The Business Lead

the power of social networking for your sme

small businessfinancing

what’s your strategy? 1111

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LEAD

THE

a publication of the barbados small business association © 2010

september 2010

Volume 1 | Issue 1

HEAD OFFICE#1 Pelican Industrial Estate,Bridgetown, St. Michael.

Tel: [246] 228 0162Fax: [246] 228 [email protected]

EASTERN OFFICESix Roads,St.Philip


w w w. s b a . o r g . b b

The journey of the entrepreneur does not have to be a lonesome one. As the national organisation for entrepreneurial developement, The Small Business Association is always ready to assist our members as they seek to develop their businesses.

Our main services include:

• Advocacy• Training & Education• Business Development• Equity Finance

Through these services and many other benefits, we can walk along with you...

to development has not always been lined with swaying palm trees. We’ve had many mishaps and failed attempts of developmental programmes along the way, due to poor planning from those in charge. in addition we have suffered much misfortune through our inability to execute plans that had the potential to transform individual countries in the caribbean to a more developed status. it is due to these unfortunate circumstances that we have been diagnosed as suffering from ‘implementation paralysis.’ naturally these observations evoke the question, “what can be done to address the lag?” What mammoth tool can be used to ensure that whatever we envision can come to past speedily and according to the blue print? the answer is executing a strategic plan. In this our first edition of The Business Lead we explore just what a strategic plan is, what it does and how it can it be operationalised. Yet still beyond just understanding the plan we hope to convey its importance, transformational potential and over-arching nature. a truly heavy topic, the strategic plan cannot be fully addressed or brought to life in this copy but we hope that these proceeding writings can garner a greater appreciation of this tool. We also hope that our readers who sit at the helm of their various organisations would be motivated to either revisit their major plans or moved to create a strategic plan to bring about a strong sense of direction for all those involved.

Ms. Lynette P. Holder

the caribbean is known for possessing some of the brightest minds and creative talent in the world, an advantage that has been seen through the accomplishments made in our post-independence period. it is simply remarkable how we have taken what little we have and converted it into sustainable resources. Whether it be our sun, sand and sea tourism product, oil flowing into a petro-chemical industry, a strong financial services sector, and our developing sports and cultural industries, the region’s people lack nothing as it relates to our mental capacity to dream big and see these dreams made a reality. the spin side of this is that the road

editor

editorial

the business lead 3

6tHe busINess leAD

Why the business lead

7A cAbINet VIew

Dr. the Hon. David estwickGovernment believes that there is opportunity within this recession to facilitate strong growth in long term productivity.

8AccA & bsbA pArtNer to trAIN smAll busINess owNers

developing strength through srategic partnership.

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creDIts & coNtrIbuotrs

EDITOR-IN-CHIEF:

ms. lynette p. Holder

AssOCIATE EDITOR:

sherwin cumberbatch

DEsIgN, LAyOuT & PHOTOgRAPHy:

ImoGeN Design studio

CONTRIbuTINg wRITERs:

Dr. the Hon. David estwickDeidre K brathwaithemichelle HustlerAndria Harper

PRINTER:

Dynamic colour Inc

PubLIsHER:

the barbados small business Association

ADDREss:

#1 pelican Industrial estate, st. michaelbarbados, wI

T: 1 [246] 228 0162F: 1 [246] 228 0613E: [email protected]

www.sba.org.bb

About tHe mAGAzINe

the business lead is a quarterly newsletter magazine produced by the barbados small business association to provide information to and about its memberhsip.

the main goal of the business lead is to keep members of the sme sector informed of news, events and opportunities that can impact and benefit their businesses.

the business lead is designed to strengthen the sme sector primarily through information, spurring them on to act on the topics relevant to their enterprise.

9GettING bAcK oN course

celeste FosterWhose hand rests firmly on the plow of growing young businesses into established enterprises?

10creAtING eNtrepreNeurs: eNterprIse IN ActIoN proGrAmme

planting the seed of entrepreneurship and watching it grow.

11wHAt’s your strAteGy?

sherwin cumberbatchthe truth is, a great idea does not mean business success, even with the right amount of enthusiasm.

12 & 13membersHIp FeAture

14booK FeAture

navigating the entrepreneurial maze: a Guide to successful self-employment

15trANsFormING smes to bIG busINesses oF tHe Future

Andria Harper - G.r.A.c.e solutions servicessuccess of past training and what is in the works.

16DeAr Dr. bIzz

Your frequently asked business questions answered.

22bsbA to pArtNer IN mAjor eu/Acp project

proinvest funding bringing reform to the sme sector.

23INtroDucING KellIe cADoGAN

a closer look at the barbados music awards’ Jazz artist of the Year and successful entrepreneur.

17bcsI - tHe epA & trADe mIssIoN to tHe uK

michelle Hustler (bcsI)positive results from the uK trade mission.

19smAll busINess FINANcING

Anderson wall What sme’s need to know about financing

21tHe power oF socIAl NetworKING For your sme

Deidre K brathwaite (pixlD Inc)make the most out of social media now. here are a few reasons why.

the business lead 5

the bsba will facilitate the sustainability of micro, small and medium enterprises through the provision of educational, financial, and commercial opportunities, and will strengthen the policy environment of the sme sector through effective lobbying.

the bsba

mission

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25 bsbA mANuFActurers - pursue tHe cANADIAN mArKet

canada is becoming an ethnically-diverse country, making barbadian products suitable for this market.

