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Quarterly Magazine of the Barbados Investment & Development Corporation October - December 2011 ISSN 2077-3382

Volume 7 #4

PG. 06Season To Reason And Reflect

PG. 19Mission Accomplished

PG. 26More Effort Needed For Economic Engagement and Export

Rising to the Challenge

Boosting the Spirits

Building a New Economy

MAKING THE EXCEPTION THE RULE

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4 Barbados Business Catalyst • October - December 2011

Also inside:

Quarterly Magazine of the Barbados Investment & Development Corporation October - December 2011 ISSN 2077-3382

Volume 7 #4

PG. 06Season To Reason And Reflect

PG. 19Mission Accomplished

PG. 26More Effort Needed For Economic Engagement and Export

Rising to the Challenge


Building a New Economy

MAKING THE EXCEPTION THE RULE

October - December 2011Volume 7 #4

56 - 78 - 9

101112

14 - 1516 - 1718 - 1920 - 21

22 23

24 - 25 2829

30 - 313233

34 - 35

Editor’s Desk - Trade Shows, Expos & ConferencesCEO’s DeskFosters Bakery Rising to the ChallengeCompany Casting Web Across Caribbean Making Your Business ExceptionalExceptional Customer Service Boosting the SpiritsToast to IndustryMission AccomplishedEasy Doing Business With Costa RicaA Shift to Knowledge-based Industries NecessaryOpportunities for InnovationBuilding the New EconomyEmployee Engagement EssentialBBC NotebookEcoScopeWhen In...Venezuela TradeScopeManufacts

Disclaimer:Some of the views expressed in this publication are the views of the writers and not necessarily those of the BIDC. © 2011 BIDC.

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

PG. 15

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

Editor:Jane Brome, Email: [email protected]

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

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]

Aspire CelebratePG. 09 PG. 16

Endeavour Rethink, Retool, RebuildPG. 18 PG. 34

Contents


5Barbados Business Catalyst • October - December 2011

This edition places particular emphasis on highlighting efforts to encourage innovation, new product development and export expansion. It puts the spotlight on some of our movers and shakers like Foster’s Bakery. Their story is truly inspiring for would-be entrepreneurs. Another entrepreneur, Curtis Padmore , CEO of West Learner Inc, specialists in educational software and animation, shares a few lessons on putting your creative imagination in forging your way to success. Executive Coach Cheryl Gittens, meanwhile focuses on innovation as a tool used by entrepreneurs to challenge existing reality and to improve ideas, services or products. Within these pages, you will also find useful tips on making your business standout through exceptional customer service.

The BIDC’s efforts to boost export development are noted in reports on opportunities within Costa Rica and Panama. The Corporation’s drive to push Barbadian rums in external markets is also featured with details on a major project initiative. We have also included prescriptions from key persons within the corporate community on building a new economy.

So this issue really covers a little bit of everything and hopefully provides you with food for thought as we move into 2012. We at the BIDC thank you for your support this past year and wish you the very best of the season and a blessed new year.

Talking about changing modes or sparking a shift in corporate culture is

admittedly not nearly as captivating as the latest office gossip.

But it’s only by changing the written and unwritten rules that we are going to get close to where we need to be. In this our final issue for 2011, we’re urging our readers to embrace the idea of making the exception the rule. It’s a task that will be much more difficult than the story lets on.

Barbados’ economic future will be shaped largely by the movers and shakers willing to put their creative imagination to work, willing to take a risk and daring to stand out in the crowd. Much of our focus within the last year has therefore been on efforts to make entrepreneurial and export successes more the rule than the exception. The BIDC is expected to serve as a catalyst and an enabler in accelerating the development of competence and competitiveness among Barbadian companies. It is also expected to accelerate export growth in today’s fast-changing trade environment by investing in and building high potential entrepreneurial ventures, with firm-level support aimed at enhancing competitiveness.

Editor’s Desk

By Jane L. Brome

Trade Shows, Expos and ConferencesIBFS 2012, February 3-5, 2012 The third annual International Business & Finance Summit (IBFS) will take place February 3-5, 2012 at the Abaco Beach Resort at Boat Harbour in Marsh Harbour, Abaco, The Bahamas. IBFS brings together thought leaders in wealth and asset management to discuss industry trends and requirements, and their impact on international financial centres and industry professionals. IBFS 2012 promises high level discussion and networking, with the Bahamas Financial Services Board (BFSB) committed to bringing together a large and broad cross section of business leaders and speakers to discuss issues and topics reflective of today’s business environment. Contact: http://www.ibfs-bahamas.com

International Sustainability Conference 2012, February 9-10, 2012Given the current global concerns about climate change, poverty reduction and the movement toward the creation of a “Green Economy” this Conference is of great importance and relevance to the people of the Caribbean and the World at this time. Hosted by CGA Caribbean, this seminar scheduled for the Hilton Barbados, is aimed at attracting professional accountants working in

commerce, industry, the public sector, education and the not for profit sector; business leaders; development practitioners; environmentalists and other interested individuals.Contact: http://www.cga-caribbean.org/seminars_events/

Caribbean Small Island Developing States 2nd Conference, March 7th, 2012 The 2nd international conference on governance for sustainable development of Caribbean small island developing states will be held in Curacao. Further details are pending.Contact: http://sidsgg.webs.com/2ndconference2012.htm

The Good Food Festival Show, May 04-06, 2012Explore what’s new in the world of ethnic cuisine, gourmet fare, natural foods, cooking ingredients, and expert advice at the 2012 Good Food Festival 2012 in Toronto, Canada. This food show is as an excellent opportunity to display and market Barbadian products to a wide audience of over 29,000 consumers. Contact: http://www.goodfoodfestival.com/



CEO’s Desk

It is amazing to think that another year is almost over, and what a year it has been!

The speed at which this year has passed serves as a great motivator for me and hopefully for all of us to make the most of every day and not waste a single moment.

The past year has been quite intriguing for the BIDC. The Corporation was forced to confront several challenges not only on the local scene but also in the international arena. Much of our attention was focused on the manufacturing sector as it continued its uphill battle against increasing competition and declining profits. Whilst fashioning and delivering packages of assistance to the sector, we also had to be mindful of efforts to refashion our own corporate structures to better serve the needs of our clients and the country as a whole.

The December holiday season therefore seems the ideal time to turn our thoughts towards people – those people whose very presence in our lives influences us in profound ways. And so I would like to take this moment to personally acknowledge you

our readers, contributors and producers and friends of the BIDC. You represent that diverse group of individuals who have been our supporters and whose unwavering faith in this company’s present and future inspires us all to live up to that trust. Without you, the magazine could not be the success it has become.

I would like to thank you all for your solid contributions towards our mutual successes this past year. I know that the coming year will bring with it many new opportunities to grow our existing relationships, and to build new ones, and I look forward to working with you in the months ahead.

Finally, I want to acknowledge and show a special appreciation to all BIDC’s clients, for the confidence they have placed in us. By choosing the BIDC as their service provider, they have exhibited their faith in our ability to deliver the best possible solutions. We assure them that in return, we will continue in our mission to provide the most efficient and effective services and innovative solutions to support the continued economic and social development of Barbados.

SEASON TO REASON AND REFLECT


CEO’s Desk

Ladies and gentlemen, 2011 has been a remarkable year and next year looks even more extraordinary. I would like to challenge you in making the exception the rule in 2012.

Perhaps one of the best documented approaches to being exceptional in the corporate arena, is captured in “The Public Innovator’s Playbook” report. Published by Deloitte Research in the U.S. with the Harvard Kennedy School’s Ash Institute for the Democratic Governance and Innovation, it identifies five strategies to help the process along:

Cultivate Encourage the organizational culture to be idea-friendly. Institute mechanisms designed for the explicit purpose of generating new ideas. For example, create a secure intranet site where employees can submit ideas to improve processes.

Replicate Borrowing ideas that have proven successful elsewhere is a time-honored tradition in government. Steps can be taken to improve an organization’s ability to find and adapt others’ successes.

PartnerWork with other organizations to test new ideas and get around institutional barriers that may prevent implementation within the organization.

NetworkNetworking uses the ideas and resources of a diverse set of organizations at all points of the innovation process cycle. A network can be used to implement ideas inside or outside of an organization’s boundaries and gather constituent feedback on how the innovation is working. In short, networks present the opportunity to harness the resources, perspectives and talents of a number of organizations in the pursuit of shared goals.

Open SourceOpen source is about encouraging voluntary collaboration among individuals of different disciplines to create flexible, customizable solutions.

It was reported that many organizations and governments have used the first three of these strategies for some time but have not consistently achieved the best results. The last two strategies, conversely, are new and underdeveloped. Perhaps in the coming year we can all explore tactics to optimize the first three and make best use of the last two.

The best of the season and a blessed New Year to you all!

“I would like to thank you all for your solid contributions towards our mutual successes this past year. I know that the coming year will bring with it many new opportunities to grow our existing relationships, and to build new ones, and I look forward to working with you in the months ahead.”


Aspire

FOSTER’S BAKERYRISING TO THE CHALLENGE

Foster’s Bakery is one exceptional small business operation.

This third generation Barbadian enterprise has not only conquered a milestone that few in its class are predicted

to reach, but seems destined for much greater things.

