Framework conditions for innovation: The business perspective
The Business Perspective
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Transcript of The Business Perspective
Recently there has been a lot of
discussion and public debate
about the Guatemalan claim and
the attendant referendum. Some
Belizeans feel that it is safer to go
to the ICJ, while others think not.
It has been a divided discussion
but amazingly and impressively,
not a divisive one. Happily, we can
all agree on one thing, and it is
that we do not wish to relinquish
so much as a pebble, a leaf, or a
drop of water to Guatemala or
any other country. We are Belize,
a sovereign nation, and we have
all the rights that are possessed
by any sovereign nation.
Nationalism has come to the fore
for most of us and is demon-
strated in one way or another,
whether by grand gestures of taking
our machete to the border to
symbolically clear it, or small ones of
calling our favorite talk show to tell
the Guatemalans that they cannot
have any part of Belize, and
everything in between. Now the
Guatemalans, as of my writing this,
may be retreating in order to
regroup, and we will therefore have
to proceed carefully and
strategically.
One of the things we must seriously
consider is – what to do with this
country we so vehemently want to
keep for ourselves. Belize is an
amazing, beautiful country, with
Trade Perspective page 4 Western Union Perspective page 12
Commerce Perspective page 7 Human Resource Perspective page 13
Membership Perspective page 9
Contributing Editor: Ms. Kay Menzies, President of BCCI
2
Cont. from page 1
endless potential and loads of opportunities. Belize is
Nature with a capital 'N' and we call her 'Jewel' for a
reason. Belizeans are praised around the world for our
friendliness and warmth. We (though not me
personally) are also known for our excellent cuisine. We
are brilliant at everything we set our minds to doing,
but we are much too divided for our own good.
It's not just the colour thing –where red can't stand
being in the same room with blue, and vice versa. Yes,
that is a major and even overriding part of it, but we are
divided along other lines as well, and it is hindering our
development as a country. From the business
perspective, there's large business vs. small business,
productive vs. import, public sector vs. private sector,
union vs. employer, and the list goes on. As a people
we do not like to admit that we're divided in myriad
ways, but –and here's an unavoidable truth –we can
only fix the problem if we first recognize that we have a
problem. For the most part, our divisions are artificial,
unnecessary, and either come from historical bias,
ignorance or from lack of understanding or tolerance of
each other. Unfortunately for our country, divide and
conquer has persisted well beyond the point where
we can credibly blame the long-departed colonial
masters for its prevalence. It is time for us to decide,
as a people, whether we want to 'own' our country
by getting past the divisiveness or keep ourselves
weak and vulnerable by clinging fiercely to our
imaginary divisions.
Imagine a Belize where persons are valued for their
skills rather than vilified or rejected because they are
perceived to belong to the wrong political party.
Imagine a Belize where public and private sector
individuals work in harmony to get their jobs done
quickly and efficiently. Imagine a Belize where
businesses help each other, no matter what their
size, because they find synergies wherein each
business can help the other to grow. Imagine a Belize
where unions and employers can agree on what
constitutes 'a fair day's work for a fair day's pay.'
Imagine what would happen if we used all the
resources at our disposal, including our beautiful,
brilliant people, before those resources are
plundered by others and our people are offered
opportunities in distant lands. Imagine a Belize that
can look past the negativity and naysayers and
imagine what we can then accomplish. If you don't
feel your imagination is up to the task, just look at
the success of people who moved to Belize in the
recent past and have successfully entered industries
3
that did not appear to have much potential. A large
part of success is seizing opportunities as they
present themselves, and in many instances, by
creating our own opportunities. We need to be
innovative – stop thinking of how we cannot succeed
and recognize how we can.