26 stArs oF smAll busINess weeK 2010

the small business association takes a look at all the employees, members, and businesses in the sme sector who have made significant contributions to the association’s cause over the past year.

reproduction of any materials contained herein without approval constitutes a violation of copyright. thesmall business Association reserves the right to determine the content of the publication.

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6 the business lead

In a world of fierce competition, being good is not good enough. if a business merely exist then it risks the chance of being outperformed by its competitors and ultimately becoming irrelevant in the eyes of its customers and stakeholders. to avoid such a calamity the business must always aim to be ahead of the curve so as to ensure that its customers choose its goods and services over the competition. at the inception of the business the owner must seek out the tools that can position the business to have a competitive advantage. these tools include the right people, location and the best customer service. in summary it must lead all other businesses that it competes against, regardless of its size. Yup, it’s true! small businesses are also being called to be leaders….now more than ever. this being true, our new business magazine, the business lead is dedicated to your efforts.

the business lead

LEAD

THE

sept 2010

Volume 1 | Issue 1

the barbados small business Association (bsbA) is the island’s non-governmental, non-profit representative body for micro, small and medium enterprises. the bsba seeks to expand business opportunities for its members, provide educational and developmental services and lobby to ensure an enabling environment for the growth and sustainability of the sme sector.

a cabinet vieW:influencinG the success of the small business sector

not so long ago, the world was experiencing tremendous growth, confidence in the ability of competitive markets to deliver positive outcomes for consumers and many economies were at an all time high. for the most part, there was macro economic stability and growth, high levels of employment, integration of markets as tariffs were reduced and markets were liberalised fostering competition which was seen as a key driver of productivity.

unfortunately, more recently, this environment has changed. With the onslaught of the global recession there has been a decline in global trade, a sharp drop in consumer and business spending, and a credit crunch which has drastically affected confidence in the market place.

the result has been a greater call

for Governments to intervene within the market. notwithstanding the demands or calls for intervention being placed on it by the public during this testing time, the Government of barbados has always held the view that as a small developing nation there is a role for Government to play within the market place to foster the growth and development of barbados.

While being cognizant of the need for intervention during this recessionary phase, Government is also mindful that it would be counter-productive to prop up failing firms that would have failed even during the boom times.Government believes that there is opportunity within this recession to facilitate strong growth in long term productivity. to this end, the Government of barbados has entered into a relationship with the inter american development bank (iadb) to initiate a competitiveness programme for barbados aimed at increasing its competitiveness. this initiative though not directed entirely to the small business sector is expected to provide benefits to the country in its entirety.

recent research undertaken by the ministry of economic affairs, empowerment, innovation, trade, industry and commerce has informed that they are approximately 11,275 small businesses in barbados. these businesses employing 25 or less persons, account for 32,000 jobs or 24.8% of the employed labour force and are more labour intensive as labour costs account for approximately 60% of sales/revenue as compared to

43% for all incorporated companies.

though noting that additional research work needs to be done on the sector particularly, as the figures may not be conclusive, it provides a good framework for Government to quantify the contribution of the sector as well as provides an understanding for government to continue advancing policies and programmes aimed at developing this sector.

appreciating the sector’s importance, Government has included under the its competitiveness programme a specific focus aimed at streamlining the services provided by Government to the sector as well as to strengthen the sector’s capacity through engaging the strategy of clustering. the clustering methodology is one that has been embraced successfully by many countries over the world both developing and developed, to strengthen their small business sectors and it is hoped that this strategy would also be embraced by constituents of our small business sector. the resolve to work together is needed more urgently than ever before if we are to harness the opportunities that could be ours coming out of this recession to become stronger, more viable and competitive.

i urge the sector to harness the will that would have made us work together to create successful financial institutions through our credit unions for example and let that guide us in this effort to change the way we do business.

another initiative undertaken by Government that stands to benefit all of the business sectors including the small business sector, has been

- dr. the hon. david estwickminister of economic affairs, empowerment, innovation, trade, industry and commerce

continued on page 20 <<

the business lead 7

a cabinet vieW

acca & bsba partner on financial literacY traininG for small business oWners

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8 the business lead

s t rengthen ing the local sme framework is a key goal of the agreement signed by the acca (Association of Chartered Certified accountants) and the barbados small business association (bsba). This goal is refelcted in the first in a series of financial literacy training programmes for small business owners in barbados. the training, which ran for six weeks commenced on tuesday 08th June 2010 and was facilitated by Jeanine layne, acca member and senior staff accountant, assurance & advisory Services at Big 4 firm Deloitte. The courses covered the areas of basic accounting and cost accounting for

small business and attracted both entrepreneurs and employees of the private and public sector. maria batson, manager acca eastern caribbean noted that “governments, other agencies and support bodies need to fully recognise the economic importance of smes and the significant role they play in the long term sustainability of the economies of developed and developing countries. as such acca caribbean will continue to work closely with the bsba and other such bodies across the region towards the amelioration of financial professionalism within the sme sector as well as the creation of opportunities for their continued development, growth and sustainability.”

Lynette Holder, Chief Executive Officer of the bsba added, “the financial literacy series forms part of bsba’s ongoing entrepreneurial training programme which has been running for the past seven years and continues to draw business owners keen on developing their business management skills. the accounting courses in specific, allow our members and anyone else undertaking the course of study, to better manage the financial affairs of their business and provide greater competence in producing sound financial records.” Entrepreneurs interested in the financial literacy programme can visit www.sba.org.bb for more information.

the bsba will be the national organisation of choice for entrepreneurial development.

