Young and ambitous business people Photo Courtesy Black Enterprise Magazine
I often listen to the Peter Day’s Global Business or In Business programmes on the BBC, among others. Having listened to the Do It Yourself Jobspodcast which I highly recommend, it was clear that there are significant differences and challenges we in the Caribbean must overcome and change, if the successes highlighted in the programme are to be replicated in the Caribbean region.
Prime among these was that most of the entrepreneurs were motivated to develop an opportunity which usually arose from a personal need or desire and were prepared to do something other than say “I wish there was ….”. They were then prepared to take a risk, and pursue that opportunity. Other challenges we need to address are:
1. Support
Many of the entrepreneurs received the support of not only family and friends, but also a mentor – an experienced businessperson – willing to share their time and expertise to help them succeed. Contrast that with what many young people in the region would hear which is “you better get a secure job, or go get a wuk in the bank”.
This support in some cases came through the Prince’s Trust, which not only offered advice and business support, but another vital component a start-up business needs. However, there is no equivalent of the Prince’s Trust in the OECS or the region, that I am aware of. Service organisations such as Chamber of Commerce are somewhat slowly adopting programmes such as Junior Achievement. But there is more that could be done, for example Rotary Clubs around the world are offering micro-credit to young entrepreneurs!
2. Access to Affordable Finance
The Prince’s Trust offered access to what is essentially, “Micro Finance”; very affordable small loans, which allowed young business people to finance their business project.
In the Eastern Caribbean in particular where there is no regulation of the borrowing rates, the cost to borrow can be best described as usury – excessive or unreasonable – and hampers the ability of even established businesses, much less the youth with a good idea and a business plan.
At a time when central banks around the world have set almost zero level interest rates and just this week, the Chief of the US Federal Reserve indicated that he expects interest rates of circa ¼ of one percent until the middle of 2013, for banks in the Eastern Caribbean to have borrowing rates of 12-15% is mind-boggling.
For some years now, its been said that the Eastern Caribbean Central Bank has been formulating a “fund” to stimulate and support entrepreneurs and address the lack of affordable funding. At such a crucial time and precarious economic climate, one can only speculate as to the positive impact the availability of such a fund might have had on our struggling economies in the region.
Likewise one can only wonder how proper regulation of bank lending rates would have assisted in bringing down not only the cost of borrowing, but the cost of goods generally, since a business paying through the nose for credit to buy stock, has to recover those costs through the price of its goods!
3. The Ability and Willingness to Work Together
This perhaps more than any other characteristic of the groups in the UK, was most striking. There were some businesses which were formed by two or more friends or college students. Who then partnered with others to perhaps do some work. In some cases those doing the work received a share in the company instead of a cash payment.
In contrast, very few of us recognising that we don’t have everything needed to move beyond the idea to a viable business would be willing to even share the idea much less share part of the business. Also, how many of us would be willing to forgo payment for a share in the venture, and share in the work of making it a success.
This perhaps more than any other challenge to me is the culture and a mindset we must change.
Article By: Russell Williams for Kittivisian Life
Photo Courtesy Black Enterprise Magazine