Many of us Belizeans believe that it is the duty of the
government to create an enabling environment for
businesses, and that it is the duty of the full private
sector, which the Chamber represents, to take
advantage of that enabling environment in order to
create economic growth. That envisioned partnership
between the public and private sector, brought to
fruition, can lead to economic miracles. Within its
capacity as the private sector representative, the
Chamber has been advocating for, and partnering in
efforts to achieve this economic miracle, and I am
happy to say that there has been progress. However,
recent events have demonstrated that we still have a
long way to go. I am comforted by the fact that it is
not impossible –that Belizeans are becoming more
energized and motivated. However, with the same
energy that we tell the Guatemalans they cannot
have our land, we must tell ourselves that we will
overcome the divide and conquer attitudes. We must
pool all of our skills and use our resources to best
advantage in order to achieve that very same poten-
tial that Guatemala recognizes in Belize and which
makes Guatemala so desperate to possess our Jewel.
Join the Chamber today . .
It makes dollar $ & Sense!
As the voice of the private sector, the
chamber offers active advocacy, meaningful
networking, capacity building opportunities
and a vehicle to positively influence the
private enterprise system and the wider
community in which we operate and live.
The BCCI—Taking Care of Business!
Cont. from page 2
Contributing Editor: Mrs. Marilyn Pinelo –Lee, Chief Policy Analyst
4
Of recent the term “trade license” has been
widely discussed in the Belizean media as a
controversial topic with BCCI rallying for a review
of the current system and an amendment to the
current Trade License Act (Chapter 66 of the Laws
of Belize). Business owners must inevitably go
through the application process since operating
any business in Belize requires a business owner
to obtain a trade license from the municipality in
which it intends to operate this business. The local
city or town councils issue trade licenses after a
review of the applications by a trade license
board. This board consists of the Mayor or
Chairman of the local authority administering the
town and four members nominated and
appointed by the local authority.
The general criteria for application includes:
submitting a copy of the company’s registration
certificate obtained at the companies registry in
Belmopan followed by completing a trade license
application form and then attending an interview
with the Trade License Board. According to the
Act the business owner must be developing in a
designated “commercial area” of the city. Fees
are calculated based on annual rental value of the
property and should be divided by sectors. The
maximum rate charged is 25% of rental value for
businesses that are usually engaged in gaming or
operate as monopolies. The final approval of a
trade license is based on the recommendation of
the Trade Licensing Board responsible for each
town or city. Note that trade license applications
are approved quarterly unless a $150 fee is paid for
a special meeting to convene and review an
application.
Nearing the end of 2012 members of BCCI, for the
most part in Belize City raised concerns about
sharp increases in trade license fees. Ever since,
BCCI has been advocating for an explanation and
lowering of the excessive proposed 2013 increase
in fees. On behalf of its members, BCCI wrote to
the Mayor of the Belize City Council (BCC)
expressing concerns and was advised that there is
provision for appeal in the Act and that a list of
egregious increases can be submitted for his
review. Nearing the end of December 2012, there
was no response from BCC and therefore the
secretariat contacted the city’s valuator for his
advice on how members should proceed. He
informed us that we would get a response in
writing by January 4, 2013 after a meeting with the
Mayor. He stated that members should still make
their payments by December 31, 2012 stating that
any decrease in the trade license would be credited
to the next year’s fees. By law, the payments for
Trade License for 2013 are due on December 31,
2012 before the beginning of a new calendar/
business year. BCCI had requested that trade
license fees should be made for 2013 in the same
sum that was previously paid for 2012 suggesting
that revaluation of the business properties
should follow and that if there was in fact an
increase then the difference would be paid.
In order to substantiate its case, BCCI conducted a
survey of 68 Belize City Members which revealed
that the increases in trade license fees ranged
from 7% – 246% when compared to the 2012 fees.
The findings presented to the Mayor are
represented graphically below. Data is presented
for 2012 as well as 2013 for comparison.
BCCI Members who experienced the 10 highest
increases in trade license fees ranged from 112%
to264% . The ten companies are referred to as
company 1 - 10 on the (x) axis to maintain their
anonymity while the (y) axis shows the increase
in dollar value. The greatest increase in
descending order was 264% followed by 200%,
186%, 155%, 142%, company 7 and 8 both
experienced a 136% increase, followed by 125% and
112% respectively. Mayor Bradley responded to the
concerns of BCCI findings citing that he is well
within the law and business owners were paying
less than what the law provides for all along. An
across the board 25% of rental value seemed
eminent as the trade license fee in Belize City.
After the increased trade license fees were levied,
some businesses indicated that they will be forced
to take stringent measures. Closing the doors for
business is the most drastic decision. Other
members were proposing to seek bank financing
to pay their fees or alternately use funds that were
previously allocated more productively. It is
evident that businesses will be forced to lay off
employees to meet these costs and forego planned
investment for expansion. This cannot be good for
any part of the economy.
After consultation with its membership and a
meeting with Minister Godwin Hulse, BCCI
formulated its position. It proposes that trade
license be treated as a license and not as a tax. This
would require changes made to the law which
would apply to all municipalities although Belize
City is the hardest hit. Businesses can survive
better through the rough times if they can plan;
they can also adjust more quickly if they know
Cont. from page 4
5
what to expect. Being unable to predict in this
environment makes the cost of doing business very
expensive especially considering that full payment
for trade license fees are made in advance. A
system that allows for monthly or at the least,
6
Cont. from page 5
quarterly payments would be more feasible.
In conclusion, BCCI continues to lobby for an
explanation and lowering of excessive trade
license fees. A change in legislation appears to be
the most viable means of achieving this objective
along with a review of the existing systems in
each municipality. We aim for elimination of
arbitrariness, and ambiguity in property valuation
and calculation of rental value which we believe
will create a more transparent and equitable
system.
5 7
No one can deny that the past five years have been
challenging on most businesses and entire
industries. No longer are businesses in a position to
predict sustained growth year over year. The
increase cost of doing business, increase in
unemployment, increase in cost of consumer goods
including major commodities such as fuel,
decreased disposable income, and a more cost
conscious consumer has created even more
challenges for businesses and industries locally and
around the globe.
The challenge in business today is how to grow year
over year and improve the bottom-line considering
the aforementioned challenges, economic and
global issues. The following is not meant to be
prescriptive but a refresher of some useful
management tips to manage through challenging
times.
POINT #1: CASH MANAGEMENT—The term “cash is
king” can never be argued with. Manage your cash
flow especially as it relates to accounts receivables
and inventory levels.
POINT #2: THINK RISK MANAGEMENT—Ask what
ifs. Look at all the risks in your business including
those in the environment and determine how you
can mitigate or lessen their impact on your
business. Mitigating risks can lead to improved
management all around.
POINT #3 CUSTOMER SERVICE—There is no
more important a time than the present to
engage your customers and consumers and to
ensure that you and your team are providing the
best possible service and products. Take the
time to listen to your customers and consumers
and use this information to better inform your
plans and marketing initiatives.
POINT #4 “WIN THROUGH PEOPLE” - People are
our most important asset. This is the time to
motivate and train your team. Take the time to
communicate your plans and strategies with
your team and solicit their input. There is no
more important a time than now to get your
team engaged and focused on delivering on
your company’s growth objectives. Provide
incentives for key deliverables. See people as
investment and not a cost.
POINT #6 DON’T DO WHAT YOU DID BEFORE –
chances are that what you did before won’t
necessarily work. Challenge your team to be
innovative and try new approaches to reaching
consumers and delivering your products and
services.]
POINT #7 COSTS – DON’T JUST CUT—Don’t cut
marketing and training. These are areas of
needed investment in challenging times. This is
the time to increase and motivate innovation
not the time to reduce it.
Contributing Editor: Mr. Alberto Young, V.P. Commerce, BCCI
8
POINTER #8: A TIME FOR INNOVATION—Perhaps surprisingly, a recession demands more products and
bringing to the table focused innovation - possibly at even greater rates than when an economy is
growing. You will probably find that your customers (and their needs) will undergo frequent change as
we progress through a recession. Don't assume an inward focus. Think about going out and finding out
how your customers plan to survive and grow. Spot new emerging customer sectors.
POINTER #9: REALITY CHECK—In preparing your annual business plans be realistic about the future state
of the local and global economy. Avoid being over optimistic and focus on the real growth potential of
your organization given the current factors and environment.
POINTER #10: COMMUNICATE AND CONNECT—Communicate with your employees regularly and solicit
their feedback. Communicate with your customers and consumers and ensure you connect with them.
Information is critical in influencing your team’s decision making and eventual planning and execution.
In conclusion the stronger your business is, the less likely it is to be affected by economic shocks risks or
unforeseen events. Strengthening your business consistently doesn't just involve financial management.
It should also include strategies to engage your consumers by retaining them through regular contact
with them either via your marketing campaign or customer service programs, keep morale and energies
high amongst your staff and improve business practices.
You should also look for opportunities to network and form alliances; and keep in regular contact with
your Belize Chamber of Commerce and ensure you participate.
Cont. from page 7
9
TO CONNECT
Your Chamber for the fourth consecutive year,
partnered with the Income Tax Department which
spearheaded the 4th Revenue Fair on January 14th and
15th, 2013, simultaneously held in Belize City, San Pedro
Town, Orange Walk Town, Belmopan City, San Ignacio
Town and Punta Gorda Town. The Chamber supported
this initiative and participated in Belize City and Punta
Gorda Town to educate the general public about the
various taxes in Belize and at the same time used it as a
means to share what the Chamber stands for and has to
offer businesses.
As a another means to connect our members, we
grabbed hold of the opportunity to collaborate with
“The Tourist Belize” to offer exciting marketing and
advertising prospects to our members in the Tourism
and related industries. The Tourist Belize is a new line of
board and video game which includes businesses and
attractions, activities and sites that
promote Tourism destinations in
Belize such as Hotels, Restaurants,
Archeological Reserves, Museums,
Art Galleries and stores to name a
few. This game package is targeted
to both the local and international markets and will be a
souvenir for visitors as well as a gift item to share what
Belize has to offer including Doing Business in Belize,
Belize’s History and its Cultural Heritage. The Tourist
Belize has also gained the full support from The Belize
Tourism Board (BTB), National Institute of Culture and
History (NICH), Belize Tourism Industry Association
(BTIA), Belize Hotels Association (BHA) and Atlantic
Bank Ltd.
We also organized the first Business Connex for the
Belize Petroleum Association (BPA) where we
connected our members to the new initiatives of the
BPA. A sensitization presentation was made and a
video was shown to illustrate how oil is explored and
obtained from the earth. Our members fully engaged
at the end of the session with questions and
concerns. BPA continues to carry out its mission to
serve as an unified voice in advocating for the
responsible exploration of oil and gas.
BCCI also took its first step in hosting the first
Finance Expo on March 14th and 15th, 2013 where we
brought financial institutions at one location along
with those big ticket items, a person dreams of
having to complete the happiness in one’s life. The
Expo showcased banks and credit unions, offering
the best loan rates for that new vehicle, building that
Contributing Editor: Ms. Yorshabell Cattouse, Manager of Member Relations
BPA Business Connex Meeting, Feb 28th, 2013
10
dream home, improving one’s home, furthering ones
education, healthcare and much more.
TO CAPACITATE
We gained 5 additional sponsors to this year’s
Chamber discount card 2013, adding to the
accumulative total of 22 business members who
vouched to offer their goods/services at discounted
rates to fellow members of the Chamber.
BCCI also started the year in having its first capacity
building training entitled: “Records Management”
on January 16th, followed by “Professional
Etiquette” held first in Belmopan on Feb 20th and on
Feb 26th in Belize City.
Cont. from page 9
On March 13th, the Writing and Analyzing Financial
Reports training was held. These are only the first
three (3) trainings held out of the 22 scheduled this
year. We offer capacity building trainings for first
entry employees right up to the top level:
management: Business Owners, Managers,
Supervisors, and Executives, in the areas of
Customer Care, Sales, Marketing, Management,
Finance, to name a few.
Members of our Executive Council openly
participated on TV/Radio talk shows to share with
the general public the private sector’s position on
issues affecting the business community.
TO CHAMPION
The Chamber released correspondences voicing
the private sector’s concern on issues such as
the trade license, super bond, access to finance,
governance, accountability and transparency
affecting the sustainability of businesses and the
Belize economy. When the wage dispute
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between the Public sector Union and Government of
Belize (GOB) arose, BCCI encouraged for the Trade
Unions and the GOB to come to an understanding
that will be beneficial and sustainable to the Belize
economy and taxpayers. Members got an
opportunity to engage in an export finance survey to
champion the need to access finance and take
advantage of export opportunities.