The Barbados Business Catalyst was on hand to celebrate with Foster’s its move into a newly modernized and expanded plant at Rockley, Christ Church. It was the culmination of four years of tremendous effort, meticulous planning, commitment and dedication that has now positioned Foster’s to better compete with multinationals in the baked goods industry and to launch its products into the export market.

Managing Director, Andrew Foster, speaking during the official opening of the new manufacturing facility, traced the origins of the business to his grandmother who some 50 years ago started supplying Goddard Enterprises with freshly baked cakes. That continued with his mother who expanded into other supermarkets before Andrew himself took over the reins. Given the failure rate of new small businesses, Foster’s

longevity is in itself a major accomplishment. And it becomes even more outstanding when one considers, as Andrew recalled, that the road to success was not always easy.

Andrew Foster receives his certificate on Good Manufacturing Practices from matriarch of the family enterprise, Linda Foster.

The Foster’s staff who all completed the quality training pose with officials of the BIDC and C&G International.

9Barbados Business Catalyst • October - December 2011 9

“Business on a whole is difficult, but for a small business with limited capital, it is all the more difficult,” he noted.

“There is an abundance of competition and the market is constantly changing. The price of flour, sugar has gone up too, as well as electricity and energy costs and it’s tough to meet those challenges and try to be profitable. But with vision, planning and hard work we can still create opportunities,” he added.

The opportunity for Andrew was to tackle the challenges head on and push for a major investment in plant upgrade and conversion of the facility to meet international standards with HAACP compliance. While he undertook the significant capital investment necessary, Andrew engaged the Barbados Investment & Development Corporation (BIDC) to assist with improving the company’s market share and operating efficiency. The BIDC in turn provided Foster’s with vital business development and technical assistance and commissioned the services of C&G International on enhancing the operational aspects of the business. A comprehensive audit was done which identified the need for HACCP compliance, the expansion and upgrade of facilities and equipment, staff training and rebranding of products and services to meet international standards.

Andrew revealed, “The new plant gives us the opportunity to develop more strategic partnerships. At this point we are not exporting but with a new plant comes greater speed and efficiency. Exporting becomes a more viable path and we are developing a product that has export potential.”

The expanded facility has created room for one new employee to join Foster’s staff of eight and Andrew said additional staff will likely be hired as the company continues to grow.

The new operation will be putting the emphasis on quality. Andrew said the company will also be keeping in mind the need to adapt to respond to market changes. “It may mean doing something completely different. We have already had to find new market niches we can fill and will continue to. The company is already exploring ways of prolonging the shelf life of its products.

HOW DID THEY DO IT?Andrew Foster has learnt a few basic principles which he said have seen the company through the years. In his words:

Do it right.Have a product that your customer wants. Do it and do it well.

Don’t take shortcuts.Find your formula and stick to it. Don’t shortchange your customer.

Don’t run before you can walk.Growth takes time and comes gradually. Lay a solid foundation first.

You can’t do it all by yourself.Whatever business you’re in, you’re going to need somebody to help you.

Stick together as a family.Loyal staff is important. In a small business you become a family and we’ve learnt that as a family you don’t desert one another. We stick together, we pray together, we cry together and we celebrate together.

Aspire

RISING TO THE CHALLENGE

Fresh baked goodies from Foster’s.

Andrew took specially invited guests on a tour of the facility where he explained key aspects of the operation. Capturing the moment.


Reach

A Barbadian company aspiring to be one of the region’s leading media entities insists the plans aren’t “pie-in-the-sky illusions”.

In fact, Andrew Jemmott, managing director of Caribbean Webcast Inc., a Barbados-based, regional technology company, believes the goal is well within his company’s reach as it continues to help aspiring Caribbean film-makers and videographers with content production and distribution.

“The Caribbean and in particular, Barbados, is investing significant time, energy and resources to develop the film and video industry. What has been missing is a major online distribution network .... We are filling this void and expect to become a major player in the rapidly changing marketplace,” said an optimistic Jemmott, whose one-year-old company also offers promotion and distribution services to the literary arts and music industries.

“I believe we can assume a leadership position in the region, and eventually the world, through hard work, regional and international networking, as well as providing the highest quality services possible,” contended the young entrepreneur who has been tinkering with computers since he was seven years old.

Caribbean Webcast Inc., a member of the BIM Ventures family of entrepreneurs, capitalizes on the exciting developments in new media by offering rich online content in the form of music videos, concerts and festivals, among other products.

With the increasing use of the Internet and social media for entertainment, information and advertising, the Barbadian company employs these outlets to unite the Caribbean region via a cross-cultural delivery of web content which showcases the best of Caribbean culture to the world.

Jemmott credits its “unique combination of technologies” as central to Caribbean Webcast Inc.’s growing success. “We are constantly innovating,” asserted Jemmott, whose team has satisfied clients through the building of cameras, computers and other equipment, skills associated with first world companies.

Caribbean Webcast, which provides content and programming in four languages - English, Spanish, Portuguese and French - streams and markets audio and video content, produces live webcasts, and offers artiste licensing and digital distribution services.

COMPANYCASTING WEB ACROSS CARIBBEAN

Andrew Jemmott


$%

Accelerate

Making Your Business Exceptional

Accelerating the development of competence and competitiveness in your business may require systematic firm-level support. It may also demand that you put your

creative imagination to work. Entrepreneur, Curtis Padmore, is forging his way to the forefront of business success. He offers these tips to others who may be just getting out of the starting blocks:

• If under 35 years old then consider meeting with the Youth Entrepreneurship Scheme to be a part of their marketing and accounting programme. This programme can provide a marketing consultant and allow you TV airtime on the Living the Dream TV show. This is offered at a very small cost. Their accounting programme can allow for subsidized accounting services to manage finances for businesses.

• If your service/product is innovative the BIDC’s Innovation Programme can work with you. There may be possibilities to access technical assistance funding for some initiatives.

• The Barbados Private Sector Association has a Proposal Hub which offers assistance in grant proposal writing. Grant funding is another funding option and should be pursued where possible by businesses.

• Invest in youth through collaboration with youth training programmes such as, those offered by the tertiary institutions and the Barbados Vocational Training Board. There are internship programmes that are open to working with businesses to provide experience to young persons who bring relative skills that can help an organisation develop.

• Approved Small Business status can offer a business additional tax incentives to augment its financial structure and better enable its use of financing. Small businesses should plan and build their business to acquire this status.

• The BIDC Incubator Programme can provide physical resources for businesses in terms of office environs, internet access and conference rooms at a subsidized cost.

• Barter relationships for development are key to gaining additional services and scaling up an organisation with minimal or zero cash expenditure.

• Use PR as a strategy to enhance marketing. Smart use of PR can act as a catalyst for social media marketing initiatives and improve information dissemination to the public

• Use mentorship as a pillar to building intellectual capacity of your company as different experiences and the knowledge of mentors can help to refine company plans and vision.

• Information Technology usage is critical for leveraging system process efficiency and improving service delivery. Utilise open source software and other web based tools that are free or low cost such as Google services for e.g.

integration with mobile devices is becoming more key as we are further enabled to work while not in office. Be sure to research and observe software reviews to refine your selection process of the software tools you choose.

Curtis Padmore is the CEO of West Learner Inc, specialists in educational software and animation. He may be contacted at [email protected]


Excel

Exceptional Customer Service

Exceptional customer service sometimes means making exceptions.

Customers want businesses to be flexible and while that is not impossible, figuring out when to bend the rules is a little more difficult, as a business. Here are a few considerations:

How much does it cost? If making a policy exception would cost the business a lot of money in lost profits, then it must be carefully weighed against the benefits of making the consumer happy.

Would it set a precedent? If making a “one-time exception” to a policy would make the rounds, would everyone start to ask for it? This concern often surpasses the lost-revenue issue.

Will it build loyalty? Would bending a rule result in more loyalty from the customer? Or would the customer, emboldened by a company’s acceptance, only ask for more favors? The conventional wisdom is that if you want to build loyalty, you should have a loyalty program. But that isn’t the only way.

Does it make you lose face? If a business has an earned reputation for uniformly and evenly enforcing its rules, would a one-time exception make it lose face to such a point that it loses credibility with customers?

Exceptional customer service providers according to our very own National Initiative for Service Excellence (NISE), are those companies that put the emphasis on:

• Delighting the customer, satisfying all their needs and giving them something extra to remember you by

• Making every customer feel special, giving them the impression that they are your No 1 priority

• Giving every customer a memorable experience, ensuring they will be pleased to return to you next time

• Treating every customer with respect, satisfying all their needs and exceeding their expectations

• Putting customers first - prioritising their needs and delivering a swift, friendly and efficient service

• Anticipating and exceeding all customers’ expectations • Being there for your customers - to provide a rapid, reliable

and unbeatable service to them • Showing customers you care about them; being professional

at all times • Adding value to their lives through your dedication, skills and

professionalism in satisfying their needs and resolving any difficulties

• Making the difference for all your customers so they will return to you through choice

• Establishing a valuable relationship with your customers based on trust, reliability, empathy and your ability to deliver your promises every time

• Making a commitment to your customer and keeping it • Being personable, precise, proactive and professional at all

times and in all your dealings with customers • Showing you care enough to make the difference for every

customer • Satisfying customers’ needs in a way that shows you

genuinely care about them as individuals • Welcoming and handling well a customer’s enquiries or

complaints so that the customer becomes an advocate

Within all of this however, NISE reminds us that service excellence is ultimately defined by the customer, since the customer is the ultimate judge of how an organisation delivers its products and services.