Just soYouKnoW...

the business lead 9

GettinG bacK on course

advocates of modern

management are constantly reminding us about the importance of proper planning if we are to effectively and efficiently accomplish our desired goals. a view admittedly that has gained greater merit in these days where, organisations, markets and governments are proving to be unstable. the recent changing dynamics in the global economy have also reminded us that with the greatest plans in place, we need to occasionally stop and assess the progress or as many like to say “stop and taKe stocK”. this simply means determining whether you are still en route to your destination, being able to decipher if you will make it in the time frame you had allotted or considering whether radical changes in your sector, have rendered your goals impractical.

taking stock at this time can be frightening for the most part as it seems we are all sitting on a verge. the world is still clinging to a verge a year after one of the worst economic recessions. While there have been promising indicators in the traditional markets, the emerging markets have held their own. the recent collapse of the Greek economy and a further scare of other european economies have triggered fears that we could easily lose our grip. barbadians also wait with abated breaths after many years of striving to become a developed country and seeing improvements in our social and economic welfare. We are now threatened as several sectors are being battered, and there are projections of further upheaval in the coming year. here within our association we also sit on a verge as we move into midpoint of our strategic plan, a tool which has proved to be our greatest catalyst of transformation thus far. the strides made here could be reversed as the prevailing conditions have produced some ripples that are already impacting our key performance indicators. a clear example of this is the failure of our membership to grow in tandem with other projected targets. While we continue to realise significant growth, there is still a shortfall of the projected membership roll estimated for this year. needless to say that as we consider

our current location and the attendant implications, the natural question would be, “how can we once again get a firm grip?” This is where I would wish to focus the remainder of this article. my action plan is a simple one that encompasses all our major stakeholders, and is being carried out as we speak. 1. to rallY the troops My first request is that we rally the troops. to say rally the troops i speak specifically to those who contribute directly to the progress of this association. this would include the board of the directors, our staff at the secretariat and our members. While we have observed some monumental accomplishments in the previous years, my ask is that we do not allow ourselves to become complacent. this extra effort is necessary if we are to fully implement all that we envisaged for our beloved bsba. to honour this goal I first aim to provide continuing sound governance and i will be calling on my board to be even more astute in their contribution to the association. i also encourage the bsba staff to become more resourceful as we enter a new financial year with yet still limited resources. You will be required to do more with less to positively impact the businesses and livelihood of many barbadians.

- celeste fosterpresident of the barbados smallbusiness association


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10 the business lead

Youth entrepreneurship is a medium to long term strategy being used by the barbados small business association (bsba) to prepare our youth for an increasingly complex world of business. to facilitate this goal the “enterprise in action (eia) Youth programme” was created to assist students in harnessing essential skills for entrepreneurship and life. the bsba provided students with entrepreneurial training (both theory and practical) and found opportunities for them to connect with mentors and corporate leaders to set them on a path to pursuing entrepreneurship as a career choice.

the eia Youth programme engaged the following six schools as part of its pilot project:-the alexandra schoolcoleridge & parry secondarythe Garrison secondaryprincess margaret secondaryspringer memorial secondaryroland edwards primary When the BSBA first started the project in september 2009, some 102 students were enrolled from the various business studies departments. they were given guidance by the eia consultants who were all members of the association, on how to start up a business. this was done in an eight week assimilated exercise for the students, where they were able to develop the idea through to the final stage of enterprise. the lone primary school in the group roland edwards primary, boasted their “rolando delights”, which were turbo lollies and fruit smoothies made from local fruits and marketed them as cold treats for the really hot ‘summer’ days.

The project was divided into five stages of implementation that involved mobilizing the schools, engaging consultants to provide training, the execution of the training, building the enterprise and the hosting of the youth symposium. the programme climaxed with the students undertaking experiential training on the job. at the recently concluded eia Youth symposium, participating students were rewarded for their efforts with bsba Youth membership cards, job attachments and participation certificates, amongst other prizes. plans are afoot to expand the programme and include five additional schools for the forthcoming academic period commencing september 2010 – June 2011. there will also be a number of strategic developments to enhance the programme overall. this year’s pilot project was sponsored by lime telecommunications, central bank and fund access.

creatinG entrepreneurs:the enterprise in action proGramme

to appear logical in approach while navigating the entrepreneurial maze, one could purport that first comes the strategy, followed by a plethora of ideas falling into alignment. or at least so it should be. however, entrepreneurship being anything but logical we know that it hardly ever works this way. What commonly occurs is the entrepreneur becoming restless, as they try to work out what seems like a revolutionary idea. that idea is then thrown around, stretched, and embellished until there is a great proclamation. “this will be the best business idea to hit the market since......just about everything else”. unfortunately what narcisuss is holding is a number of disjointed concepts that have no connectivity but they all seem like wise choices to him. this is because of his overly-intimate relationship with the idea. in fact he is so in love that he creates a business

What’s Your

strateGY? that caters to his needs instead of his customers.

so what happens next, you ask?

still madly in love with his business, he rumbles and tumbles for some time leaving his staff, customers and even himself in a tizzy. the prognosis will be a simple one and may even be deemed an epidemic, plaguing smes: Great business idea but no clear strategy. the truth is having a great idea does not guarantee the success of a business, even with the right amount of enthusiasm. the best of desires must be ordered. by ordered we mean the main business activities must be part of an overall strateGY. everything that is done must correlate to the organisation’s main goals. Often defined as a plan of action, strategy is designed to achieve a particular goal. A definition that can be sometimes misleading as strategy goes beyond simply planning and is more concerned with how a business should operate in a competitive environment. this in mind, the entrepreneur is called to analyze his business environment, make projections and direct various campaigns to support his main strategy. he becomes more proactive going about the business of the strategy and not reactive to what all the other businesses are doing. he is quite aware of his core competencies and leverages them to become profitable, builds his market share brand presence and ultimately grows the business. in

fact when he starts with a higher order competitive plan he is able to deduce a road map detailing just how he will get where he is going.

