ENTREPRENEURSHIP CATALYSTINITIATIVE TO PROMOTE ENTREPRENEURSHIP IN BARBADOS & THE CARIBBEAN

AGENDA

• Importance of Entrepreneurship

• Building an Ecosystem

• Filling in the Gaps

• How?

• Venture Accelerator Models

• Incubator Models

• Benefits to Barbados

POWER OF ENTREPRENEURSHIP

• A clear correlation is evident between economies with high levels of entrepreneurship and economic strength and growth worldwide

• Research has shown that fast growing firms are responsible for 10% of job creation

• Entrepreneurship is a catalyst for innovation, competitiveness and economic growth and provides significant economic and social wealth

• New technologies

• Jobs

• Innovative products

• Economic wealth

2013 Global Entrepreneurship Monitor report

BUILDING AN ENTREPRENEURIAL ECOSYSTEM

• Several important elements are needed to develop an ecosystem that fosters high-impact new venture creation and growth

• Below are key components required to foster an entrepreneurial ecosystem• Accessible Markets

• Barbados has a fairly robust consumer segment and is also uniquely placed within a 1 hour flight to Latin America, 3 hours to the United States and 7hrs to Europe -- 3 high-potential markets

• Human Capital/Workforce

• Free primary through tertiary education system has equipped Barbados with a highly skilled and qualified workforce

• Funding & Finance

• Outside of bank loans and limited grants, funding for new ventures are family and self-financed

• Mentoring & Advice

• There is a wealth of knowledge available from successful business leaders and entrepreneurs (Charles Williams, Mark Maloney, David Lavine), however it is not being leveraged.

• Entrepreneurial Education/Training

• While the quality of education is high, it has focused on traditional topics in business and law.

FILL IN THE GAPS

Social, Cultural, Political, Context

Entrepreneurial Framework Conditions

Entrepreneurial Capacity & Preferences

Entrepreneurial Opportunities

Business DynamicsNational Economic

Growth

• The goal of this project is to build a program to foster an innovation driven economy through entrepreneurship in Barbados and the wider Caribbean

• The program seeks to influence the social, cultural and political context and improve the entrepreneurial capacity to create an ecosystem conducive to producing highly innovative and scalable businesses

Model for Entrepreneurial Processes Affecting National Economic Growth

Source: Reynolds, Hay & Camp (1999)

HOW?

• The emphasis is to use a two-pronged approach and address entrepreneurial training with an education focused accelerator program

• New start-up

• Existing businesses

• Incubator

• Mentorship & Advice

• Funding

• Provide seed funding for start-ups

• Prepare businesses to seek and receive funding

• Identify and cultivate potential angel investors in the region

1

2

3

4

Entrepreneurs seek to build companies

Grow companies to significant scale

Entrepreneurs stay in Barbados

Successful Entrepreneurs support next generation

Model

VENTURE ACCELERATOR MODELS

• New start-up accelerator is focused on attracting high-impact entrepreneurs from across the Caribbean with revenues between $0 - $100,000USD

• The 4 month long program will be heavily focused on providing the tools entrepreneurs will require to launch and grow a highly scalable and sustainable business

• Formal courses & workshops

• Professional mentorship

• Web development & design services

• Legal services (Registering, Incorporating, Copyright)

• Accounting services

• Demo Days

• The Small Business Accelerator is aimed at helping stagnant companies with revenues above $100,000 accelerate their growth.

• Several key hurdles inhibit growth, owners not wanting to grow (lifestyle businesses), failure to innovate, lack of support among others

• The small business program will provide the same tools but tailored to the needs of growing existing businesses

INCUBATOR MODEL

• The incubator seeks to attract promising entrepreneurs and businesses from across the Caribbean to a hub where they can get the support needed, network and learn from each other

• 6-12 month incubation periods will be available

• The model is grounded on the idea that traditionally graduates remain the local community and provide jobs and support

• The wide array of companies and industries coming to Barbados will diversify the local economy

• The incubator will provide cutting-edge technologies at below market rates and resources

• Office space & furniture

• High-speed internet

• Telephony services

• Color Printers & Copiers

• Business Workshops

BENEFITS TO BARBADOSBarbados Entrepreneurship Foundation has mandated for Barbados to become the #1 Entrepreneurial hub in the world, there are significant benefits to be had from Entrepreneurship

• Entrepreneurship creates and retains wealth

• The wealth created by entrepreneurs stays in the community through reinvestment in employees and business infrastructure

• Job creation

• Startups and scale-ups create jobs faster than traditional firms. On average, scale-ups contributed to 32% of newly created jobs over the past 3 years in developing economies

• Retains, Attracts Talent and Knowledge

• Keeping talented and innovative minds in the society builds stronger civic leadership, better students, more productive workers, and enterprise creators

• New ideas & solutions

• Novel products and more efficient processes benefit local citizens

• Diversified Economy & Increased Foreign Investment

• Barbados has seen recent significant declines in FDI, this program seeks to attract funding while decreasing the dependence on global economic pendulum swings especially affecting the tourism industry

• Intangible benefits

• Citizens of Barbados would have a greater sense of security, optimism and community pride

THANK YOU

KOFI CALLENDERKCALLENDER1@BABSON.EDU246-244-7055