Exceptional Customer Service


The Barbados Investment & Development Corporation (BIDC) is embarking on a multifaceted project to distinguish Barbados’ rum above all others.

Details of the Rums of Barbados Expansion programme were recently announced during a stakeholder consultation which sought to uncover solutions to the many challenges confronting the rum industry.

The project, according to BIDC’s Manager of Export Promotion, Paul Waithe, is intended to enhance the competitiveness and profitability of Barbados rum producers by assisting in the transition from the export of bulk rum to the export of high-quality, high-value branded rums.

It will see the application of a Geographical Indicator (GI) and the development of a marque for Barbados’ rums, which is to be used as a differentiating tool in the marketing of our local

brands. It will also see the roll out of an integrated marketing communication strategy locally, regionally and internationally, intended to position Barbados as the premier rum producer in the world.

Barbados currently exports the majority of its rum production in bulk quantities at a fraction of the price of the exported, branded/bottled rums. It is felt therefore that the island stands to benefit significantly more from the export of branded rum. The success of the project will however require the support of all industry stakeholders as well as increased collaboration across the manufacturing, agriculture and tourism sectors.

Speaking at the official launch of the initiative, Minister of Industry, Small Business and Rural Development, Denis Kellman, gave his full support to the Programme, adding that Barbados must do all it could to ensure it reaped the full benefits of the rum industry.

Differentiate

BOOSTING THE SPIRITS

Dr. Wendy Hollingsworth explains critical elements of developing a GI for Barbados’ rum.


“I have been told that 80-85 per cent of the rum produced in Barbados is sold as bulk rum. Thus, the real beneficiaries of the prestigious Barbados rum are those persons who purchase our product and merely re-bottle it. Little value is added, if any at all, and it is my firm belief that every effort must be made to safeguard this heritage of ours.

“Therefore, now is the time for us to seize the opportunity to convert the significant throughput of our bulk rum into a branded product. To this end, the Rum Expansion Programme is a step in the right direction, since it provides us with the nuances that will enable us to better exploit the untapped value potential of this vital segment of our export industry,” Mr. Kellman said.

President of the Barbados Rum Producers’ Association, Dr. Frank Ward, highlighting some of the key challenges confronting local rum producers, made it clear that the local industry would not be able to compete without the excise taxes applied domestically on imported spirits. At the same time he noted that the cost of the main raw material input, molasses, is one of the chief impediments to the sector’s profitability.

With molasses representing around 40% of the total cost of imputs and the bulk of it being imported, Dr. Ward said “this does not lend itself to us being competitive with those who can source theirs domestically”.

The US billion dollar subsidies offered to the world’s largest rum producers which essentially makes it significantly cheaper for them to produce, much to the detriment of the smaller producers, is also a major concern. The situation becomes even more critical Dr. Ward said, when one considers the multilateral trade negotiations as well as the Doha Round discussions have stalled on concluding any rum agreement.

Dr. Ward made it clear that “the average consumer in target markets doesn’t care about Barbados’ rum being the best”.According to him, “They just want a product that tastes good and meets their expectations and that is affordable.”

The challenge for Barbados then is to give the customers what they want and to convince consumers in the target markets that Barbados rum is worth trying and worth a premium price.

Pointing out that “there is no protection for Barbados’ rum on the international market at the moment”, he said there is also the issue of counterfeiting of rum and the sale of ageing rums which do not conform to either the CARICOM or EU definitions of aged rum”.

It is felt that with the GI, the value, quality, uniqueness, integrity, authenticity and heritage of Barbados’ rum could be leveraged to enhance its competitive market advantage.

And where the other challenges are concerned, Minister of Agriculture, Dr. David Estwick, said Government is committed to building a viable and sustainable sugar cane industry which should translate into significant benefits for the rum industry. Dr. Estwick pointed out that the restructuring process could lead to improved sugar cane yields and the production of grade “A” molasses, which in turn would have significant benefits for the growth of the Barbadian rum industry.

“Based on a supply of 350,000 tonnes of canes to an upgraded Andrews facility, the potential supply of grade ‘A’ molasses is 24,500 tonnes. The rum industry, which is a significant foreign exchange earner will benefit from increased security of local molasses supply, higher quality molasses input into rum making, foreign exchange savings and the ability to boast of our rums being made from local molasses,” the Minister remarked.

Minister Kellman added that Government would lend assistance to the rum industry towards achieving competitiveness by putting polices and strategies in place to ensure sustainability of the domestic export sector as a whole. He maintained, “We need to reposition ourselves to become innovative, more export driven and marketable. We cannot settle on mediocrity. Our rums/products must therefore be second to none.”

Barbados’ exports of rum came in at $57.2 million in 2009 and $66.7 million in 2010.

Differentiate

“Barbados currently exports the majority of its rum production in bulk quantities at a fraction of the price of the exported, branded/bottled rums. It is felt therefore that the island stands to benefit significantly more from the export of branded rum.”

Minister Dr. David Estwick and Minister Denis Kellman listen intently during the stakeholders’ forum.


Participants toured the pre-press and digital press room and got a firsthand look at the new UV inkjet digital press, rotary die cutting and converting, foil stamping and embossing system. This session was of special interest to condiments and food producers as well as those involved in the health and wellness and botanical products sectors. A representative of the BNSI also addressed the issue of label standards.

Celebrate

The Barbados Investment and Development Corporation (BIDC) joined the rest of the island in celebrating the nation’s 45th anniversary of Independence this year.

On Sunday, November 20, the Corporation officially launched A Toast to Industry – a week of activities intended to highlight various aspects of manufacturing in Barbados and to put the spotlight on factors critical for success.

A series of seminars was organized as part of the week of activities, the first of which took place on Tuesday, November 22, at Suite 202, Building 8, Harbour Industrial Park, St. Michael. At this seminar, Managing Director of G & A Communications Inc., Devin Griffith, and Attorney-at-Law, Tammy Bryan, discussed the fundamentals of brand management, definition of a brand and how branding works. They also discussed the intellectual property/legal issues associated with brand implementation and protection.

On Thursday, November 24, Caribbean Label Crafts Ltd., in Wildey Industrial Park, St. Michael, was the venue for the second seminar. Managing Director of Caribbean Label Crafts, Paul Evelyn, and Technical Officer at the Barbados National Standards Institution, Cheryl Lewis, exposed participants to the mechanics of label production from concept to delivery, as well as, the legal, health and safety requirements of labeling. Participants also had the opportunity to tour the facility and see one of Barbados’ leading export companies in operation, as Caribbean Label Crafts agreed to put their new state-of-the-art facility on show.

Director of Entrepreneurial Development, Mr. Michael Bynoe (left) makes a special presentation of cheque for technical assistance to the Principal of the St. James Secondary School Mr. Jefferson Phillips. In the background is Director of Research, Carol Lynch.

TOAST TO INDUSTRY


Celebrate

17

On Friday, November 25, the session returned to Suite 202, for presentations by Food Technologist and Chemical Engineer, Nadine Benn; Food Scientist, Crystal Merritt; and Chemist, Carol Griffith. They provided information on food labels and gave an overview on the importance of microbiological and chemical testing.

As part of the salute to industry, the BIDC also partnered with the Barbados Manufacturers Association (BMA) in hosting a road show. Coordinated by Mr. Antoine Williams the show was broadcast on the networks of CBC and Starcom and involved visits to selected manufacturers and service providers over a two day period. One of the key stops was the BIDC’s Small Business Centre where Williams featured a number of the centre’s clients in the Incubator Unit.

The BIDC also joined with the Small Business Association in hosting a networking forum. This event was aimed at facilitating horizontal and vertical networking among Small and Medium-sized Enterprises (SMEs), business support organizations and other stakeholders. It also afforded attendees business to business opportunities and supported the promotion of products and services.

The St. James Secondary School, one of the schools within the BIDC’s one year entrepreneurial development programme, was singled out for a special visit during the week of activities.

Some of those who attended the seminar series.

Coordinator of the Toast to Industry week of activities, Michael Piggott, during the kickoff event.

G&A Communications’ Devin Griffith takes seminar participants through some of the fundamentals of branding.


they are unable to export partially as a result of Barbados’ outdated legislative framework. This has worked against some exporters as they attempted to grow and diversify their markets.

Addressing further issues on the existence of non-tariff barriers, the Director revealed “In a meeting with the Costa Rican Ministry of Foreign Trade we expressed concern about the number of non-tariff barriers in place in the market which prevent Barbados from taking full advantage of the perceived benefits of the trade agreement. It was agreed that in consultation with the Ministry of Trade (Barbados) we will compile information to be further discussed with Costa Rica.”

Coming out of the mission, Barbados may now be looking to take advantage of the benefits that may be derived from utilizing the services of the Panama Free Trade Zone (FTZ). A visit to this zone by some participants ignited a discussion on whether Barbados should follow suit, if our research findings justify that option.”

Endeavour

The diplomatic and commercial mission to Panama and Costa Rica undertaken during the period October 17–27, 2011, has resulted in strengthened business linkages.

And it appears that the stage is now set for increased bilateral trade of select niche goods and services between the territories.