the strategic plan itself should be a document which comes out of careful analysis of the prevailing market. this will enable the business to identify the main goals to be pursued over the next 3-5 years. it must be agreed by all stakeholders that the pursuance and attainment of these goals will transform the business in some significant way, provided that all other market conditions remain relatively stable.

for each year in the plan there will be a work plan with activities which will bring the business closer to achieving the higher order goals. these activities should ideally be managed within quarters allowing for the appropriate planning, implementation and control tasks to keep the plan on course. of key importance will be the need to put in place instruments for measurement as this will determine the effectiveness of the efforts of all involved in the plan. using the plan as his guide, the entrepreneur will now ask himself as he moves forward - how will what i am about to do support what i want to eventually accomplish? if this is done then the work day may be organised a bit differently, some products may be dropped from the product line

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the business lead 11

Wh

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- sherwin cumberbatchMarketing Officerthe barbados small business association

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clAssy rAGGs INterIors - “a perfectly fitting choice” - is a soft furnishing business dedicated to enhancing the beauty of your home. We offer a quality, efficient, personalized service, fabricating custom draperies, “fits like a Glove”® slipcovers, cushions, bedspreads and other textile furnishings to match your individual style, and complement your existing furnishings. We cater to local and expatriate customers

as well as property managers and small apartments.

classY raGGs interiorsGeneral services

medford craft WorldmanufacturinG services

medford craft World is a truly unique experience that should not to be missed. located on a hillside overlooking bridgetown and just ten minutes from the capital, medford craft World offers a surprisingly tranquil oasis away from the hustle and bustle of downtown. meet self-taught artist reggie medford and hear the story of barbados mahogany, then witness in live and living colour as reggie and his personally tutored team of artisans transform the roots of the barbados mahogany tree into the most beautiful works of art imaginable. his artistic success has been seen in his exhibits throughout the caribbean, u.s.a and europe, and he has the distinction of being, the youngest ever recipient of one of barbados’ highest honours, namely, the barbados centennial honour. the team at medford craft world is proud that successive barbadian prime ministers have made presentations of our mahogany creations to heads of state in north and south america, the far east, africa and china. our pieces have also been presented to noted international celebrities such as nelson mandela. if you are looking for a special barbadian experience or the gift that will add charm to any home, you will find it at Medford Craft World in Barbados. So why not add your favourite piece of barbados’ signature wood to your list of things to buy and take home by visiting us today.


boomtribe can easily be considered one of the most consistent and innovative companies in the entertainment arena. boomtribe has expanded over the years from a teenage dJ operation, to an entertainment company with regionally syndicated radio and television shows; the ability to attract advertisers on the lookout for younger, trendy target audiences has always been a focal point of the company. the weekly boomtribe radio show can now be heard every saturday, 7-10pm on hott 95.3fm. Whether radio or tv, all information is tied back on the group’s website, boomtribe.com. here, followers can get updates on all things boomtribe, be it the latest music countdown, event pictures or coverage. if it’s caribbean entertainment, boomtribe’s got it.

solAr eNerGy INNoVAtIoN INc (seI) started in barbados four years ago at a time when there was an increased interest in the promotion of renewable energy as an alternative source of energy. it was felt by the entrepreneurs behind sei that the cost of electricity was too high and barbadians needed options. a reasonable aim that is further supported by our geographical location since the caribbean has an abundance of a key source of energy,

the sun.after the business got started sei set out to let the caribbean know about their core product which is fueled by an alternative energy called photovoltaic. and is appropriate for set up on a roof or a pole to generate power to light a house, farm, office, school or factory. staff at the company have ben trained to become certified installers and designers to ensure the company remains on the cutting edge of solar technology.

The staff of SEI are now confident that they can proficiently install and manage the solar needs of barbadian consumers. they boast of a strong knowledge of the solar renewable business and are seeking to offer their services and expertise across the region.

persons interested in learning more about sei can call: (246) 271 1330 or 1(246) 271 1361.

boomtribeprofessional services

solar enerGY innovation inc (sei)General services

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Navigating the entrepreneurial maze: A Guide to successful self-employment was written by mr. andrew bradshaw, a hospitality trainer for the past 30 years. he is also a member of the barbados small business association and has worked largely with the small and medium size sector over the past two decades.as a trainer, bradshaw has found that adults learn better by association and created the book filled with real business experiences to influence the correct mindset to become successful entrepreneurs. the book addresses subjects such as effective decision-making, creative problem solving, planning and goal-setting. it is intended to be a handbook for entrepreneurs to assist them in the effective management of their business. it is being retailed at bds $40.00 each or 3 books for bds $100.00. further discounts are available for purchases in excess of that amount. copies can be obtained from mr. bradshaw by contacting him at 428-9873 or emailing your request to [email protected].

a helpinG hand from andreW bradshaW.

books are also available at the bsba secretariat, #1 pelican industrial park.

the idea of using training

to transform smes into big businesses of the future is not a frivolous task or one that is easy. smes must understand that irrespective of size, it is what you do and how you do it that makes the difference between success and failure in growing a business.

modern advances have established that our environment is the entire world, with information on world markets, only a click away. a business must explore the environment in which it operates, it must utilise what it learns to gain competencies. it must build on those competencies to increase abilities that will allow it to gain a competitive advantage. the business then, it can be agreed, must undergo some form of transformation if it is to grow- it cannot remain at the same place it was before. training provides a means by which a business can do just that, so we may conclude that the transformation must include some aspect of training. training can help a business to:-1. develop skills and competencies, thus increasing employees’ abilities and enabling them to increase their human capital value 2. Influence and possibly effect a change in employee and owner

attitudes, which is critical to achieving a dynamic strategic orientation3. capitalise on (1) and (2) above to gain a competitive advantage in the world arena by empowering knowledgeable employees and being able to adapt and respond quickly to the volatile marketplace.companies who can achieve the above three (3) steps will be well on their way to creating and maintaining flexibility and innovation, much needed inputs for business transformation and

survival in today’s world.transforming smes into big businesses of the future takes time. any business on a quest to transform, must undertake the following activities:- 1. assess its current situation - a sWot analysis of sorts2. establish where it will go, when, how, why, with what, with whom and how it will know when it gets there - a rudimentary strategic plan of sorts3. Make a firm decision on whether they can or should transform after they have completed the above two (2) steps.

failure to achieve these three (3) steps will make the task of decision making difficult and will often lead to ‘foolhardy’ risk-taking and/or failure. the business must ensure that where there are gaps between transformational activities and the required knowledge, skills and competencies to successfully complete the activities, that adequate training is provided to address these gaps. increasing knowledge and by extension increasing competencies and abilities through training, are key in assisting a

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trAINING:transforminG

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- andria harperG.r.a.c.e solutions services

<< continued on next page

M.D.M.D.

Dea

r Q. i struggle every time i have to stand in front of a small group to talk about my

business. i recently attended a workshop and had to give an elevator pitch about

the business and needless to say i did a poor job. Why is this happening even

though i know my business inside and out?

the issue here is not how well you know your business but your fear of speaking in public. many of

us suffer from this and are terrified to utter even a few words when we are among persons we do not

know. The good news is that it can be fixed but it will take time and practice.

below i have listed a few tips that could help you get there sooner.

1. first, learn the principles of communication both written and oral using the dictionary and other

grammar books. this may not be necessary for everyone but if you are afraid that you will use words

out of context or incorrectly then use these supplies as reference tools.

2. Consider finding a forum where you can practice and be assessed in a constructive manner.

toastmasters international and the dale carnegie course are dedicated to strengthening

communication skills.

3. After practicing in the comforts of like-minded persons you need to venture a bit further afield, but

still within environments where you are comfortable. like your church or pta meetings and other

social clubs.

4. over time you should see an improvement in your oratorical skills and time to venture unto some

unchartered territory. speaking at business workshops about your business and related issues will

be a place to start.

5. Two additional tips are to always give yourself a confidence booster before speaking. Remind

yourself that you have something valuable to say, blunders and all and then accept that fear is part of

speaking in public. then proceed to ride your fears and practice, practice, practice.


business to achieve a desired outcome or goal. training programmes must compliment transformational plans and the business must ensure that it does all in its power to effect a winning performance. barbados has long realised

that education plays a vital and pivotal role in effecting a winning performance. Government and other stakeholders have upheld this view and must continue to emphasise the importance of training and continuous learning, while providing sustainable programmes. such programmes must be geared at assisting businesses, especially smes in achieving their

growth aspirations, by putting them on the path to emerge from smes, to big businesses. Getting there however, depends on how well businesses utilise the opportunities available, including training. transforming smes into big businesses of the future, not only takes time, it takes concerted effort, money, human, other resources, and of course training.

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izz

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if you have questions you that would like dr. bizz to answer,

send them to [email protected], entitled “Letter for Dr. Bizz.”

Dr. Bizz

“...i Was admittedlY a bit anxious about hoW uK businesses Would react to the mission,”

most of you are familiar with the acronym ‘epa’. some of you are aware that the acronym refers to the cariforum-ec economic partnership agreement - a trading agreement between much of the caribbean and the european union. however, very few businesses have applied this information and seized the many opportunities accessible under this agreement.the barbados coalition of service industries’ recent services trade mission to the uK was an effort at addressing the last point and in a practical demonstration to service providers, that indeed, there are many tangible benefits to be secured as a result of the agreement. on october 30 to november 7 the bcsi led a team of twelve business entities to birmingham, croydon and london, uK with the main objective of seeking to increase services exports from

barbados whether directly through contracts secured or indirectly through the establishment and strengthening of export value chains.the main element of the mission was participation in unique, pre-arranged business-to-business meetings, established based on the mission participants’ objectives. “This was the BCSI’s first mission outside of the region and though we’ve conducted nine missions previously, i was admittedly a bit anxious about how uK businesses would react to the mission,” explained project manager, michelle hustler, “but the response to the mission was enthusiastic and warm and exceptionally positive”.the trade mission team was prepared for the mission through in-house training and debriefings. Mission elements also included participation in birmingham’s newest trade conference, caribbean4life, an event designed to

facilitate trade and establish alliances between the uK and the caribbean, as well as networking receptions in each of the three jurisdictions, including an intimate reception at the barbados high commission in london.

already there are many mission successes to report, including the securing of contracts and the establishment of strategic alliances.

“the bcsi trade mission is an excellent conduit for small businesses to get involved in export, and should be used by more,” lauded trade mission participant, mr. Wayne narubukari. the bcsi certainly looks forward to welcoming an even larger team on the uK trade mission 2010.

trade m

ission - bcsi- michelle hustler

discussing the epa and the recent bcsi trade mission to the uK



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to our members my ask of you is much more demanding at this time. in the past we have encourage you to take advantage of the programmes that were put in place for your benefit and while this continues to be our call, it is no longer sufficient. The request must now extend to your actual involvement in the planning and execution and even greater financial support to our efforts if they are to be sustainable. previously there were several times where we planned elaborately for our members and who for varying reasons opted not to take full advantage of our plans. this must become a thing of the past. We will now need to receive a direct response from you on those programmes you desire to see included in our annual calendar. in addition, a greater commitment of your participation in these projects before we conclude on offering them will be required. While we intend to continue subsidising our programmes, those who wish to participate must now be willing to make contributions which will be later refunded. the resources of our organisation can no longer be lost due to the indecision of any member. my second goal in our short-term action plan is to: 2. strenGthen the core & enhance support

the goal here is to leverage those things that we are good at and build those projects where we have laid the foundation. in recent times the bsba has moved to becoming an organisation which represents the interest of the small business sector.

this was a deliberate attempt to move away from an organisation that was seen as a purveyor of commercial activity for its members. as a result we have consolidated what we do and our members, industry partners and other industry players in the sector gravitate to us for four core offerings. these include taking on the role of an advocate as seen in our representation of our constituents as an intervener in last’s year rate application hearing by the blp. secondly we will continue to focus on hosting several marketing activities or participating in those offered in order to provide our members with greater exposure and opportunities for additional sales. a focus we believe can only lead to building the individual enterprise. thirdly and probably what we are best known for is our training. our training continues to be built out this year. We were able to add more managerial courses to our computer programmes. These continue to fill a void in the training market of small business training facilitated by small business owners in a practical way. as a result we recognised that in spite of the limitations of space we must find ingenious ways to return this service to the level and market presence which it held in the past. a likely prospect lies in the hand of online technology to make this a reality. fourthly, the bsba has laid the ground work to build on its existing financial product but outside of our equity product much more must be done to make financial services available to our members. to this end we have spent the early months in 2010 discussing with our partners on how we can use their existing channels to facilitate this objective.

added to all this there are several other offerings that do not feature as highly as our core offerings but are important to our constituents and therefore should be enhanced. these range from our subsidised group advertising, accessing corporate packages for the benefit of our members and pursuing opportunities for shared services. 3. cast out Your nets the last item is our action involves launching out beyond the shores of barbados. While the bsba promises to lead the way in this regard, we have only done this to allow our members to have a wider reach to prospective markets. this should result in fewer impediments to trading overseas. 2010/2011 must be a year earmarked for members to make good of the recently signed epa, to be involved in the making of the forthcoming canadian agreement. We should also dedicate time to search the regional markets including the previously untapped french territories for opportunities and to connect with the barbadian diaspora for indigenous export leads. times have changed and the world is a global village in an advanced stage. to fully participate in this dispensation we need much support from the policy makers and other lead persons to create an enabling environment. ultimately such an environment will see the main benefactors being the business community. therefore our job is to ensure that our small businesses receive the information, the tools, the support and the access to the necessary benefits now, so they can achieve a greater level of competitiveness.

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finan

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- sbvci


small businesses seeking financing are usually faced with two fundamental choices, debt financing or equity financing. the former can be easily described as a loan. money borrowed from another source with the understanding that you will pay it back in a fixed amount of time. As the name suggests, this type of financing means that you have “debt” - money that you owe to someone.

Equity financing can de defined as an exchange of money (from a lender) for a piece of ownership in the business. i.e. share capital invested in a business for the medium to long-term in return for a share of the ownership and sometimes an element of control of the business. This type of financing normally occurs with venture capitalists and angel investors.

equitY financinG

equity differs from debt in that it represents a permanent ownership share in the company. When a company

finances with equity, it is giving up a portion of ownership interest in, and control of the company, in exchange for cash. equity investors may demand dividends or a portion of the annual profits; but most investors in small businesses seek long-term capital gains on their investment; meaning that at some point these investors may look to opt out.

small business venture capital inc

small business venture capital inc (SBVCI), is the financing arm of the barbados small business association (bsba). it was incorporated in 1996 for the purpose of financing and creating investment opportunities. part of its mandate is to identify new business opportunities and to assist in the nurturing of new businesses developed from these opportunities. additionally it is the responsibility of this wholly owned subsidiary to provide assistance to existing entrepreneurial ventures and to promote free enterprise resulting in new jobs, profitable business ventures and the prospect of export development.

sbvci seeks to invest in member companies that have the qualifying criteria for venture capital. these companies should be high growth companies that have been in existence for more than 2 years seeking financing to spur development and eventually maximise its profit margins.

to expedite the approval process an investment committee was recently created to fast track applications for venture capital in a more efficient and direct way. this committee consists of professionals with vast experience within the sme sector.

policY environment

all investments from sbvci are in the form of equity investments which comprise shares in the investee company through a shareholders’ agreement. as a venture capital organisation, sbvci would not wish to own more than 49% of the share capital in any business. sbvci would invest, for a period of up to seven (7) years, between $50,000 and $200,000 in any qualifying small business.

the company’s main objective is to assist the business to grow without attaining controlling interest with the shares purchased. these shares are usually of two kinds, preference shares and common shares and it is on the preference shares that annual dividends are paid. Within the 7 year period, the company will, however seek to liquidate its investments by buy-back arrangements between itself and the investee companies or by selling the shares to a mutually agreed third party. these exit arrangements form part of all shareholders’ agreements.

small business financinG

mr. Wall photo

- anderson Wallfinance managerbarbados small business association

The Barbados Manufacturers’ Association takes pride in celebrating Barbadian ingenuity. From flavour to fashion, services to manufacturing,

we promote World-Class Barbadian Industries.

The Brands of Barbados is a programme of the Barbados Manufacturers’ Association

Building 8, Suite 201,Harbour Industrial Estate, St. Michael.

Tel: (246) 426-4474 Ext 325Fax: (246) 436-5182Email: [email protected]

www.bma.bb

We take this opportunity to wishthe Barbados Small Business Association

success in the launch of theirnew magazine “The Business Lead”.

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the waiver for up to one (1) year the contribution of employers towards the national insurance scheme (nis). this waiver effectively provides the business with increased cash flow whereby it can use these funds to support its expenditure or investment.

Government has made provision for businesses that have outstanding debt to Government to participate in the tendering process for Government contracts. these businesses were previously barred from participation. the relaxing of this tenet has opened another avenue or market for these businesses to sell their goods and

services to generate revenue.

in the budgetary proposals of 2009 Government announced the introduction of a factoring facility directed towards the small business community. this facility is to be capitalised at bds$15m and administered through the central bank of barbados. the objective of this programme is to assist in the cash flow efforts of small businesses to collect their receipts having satisfactorily concluded their contracts with Government.

barbadians are known for their resourcefulness and their resilience and this characteristic is not uncommon to the small business

sector. small business owners have a habit of bootstrapping their way to success and have proven this method as being successful time and time again. though Government will try as far as possible to ease the burden of this recession the success of the business depends more on what businesses can do for themselves rather than what Government can do for them.during this time it is necessary for all persons including business owners to adapt their behaviour, seek to exploit the opportunities that recessions create and more importantly base business decisions on facts and not on headlines. i believe these principles should assist us all to emerge successfully and stronger out of this recession.

provides essential feedback. they can also give insight into where attention should be best focused.

service, service & more service

quality service is no longer a differentiating factor but a basic element of the business model. customers will access social networks to comment and sometimes rant on goods/services problems. as a sme, you need to be empowered with real time knowledge of what your consumers are saying about you online in order to intervene and provide quick satisfactory solutions, thus turning potential disaster into raving success.

planninG is everYthinG

Benefits derived from the use of social networking far outweigh inaction. social networking is a global trend and should be incorporated into your business strategy in order to be competitive, not only locally, but on the international market.

before proceeding with your social networking efforts, it is essential to have a well prepared plan of action. What will your online brand message be? What are your goals and objectives? What tools will you utilise? Without a plan your efforts will prove pointless.

Good luck and connect with me:deidre K brathwaitesocial media consultant & bloggerwww.facebook.com/pixldinctwitter: @pixldincmy blog: www.pixldinc.com/blog


operating as a sme can be extremely taxing, the business environment is uncertain and you may not have access to the financial resources and personnel, which larger corporations can boast of. in this time of globalisation it is no longer an option to relegate the use of social networking tools such as facebook and twitter solely to catching up with old friends and relatives, neither can they be considered a total waste of time and of no value to your business. Why you may ask? Well, quite simply because social networking, correctly implemented, allows for the creation of a digitally visible business, which is a fundamental requirement for a successful sme.

there are numerous reasons why social networking is vital and a few of them are briefly outlined below:

access to a Global marKetplace

facebook recently announced 500 million users worldwide, an increase of 100 million users since february 2010 and Twitter confirmed 105 million users as of april 2010. these impressive stats provide an insight into the potential reach of your online brand. research also indicates that we are increasingly using the collective knowledge of friends and colleagues on social sites to find information about businesses and make purchasing decisions from brands we know and trust.

as a sme, you have the opportunity to build and leverage your brand to captive markets and generate leads. it is therefore critical that you are present where the market is.

it is cost effective (but not free)

as a sme, it is sometimes challenging to adequately promote your service or product utilising traditional marketing methods. social networking provides an extremely cost effective solution and can be used to promote events, sales or showcase projects, whether posting potentially viral videos to Youtube or running facebook campaigns.

social media optimisation

digital outposts, we can agree, are critical for smes trying to penetrate or export goods and services to international markets. establishing branded profiles in large social networks, creates valuable links to your primary website and assists your search engine rankings; boosting your brand image.

there are 1.8 billion people with access to the internet and frankly if your business cannot be found online then it doesn’t exist.

research & development

can’t afford a costly research process? test new products and services using your online community. build discussion threads around your new products or ideas as it helps gauge how customers feel, raises issues and

the poWer of social netWorKinG for Your sme

social netW

orKinG

- deidre K brathwaitesocial media consultant & bloggerpixld.inc


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barbados’ chief support organisation for micro, small and medium size businesses, the barbados small business association (bsba), is about to undergo a major institutional strengthening exercise in efforts to reform the sme sector.

the development comes as part of a project valued at eur 700,000.00 and financed by PRO€INVEST entitled, ‘Promoting the economic Development through european and Caribbean Partnership (PeD).’ it will seek to strengthen the capacities of intermediary organisations in the area of investment promotion and attraction, internationalisation of smes

and networking. ped which runs for 18 months was recently started in florence, italy, where the partners met in a first round business mission. the bsba which is the only intermediary organisation from the eastern caribbean involved as a partner to the project, was represented by its ceo, lynette holder. other countries present at the business mission included dominican republic, belize, italy, spain, Greece, belgium and luxembourg.

ped which involves a number of workshops, roundtables and business missions will also assist in the dialogue between the public and private sector

in the area of planning for investment promotion. the project will allow the association to better plan the economic promotion and investment attraction in the caribbean region.

PRO€INVEST is an EU-ACP partnership programme developed and undertaken by the european commission on behalf of the acp countries. its objective is to promote investment and technology flows to enterprises operating within key sectors in acp countries. this will be achieved through the support to intermediary organisations and professional associations and through the development of inter-enterprise partnerships.

sba to partner in maJor eu/acp proJect

and some customers may just not be pursued or given the additional frills. the critical issue here is, business success doesn’t spontaneously occur

but there must be a focused approach to bring this about. While a business may originate from a random thought or generated out of necessity, this will not be sufficient to encourage growth or allow the business to compete with similar service providers. having good

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ideas and the technical background will bring you to the execution stage but having a strategy will create structure, providing a methodical approach to success.

her engaging personality made it extremely easy to listen to the journey, which she is currently charting - one accolade at a time. it started as a young girl when Kellie would find herself doing something creative to past the time, be it drawing, scribbling or singing. While the latter wasn’t seen as her forte, it blossomed and came to the fore during her school days at the ursuline convent, where she performed in several concerts. Kellie followed her passion and went on to pursue her studies in theatre arts followed by music and slowly saw herself leaning towards the expressive genre of Jazz. directly after her studies, she entered the field of teaching, which eventually opened her to the idea of incorporating that skill along with the other talents she possesses into a business. that business was registered in January 2008 under the name, eastpoint productions inc and today offers vocal training and musical production services, vocal performances and services in theatre consulting. Kellie confesses that her real coming out

night was not until august of the same year when she held “an evening with Kellie cadogan” - a full set concert at the frank collymore hall. it was after this big night that Kellie made a huge personal investment into her business when she opted not to return to her steady paying job in teaching but to

focus more on eastpoint productions. this proved to be a wise choice as Kellie was then able to release her debut album, ‘the nearness of You’, in January of the following year. a cd i must admit i have not been able to stop playing since this interview. she also produced a hiv production in collaboration with the ministry of education and performed with the bcc Jazz project during last year’s barbados Jazz festival. to top it all off Kellie travelled to belize

in march to promote her business and made such an impression that she was requested to return in the summer to do some additional voice training sessions. she wouldn’t have been able to stay there indefinitely however, as she would be needed back here to perform in the line up for the inaugural, ultimate soul Weekend.throughout the entire interview as we spoke about the award and the business it was easy to see that here was a young enterprising business woman that had found her purpose. a “bright star” in the making that would dazzle everyone who came in contact with her. this isn’t hard to imagine as her entire business is built around the vision “inspiring lives through the arts”.

for more on eastpoint productions visit www.eastpointproductions.com

hall of fam

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introducingrecently i had the enviable experience of

sitting down with Kellie cadogan,

songwriter, jazz vocalist,

entrepreneur, bsba member and winner of the 2010

barbados music awards’

- Jazz artist of the Year. taking home the award was yet another

result of the hard work this young lady has put into honing her talent over the years

and building a business out of it.

Kellie CadoganBarbados Music Awards’ Jazz Artist of the Year - by sherwin cumberbatch


export developm

ent

who spoke to members on getting their products ready for the local market.

the items on display represented an array of Barbados’ finest foods, fine furnishings and craft items, but the signature item of the evening was without a doubt, eden’s pride extra virgin coconut oil. the manufacturer spoke about its health benefits and how it can be incorporated in the beauty routine. those in attendance were equally as impressed with the pre-packaged cou cou which is easy to make, comes in an impressive package and is just as tasty as cou-cou prepared the traditional way.

also on show was, eezee Kricket the board game behind the t.v show of the same name. mr. James corbin the creator of the game was eager to note that the game continues to sell well across the world and soon the show will be aired in other countries.

of locally manufactured goods. so impressive were the items on display that featured presenter, mr. raymond Yip choy a professor at fleming college in peterborough, ontario encouraged exhibitors to aggressively pursue the canadian market.

he stated that canada is becoming an ethnically-diverse country, making barbadian products suitable for this market. choy added that bsba members would have access to a market of 2.5 million persons in toronto and a further 5.6 million an hour’s drive away. he further stated that while there may be some product-to-market challenges, local manufacturers should definitely investigate the opportunities.

the meeting also saw presentations from mr. adrian Kirton of barbados agricultural development and marketing company (bADmc) and Jocelyn parris-Walker of islandcrafts

dubbed an “evening of Gold” the members of the barbados small business association (bsba) delivered the golden touch during their monthly members’ meeting with an exhibit

bsba manufacturers - pursue the canadian marKet

mr. raymond Yip choy professor at fleming college peterborough, ontario, featured speaker of the ‘evening of Gold,’ members’ meeting.

for more information about the small business association, please visit:

www.sba.org.bb

during the recently held small business Week, the association recognised those outstanding individuals within its staff, membership and within the sme sector. We were there to capture this special moment. 1) sectoral awards manufacturing - eezee Kricket (James corbin) 2) professional services – rea envirohealth (harold oxley)

3) ict – advanced computer services (irene king) 4) Wholesale & retail - the Gourmet shop (sarah hamilton) 5) General services – Khai’s Kutz & platz (stephanie mayers)Winner of entrepreneur of the Year 6) most improved employee (sherwin cumberbatch) 7) employee of the Year (beverley shepherd)

stars of small business WeeK 2010

8) the president’s award - trinity homes – (liz cupples) 9) the small business people’s choice – premium designs (charles carter) 10) community award, organisation – barbados coalition of service industries 11) community award, individual – basil springer

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