a Small Business Guarantee or an Industrial Credit Fund loan.

• In exceptional cases, a grant may be considered apart from a credit guarantee or ICF loan.

The objective of the ICF is to contribute to the development of Barbados by stimulating growth of output, employment and foreign exchange earnings of the Barbados economy. To this end, the ICF also provides medium and long-term credit to productive enterprises operating mainly in the private sector.

ICF resources are channelled to beneficiaries through

qualified financial intermediaries. These intermediaries are commercial banks and other financial institutions operating in Barbados. Potential beneficiaries must first approach a financial intermediary with a project proposal. The intermediary will in turn submit the proposal to the Industrial Credit Fund.

In addition to the technical assistance grant, the ICF’s resources can be used to finance:

a) Fixed assets (excluding real estate purchases)b) Working capital (primarily raw material purchases)

Environmental Policy InitiativesManufacturing firms are entitled to a 150% tax rebate on attainment of recognized environmental certification such as ISO 14000, the Green Globe Programme or the Leadership in Environmental and Energy Design (LEED) certification.





The Trade Receivables Liquidity Facility (Factoring) for the small business sector, which was announced in 2008, was

launched on December 1.

Chief Business Development Advisor in the Small Business Development Unit (SBDU), Ministry of Agriculture, Food, Fisheries, Industry and Small Business Development, Francine Blackman, pointed out that the initiative would provide support to local small businesses which suffered difficulty due to the inordinately long wait on Government for payment.

She explained that the objective of the initiative was to facilitate a more timely payment to small businesses that provided goods and services to Government. These payments, which are discounted, would assist in improving the cash flow position of small businesses. The Factoring Facility has been made operational through a window established by the Central Bank of Barbados of up to 15 million dollars.

The SBDU has responsibility for registering all small businesses seeking to access the Factoring Facility. Financial statements must be submitted during the registration process. For those applicant businesses that currently do not have financial statements, a six-month grace period will be permitted for the submission of the statements. They must be prepared by a qualified accountant and the registration forms must be certified by a Justice of the Peace.

Ms. Blackman pointed out that for the purposes of this programme, a small business is so defined under the Small Business Development Act Cap 318C, where the small business must not have more than one million dollars as stated or paid up capital; not more than two million dollars in annual sales, and not more than 25 employees.

The Facility, she added, would be made available only through the following financial institutions: the main branches of commercial banks; the Enterprise Growth Fund, Fund Access, Consolidated Finance, Signia Finance, Globe Finance, Citicorp Merchant Bank and the Caribbean Financial Services Corporation.

The Chief Business Development Advisor also explained that for any one company, the total number of invoices that can be

factored under the programme in any one year is BDS$200,000. and invoices are discounted at an annual rate of five percent.

Collection of the registration forms, as well as the actual registration process can be carried out at the Small Business Development Unit (SBDU) located within the Ministry of Trade and Commerce, Reef Road, Fontabelle, St. Michael. Persons may also contact the SBDU for further information on the Trade Receivables Liquidity Facility (Factoring) at 246 427-5270. (BGIS)

Small Business Assistance

NEW SMALL BUSINESS FACILITY INTRODUCED

The SBDU has responsibility for registering all small businesses seeking to access the Trade Receivables Liquidity Facility.



Entrepreneur’s Forum

educational reforms which saw increased spending on technology in order to modernize infrastructure, computers and student management systems within Caribbean schools created a demand for ICT within the Caribbean. The trend among Ministries of Education (MOE), supported by international organizations such as USAID and the World Bank, had been to incorporate an EMIS into their schools.These systems effectively track student performance, ease the process of generating and analyzing reports, and make school information more accessible for administrators and the MOE, as a child progresses through the school system from entry to exit. All this created an opportunity for the development the abusSTAR EMIS product.