According to BIDC Director of Export Development and Promotion, Mrs. Sonja Trotman, “Evaluated on the basis of the objectives which shaped the mission, it was a great success. Not only were the exhibits well received, but there was considerable interest shown in the markets, in engaging in business relations with the delegation.”

“The first-hand knowledge gleaned while there and the multiple contacts established and cemented, will undoubtedly, redound to Barbados’ and the OECS’ long term benefits,” she added.

But while the prospects are good, she did note that the mission also brought to the fore key issues which will have to be tackled to ensure expanded market penetration.

Elaborating on this, Trotman noted “All of us who were instrumental in planning and executing the mission, now need to focus that same level of interest in getting our Sanitary and Phyto Sanitary (SPS) infrastructure established and institutionalized. To delay any further effectively reduces the portfolio of products, which we can realistically offer to those markets. That visit hopefully, will provide the stimulation for us to reinforce the urgency of implementing the SPS regime.”

In the multilateral trading system, the SPS agreement is intended to address measures designed to protect human, animal and plant life and health. In order to successfully penetrate export markets, exporters are required to comply with the importing countries’ health and safety regulations. Lack of a modern legislative framework for monitoring compliance with health and safety issues is a worrying signal to trade partners that products originating from the exporting country do not comply with international standards. In the case of Barbados, while some producers may be fully compliant with respective standards set by the International Standards Organisation for their industry,

MISSION ACCOMPLISHED

L-R Sonja Trotman, Director BIDC, H.E. John Beale, Barbados’ Ambassador to Washington & Costa Rica, Min. Denis Kellman, Minister of Industry, Commerce & Small Business, and P.S. Bentley Gibbs of the Division of Foreign Trade in the Ministry of Foreign Affairs & foreign Trade in discussions with officials of the Ministry of Foreign Trade of Costa Rica.


Endeavour

Essentially, the zone functions as a giant warehouse where diverse products are stored, prior to transshipment to final destinations. Our interest, particularly in that region, suggests that we should evaluate the FTZ option. However, before any such discussions can be entertained the necessary research would have to be conducted in an effort to make a determination.

The 39-member delegation, which was led by Hon. Richard Sealy, Minister of Tourism, included Hon. Denis Kellman, Minister of Industry, Small Business and Rural Development, senior representatives from the Ministry of Foreign Affairs and Foreign Trade, Invest Barbados, the Barbados Investment and Development Corporation, the Caribbean Export Development Agency and the OECS Secretariat and private sector. Also included were Barbadian private sector manufacturers and local umbrella agencies including the Barbados Manufacturers Association, the Small Business Association and the Barbados Chamber of Commerce and Industry and the Barbados Coalition of Service Industries.

The objectives of the mission were: To increase the number of Barbadian companies which are exporting to those markets, by at least 3 within the next 2 years; To exploit the diasporic connection and make more Barbadian products, inclusive of music, available therein; To increase tourism traffic from these points of origin into Barbados; To promote this domicile, as a viable provider of offshore financial services and other services; to identify alternative sources of inputs for agro-processors (already, Costa Rica is a source of raw materials for several of our condiment manufacturers and rum producers); To identify and build relationships with existing distributive networks through which to channel our products into these markets once we understand the norms which obtain there; To increase our annual exports to these markets collectively, by at least 10% and to enhance the status of the diplomatic and cultural relationships between those countries and Barbados.

In pursuit of these goals, the range of “in-market” activities undertaken during the mission included exhibitions, cocktail receptions, participation in presentations by business persons based in those markets, meetings with Ministries, Chambers of

Commerce and a wide assortment of business entities. In all of these ventures, the visiting Barbadian and OECS delegates were assisted by local facilitators.

Highlighting some of the mission successes, BIDC’ Senior Business Development Officer, Mr. Anderson Cozier who coordinated the manufacturers’ participation revealed that an export facilitation activity, for which a Barbadian based manufacturer, had sought, quite unsuccessfully to have executed for a period in excess 5 years was set in train.

And he added, “Fortunately for that manufacturer, both of the contacts which the event generated were very major players in that market and are both ideal partners.”

What was even more outstanding, he reported was that another manufacturer secured an order for a container load of product and is hopeful of dispatching that order before year end.Cozier noted that during a post-mission session all of the participants acknowledged the value of being part of the mission and expressed interest in following up.

Trotman further stated that “The BIDC is committed to monitoring their progress of manufacturers in these markets and to wherever possible, with them in their efforts to develop trade links. Invitations were issued to our participants to return to a major trade fair which is being hosted in Panama next year and several persons promised to attend,” she noted.

L-R Minister Sealy, Minister Kellman and Ambassador John Beale at one of the Expos.

L-R Ivonne de Salerno, Noriel Salerno - General Secretary in Ministry of Commerce & Industry, Minister Richard Sealy and Minister Denis Kellman

Some of those who came out for the discussions.


Just Do It

Barbadians are being told it is easy to do business in Costa Rica, but the area of concern may be the cost of getting goods from both destinations.

This advice has come from Customs, Logistics & International Trade Executive Coach, Margarita Libby, who acknowledged that freight costs would be a bit higher because there was no direct route from Costa Rica to Barbados. “We would need to impress upon the shipping and airline companies that if they started a route from there to here, they are going to have business,” she suggested.

However, Ms. Libby was quick to point out that “we have a lot of commerce with Barbados now”. She continued: “Costa Rica exports pharmaceuticals, [products in the] food industry and plastics to Barbados, while Barbados exports labels, pharmaceuticals and some food to us.

“But, I believe we can trade in more than that... We have a lot of products that we can share with you, and of course, Barbados has a lot that can be shared with us.”

Ms. Libby lamented that some business people here and in Barbados might not be aware of the various treaties, including the CARICOM-Costa Rica Free Trade Agreement and she suggested that there was a need for more communication to be established between the two countries.

Costa Rica has a population of approximately 4.5 million people and a per capita income of about US $11,300. Its major markets are the United States of America, Central America, China, the Netherlands and Panama. (BGIS)

Barbados cannot continue to do business the way it is currently being done!

This strong message has come from Minister of Industry, Small Business and Rural Development, Denis Kellman, who is of the opinion that “we cannot continue to operate in the box; we now have to get out”.

Mr. Kellman’s comments came in Costa Rica after a meeting with Vice Minister in the Ministry of Economics, Industry and Trade, Luis Alvarez Soto; Director of International Cooperation in that Ministry, Jorge Rodriguez; Director of the Small and Medium-Sized Companies, Rosa Monge, and several members of the trade mission.

He underscored that “the world is not waiting on us ... these countries are not waiting, they are not prepared to use old concepts, they are prepared to break out and we also have to do similarly”.

The Minister said he was pleased with how the exhibition was shaping up in Costa Rica, noting that a lot of companies were visiting the display booths and the interest was high among the private sector.

“It seems the private sector here is prepared to drive the invitation [to the exhibition] and I am happy to see what has been happening over the past two days of the exhibition. I spoke to the exhibitors and everybody seems happy with what is happening... I hope we can build on that, so it is not just talk, but

we can convert it to orders. What it says is that there is interest, but we must not just accept the interest at face value, we must now drive it,” he advised. Mr. Kellman expressed the view that even though there was no direct connection between Barbados and Costa Rica, some synergies could be created. “We may believe we are doing good things in tourism, they may also have a similar viewpoint, but I believe that if we come together, we can share ideas and see how we can exchange tourists and other things,” he stressed.

Noting that two-way trade was essential for Barbados, he suggested it could help to reduce the island’s cost of living. “My job is to make sure we create the atmosphere in Barbados so we can export more and I will be ensuring that the Ministry looks at all possibilities.

“We have to go back to old economics. There was a time when Government was expected to drive manufacturing. As I see it today, we will have to go back to the old concept where we drive manufacturing and then hand it back to the private sector because if we are to achieve the capacities, then it would mean that Government would have to find a way to create synergies with the private sector... It might [also] mean that some of our public groups would have to turn to the private ones to get the right synergies,” he surmised.

During the meeting with Vice Minister Soto, the officials also discussed the education system in both countries and the green economy. Minister Kellman also invited him to visit Barbados. (BGIS)

EASY TO DO BUSINESS WITH COSTA RICA

TIME TO GET OUT THE BOX


Just Do It

A big success! That’s how Minister of Tourism, Richard Sealy, has described the five-day diplomatic and trade mission to Panama.

Mr. Sealy said the mission went “extremely well” and it was “a very productive week for all, not only our government officials who were locked in discussions with their counterparts here, but also for our business people who were seeking new markets”.

Mr. Sealy noted, “Panama is very keen to extend its trade linkages into the Caribbean. The same trade deficit that we in Barbados and the Caribbean have with Latin America, Panama has also seen it in relation to trading with the Caribbean. If you look at the majority of business done in the Colon Free Trade Zone, the overwhelming majority of it is done with Latin America.

“When we visited the Ministry of Tourism, we were informed that 70% of the country’s tourists come from Latin America, and only 10% come from Europe and Asia. So, they really want to strengthen the linkages with the Caribbean; and, as we have been saying all week, historical connections are extremely strong between the two countries and we have to take advantage of them.”