Members have also geared up to participate in the
consultation and the negotiation process for the
upcoming trade agreement between Belize and
El Salvador.
The BCCI continues to work diligently in being the
voice of the business community and through our
triple C philosophy: To Connect, Capacitate and
Champion, we aim at achieving the best for you.
12
The Belize Chamber of Commerce & Industry
this year launched its 2013 promotion of the
Treasure Chest. The Treasure Chest spun off
the Bonanza which ran from September to
December 2012 to celebrate our 20th
anniversary of doing business in Belize. The
grand prize of a round trip ticket from Belize
to the Continental U.S.A. courtesy of United
Airlines was won by Ms. Ireland.
The new Treasure Chest Promotion will run
from March 2013 to December 2013 where
customers who visit any BCCI location
countrywide will get an opportunity to win
fabulous prizes. The prizes range from gift
baskets to International airline tickets. This
year’s loyalty partners include: Amigos del
Mar, Belizean Handicraft Center, Casa Arena,
Dream Valley, Grace Kennedy Belize, Just One
Cakes, Mel’s Therapeutic Spa, Nibbles and Bits,
Tropic Airlines, Santiago Castillo,
Sharon’s Point of Beauty, Sigertronics, and United
Airlines.
The BCCI Western Union takes the opportunity to inform
its customers and the general public that we have been
directed by Central Bank that effective March of this
year, customers will need to bring either their social
security card or passport to conduct Western Union
business. Residency cards, drivers license or Cedulas are
no longer acceptable forms of identification for Western
Union transactions.
Contributing Editor: Ms. Danette Burns, Western Union Manager
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As reported in our previous edition of the Business Perspective the dynamics of the Chamber staff has been
evolving and no truer words have been spoken. The secretariat has had to be creative in filling the gaps
created by staff movement. Kudos to the staff who took on the challenge and additional responsibility so as
not to compromise the level of service the Chamber offers to its constituents.
Congratulations to Mrs. Sharon Smiling who has assumed the responsibilities of the Manager Finance and
Administration since Mr. Clinton Williams former Director of Administration has relocated to the United
States. Miss Yorshabell Cattouse has taken the role of Membership Manager since the previous Director -
Mrs. Vanessa Peyrefitte has moved on. Yorshabell has seven years experience in the membership
department. Other moves in the secretariat include: Ms. Shaunique Flowers who has been promoted to the
post of Account Clerk; Mrs. Venesia Neal has been promoted from Accounts Clerk to Senior Accounts Clerk.
Ms. Ruth Romero – Senior Administrator has assumed some administration and Human Resources duties
that were previously done by the Director of Administration.
Ms. Delmi Novelo has courageously stepped up to the plate to undertake the PR/Marketing duties. Ms. Gina
Reyes – Administrative Assistant has assumed responsibility for the overall operations of the McField
Conference Centre in addition to her other duties.
Our Western Union arm has welcomed a new Customer Service Representative, Mr. Akmar Codd and the
Membership department has welcomed a Membership Assistant – Ms. Leticia Herrera.
It goes without saying that our staff is second to none. We continue to work together to ensure the best
possible service is provided to you, our members. This is our Chamber and we are proud to be a part of it!
“The one who creates a positive environment in all situations will be presented with countless opportunities.”
The Business Perspective is compiled and produced
by the BCCI Secretariat
Editor-in-Chief: Producer: Mrs. Kim Aikman Mrs. Kim Aikman Contributing Editorials Ms. Kay Menzies Mrs. Marilyn Pinelo Lee Design & Layout: Mr. Alberto Young Vanessa Peyrefitte Ms. Yorshabell Cattouse Delmi Novelo Ms. Ruth Romero Mrs. Sharon Smiling Ms. Danette Burns
Copyright 2013, All rights reserved
Contributing Editor: Ms. Ruth Romero & Mrs. Sharon Smiling, Human Resources
14