Along with business partner i2d Inc, abusTechnology Inc has positioned abusSTAR as the optimum solution for the Caribbean market. Hinds explained that under the prevailing macro environmental conditions, the potential for growth in the market was compelling, and the demand for the product in the developing countries was significant. He noted that whereas in 2005 Canadian, US, and European companies supplied EMIS solutions at a cost well out of the reach of most Caribbean schools at approximately US$18 to US$21 per student, “we brought something more competitive and we continue to provide competitive cost per student pricing in our deployment strategy”. abusSTAR is available through Software as a Service [SaaS] model, to a private education institution or to any Ministry of Education. The technical resources provided by abusTechnology personnel delivers information, software, materials and training to assist schools with their implementation process. It is with the understanding that EMIS is a multi-year, complex undertaking and abusTechnology is there to support the system and process every step of the way.

Hinds said “Our vision is to see the abusSTAR application implemented as a core component of the education sector of Barbados. It is a critical application in the management of schools, de-signed to work the way you work as a management tool, in a role and rule-based secure net-work.”

The company leverages its future sustainability and commitment to service by adopting international standards to meet the proper process requirements and the use of proven technologies in planning, design, development and testing to achieve the desired outcome, with fewer problems and inconsistencies. It is based on adopting a best practice methodology leading to greater efficiency and effectiveness (best results) based on the standard operating procedures that have proven themselves over time.

After just five years on the market, the abusSTAR Education Management

Information system (EMIS) has emerged as the most effective and competitively priced EMIS application for the Caribbean.

And Ferdinand Hinds, CEO of abusTechnology Inc, the company behind AbusSTAR, says this is largely because “it is the only EMIS that was designed with the specific

needs of the Caribbean schools in mind”.

Both public and private sector primary, secondary and tertiary educational institutions can now benefit from the abusSTAR EMIS. And the EMIS serves many audiences - from a school’s website for communication with the community, to extensive reporting capability for both school administrative tasks and the statistical data collection for the Ministries of Education.

According to Hinds, “abusSTAR is well qualified as the star for school and student management. It provides the ability to track the continuous assessment of student academic and non-academic activities across multiple school years. It enables schools to manage the administrative tasks of daily school life with significantly expanded data collection for analysis, reporting, control, customization and management.

Having created software that we are confident of, we are prepared to serve the Caribbean education market. Our company delivers information, software and training materials to assist schools in the implementation process, after which teachers will have secure access, from any web-enabled terminal to monitor student progress by their specialized groups and individually, term by term during the school year.”As we exit the first decade of the 21st century, we note the proliferation of the use of the words and concepts centred around Information Communication Technology (ICT), tele-medicine and e-commerce in the Caribbean business landscape. As both the private and public sector become more technologically advanced, it is no surprise that in this educationally and technologically enhanced environment, there is an increased awareness of Education Management Information Systems. Within the last few years, government-implemented

abusSTARSHINING LIGHT FORSCHOOL AND STUDENT MANAGEMENT

‘Our vision is to see the abusSTAR application implemented as a core component of the education sector of Barbados’

- Mr. Ferdinand Hinds, CEO of abusTechnology Inc.



The Barbadian economy should expand by approximately 2% during 2011, as tourism continues to improve and other key sectors rebound. Beyond 2011, the economy is expected to achieve a 3% rate of growth, as the

effects of the global crisis abate.

This assessment was given by Central Bank of Barbados Governor, Dr. Delisle Worrell, during the annual economic review session. Dr. Worrell however noted that “this outturn is dependent on a number of factors.”

Chief among those he listed was a full recovery in the tourism sector. The Governor said this is possible in 2011, provided that arrivals increase as projected from the main

source market, the UK. All Barbados’ source markets are

expected to benefit from intensified marketing initiatives, along with additional seat capacity out of the US West Coast and South America.

Secondly, he noted that the international business sector should benefit from the general revival in global activity, as well as the signing of new tax treaties.

Thirdly, Dr. Worrell said private capital inflows are expected to pick up, to fund projects such as the Four Seasons, Port Ferdinand, Merricks, Palisades and the new Barbados Light and

Economic Outlook

Power plant. These projects, he said, should serve to boost activity in the non-traded sectors, particularly wholesale and retail, as well as construction.

With the resumption in economic activity, the unemployment rate is not expected to widen further during 2011 and prices are expected to stabilise, as oil and international commodity prices moderate.

The medium-term fiscal strategy (MTFS) of Government spans a five year period, which commenced fiscal year 2010/11 and ends fiscal year 2014/15. Dr. Worrell indicated that the MTFS target for 2011/12 is achievable, based on the November 2010 budgetary measures and the Central Bank’s growth forecast. Once growth in the tax base has been fully restored, from 2012 onwards, forecasts are that Value Added Tax (VAT) revenues will recover. At the end of the MTFS period, Central Government’s net debt-to-GDP ratio should be about 54%.

Receipts from the recovering tourism sector, along with private capital inflows, should facilitate an increase in imports. However, public foreign borrowing is anticipated to be somewhat lower than in 2010. The current account position is expected to remain roughly on par with that of 2009 (and narrower than in 2010), but the capital account surplus may be a little below the level recorded in 2010. Foreign reserves adequacy should remain at about the same level as at the end of 2010.

According to the Central Bank’s economic review, the Barbadian economy leveled out in 2010, and a balance of external payments and receipts was achieved, with the benefit of some market borrowing and official inflows. Preliminary estimates suggest that the economy contracted by just 0.4%, compared to a decline of 4.7% in 2009.

Barbados’ source markets are

EconomicOutlook2011



Empowerment Through Entrepreneurship

News To Note

Minister of Finance and Economic Affairs, Christopher

Sinckler, delivering the feature address at the launch of FINPYME Export Plus Programme at the Lloyd Erskine Sandiford Centre, said many small and medium sized enterprises (SMEs) were making tremendous contributions towards national development and the society as a whole. And he encouraged Barbadians to see entrepreneurship not as a burden, but as an empowering experience.

Recognizing the importance of the small business sector to the Barbadian economy the Minister said: “successive governments have put in place a number of initiatives aimed either directly or indirectly at improving the operation and business environment of the sector. Pointing to initiatives like the establishment of a Business Development Unit to advise on policy formulation with respect to the development and expansion of the small business sector, he added that Government was also moving to introduce legislation such as the Small Business Development Act Cap 318C; the Electronic Transaction Act; and the Computer Misuse Act which will add some formality to the business environment and provide greater sustainability.

Government recently announced an increased allocation of $1.5 million to the Barbados Agency for Microenterprise Development (Fund Access) to assist its efforts in responding to the needs of clients who require working capital technical assistance or training. And Minister Sinckler said a National Micro Enterprise Programme will be implemented to provide grant financing of up to $3,000 for micro businesses.

Along with the implementation of a project where small businesses would be audited for Hazard Access Critical Control Points (HACCP) implementation, he further stated that Government was also looking at hosting educational seminars to enhance the skills and knowledge of SMEs, and would be

introducing a Medium-Term Development Strategy, 2010-2014. These initiatives, Mr. Sinckler stressed, would allow individuals and businesses to seize the opportunities available and “along with the work of the FINPYME Programme, will stand our small business sector in a good stead”.

BNSI Makes International Standards Available

nother step towards improving local standards is being made by the Barbados National Standards Institution (BNSI).

The BNSI in support of the National Initiative for Service Excellence (NISE) Strategic Direction and the Office of Public Sector Reform (OPSR) Customer Service and Service Assessment Improvement Programmes, is making available a series of International Standards on Customer Service and Customer Service Satisfaction.

The series, which is called ISO (International Organization for Standardisation) 10 000, focuses on customer service standards and offers guidelines for codes of conduct, complaints handling, external dispute resolution and monitoring and measuring customer satisfaction. It provides solutions for organisations, products or services of any type or size, including entities that design customer satisfaction codes of conduct for other organisations, and also caters to small businesses.

These efforts are part of the national initiative to boost the quality of Barbados’ service economy and enhance OPSR and NISE objectives, which focus on service excellence. Barbados is currently in the process of adopting the ISO 10 000 series as national standards.

For more information on the International Standardson Customer Satisfaction please contact the BNSI at426-3870.



BIDC Going Green

BIDC getsGreen Light

The BIDC’s high output LED streetlight by day (left) and at night (above).

The Barbados Investment & Development Corporation (BIDC) is stepping up its efforts to go green.On Friday November 12th 2010 the Corporation, with

the assistance of its contractors, completed the installation and commissioning of its first solar powered light located at the Head Office car park.

Sam Harrison, Business Development Officer (Technical), Property and Estates Management Department, explained that the pole-mounted self-contained unit, located at the main entrance to the car park, is designed to capture the sun’s energy to charge a series of storage cells (batteries) that in turn power a low wattage, high output LED streetlight. The light is independent of power from the BL&P’s grid.

Although this BIDC project has only just been commissioned, it has been in the pipeline for some time, and was preceded by a pilot project where the Corporation replaced the standard

fluorescent tubes and ballasts with lower wattage Light Emitting Diodes (LED) tubes in one office to assess their practicality and performance. LEDs are designed to produce the same amount of light as incandescent or fluorescent lights while consuming about one third the power of their fluorescent counterparts.

The BIDC, as one of the largest public sector property managers, will aim to keep you informed as its alternative energy and energy saving projects continue to unfold.

The Barbados Investment & Development Corporation (BIDC) is stepping up its efforts to go green.



Our Environment

Nestled inside the wing housing the Aall Gallery at the Barbados Museum & Historical Society sits a small but valuable exhibit which celebrates the diversity of the fauna of Barbados. This exhibit was the brainchild of the Museum’s Assistant Curator of Natural History, Mr. Kerron Hamblin, who recognized that there was a need to

expose our citizens and visitors to the natural history and diversity of Barbados. The timely nature of the exhibit was emphasized by the Ministry of Tourism which was also celebrating “Biodiversity” as the theme for Tourism Awareness Month 2010, held during the month of October. The year 2010 is also designated as the International Year of Biodiversity by the United Nations and under the direction of the Secretariat of the Convention on Biological Diversity several objectives were identified as key to measuring the success of the campaign. These included:

A Journey through

Bajan Fauna

• Raising awareness of the importance of conserving biodiversity for human well-being and promote understanding of the economic value of biodiversity

• Enhancing public knowledge of the threats to biodiversity and means to conserve it

• Encouraging organizations (and through them individuals) to undertake direct or indirect biodiversity conservation activities

The Museum’s exhibit mirrors these aims with an intriguing look at the fauna within seven categories of invertebrates, fish, marine reptiles, amphibians, reptiles, mammals and birds. The approach taken by the curator is to link native fauna to that which is already extinct and to view the impact of introduced fauna into the local ecosystem.

A bit of nostalgia emerges as you review the collections and reflect on the tales of yesteryear which shaped our understanding and fuelled our fears of many of these animals and insects in the collections. However, this exhibit attempts to educate the young and old through different methods about the value of

every insect and animal to the ecosystem in which they function. You will encounter from the threadsnake, the smallest known snake which is native to Barbados; and a life-like representation of a turtle nesting site; to an extinct rice rat and threatened bird species like the Yellow Warbler.

The journey will spark discussions about extinction and their natural and unnatural causes, destruction of ecosystems, the disturbance of ecosystems caused by introduced fauna and the under-appreciation of our natural habitat by our citizens. It will encourage reflection on our responsibility to maintaining a balance with nature, our personal impact on the environment and our contribution to the global warming.

The journey offered me pleasant reflections on the many ways that the natural environment played and continues to play a role in the enjoyment of life as we know it. It brought me to the realization that I have a responsibility to my children to experience the rich natural history of Barbados and our region and to encourage them to expand their horizons beyond the

By Paula Bourne



Our Environment

malls and the gadgets that consume their lives and behind the walls of our edifices.

The lessons to be learnt from this experience not only tell me of my responsibility to my children but of our shared responsibility to protect our natural environment and the biodiversity of Barbados. For biodiversity is as important to the existence of animals as it is to our own existence and the preservation of our lives. It is that biodiversity which allows humans to exist side by side with animals and plants. Biodiversity is the food that we eat; it is the clothes that we wear; the homes that we live in; the medicines that we take. Biodiversity is life!

One of the poignant lessons surrounds the introduction of new animal species to an ecosystem as small and vulnerable like ours. Such unplanned activity can impact our ecosystem in such a significant way that it may result in the threatening/extinction of native species. This may happen as a result of the introduced species being better adapted to the environment and thus, outcompeting native species or it may be a result of the native animal falling prey to introduced species. One example of this is

the extinction of the local population of Barbados Racer (Liophus perfuscus) when mongooses were introduced into Barbados as a means of controlling rats which were major sugar cane pests.

The recent example of the Giant African Snail (Achatina fulica) underscores that very well. We have seen the aggressive expansion of that mollusc - considered the most invasive mollusc in the world - in Barbados. The United States has acknowledged it as a potential serious threat to its economy, affecting the important agricultural sector.

Since we live on a little rock, our ecosystem is even more vulnerable because of its small size. We therefore can’t ignore our role in its preservation. Make it a part of your plan.

Since we live on a little rock, our ecosystem is even more vulnerable because of its small size. We therefore can’t ignore our rolein its preservation.

Some visitors to the exhibit.



Trading Developments

The recently-established Embassy of Barbados in Brasilia participated in the Annual Bazaar organised

by the Group of Ambassadresses/spouses on Saturday, November 13, at the Embassy of Portugal. The Embassy displayed a number of products and services, provided samples of rum punch, among other items. The Bazaar has an opportunity for the new mission to disseminate information about Barbados, including the flights between Sao Paulo and Bridgetown, and to showcase Barbadian products to members of the large diplomatic community and to the population of Brasilia (including many government employees and professional persons).

Support has been forthcoming for the establishment of air

linkages between Barbados and the Republic of Spain.It has come from Minister of International Business and International Transport, George Hutson.

Speaking minutes before the signing of a Double Taxation Agreement (DTA) between Barbados and Spain yesterday, Minister Hutson expressed the hope that the accord could pave the way for additional bilateral agreements.

“In my capacity as Minister responsible for International Transport, I am also hopeful that the double taxation Convention will provide the impetus for other bilateral agreements such as an Air Services Agreement.

Some visitors to the exhibit.

There was a keen interest in the rum products, seasonings, jams and jellies and skin care products, with many enquiries about where the items could be purchased.

The Ambassador and Attaché were assisted by two Barbadians living in Brasilia (one student and one who lives and works in Brasilia) as well as a temporary staff member. The Barbados Manufacturers’ Association and the Barbados Tourism Authority’s representative in Sao Paulo also assisted the Embassy by providing some products and materials for display.

The Bazaar was intended to generate funds to be used for charity. Participants sold indigenous products, including food, handicraft, clothing and items of typical Barbadiana and/or displayed material and products to promote the country. Approximately 70 missions, representing countries from Latin America and the Caribbean, North America, Europe, Africa, Asia, Middle East and Oceania participated in the event.

“I note your extensive air links and investments into Latin America and I believe that there is significant scope for including Barbados in a triangular process to encourage trade, business and tourism between our countries. Barbados could serve as a major hub to support travel throughout the Caribbean and Latin American countries,” the International Transport Minister said.To date, Barbados has some 18 tax treaties in force. The treaty with Spain brings the number of signed treaties, awaiting ratification (to enter into force) to five. The others are with Ghana, Luxembourg, Panama and Portugal.

Four initialled treaties with Italy, Vietnam, Belgium and the Czech Republic are currently awaiting signature. The Ministry is hopeful that the signed DTAs would be ratified and the initialled draft DTAs also signed and implemented during the course of next year.

Support for Air Services Agreement between Barbados and Spain

Barbados’ products and services on display in Brasilia, Brazil



Industry By Numbers

SPECIAL TECHNICAL ASSISTANCE PROGRAMME DISBURSEMENTS JANUARY - DECEMBER 2010

DOMESTIC EXPORTS 2009/2010 (BDS$)

Source: Barbados Investment& Development Corporation

Source:Barbados StatisticalService



Industry By Numbers

DISTRIBUTION OF INVESTMENT IN MANUFACTURING SECTOR 2009 AND 2010 (BDS$)

EMPLOYMENT IN MANUFACTURING SECTOR AT DECEMBER 2009 / 2010

Source: Barbados Investment & Development Corporation

Source: Barbados Investment & Development Corporation



Documents

BIDC Business Catalyst 6 #4.indd 1 2/23/11 5:33:43 PM · BIDC Business Catalyst 6 #4.indd 3 2/23/11 5:33:46 PM 4 Barbados Business Catalyst • October - December 2010 Barbados Business