The Minister pointed out that one of the highpoints of the mission for him was “finally having face-to-face” discussions with the President and Chief Executive Officer of Copa Airlines, Pedro Heilbron. “This is something we have been trying to do for two years, and being a part of this mission, it was able to

happen in two days... We were able to put our case [forward] and it is clear that flight connection is certainly going to happen, sooner rather than later, and we are very happy about that,” he reported. Mr. Sealy added that he was “very encouraged” by the large number of Barbadian descendants living in Panama who attended the diaspora meeting hosted as part of the mission. “The best evidence of the necessity of this mission came in the way we saw Panamanians reacting to the local products on display, they could not get enough of the samples,” he noted.

Barbados’ Ambassador to Washington, John Beale, who has responsibility for Panama and Costa Rica, echoed the Minister’s views, saying he was astounded at how strong the island’s link with the descendants was after 100 years. “To see the commitment and almost passion that some of the old timers had was quite amazing,” he stated.

Mr. Beale also observed that the mission was a success, but advised the business people in the delegation that they would have to work hard to follow up on the initial interest shown. Meanwhile, several of the representatives of the Chambers of Commerce from the Organisation of Eastern Caribbean States praised the initiative, stating that the region needed “to work together to realise tangible trade benefits, and the mission was a good start”.

They cautioned that with some economies still struggling because of the global recession, the time had come for the Caribbean islands to stop competing against each other and “cooperate a lot more”. (BGIS)

Businesses in Barbados and the Caribbean are being strongly advised that there is a market in Panama for their products.

This advice has come from Director of Logistics and Transportation at the Chamber of Commerce, Industry and Agriculture of Panama, Albert White, who suggested that trading could also be done in commerce and services.

Mr. White pointed out that about 95 per cent of Panama’s economy was based on services, such as banking and insurance, and described the Central American country as “a very open place to do business”.

He told the Barbados Government Information Service: “We invite just about everybody in the world who wants to do business in Panama and through Panama to other countries [to come]. It is a very easy place to establish formal working relations.

“...Our market is 3.4 million people; it is rather small, but through our logistical platform, you could reach 140 million people in the region which look to Panama as a place to come shopping and ... do their business,” he disclosed.

In the past, Mr. White stated, the Panama Chamber of Commerce had hosted business people from across the globe, including Trinidad, India and Europe and they were encouraged to “look for their niche” that could give them entry into the export or import market.

Meanwhile, the President of the Chamber of Commerce, Federico Humbert, has invited Barbados to participate in Panama’s Expo in March 2012. Some 8,000 buyers from Central and South America, as well as the Caribbean are expected to attend the fair, which will provide companies an opportunity to exhibit their products to several hemispheric buyers. (BGIS)

TAP INTO PANAMA MARKET

Off to a Good Start


Innovate

A shift to knowledge-based industries has been described as crucial for Barbados by Minister of Commerce and Trade, Senator Haynesley Benn.

His comments came while speaking at the opening ceremony of the Third Annual Information Society of Barbados (ISB) Conference, hosted at the Lloyd Erskine Sandiford Centre.

The two-day conference, which saw a gathering of specialists and exhibitors involved in information and communications technology (ICT), was described as “timely” by the Minister, who observed that “we can realise our vision of being a fully developed and prosperous society that is globally competitive ... Effective use must be made of any current or emerging technology that can support economic, social and cultural development.

“This will, however, depend on enabling legal, regulatory, financial, infrastructural, political and social environments and a facilitating culture for extracting from technologies the maximum benefits they are capable of providing.”

The Minister acknowledged that there were challenges, however, and noted that capacity building, improvement of infrastructure and efficient marketing and public awareness were key to the growth of ICT in Barbados. He also encouraged practitioners within the field to liaise with the Ministry, to further push the cause of ICT development on the island.

In reference to the event’s theme ICT: The Catalyst for Economic Development, Senator Benn emphasised that “in order to compete in the global economy and maintain and surpass our current level of development, Barbados needs to shift to knowledge-based industries”. He pointed out that countries such as Canada, Singapore and the United States had embraced

the concepts of life-long learning, encouraging education and investing in research and, as a result, had enjoyed strong Gross Domestic Product growth.

Malta was also given as an example of a nation which had used ICT as a means of development. Keynote speaker, Economist Advisory Partner for KPMG Malta, Mark Bamber, said there were some similarities between his country and Barbados - since they are both small island states, dependent on Europe as a major source for the tourism market.

“I enthusiastically support your drive to develop the ICT sector as an economic pillar. I have experienced the sector’s ability to engender economic momentum. I have seen the sector’s contribution to making the jurisdiction more attractive for foreign direct investment. I have seen the stimulus that knowledge industries offer people seeking graduate education,” Mr. Bamber undelined.

He observed that e-skills had greatly contributed to the marketability and productivity of his country and shared a quote which he believed embodied the purpose of diversification: “We did not exit the stone age because we ran out of stone but because we found something better.”

President of the ISB, James Corbin, revealed that the Conference was just one of many projects streamlined for 2011/2012. Plans include the launch of an ISB School Essay Competition; an ISB/private sector partnership to create a Barbados Imagination Centre, which will focus on the development of ICT prototype products; an ISB week of activities; and the establishment of a mentoring programme. Mr. Corbin also disclosed that the ISB would partner with Government, namely the Ministry of Commerce, to assist in making Barbados “the ICT capital of the Caribbean”.

A SHIFT TO KNOWLEDGE -BASED INDUSTRIES NECESSARY


Executive Coaching

Innovation is about doing things differently and better. It is a widely shared view that in order to be successful in business, management must embed in their teams, norms of constant

change in response to the ever-changing external environment. To accomplish this now and in the future it is thought that each business should be laser-focused about carving out a set of distinctive competencies for itself that positions it to generate ideas, capitalize on opportunities and bring them to market with some added value in a way that is unique to that business and of course with commercial viability.

According to Michael Porter, there are five external agents that cause change in organizations: new entrants, substitutes, competitors, suppliers and customers. There are innumerable combinations of responses to the threats and opportunities inherent in these driving forces. They range from competency building, product improvement, business model overhauls, identifying new market niches, graduating from cost minimization to revenue generating strategies and reframing the competition, customers and the very market model within which we operate. There is no one best response.

Entrepreneurs may therefore benefit less from prescriptions and more from a framework for thinking about and implementing innovative ideas. A framework provides entrepreneurs with a way of looking at their businesses through lenses they may not have otherwise glanced. Fundamentally, entrepreneurs are innovators. Innovation is the tool they use to challenge existing reality and to improve their ideas, services or products. Among them are the likes of James Corbin, Colin Hudson, the late Professor Oliver Headley and James Husbands.

The following framework helps managers to see where innovative opportunities are in their businesses. Oftentimes as business people peddling products or services we limit our scope to improving or changing the product or service, e.g. faster computers, 3G to 4G, watching movies on kindle, et cetera.

According to Bessant and Tidd (2005) innovation can take place in a number of ways:• Product changes - in the things (products/services)

which an organization offers

• Process changes - in the ways in which they are created and delivered

• Position changes - in the context in which the products/services are introduced

• Paradigm changes - in the underlying mental and business models which frame what the organization does

Nevertheless, innovation is hard, risky and often, regardless of its fashioning among the 4Ps it fails to reach the markets of ideas, products or commerce. Thus in order to succeed entrepreneurs need to conjure new mental models for their businesses and for themselves. They need to summon mindsets that build personal capacity to outwit and out-innovate their competition. That may even include joining the competition.

For those who prefer prescriptions, smart ideas may include taking advantage of modern technology (e.g. smart phones) to include customers in the design of your product; transitioning your live training service model to online delivery, reducing overheads for training spaces and increasing your customer base by identifying a large Internet niche. We mentioned process, position and product innovations. They, however, equally demand new mental business models or paradigms to identify and shape the responses to the opportunities they are intended to seize.

While there is no inherent hierarchy among the 4Ps and one can be product-inventive without mentally overhauling one’s approach to the entire business, you may be willing to agree that in the final analysis if you can’t change your mind, you can’t change the fortune of your business.

Cheryl Gittens is a Life Performance Coach to executives with Connect With Your Passion Life Coaching Inc. She lectures at the UWI and is an organizational behaviour consultant. Contact her at [email protected]

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

By Cheryl Gittens


BUILDING A NEW ECONOMY

Rethink, Retool, Rebuild

David Simpson, Small Business Association (SBA)

Achieve improved competitiveness, where output is maximized against the value of imputs.

Develop a level playing field for all.

Encourage innovation and creativity to bring new opportunities for economic growth.

Ensure greater ease of doing business so that we are able to attract the level of foreign investment necessary.

Maximise the use of talent within organizations.

Support educational reform. Nobody should be hearing about entrepreneurship and business in fourth form at secondary school for the first time.

John Williams, Chairman Barbados Private Sector Association

Determine what we need to do and do it better and faster and what we don’t need to do, just get out of completely.

Revisit social support mechanisms.

Offer the support and concessions necessary to support new growth and encourage investment in new areas.

Relook our sunset industries to ensure that the support offered to them does not outweigh the benefits these industries offer to Barbados.

Aim for concession in government. We can’t have one arm arguing for one thing and another not doing anything about it.

The following viewpoints capture the vision of a new Barbadian economy in prescriptions, as outlined by panelists in the 18th annual Institute of Chartered Accountants of Barbados (ICAB) conference, themed Building the New Economy. It was hosted on November 11, 2011 at the Lloyd Erskine Sandiford Centre.

The panelists (L-R) David Simpson, John Williams, Roger Arthur (Moderator), Peter Boos, Lalu Vaswani.


Rethink, Retool, Rebuild

Peter Boos, Barbados Entrepreneurship Foundation

Recognise that the days of subsidized industries are long gone. It’s time for real independence. What we did in the last 45 years is not what we need to do in the next 55 years. We need a new vision and new ideas.

Enhance competitiveness. We need better governance and we need to ensure that the structures are in place to make us fly on all cylinders. We need to change our economic structures and align them with the new vision for Barbados and all aspects of our national strategy.

Pursue economic diversification and new markets: There are many opportunities out there but there are not advancing.

Encourage foreign direct investment. We have to look at immigration policy and globalization and open our economy to take on the world. That’s the way to move forward and create wealth. Our vision has to be externally focused.

Relook land use policy: Let’s decide once and for all whether we are going to keep a sugar industry or not and move on.

Embrace alternative energy. It’s the way of the future.

Enhance quality of life. We have to take into consideration issues of security, crime, traffic, and quality of roads and infrastructure in all this.

Expand connectivity. The world has gone digital and for Barbados, it has to be absolutely world class broad band connection on a global basis.

Build an entrepreneurial society. It’s about creating an economy where entrepreneurship can flourish. Government itself needs to be entrepreneurial and needs to look at soft skills - strategy and execution.

Lalu Vaswani, Senior VP Barbados Chamber of Commerce and Industry

Start with sustainability: If you’re building a home you need to ensure it’s on a solid foundation.

Examine the major elements causing social disruption and put strategies in place to mitigate them.

Place less emphasis on self and more emphasis on being selfless.

Accept that we need to deal with behavioral issues and look at building strength of character.

Recognize that we all have an obligation to give back to society.

This is an age of transformation. We need to understand each other better and make the adjustment to building a better society.



Explore

Former Prime Minister and Ambassador of Barbados to China, Sir Lloyd Erskine Sandiford, has declared that the days of preferential markets are over, and Barbados must

urgently review and revamp its stance and actions as an exporting country.

Delivering the keynote address, at the December 13th, 2011 seminar on Engaging China: Options, Opportunities and Strategies at the Lloyd Erskine Sandiford Centre, the Barbadian envoy encouraged participants to look outside traditional markets and to focus on the Chinese and East Asian markets.

“From where I am located, I advocate a special focus on the markets of China and East Asia which are the most promising and resilient in world trade today and into the foreseeable future.

America will recover, and a different Europe will emerge. But the days of preferential markets are over. We can no longer hope to hang on to the coattails of those metropolitan centres,” Sir Lloyd said.

He called for less talk and “a redoubling of our efforts” towards seeking out investments and engaging the potential of other economic sectors besides the service industry.

“No longer is it enough to proclaim that we are a service industry economy, as though services are all that we are about, and that services are the be-all and end-all of our economic thrust...”

“What I am really calling for is a redoubling of our efforts to raise significantly the output for the potential of other economic sectors, including agriculture and fisheries production, processing and manufacturing,” he added.

Sir Lloyd acknowledged that while those sectors currently faced challenges, he remarked that for Barbados to move forward

“herculean efforts” were needed, in addition to the exploration of new ideas. He readily identified by-product generation as an area that was fertile for exploitation.

“We must unbind ourselves from old ideas, and hitch ourselves to the wagon of new ideas.

We must seek to extract a greater contribution to output from sugar and its by-products from cotton, and from food crops, livestock and dairy products, and fisheries. The production of cooking oil from a source such as sunflowers comes readily to mind,” he underlined.

The Ambassador also called for a deeper engagement in industry and manufacturing and pointed out that the sub-sectors which deserved a “root and branch re-examination” were: textiles wearing apparel and the leather industry, electronic equipment, food and beverages, fabricated metal products, clerical and data processing industries, non-metallic mineral products, paper products and printing, handicrafts, and precision instruments and electrical equipment.

Sir Lloyd, however, noted that Barbados should continue to place importance on tourism, business and the financial services sectors and suggested that the country needed to invest more in its tourism plant, solar energy, water conservation and recycling activities. He said that China was a possible source for such investments.

Stating that the “new approach calls, not for excessive talk or compendious studies, but a pragmatic search for niches”, he proposed the establishment of a private-public sector agency that would concentrate on the sale of Barbadian exports, specifically goods, as well as to build expertise in marketing Barbadian products overseas. He added that such an agency should collaborate with Barbados’ diplomatic missions abroad. (BGIS)

More Effort Needed For Economic Engagement and Export


World Expo Shanghai 2010, touted to be the world’s largest expo in history, was an exchange of culture, technology, science, and economic activity running

from May 1 – October 31, 2010.

Approximately 190 of the world’s 196 nations were represented at the Expo. The BIDC was part of the Barbados/CARICOM contingent, highlighting what Barbados had to offer relative to tourism, culture, lifestyle, and manufactured products through a mix of audio and other multimedia.

Given BIDC’s mandate to the manufacturing sector, it was decided to use the opportunity afforded by the Expo to research various business opportunities in Food & Beverages; Alternative Energy; Craft; Furniture and Fashion.

The BIDC’s Senior Business Development Officer, Beverley Alleyne, was one of the featured presenters at the seminar on Engaging China: Options, Opportunities and Strategies. Her presentation, which focussed on the Lessons Learnt, sought to give some insight into doing business with China. She shared a few points to note:

• An Invitation letter from an established business in China is essential in order for the granting of a Visa to conduct business in China.

• Every manufacturer does not have an export license and can only sell within China. It is therefore important to verify a company’s export license if one wants to do international business.

• Generally, businesses within mainland China do not prefer to trade in anything other than their own currency. However, international transactions can be completed in US currency.

• Building a network of trusted business contacts and friends is critical to doing business in China. Getting referrals from other companies doing business in that market may reduce the risks of entering the market for the first time.

• Due diligence is even more critical in forming strategic alliances or entering new business transactions in China because of the vast differences in governmental regimes, customs procedures, cultural customs, and language barriers.

• If one were to approach China as a source of inputs, in order to do business effectively one will need to appoint a coordinator on-the ground to oversee logistics and quality assurance issues.

• Business savvy and the ability to negotiate is important. You must be able to bring something to the table.

• It takes approximately 6 – 8 weeks, all things being equal, for shipments to arrive from China, outside of special express delivery. Terms appear to be usually 30% - 50% deposit on goods with final payment on receipt of Bill of Lading, but of course negotiation is possible.

• There are several money denominations which have the same face value but not the same monetary value. As such one needs to familiarize oneself carefully with the currency notes and coins.

• Chinese do relationship-business. A locally based person is therefore very important to doing business in China.

• Business tools are essential to engage the Chinese client e.g. bilingual company profiles, product profiles and other business literature, business cards and other tangible means of communication and connection. Corporate profiles should include importantly the nature of the business, its size, level of technology, number of employees, product profile and information on branding.

• Chinese business processes are still very much evolving and regulatory frameworks can change within a short period of time.

• Responsiveness is critical to engage Chinese business.• In general, manufacturing is spread all across China, yet

some provinces can be seen as a more major hub of certain industrial sectors. For example, much of Guangzhou, the capital city of the Province Guandong and Shenzhan are two areas of significant manufacturing. Guangzhou is well-known for textiles; electronics is big in north-east China but more so for mobiles and hand-held electronics. Quindao is famous for fashion and there is an annual fashion show held there. Large appliances are found more so in the north of China.

• Several businesses in mainland China have offices in Hong Kong for two main reasons:

• The tax regime in Hong Kong is better than in mainland China – e.g. no VAT in Hong Kong.

• An office in Hong Kong affords a company better financial control and flexibility. In mainland China government controls are much more stringent relative to foreign currency transactions and movement of currency out of China.

Network

ENGAGING CHINA


Engage Employees

Someday, Barbados will be known as a world-class centre of excellence through quality customer service, which is second to none.

So says Minister of Labour and Social Security, Dr. Esther Byer Suckoo, as she addressed a Special Leaders Forum hosted by the National Initiative for Service Excellence (NISE). It marked the release of the NISE Employee Engagement Index Results and the launch of its ‘100 Improvements in 100 Days’ initiative.

Stressing that Barbados’ economy relied heavily on the provision of services, the Labour Minister lauded the efforts of NISE in educating customers and service providers on the expected standards of service transactions.

Dr. Byer Suckoo lamented that, for some time, there was a concern about worker attitudes, service delivery, productivity and service excellence, and she praised NISE for highlighting some of the factors that influenced organisational performance from the employees’ perspective and also for suggesting solutions that both employers and employees could explore.

The Labour Minister said she was happy that NISE recognised the importance of employee engagement in achieving service excellence, adding that this would lead to more efficient organisations.

“Engaged employees are proactive and persistent, and make decisions that are consistent with the company’s strategic goals and objectives. These employees feel a sense of ownership of the organisation and, consequently, feel responsible for the organisation’s outputs.”

“A satisfied employee will, most likely, be willing to go the extra mile to ensure that his or her customers are satisfied...The

converse is that a dissatisfied employee gives the bare minimum,” Dr. Byer Suckoo added.

Nonetheless, the Labour Minister declared that more needed to be done. She explained that discussions tend to focus more on what government should do. However, she stressed that even with the best framework in place, government’s efforts would go in vain, if employees did not feel satisfied or valued.

“Discussions about national competitiveness, productivity, entrepreneurship and attracting more businesses and investment to Barbados have not been balanced, but have seemed to centre more around what Government should be doing about a legal and policy framework and about the speed of delivery of some Government agencies.

“These are indeed valid discussions - I am not denying that - but even with the best frameworks and the most valiant attempts at restructuring or rationalisation to have staff positioned to use their skills optimally will not bear fruit, not if the employees are not satisfied, and not convinced that they are seen by the leaders as adding value,” she maintained.

Explaining she was referring to all employees and not specifically Government employees, the Labour Minister stressed that employee engagement was essential to achieve service excellence.

She emphasised that the Ministry of Labour supported decent work and aimed to create satisfied employees through legislation such as the Employment Rights Bill, the Sexual Harassment in the workplace legislation, Anti-discrimination in the workplace and Occupational Safety and Health legislation. (BGIS)

EMPLOYEE ENGAGEMENT IS ESSENTIAL TO WORK PLACE EXCELLENCE


News to Note

Anyone engaging in a profession, trade, business or calling as set out in the Profession, Trade and Business Registration Act Cap. 373, is reminded that annual

registration fees for the year 2012 must be paid during the month of January.

According to Registrar of the Supreme Court, Marva Clarke: “Failure to meet this deadline will result in payment of fees twice that which is normally due. In addition, any person who fails, neglects or refuses to register and engages in any profession, trade, business or calling, is guilty of an offence and liable to a fine of $500.”

Based on the categories set out in the said Act, fees are payable to the Registrar, Registration Department, Judicial Centre, Whitepark Road, St. Michael, or the Chief Labour Officer, Labour Department, 2nd Floor East, Warrens Office Complex, St. Michael, as the case may be.

The Registrar has advised that persons failing to pay the fee within the determined period shall be treated as being unregistered.

Minister of Industry, Small Business and Rural Development Denis Kellman, along with Permanent Secretary, Ruth Blackman, other officials from that Ministry, the

Barbados Investment and Development Corporation (BIDC), as well as the media, recently visited 11 industrial estates across the island.

The delegation made stops at Crucible at the Harbour Industrial Estate; Matrix Marketing and Furniture Alliance at Grazettes Estates; American University of Barbados School of Medicine at Wildey Estates; TTL Electronics at Grantley Adams Estates; and

Crown Packaging (Barbados) Ltd. at Six Roads Industrial Park.During the tour, it was revealed that a group of Barbadian furniture manufacturers have made a major breakthrough in the Caribbean market, with at least two countries opening their doors to local products. The producers, which included Workbench, Quality Lamps, Slumber Foam, Earth Works, and Pierce Furniture have not only started to supply the multi-million dollar Port Louis marina project in Grenada, but appear set to make a resurgence in the once buoyant Trinidad market, where furniture produced here held sway in the early 1980s.

TOUR OF ESTATES

Something new is coming to the Pelican Craft Centre.

Over the past few weeks, the Barbados Investment and Development Corporation’s (BIDC) Pelican Craft Centre was represented on the Ministry of Tourism’s project committee on the pilot project “A Barbadian Craft Experience”. This project is a new tourism offering of the Ministry of Tourism, in collaboration with Intimate Hotels and the BIDC. It was officially launched to coincide with the 2011-2012 winter tourist season and is aimed at generating activity at the Centre, while offering the visitor an interactive and creative cultural experience.

At a cost of $50.00 the project will offer visitors: transportation from their hotel to Pelican Craft Centre and back; a 45min hands-on craft workshop of their choice; a light lunch of Barbadian Cuisine; and a tour of the Centre and crafts workshops. The 45 minute workshops will be facilitated by artisans from within Pelican as well as the wider Craft Sector. Visitors may chose to experience wood craft, jewellery making, pottery, flame glass work, basketry, and painting as well broadening their culinary skills making a local dish.

A BARBADIAN CRAFT EXPERIENCE

BUSINESS REGISTRATION FEES DUE


Our environment

which has been designated for loans disbursal through EGFL. This facility will provide low cost loans at a LIBOR rate to Small and Medium Sized Enterprises (SMEs) to finance viable energy efficiency projects. Homeowners will also be able to access loans.There will also be a $1 million Technical Assistance Facility which will provide grants up to a maximum of $40 000 to businesses for prefeasibility studies, including energy efficiency audits and renewable energy studies.

The Pilot Consumer Finance Facility of Component One will provide rebates on the retail prices to select hire purchase retailers. Eligible technologies include energy efficiency and conservation and distributed scale renewable energy technologies. This facility aims to pass on the rebates to consumers to encourage them to switch to more energy efficient appliances.

Government has officially launched its Energy Smart Fund.

The Bds$20 million facility, which is being managed by the Division of Energy and the Enterprise Growth Fund Limited (EGFL), will now make available to households and businesses financing to encourage energy efficiency and renewable energy projects.

Details of the Fund’s operations were revealed at the official launch on November 28, 2011 at the Lloyd Erskine Sandiford Centre.

Component One of the Fund, amounting to $18 million, will comprise of five facilities, the largest segment being a $12 million Energy Efficiency Retrofit and Renewable Energy Finance Facility,

NOW ISN’T THAT SMART!


Our environment

The $1 million Compact Fluorescent Lamp Distribution Facility will provide free compact fluorescent lamps to residential customers of the Barbados Light & Power Co. Ltd through Smart Fund Partners.

The fifth facility, a $3 million Air-Conditioning Rebate Trade-in Facility, will encourage applicants to take their old AC units to a disposal facility where they will be given a voucher. On presentation of the voucher to a Smart Fund Partner they will be entitled to an instant 50% rebate limited to $2 000 on the replacement unit. This initiative is intended to encourage home and business owners to switch to more energy efficient and environmentally friendly AC units.

Component Two has one facility, a Discretionary Grant Facility totaling $2 million, which will be managed by the Division of Energy.

This facility will be used for institutional support, marketing and promotion of the Smart Fund.

The Smart Fund was conceptualized as part of Government’s commitment to reducing the island’s dependence on fossil fuels by 70% over the next 15 years. Financing for the Fund was secured from the Inter-American Development Bank (IDB) to the tune of US$10 million, as part of an agreement for the Sustainable Energy Investment Programme.

Prime Minister Freundel Stuart, speaking during the official launch of the Fund, said Government is leaving no stone unturned in order to make this country energy efficient. As part of Government’s energy efficiency programme, Mr. Stuart announced that 25 homeowners would be provided with photovoltaic systems at a quarter of the cost of their procurement and installation. The venture, he said, was being executed with funding from the Global Environmental Project, in conjunction with the IDB.

In addition, he stated 3,000 power monitors and 15,000 energy efficient lights would also be distributed to members of the public. “Three thousand households will benefit from the supply of these energy saving devices at a cost of only $10,” he said.

With respect to the public sector, the Prime Minister said that Government would be carrying out a systematic energy efficiency programme which would include retrofitting Government buildings to save on energy use. To date, he disclosed, some 15 buildings had been audited.Furthermore, Mr. Stuart said Government would be seeking to enter into strategic partnerships with energy service companies which wanted to lease the space of Government-owned buildings for the generation of electricity from these buildings and the sale of the excess electricity to the national grid.

Other initiatives, he noted included a US$2 million Caribbean Hotel Energy Efficiency Action Programme (CHENACT), of which Barbados contributes US$160,000. The project, Mr. Stuart explained, seeks to promote energy efficiency in the hotel industry in the Caribbean.

“The CHENACT has generated important results for Barbados, since more than 65 of our hotels were audited. The results demonstrated a potential energy efficiency savings for the hotel sector in Barbados of up to 32,600-megawatts hours per year; 36 per cent of total hotel sector electricity consumption, and nine per cent of the total electricity consumption in Barbados. All hotels audited to date have potential savings [of] between 40 to 50 per cent in water, and 30 to 50 per cent in energy usage,” he outlined.

The Prime Minister continued: “Part of this expansion of CHENACT will assist our hotels to prepare full proposals, to secure investment funds to execute their project, to reduce their use of electricity, as well as to meet some of their own electricity needs through renewable energy installations.”

Government is also planning to embark on a National Phase-Out Plan for Inefficient Lighting to promote the proper disposal of incandescent lamps, compact fluorescent lamps and other lighting devices as part of its energy efficiency programme.

Details of the Fund, including qualifying criterion may be obtained from the Division of Energy at Tel. 246 434 2500 or email [email protected] or Enterprise Growth Fund Limited (EGFL) at Tel. 246 426 1809 or email [email protected]

“The Bds$20 million facility, which is being managed by the Division of Energy and the Enterprise Growth Fund Limited (EGFL), will now make available to households and businesses financing to encourage energy efficiency and renewable energy projects.”

Prime Minister Freundel Stuart


Cultural Etiquette

LanguageIn Venezuela the official language is Spanish. English and a variety of Amerindian dialects are spoken. There is no official religion, but the vast majority of people are Roman Catholic (96 %). In Venezuela, there are two generations with distinct differences doing business. The older generation will want to get to know you personally first, rather than your company or firm. The younger generation may have been educated in the US and will typically want to relate more to your business dealings or company, rather than to you personally.

AttireAppearances count. It is important to be neat, clean and properly groomed. Your watch and jewelry will be noticed. For business, men should wear conservative, dark suits. Women should wear feminine business suits, dresses, skirts and blouses. Fashion is very important to Venezuelan women. They are beautiful and work hard at looking great. Even professional women “dress to impress.” Women should pack their best business clothes and a nice cocktail dress. GreetingsHandshaking by both sexes is common and customary; shake hands on greeting and departing. The handshake is firm. Good friends hug and women kiss cheeks. Avoid dominating the conversation. Venezuelans like to be in control. People tend to stand very close together when conversing. Venezuelans often touch each other’s arms or jacket during conversation. Posture while seated is important; avoid slouching Try to keep both feet on the floor, and avoid slouching. Don’t put your feet on furniture. Casual touching is common among males. Always maintain eye contact when talking. Be sure your position is clearly indicated and present your card immediately following an introduction. TitlesTitles are important and should be included on business cards. Address a person directly by using his or her title only. A Ph.D or a physician is called Doctor. Teachers prefer the title Profesor, engineers go by Ingeniero, architects are Arquitecto, and lawyers are Abogado. Persons who do not have professional titles should be addressed as Mr., Mrs., or Miss, plus their surnames. In Spanish these are: Mr. = Senor, Mrs. = Senora, Miss = Senorita. Most Hispanics have two surnames: one from their father, which is listed first, followed by one from their mother. Only the father’s surname is used when addressing someone.

Appointments Be punctual for business meetings, but be prepared to wait for your Venezuelan counterparts.

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

etiquette mistakes to be made that could have negative consequences. Not understanding the etiquette of another culture can and does lead to soured relationships, lost deals and in the end poor business results. The Barbados Business Catalyst explains the etiquette behind business dealings with Venezuela.

When in….Venezuela

NegotiationsThe pace of business is relaxed, easy-going and informal. Be patient. Focus on long-term relationships. Get to know your business colleagues personally before attempting to do business. Establish a local contact to make introductions at the appropriate levels for business and social meetings. Clearly communicate your position and title in your company to make your status known. The two senior executives should sit facing each other. Small talk before a meeting is minimal. Unlike other South Americans, Venezuelans will get right to the point. Venezuelans like to be in control. Don’t push the process or try to dominate business meetings. Negotiations may proceed slowly with many interruptions. Maintain a sense of humor Have business cards printed in English on one side and Spanish on the other. Businesswomen should be aware that going out alone with Venezuelan businessmen may be misconstrued. Good conversation topics: business, art, literature, history. Bad conversation topics: local unrest, inflation, politics. DiningFor social events, always arrive at least half an hour to an hour later than the invitation reads. VIPs arrive very late for social occasions in order to “make an entrance.” Meals are for socializing. Discuss business only if your host initiates it. You will normally be served a great deal of food and drink; Venezuelans enjoy both, but do not abuse either. It is good practice to follow up morning appointments with an invitation to lunch. Unlike lunch, dinner is for socializing, not for business. When dining, wait until everyone is served before beginning to eat. Guests rarely sit at the head of the table. To indicate you have finished eating place your utensils in parallel and diagonally across your plate.

Gifts An appropriate gift for a man is something for the office - such as a good quality pen. Women would appreciate the gift of an orchid – the national flower. Guests may bring or send flowers or candy to a hostess. The senior visiting business person may give a toast offering good wishes for business negotiations, adding a memorized Spanish phrase about the pleasure of being with Venezuelans.

Things to NoteThe “ch-ch” sound is used to get someone’s attention or to get a bus to stop. The North American “O.K.” sign is extremely rude. Pointing with your index finger can be considered rude. Motioning with your entire hand is more polite.

The Cultural Etiquette Critical for Success



Trading Developments

Barbados and Canada amended its 30-year old Double Taxation Agreement (DTA) to bring it in line with standards set by the Organisation for Economic Co-operation and

Development (OECD) and improve the mechanism for the exchange of tax information between the two countries. This was pointed out during the signing of the Protocol which occurred at the Parliament Buildings.

Minister of International Business and International Transport, George Hutson, signed the agreement on behalf of Barbados, while the High Commissioner of Canada to Barbados, Ruth Archibald, initialled the document for her country.

Speaking on the amendments made to the Canada-Barbados agreement, which was originally signed in January 1980, Minister Hutson remarked: “Undoubtedly, this Protocol demonstrates our commitment to internationally

accepted principles of transparency and tax information exchange to which we have agreed, and to which we have had several years of practical application.”Mr. Hutson said that the Protocol was beneficial for investors from both countries, and was fully in keeping with “genuine and amiable relations that exist between Barbados and Canada, and have existed for a very long time.”

He further added that it would also allow Barbados to continue to be an “attractive jurisdiction for Canadian investors who wish to enhance their global competitiveness”.

High Commissioner Archibald noted that the protocol “brings up and modernises the existing agreement to be in conformity with the OECD standard for the effective exchange of tax information”. She explained that the updated agreement will improve tax fairness and better enable the respective tax authorities to administer their tax systems.

Noted historian, educator and veteran trade unionist, the Hon. Robert “Bobby” Morris was appointed Ambassador to CARICOM on December 1, 2011.

Formerly the Deputy General Secretary of the Barbados Workers Union, 64-year old Mr. Morris brings a wealth of experience and a wide grasp of regional and international issues to his new position. A former history lecturer and currently lecturer in collective bargaining and disputes resolution, he was Personal Assistant to National Hero, the late Rt. Excellent Frank Walcott; Director of Industrial Relations over the past 20 years; and also served two terms as a Member of Parliament in the Lower House. He served as Vice President of the Caribbean Congress of Labour, and as External Collaborator with the International Labour Organisation.

Mr. Morris has pointed out that he expects to advance those regional issues that are central to Barbados’ future, and stated: “I aim to bring to bear those problem solving

skills which I have acquired over the years to any issues that need a negotiated resolution. In the main, I hope to work to build bridges and work with politicians and technocrats to make this region the model for such movements.”

Commenting on the appointment, Prime Minister Freundel Stuart said: “Bobby Morris’ history and parliamentary background should serve him in good stead. He is a regionalist at heart; so, that and his commitment to the further development of Barbados would ensure that he adequately addresses this country’s interests.

“Indeed, he is of the generation deeply committed to the regional integration movement, and this was expressly manifest during his time in Parliament when he spoke eloquently and passionately to these issues. The Ambassador designate is also well abreast of current affairs, and I am sure he will do Barbados proud,” the Prime Minister observed.Mr. Morris will be based in Bridgetown.

BARBADOS-CANADA TAX AGREEMENT AMENDED

NEW CARICOM AMBASSADOR


Industry By Numbers

DOMESTIC EXPORTS JANUARY - SEPTEMBER 2010 / 2011

48,212,92253,069,256

19,290,901 20,820,711

9,831,42210,472,963

13,423,617 13,122,966

3,502,7154,744,157

14,041,89617,612,251

11,892,150 13,366,314

371,102 369,557

5,135,171 3,264,854

25,026,173 17,870,895

319,146 472,412

9.86% 7.59%

13,711,41017,577,401

1,722,161 1,540,781

4,852,521 6,241,337

8,098,602 7,252,823

2,208,373 2,729,389

4,190,768 4,279,776

347,698,871 374,075,549

194,799,361214,007,882

15,845,305 16,395,852

60,626,829 76,694,154

10.07%

7.93%

6.53%

-2.24%

25.43%35.44%

12.40% -0.42%

-28.59% -36.42%

48.02%

28.20%

28.62%

-10.53%

-10.44%

26.50%

23.59%

3.47%

2.12%


Industry By Numbers

-81.

4%

100%

3,19

521

0,42

0

TOTAL

18,4

49,7

353,

426,

282

3,50

013

3,55

316,2

84,9

7298

0,63

0-9

4.0%

46,5

690

-100

.0%

100.

0%

27,8

6723

,732

-14.

8%

161,

353 56

4,10

610

0.0%

7,00

012

,000

71.4

%

1,71

3,32

51,

151,

737

-32.

8%

83,4

1813

8,96

366

.6%

90,1

06

0-1

00%

8,00

0

741

-90.

7%

20,4

3021

0,40

010

0.0%

DISTRIBUTION OF INVESTMENT IN MANUFACTURING SECTOR AT SEPTEMBER 2010/2011 (BDS$)

EMPLOYMENT IN MANUFACTURING SECTOR AT SEPTEMBER 2010/2011

SEPTEMBER 2010 SEPTEMBER 2011 NET CHANGE % CHANGE

3,59

8-6

.11%

-220

*3,

378

2.56

%

14 *

547

561

-0.7

5%

-3 *

401

398

-4.0

4%

-16

*39

638

0 2.05

%

4 *

195

199

-18.

69%

-200

*1,

070

870

1.67

%

16 *

957 97

3

-7.0

5%

-17

*24

122

4

-3.4

5%

-5 *

145

140

-3.5

2%

-26

*73

871

2

24.8

5%

42 *

169

211

6.82

%

-9 *

132

123

8,58

98,

169

-4.8

9%-4

20 *

Documents

MAKING THE EXCEPTION THE RULE - · PDF fileentrepreneurial ventures, ... industry, the public sector, education and the not for profit sector; ... strategies to help the process along: