BIDC Business Catalyst Vol 10 #2

Transcription

CONTENTS
Desk
5Editor’s
Trade Shows, Expos
& Conferences
26
ECOscope
24
BIDC at BMEX
6
8
CEO’s Desk
10
Small Niches Prove
Fastest Growing Export
Segments
12
Reconnecting with
Africa
13
14
Gildan Growing
16
Go Big Without
Growing Big
18
Barbadian companies
keen on Doing
Business with China
20
Dos and donts of
Doing Business With
China
Fostering a vibrant
Entrepreneurial
Ecosystem
21
23
14
23
BIDC and BIMAP
Protecting IP Strategically
The BARBADOS BUSINESS CATALYST is published quarterly by the Research, Information
and Design Services Division of the Barbados Investment and Development Corporation. It
offers information and advice on trade and commercial issues to the business community.
Information contained herein may be reproduced if accredited to the BIDC. Items of interest
to local manufacturers, exporters, entrepreneurs and potential investors are welcome.
EDITOR:
Jane Brome | [email protected]
EDITORIAL TEAM:
Fern Lewis | [email protected]
Pedro Hutchinson | [email protected]
Sylvia Taitt | [email protected]
DESIGN & LAYOUT:
G&A Communications Inc.
1st Floor, Suite 201, The Atrium, Sky Mall Rd.
Haggatt Hall, St. Michael, BB11059
Barbados, W.I.
T: (246) 437.2214 | F: (246) 228.5204
E: [email protected]
PRINTED BY:
COT Holdings Ltd., #16 Newton Industrial Estate, Christ Church.
T: (246) 420.8550 | F: (246) 420.8555 | E: [email protected]
DISCLAIMER: Some of the views expressed in this publication are the views of the writers and not necessarily
those of the BIDC. © 2014 BIDC.
4
Barbados Business Catalyst • APRIL - JUNE 2014
Does Size Really
Matter
BIDC and BIMAP
Strengthen
Partnership
Protecting IP
Strategically
24 BIDC at BMEX
25 News to Note
26Ecoscope
27Tradescope
28 When in...Bolivia
30Manufacts
EDITOR’S DESK
The size of your success is measured
by the strength of your desire; the
size of your dream; and how you
handle disappointment along the
way.
~ Robert Kiyosaki
strategy alone, year in and year out, can be gruelling. Yet the
winning companies in the study were running full tilt on six
tracks at once, that’s impressive when you consider that a
single misstep on any of the six can be disastrous.
Indeed, some of the companies that were deemed winners
during the ten-year research period have since stumbled in
That being said, the answer to the one dimension or another.
Jane L. Brome | Editor
question Does Size Really Matter Some have argued that company survival is closely associated
could very well be “no”.
with age and size of the firm, pointing out that the longer
When it comes to company success what does matter, a firm has been in business the more likely it is that it will
it turns out, is having a strong grasp of business basics. continue in business. The same is true of size.
Research coming out of a recent study dubbed The Evergreen There is however increasing evidence that firm age and size
Project has found that without exception, companies that do not necessarily indicate anything about the current state
outperformed their industry peers excelled at what the four or future of a company. By focusing on the size of a company
primary management practices‒ strategy, execution, culture, as the only indicator, you may be missing many things at
and structure. And they supplemented their great skill in play: namely, the most important--how is the foundation of
these areas with a mastery of any two out of four secondary this company?
management practices‒ talent, innovation, leadership, and
Comprehensive business planning and focussed management
mergers and partnerships.
is what allows companies to prosper. Let’s explore more on
The eight essential management practices cited are not the topic in the following pages.
new, nor is their importance particularly surprising or
counterintuitive. But implementing this formula for success
is not as simple as it sounds. Companies can all too easily
forget or ignore the basics and succeeding at the eight
business practices can be hard work. Maintaining a focus on
T ra d e S h o w s , E x pos an d C on f erences
OCT
6 - 10
21st Annual FCCA Cruise Conference & Trade
Show
For many cruise executives, destinations, suppliers and
tour operators, the annual FCCA Cruise Conference &
Trade Show is the premier industry event of the year to
meet with key industry players, analyze trends and discuss
current issues. The Conference to be held in St Maarten, offers a number
of round-table discussions led by an impressive roster of industry
experts and guest speakers who are specialists in marketing, sourcing,
shore excursions and operations.
Contact: Tel: 954-441-8881, Fax: 954-441-3171 or E-mail: [email protected]
2 0 1 4
OCT
8 - 10
VIII Competitiveness Americas Forum
This year, over 1,000 local, regional and international
representatives from business, government, civil society
and academia will converge at the HYATT Regency Hotel
in Port of Spain to participate in the VIII Americas
Competitiveness Forum (ACF). The ACF is the preeminent economic
and commercial event in the Americas focused on competitiveness and
innovation.
Contact: www.competitivenessforum.org
2 0 1 4
OCT
Caribbean Renewable Energy Forum 2014
The Caribbean Renewable Energy Forum (CREF) 2014,
organized by New Energy Events, is a networking and
2 0 1 4
discussion forum aimed at the region’s governments, utilities,
developers and financers. The event will comprise a number
of networking sessions, roundtables, presentations and
debates taking place in parallel with ‘country roadshows’ and thematic
discussions. The conference is scheduled for the Marrott Marquis, Miami,
Florida.
Contact: http://www.caribbeanenergyforum.com/
6-8
OCT
8 - 10
Introductory Workshop on Industrial Chemicals
under the Rotterdam Convention for the Caribbean
The workshop, scheduled for Port of Spain, Trinidad, seeks to
raise awareness of the need for meeting national obligations
under the Rotterdam Convention, to facilitate the development
of frameworks and implementation plans for industrial
chemicals management, and to provide tools and approaches such as risk
assessment methods and the use of the Globally Harmonized System
for the Classification and Labeling of Chemicals (GHS).
Contact: BCRC-Caribbean tel: +1 868 628 8369 fax: +1 868 628 2151
e-mail: [email protected], www:http://bcrc-caribbean.blogspot.
com/2014/09/introductory-workshop-on-industrial.html
2 0 1 4
5
CEO’S DESK
welcome a steady flow of persons at its offices seeking
either assistance in establishing new ventures or accessing
professional services and resources that would assist in
overcoming existing challenges. Some 184 new clients were
recorded in 2013 as compared to 164 in 2012.
In spite of the significant level of economic activity that SMEs
account for, there is a considerably high level of failure, with
in some cases 80% failing in the first five years of operation.
This statistic, unfortunately, seems to be an accepted
and expected norm. When one considers the value of the
resources that go into these eight out of ten failed ventures,
it becomes obvious that this is an unsatisfactory state of
affairs. Hundreds of thousands of dollars, hundreds of hours
of business development advice, hours of mentoring and
great personal sacrifice would have gone into each of these
failed businesses.
Dr. Leroy McClean |
Chief Executive Officer
Much of the assistance which the BIDC has offered to both
new and existing clients was aimed at capacity building,
improving viability, market share and productivity levels,
implementing adequate and efficient operating systems,
creating sustainable business models and enhancing
profitability.
Business counselling and coaching, business and marketing
plan preparation and general business development services
were also provided.
GOOD THINGS
COME IN SMALL
PACKAGES
In an environment of scarce resources, it is necessary to make
SMEs succeed. The degree of failure must not be a mere
academic statistic. Every failed enterprise carries not only a
level of financial loss; it also carries with it a shattered dream
that could lead to personal emotional trauma. It is therefore
imperative that we try to understand why so many attempts
at business fail; since when one considers that with only a
20% success there is such a significant impact, just imagine
what a 50% (or even higher) success rate would do. Before we
can arrive at solutions, we must have a clean understanding
of why SMEs are so prone to failure.
A generally accepted thesis is that small and
medium enterprises (SMEs) make a considerable
contribution to economic activity in a country.
This seems to hold in so many countries that one
may safely surmise that SMEs are a significant
driving force in world economic activity.
All of the causes for failure are not universal. However, there
are some which seem to be. Amongst the most common
causes of SME failure are: lack of adequate financing, over
enthusiasm without proper market analysis and the inability
to transition from the hobbyist to the business person. If,
however, all of the necessary financing is made available this
does not guarantee success. You may quickly suggest that a
good business plan is necessary as well. But there are many
businesses that had both of these ingredients and still failed.
Consider for a moment the definition of an SME as outlined
in our Small Business Development Act: an enterprise that,
inter alia: has not more than $1,000,000.00 as stated or paid
up capital; has not more than $2,000,000.00 in annual sales;
and has not more than 25 employees.
There is a small percentage of companies which fall outside
that net and into a larger grouping. There are an estimated
11 000 SMEs operating in Barbados. And the BIDC has
been witnessing a keen interest among persons wanting
to establish their own SME. The Corporation continues to
6
Very often we may be so full of enthusiasm that we see only
the positive things about our proposed business venture. In
this situation, we need to have someone to keep our feet on
the ground without killing our spirit; while pointing out the
pitfalls and offering solutions on how to avoid them.
There are many persons who believe that because they are
good at doing something, they can make it into a business. This
SME
“
Very often we may be so full of
enthusiasm that we see only the positive
things about our proposed business
venture. In this situation, we need to have
someone to keep our feet on the ground
without killing our spirit.”
Small
Enterprise
Mediumsized
Enterprise
is a mistake that can easily be avoided if there is recognition
of the fact that because I can bake bread does not mean
that I can run a bakery. A business has a greater chance of
succeeding if there is a partnership between the person with
the skill and a person with business acumen. Often this does
not happen because of a lack of trust. Such partnerships can
be successful if there is a clear understanding that there is
no place in business for blind trust. A business partnership
is not about friendship nor family ties. There are things call
contracts, legal agreements, memoranda of understanding
and many other legal instruments that can be employed. A
good lawyer is therefore an essential resource that should
be utilized when one ventures into business activity. This
helps to negate any need for ‘just trust’.
Additionally, one essential attribute that is necessary for
success is the right attitude. Adequate financing, a good
business plan, airtight legal agreements and contracts, first
class mentors and the best business development advice
can all come to naught if there is not the right attitude.
Putting all of the necessary ingredients for a successful
business in the hands of a person with the wrong or bad
attitude to business is like putting a novice in a Formula One
car. There will be a crash sooner or later.
With all of the required resources and the right attitude,
there will be a higher level of success for SMEs. This would
engender greater confidence amongst potential investors
and so success would lead to greater success for the
individual and the economy. In addition to these resources
which are universally accepted as being absolutely
necessary, we may also add that in order for an SME to have
a greater chance of survival and growing into a sustainable
business, it is necessary to have attention to detail; exhibit
great tenacity; and be always thinking of ways to be more
innovative.
In business, one must also have Integrity since it is very
often the key that opens doors to opportunities. A necessary
ingredient for success is also tactfulness as one understands
how to spot opportunities and grasp them, see pitfalls and
avoid them, and turn threats into opportunities. It is good
to be determined to dominate the competition and be ever
conscious of the environment in which one operates.
Small can indeed be beautiful and SMEs can be the gems of
our economy.
7
HOW TO GROW
DOES SIZE REALLY
MATTER?
Should you go big or go home, or does quality win out over quantity? The corporate fascination with
size has been as intriguing as it has been perplexing. Is empire building and the pursuit of category
dominance a healthy thing, or the corporate equivalent of the road to Perdition?
These are among some of the questions asked by Forbes
magazine Contributor, Mike Myatt in an article on company
growth and size.
It’s a given that an enterprise that is not growing is declining.
And it is well understood that businesses are not maintained
– they either grow or fall into decline. Growth prevents
irrelevance and obsolescence, growth affords opportunity,
growth attracts and retains talent, and growth is the most
certain path to sustainability.
But there’s a caveat to the aforementioned statements.
According to Myatt, they assume healthy growth. The flip side
to that is growth for the sake of growth, growth by default and
not by design, growth for the wrong reasons or at the wrong
times, and growth in the wrong areas can create corporate
ruin.
An interesting observation about this subject is that as a
company grows, it tends to become slower and less able to
do many of the things that made it successful in the first
place. Additional layers of management and more formalized
systems can slow the decision-making process to the point
where it becomes unable to respond quickly to changes in its
environment. Another common characteristic of companies
as they grow is a tendency to become more risk averse in an
effort to meet conservative financial targets or protect share
price.
8
So what is the optimum size for a company? Does it depend
on industry? There are obviously some industries like
consumer electronics where, no matter how large a company
is, it can’t survive without the ability to quickly adapt to, or
drive, changes in the market.
Myatt in his article makes it clear that size in and of itself,
is not intrinsically a good thing. He contends “Size must be
underpinned and augmented with many other characteristics,
disciplines, and attributes in order to be a meaningful
measure. Size must add value – not dilute it. Size should
never outpace capability, and size should not be a substitute
for quality.”
The myth of bigger is better makes for a nice sound bite,
but is rarely the case. Experience suggests that when girth
alone serves as a badge of honor, it’s often brandished as a
justification for shortfalls is other areas. The bottom line is
this – it’s not whether or not to grow, but how to grow.
Growth doesn’t demand the sacrifice of values, quality, or
culture – it should enhance all three. Growth should be led by
design, purpose, intent, and with great focus. It should never
be allowed to spin out of control, or to become the sole, or
even the top priority.
For too long, we have become obsessed with the idea of growth
as the focus of a business. Every company has the ability to
improve flexibility and adapt to changes in its environment. speed of new product development, flexibility of processes,
Size does not need to be a deterrent to change.
implementing and upgrading information systems. This in
itself will require organisational transformation. It must be
Success in the years ahead will require the ability to drive remembered however that company transformation will be
and adapt to changes quickly and effectively. The world is largely determined by the quality of leadership. You will hardly
changing at such a rapid pace that the organizations that see growth in a company guided by stagnant leaders. Put
are unable to adapt will not be competitive. Developing the another way, it’s impossible to sustain a budding enterprise,
capability will demand increasing attention to things like the when leadership fails to develop and grow.
“
Size must be underpinned and
augmented with many other
characteristics, disciplines,
and attributes in order to be
a meaningful measure. Size
must add value – not dilute it.
Size should never outpace
capability, and size should not
be a substitute for quality.”
9
NEW SECTOR EXPANSION
SMALL NICHES PROVE
FASTEST GROWING
EXPORT SEGMENTS
Exports from Barbados grew by almost Bds$100 million during the five year period 2009 to 2013,
moving from Bds$439.5 million to Bds$534.5 million.
And much of that Bds$95 million growth was generated from small, emerging market segments. Exports were for the most part
sustained among the traditional export subsectors.
An examination of the trade statistics reveals that while the biggest single expansion was noted in traditional produce
segment‒ Rum sales to the US which moved from Bds$3.2 million to Bds$35.6 million, there are quite a few small sectors
which also showed significant growth.
Liqueurs and cordials sent to the Netherlands and Colombia moved from a value of Bds$522 665 in 2009 to Bds$1.65 million
in 2013. Sea Island Cotton exports to Italy, increasing 100% in 2009 over 2008, were sustained over the five year period at just
around Bds$1 million.
Sales of Limestone and other stone used in the manufacture of cement, grew from $7 860 in 2009 to Bds$1.6 million at the end
of 2013, all destined for Guyana.
10
“
And much of that Bds$95 million growth was generated from small,
emerging market segments. Exports were for the most part sustained
among the traditional export subsectors.”
Exports of gold metal waste to US, buoyed by the Cash for
Gold trend, moved from Bds$5 000 to Bds$5.7 million.
CARICOM sales of paints and solutions also showed significant
growth, particularly those headed to St. Kitts and Nevis, St.
Lucia and Guyana, each of which registered purchases in
excess of Bds$1 million in 2013, where previously there were
noted at below Bds$500 000. Export sales of paints and
solutions on the whole moved from Bds$9.3 million to $12.6
million.
doubled from $1.4 million to $3.4 million. Demand in China for
dental fittings was registered at $1.7 million, a new product
segment, while that for artificial body parts grew from $2.5
million to Bds$12.5 million. Implants sales climbed from $2.2
million to Bds$5.8 million.
For the six month period ending June 2014 the growth trend
has continued for foreign sales of rum. Liqueurs and cordials,
medical devices, equipment and implants, paints and
solutions.
Foreign sales of medical devices and equipment to the US
and China were also among the key contributors. In the US
market, sales of artificial body parts moved from Bds$12
348 to Bds$4.5 million while medical instruments grew from
Bds$354 629 to Bds$3.1 million and implants sales more than
11
MARKET EXPLORATION
RECONNECT
WITH AFRICA
Remarks delivered by Dr. Leroy McClean,
CEO, Barbados Investment and Development
Corporation, at the 15th International Academy
of African Business Development (IAABD)
Conference, held Tuesday May 26, 2014.
There’s no doubt that the synergies to be derived from
Barbados’ reconnection with Africa, have great potential for
our culture, economy, trade and investment.
It is for this reason that the Government of Barbados sought
to establish formal diplomatic relations with Nigeria, Zambia,
Tanzania, Niger, Lesotho, Namibia, South Africa, Ghana and
Botswana. Barbados has signed bilateral agreements with
some of these countries which we consider necessary for
cementing a firm and meaningful relationship. Some of these
agreements are technical, scientific and cultural cooperation
agreements.
The hosting of this conference, in our view, represents a
significant plank to building relations between Africa and
the diaspora as well as between Africans in the diaspora;
we certainly have a lot in common as reflected clearly in our
identities and beliefs. There, however, remains significant
work to be done in deepening mutual understanding and
friendship and trust.
While we commend the work which has been advanced by
the Commission for Pan African Affairs in this respect during
its 16 years of existence, there is much scope for exploring
the possibility of engaging in more meaningful commercial
activity with Africa.
Trade between Barbados and Africa has remained fairly
stagnant over the past 10 years, with imports from African
countries registering between Bds$4 million and Bds$5
million annually. Exports to Africa from Barbados were
slightly more uneven ranging from a high of Bds$1.2 million
to a low of just over Bds$500 000 during that period. African
imports in 2013, registering at BDs$6.6 million the highest in
the last decade comprised mainly machinery and mechanical
equipment, juices and non-alcoholic beverages, wood and
wine. Barbadian exports to that continent in 2013, registering
12
at Bds$536 364 comprised mainly of personal effects,
cylinders, machinery and appliances and artificial body parts.
By far the majority of business between Barbados and the
African continent is conducted with South Africa. Other major
trading partners include Cote D’Ivoire, Egypt, Cameroon
and Zimbabwe. This is a situation that desperately cries
out for greater effort and expansion. The African Economic
Outlook’s website which is a product of collaborative work
by three international partners: the African Development
Bank, the OECD Development Centre and the United Nations
Development Programme states that “Africa’s macroeconomic
prospects remain favourable. In 2013, Africa maintained an
average growth rate of about 4%. This compares to 3% for
the global economy and underscores again the continent’s
resilience to global and regional headwinds.”
We must therefore use opportunities such as this to fully
explore the immense scope for: enhanced relations in areas
such as culture, education and tourism; increased technical
cooperation in science, technology and agriculture, as well
as the development of renewable energy thus providing
increased opportunities for trade and market access. We also
want to encourage African enterprises to come to Barbados
and invest and certainly look forward to the opportunities
to share a little about our country as a great place to do
business.
The BIDC, as the national agency designated to contribute
to the diversification and growth of the Barbadian economy
through new investment, increased exports and industrial
development, supports Barbados’ commitment to developing
an even closer working relationship with Africa, promoting
new areas of cooperation, partnership and collaboration.
It is our wish that the B2B forum, under the theme “SME
development experiences from Africa for the Caribbean” will
serve to generate ideas which would lead to the development
of a strategy for fostering even greater ties with the African
continent.
GILDAN GROWING
Barbados is proud to be the home of Gildan
Activewear, a company that boasts of being
the number one apparel manufacturer.
Gildan recently opened a second building in Barbados
at its Newton, Christ Church base. President, Michael
Hoffman, speaking during the official opening ceremony,
said the Canadian owned company last year produced
and sold 800 million garments and recorded sales of
US$2.18 billion. Based here since 1999, Gildan has grown
from six employees to approximately 160, hiring mostly
Barbadians.
Hoffman noted that Gildan currently has over 37
000 employees worldwide, with the majority of its
companies located in this hemisphere‒ specifically in
the Caribbean and Central American region.
The President also revealed that unlike other companies
they do not import their products from Asia for sale
into North America and other markets, but rather they
have successfully built efficient, low cost, state-of-theart modern facilities that were manufacturing products
in this hemisphere and exporting them for sale into
markets including Asia and even into China – a feat,
which he said was not being spoken about enough.
Hoffman, expressing his satisfaction with the expansion
of the company, pledged Gildan’s commitment to
Barbados.
Minister of Industry, International Business, Commerce
and Small Business Development, Donville Inniss
speaking during the ceremony, commended the
Canadian company not only on its growth over the years,
but also on its numerous successes. This, he noted, is a
feat which must be saluted.
The Minister stressed that despite the current economic
hardships, Barbados is still a domicile of choice for
those seeking to move their investments around the
world in a safe and secure manner.
He noted that recent figures indicate that Barbados
has remained the number three domicile of choice for
Canadian investors who move approximately CAN$62
billion per year through Barbados.
He said: “the truth of the matter is that we are going
to build this society and economy up by continuing to
attract and retain companies such as Gildan Activewear
and all of those who choose to make Barbados their
home…Not all of them are as grand and large in size and
reserves as Gildan, but believe you me, here in Barbados
they are making a very meaningful contribution to this
economy and society.”
To highlight the importance of the sector to the
economy, Minister Inniss pointed out that Gildan
Activewear brought a number of individuals into
the country every year on sales trips and promotion
activities, thus making the International Business and
Financial Services Sector (IBFSS) a major contributor to
this country’s tourism sector.
“Individuals may come here to do business but when
they return, they stay at lovely hotels, they spend
money and we really must continue to show a level
of appreciation to them. We also believe that they are
wonderful ambassadors to Barbados as well…So we
really want Barbadians to understand and appreciate
that the IBFSS is extremely critical to our economy and
society.”
13
BUSINESS COOPERATION
BIDC & BIMAP
Strengthen Partnership
The Barbados Investment and Development
Corporation (BIDC), and Barbados Institute of
Management and Productivity (BIMAP) have
formalized their commitment to partnering in the
creation of an enabling framework for business
development in Barbados.
This comes with the signing of a Memorandum of
Understanding (MOU) between the two agencies, aimed at
supporting the research and development efforts of locals
businesses through the offering of the requisite facilities,
programmes and services. The official signing took place on
Monday June 30, 2014 at BIMAP’s Wildey, St. Michael office.
The BIDC and BIMAP share a long history of collaboration.
The establishment of BIMAP in 1972 was in fact borne out
of efforts by the BIDC to promote a structured and certified
skills training programme that would allow for better and
more coordinated planning and policy making to enhance
the management efficiency of enterprises in Barbados. Ever
since its inception, the Chairman of the BIDC also serves as
the Chairman of BIMAP.
Mr. Benson Straker, who currently holds that post, on
initialing the instrument explained “The MOU reaffirms the
commitment of BIDC and BIMAP to effective cooperation
through research and analysis, educational training and
capacity building activities.”
Signing on the dotted line as they
formalize the partnership.
14
“
(FROM LEFT) BIMAP’s Dr. Sonia Greenidge-Franklyn, Chairman
Mr. Benson Straker and BIDC’s Dr. Leroy McClean seal the deal!
Through the MOU, BIDC and BIMAP have agreed to work
collectively in areas including, but not limited to, the
exchange of information, training and development of human
resources, institutional strengthening, co-sponsorship of
events of mutual interest to both parties and collaboration
on initiatives to boost creativity and entrepreneurial thinking.
This MOU will also serve to strengthen the existing relationship
between the BIDC and BIMAP and clearly define areas of
cooperation that would support their respective missions
and corporate objectives.
Under the MOU, BIDC and BIMAP have agreed to:
•
Exchange relevant information on human resource training needs in the industrial sector as well as the BIDC.
•
Cooperate on special technical assistance projects to provide relevant training to SMEs.
•
Cooperate in business development programs for entrepreneurs in industry.
•
Collaborate in management and educational
consultancy services.
•
Participate in the development and training of individuals to work in new areas of enterprise.
• Co-sponsor workshops, seminars on matters of mutual benefit.
Dr. Sonia Greenidge-Franklyn, Executive Director of BIMAP, said
“The partnership, for BIMAP is a return to the common vision
that is shared with the BIDC. BIMAP’s historical moorings are
with the BIDC. One of the main objectives is to advance the
productivity and performance of the manufacturing and
The partnership, for
BIMAP is a return to the
common vision that is
shared with the BIDC.
BIMAP’s historical moorings
are with the BIDC. One of
the main objectives is to
advance the productivity
and performance of the
manufacturing and service
sectors in Barbados in an
effort to produce changes
that will propel the island’s
economy.”
service sectors in Barbados in an effort to produce changes
that will propel the island’s economy. Both organisations also
aim to encourage an entrepreneurial culture in Barbados and
this collaboration will be facilitating growth and development
in new and exciting industries.
The newly outfitted computer lab at the Barbados Information
Technology Training Centre is the first of its kind in Barbados
and is designed to lead the way in terms of facilitating training
in animation studies.”
BIDC Chief Executive Officer, Dr. Leroy McClean, commenting
on the initiative said “A productive interface between industry
and training institutes is important for Barbados at this time.
New and enhanced skills, as well as critical thinking and high
performance systems are key requirements of competitive
businesses.”
One of the first projects coming out of the renewed and
strengthened alliance between the two agencies is the
establishment of a training laboratory and center of
excellence to drive the animation sector on the island. The
facility, located at BIMAP’s training facility in Building # 3
Harbour Industrial Complex, St. Michael, is outfitted with
specialized equipment and software to support a multi-level
certification programme for persons interested in pursuing a
career in animation.
15
BUSINESS EXPANSION
GO BIG
WITHOUT
GROWING BIG
BAJAN COMPANY PUTTING MANHATTAN UNDER COVER
A local company, Undercover Canvas and Awnings, is
continuing to build on its export and foreign exchange earning
potential, by securing major contracts in New York.
Managing Director, Nigel Richings, was recently in Manhattan
to work on the first of those contracts commissioned by a
hotel.
The awnings feature a design unique to the local company.
Richings said he has always wanted to establish a business
with an emphasis on export and foreign exchange generation.
The company, based at Building #4 Pine Industrial Park, has
already done work in Martinique this year. On completion of
the job in Manhattan the company’s next stop was Brooklyn.
10 SAINTS SOARING
Barbadian brewed two-year-old 10 Saints Beer is going places.
In London, 10 Saints is available at Chelsea Football Club,
thanks to Roman Abramovich, who discovered the brew while
visiting Barbados on his yacht Eclipse. An introduction into
16
Germany toward the end of 2013 followed attendance at the
Anuga Trade Fair sponsored by Caribbean Export, a first for
any beer from the Caribbean. From the home of rum to the
home of beer. 10 Saints in fact was selected for a Taste 13
Award.
Anuga is the world’s largest and most important trade
fair for the food and beverage industry with around 6,700
exhibitors from about 100 countries. There were over 1200
products that entered the competition and 53 made the final
selection. Criteria set by the jury of international journalists
are originality and quality, as well as impressive marketing
ideas or packaging. Other decisive factors may include
convenience, an effective focus on one of the latest trends or
an appeal to specific target groups.
CEO Glyn Partridge said following the visit to Germany,
“We have several confirmed new markets and continue to
follow up numerous other enquiries; negotiating pricing and
terms, regulatory and label changes, agreements etc.”
The company has since then executed 2014 Spring launches in
Canada, the United States and Russia.
“
Germany toward the end of 2013 followed attendance
at the Anuga Trade Fair sponsored by Caribbean
Export, a first for any beer from the Caribbean.
From the home of rum to the home of beer. 10 Saints
in fact was selected for a Taste 13 Award.”
INNOGEN AND CARIBBEAN LED TEAM UP TO EXPAND
Two leading local companies in renewable energy products
have teamed up to expand the commercial opportunities
available in Barbados and the Caribbean.
Caribbean LED Lighting Inc. (CLL) and Innogen Technologies
have signed a memorandum of understanding (MOU) that is
expected to result in the further promotion of LED solutions
throughout the region.
“Despite the current economic climate, both CLL & Innogen
have grown significantly over the past three years in the
rapidly developing Energy Efficiency (EE) and Renewable
Energy markets,” said CLL’s CEO Jim Reid.
“This partnership sets an example of how Barbados can
move forward in creating jobs and supporting the economy.
I am very excited about this innovative partnership and look
forward to working with the Innogen team.”
CEO of Innogen, Vancourt Rouse, said the partnership
demonstrated that two competing companies could work
together for the betterment of Barbados by finding mutually
beneficial synergies.
“This relationship will save Barbados much needed foreign
reserves as we will not need to import LED bulbs. This will
naturally support continued job creation for the Barbadian
economy,” he said.
Another benefit of this new partnership is that Innogen will
actively support the environmentally sensitive disposal of
all fluorescent and compact fluorescent (CFL’s) bulbs using
CLL’s “Bulb Eater” machines which ensure that mercury, an
extremely toxic heavy metal, does not damage the Caribbean’s
environment.
17
MARKET PENETRATION
BARBADIAN
COMPANIES KEEN
ON DOING BUSINESS
WITH CHINA
Minister Donville Inniss makes a point during the seminar.
There is renewed vigour among Barbadian
businesses to break into the Chinese market.
And, development agencies such as the Barbados Investment
and Development Corporation (BIDC) and private sector
partners are being called upon to lead the charge in helping
people to understand what it is like to do business in and
with that country.
Minister of Industry, International Business, Commerce and
Small Business Development, Donville Inniss, expressed
this view while delivering remarks at the BIDC’s information
sharing session on Doing Business with China, held at Bagnalls
Point, for private and public sector stakeholders.
The timely seminar comes after a 20-member Barbadian
delegation comprising representatives from the public and
private sectors visited Beijing from March 5 to 23, 2014 on
a three-week mission to learn about doing business in that
country.
Stating that we have already begun to see some success in
our Chinese market, the Minister said “we have had several
businesses there before and we recognise that we have
also had some business from China…and several Chinese
delegations have also visited Barbados…There have been
trade and economic delegations who have made wonderful
contacts, and I know very well that we are now seeing some
Barbadian products, such as rum, kola tonic and some other
items venturing in to the Chinese market.”
Pointing out that the trip highlighted to all who participated
the opportunity to understand what the demands, the
complexities and the simplicities are of the Chinese market,
Minister Inniss stressed to those in attendance that it was
more from Barbados’ end to actually “break into that market.”
It’s not just about satisfying our market here at home, it’s
about understanding the standards, the customs and
procedures of those markets you venture into as some of them
might be far more demanding than our domestic market calls
18
for; but certainly we must keep up if
we are to be successful in supporting
goods and services. Trade goes both
ways and we believe firmly not just in
trade and goods but also in services,”
the Minister underscored.
He also emphasized that while
Barbados and China have had fruitful
relations since 1977, he said “there
was still so much more to learn
from each other… I will certainly
continue to expose our commercial
arm to all the opportunities that
presents itself.”
Roberts’s Manufacturing’s
David Foster took the
audience on pictorial
journey to China.
He further added that BIDC, BNSI and BIMAP would continue
to avail themselves to identify those products and services
that could create a niche market in China and aggressively
pursue them.
Minister of Foreign Affairs and
Foreign Trade Maxine McClean as she
addressed the seminar participants.
“
we have had several businesses there before
and we recognise that we have also had some
business from China…and several Chinese
delegations have also visited Barbados…There
have been trade and economic delegations who
have made wonderful contacts, and I know very
well that we are now seeing some Barbadian
products, such as rum, kola tonic and some
other items venturing in to the Chinese market.”
The audience posed several questions.
China’s Ambassador to Barbados, H.E Wang Ke,
also took part in the seminar.
Armstrong Agencies’ Andy Armstrong,
one of the private sector participants
shared his experience of China.
19
GO FOR IT
DO’S AND DON’TS
OF DOING BUSINESS
WITH CHINA
•
•
•
•
•
•
•
•
•
•
•
•
•
20
DON’T focus only on the larger well known cities.
DO Evaluate the Inland provinces and 2nd tier cities. They may bring you more business opportunities. DON’T think you’re going to get deal done without an active presence in the market. DO recognize that there’s going to be a limit to both the amount of travel and what you can do by travelling back and forth to China. Draw on local expertise to help you understand the culture and the complexities of the market and break through the language barrier.
Do focus on building good relationships. Good connections or Guanxi is very important to doing business in China.
DON’T think of China en masse. There is no such thing as the Chinese market.
There is no single consumer profile.
DO Look at China more like a mosaic of cultures and people.
Be flexible and innovative, and aim to see how your company can
fit into a targeted niche market.
DO your homework before doing business in China. It is vital that you conduct the appropriate level of due diligence on all business contacts before engaging in business activity.
The Chinese plan meticulously and will most likely have
conducted research to become familiar with your business.
DO Remember Chinese holidays and please arrange your
business and travel accordingly.
DON’T be late. Punctuality is vital when doing business in China. Ensure you are early as late arrivals are seen as an insult.
DON’T be intimidated and don’t think that Barbados or any country such as ours is too small to do business with China. Do protect you Intellectual Property prior to the signing
of any agreement.
DO go for it. If you have something they want, they’ll do business with you no matter what.
BUSINESS SUPPORT
FOSTERING A VIBRANT
ENTREPRENEURIAL
ECOSYSTEM
A new report from Ernst and Young (EY) has identified a collection of recommendations for policymakers
to combat persistently high youth unemployment rates through entrepreneurial growth. The latest
Avoiding a Lost Generation report, put together in collaboration with the G20 Young Entrepreneurs’
Alliance, identifies and analyzes the different youth unemployment issues faced by countries across
the G20 and provides 10 key recommendations – on access to funding, tax and regulation and
entrepreneurial culture and ecosystems.
Access to Funding:
• Create funding mechanisms, either government run or government backed, that make mentorship and financial education a condition of funding.
• Create strong relationships, and provide incentives, with venture capitalists, incubators and business angels to develop
or create initiatives that enable alternative sources of capital.
• Sponsor start-up growth with low-cost funding for targeted groups.
• Create a new class of loan for small businesses and young entrepreneurial firms that offer targeted funding to meet expansion capital needs.
21
NEWS TO NOTE
“
We’re also seeing great
success in countries where
governments have worked with
businesses and academia to
create entrepreneurial hubs.”
Tax and Regulation:
• Encourage investment in start-ups by offering tax benefits.
• Encourage top international talent by changing visa rules and offering funding support.
• Simplify and streamline tax administration to ease administrative burdens on young entrepreneurs.
Entrepreneurial Culture and Ecosystems
• Create a positive narrative around entrepreneurship to help engage young people from an early age.
• Encourage and foster hubs, incubators, accelerators and networks to bring relevant talent together.
• Create the foundation for a regional entrepreneurial ecosystem to flourish.
“Fostering a vibrant entrepreneurial ecosystem is one of the best ways to deal with youth unemployment, thanks to the large
number of jobs that entrepreneurs create and the path to employment and fulfillment that starting a business can offer young
people,” said Maria Pinelli, EY’s Global Vice Chair of Strategic Growth Markets. “We’re also seeing great success in countries
where governments have worked with business and academia to create entrepreneurial hubs and run initiatives to encourage
a broader acceptance and celebration of entrepreneurial spirit and endeavor.”
The report builds on the April 2013 “Avoiding a Lost Generation” report from EY that identified five imperatives for action:
• Expand the choice of funding alternatives
• Increase mentoring and broader support
• Change the culture to tolerate failure
• Target and speed up incentives
• Reduce red tape and excessive taxation
Source: 2013 EY G20 Entrepreneurship Barometer
22
INTELLECTUAL PROPERTY
PROTECTING IP
STRATEGICALLY
Government with the assistance of the World
Intellectual Property Organization has formulated
a national intellectual property strategic plan
with the objective of making our economy more
competitive globally.
This was disclosed by Registrar of the
Corporate Affairs and Intellectual Property
Office (CAIPO), Heather Clarke, who said
that such competitiveness could only be
achieved through creativity, productivity
and innovation in the economic, cultural
and social sectors.
She was speaking at a conference
hosted by the Association of
Caribbean Copyright Societies at
the Barbados Beach Club, Maxwell
Christ Church on the topic:
Towards the Establishment of the
Caribbean Creative Industries
Sector: Stakeholders Building a
System for Success.
Acknowledging
that
proposals
for
the
implementation of certain
aspects of the national plan
have been submitted and are under
consideration, the Registrar admitted that given
the significant role of the creative industries sector to our
economies, Government has implemented several initiatives
for the development and the repositioning of the cultural
industries as a viable and sustainable sector of our economy.
“Such support was evidenced by policy changes, the provision
of grants, incentives, the provision of funding for cultural
projects and cultural entertainment, duty free concessions as
well as the provision of grants for our creative and cultural
practitioners
Support for these initiatives can be found in the enabling
legislation, the Cultural Industries Development Act of 2013
and work is ongoing for the establishment of an Authority
to sustain, regulate and facilitate the development of our
cultural industries,” she divulged.
Clarke also pointed out that the emergence and growth of the
creative industries as a viable economic sector has been
accompanied by changes and developments
particularly within the last 10 to 15 years.
She added that such changes have been primarily in
the field of copyright and related rights and included the
development of new norms at the international level, which
have created a variety of challenges for our key stakeholders,
in particular, our authors, rights holders and collective
management societies and this included new digital
technologies and telecommunications– the internet and the
ever expanding new ways for exploiting works.
However, she was quick to stress that in response to the
changing environment, Government was committed to
strengthening the regulatory and legal framework.
“…In order to facilitate the growth and sustainable
development of the sector work is currently being undertaken
by CAIPO and the Advisory Committee on Intellectual Property
which is a Ministerial appointed body,” she underlined.
23
BMEX 2014
SHOWCASING
BAJAN INNOVATION AT WORK
The Barbados Investment and Development
Corporation (BIDC) has for several years been a
major sponsor, and seeks every year to highlight
some of the best in locally manufactured products
and services amidst a lively atmosphere of
entertainment, fashion shows, food and beverage
sampling, and product giveaways. The BIDC gain
this year provided support to BMEX.
The Corporation not only committed to partnering with the
Barbados Manufacturers Association (BMA) in hosting the
event, but also used the four-day exhibition as a platform for
pushing entrepreneurial development and the home-grown
offerings of local companies.
The BIDC this year facilitated the participation of 10 emerging
companies, all clients of its Entrepreneurial Development
Division: Armag Manufacturing Ltd, producers of frozen
sweet potato fries; Mickaycees, which produces traditional
Bajan confectionery; CK Designs & Decor, specialising in
interior design; Sapphire Batik Creations, producers of
Batik garments; Sleepy Pals Luvin Designs, manufacturers
of soft furnishings; La Femme Fashion Factory, an apparel
manufacturer; Smithen-Victor Photography, a photographic
services studio; Torchwork, producers of souvenirs made from
glass; Miracle Balm, producers of therapeutic oils and rubs
and Seven of Harts, producing specialty flours and foods.
The BIDC’s Design Unit assisted these companies in
getting ready for BMEX by ensuring that their product and
24
packaging design as well as promotional materials are
market ready and that their designated exhibition spaces
are geared to give them stand-out-in the crowd status.
In addition to this client assistance, the Design Unit also
aided companies participating in the New Product Showcase
with the development of their corporate identity portfolios,
product labelling and packaging.
In order to ensure maximum exposure of the local goods and
services on display, the BIDC also worked closely with the BMA
on the Buyer’s Programme. BIDC Chief Executive Officer, Dr.
Leroy McClean commenting on the Corporation’s participation
in BMEX said “The BIDC sees BMEX as an important event
that allows us to showcase Barbadian manufacturing and
services to local consumers as well as international buyers.
And given our commitment to the revitalisation of these
productive segments of the economy, the BIDC welcomes the
opportunity to partner with the BMA and other sponsors to
make this year’s BMEX an outstanding success.”
Since BMEX has proven a key portal in building relationships
within the community, he noted that the Corporation this
year moved to enhance that community interaction through
its corporate booth with a special outreach to both exhibitors
and visitors. The intent was two-fold: First, to offer onsite
business advice and support to existing companies intended
to aid them in achieving sustainability, arriving at solutions
and getting on the growth path and second, to assist
participants and visiting patrons in commercialising business
ideas.
NEWS TO NOTE
GOVERNMENT TO BOOST
MANUFACTURING
Creating an enabling environment for industries and businesses to not only survive, but also thrive,
continues to be a focal point for Government.
And, Industry Minister, Donville Inniss, has given notice that his administration remains committed to ensuring that all is being
done to bolster the local manufacturing sector.
Speaking at the 70th anniversary gala and dinner awards for Roberts Manufacturing Company Ltd at the Hilton Barbados, Mr.
Inniss signaled that in relation to that sector, Government was intent on continuing to work on a number of issues, including
high fuel costs.
“…We are very mindful that it is a major component of the manufacturing sector [and] we have just made some adjustments
to the subsidy. I have already spoken to the Minister of Finance and we are committed to making the adjustments therein.”
The Minister also took the time to urge manufacturers in attendance to get fully involved in renewable energy or alternative
energy programmes as a way of driving down the fuel costs in the country, adding that “Barbados could not maintain an
environment where it was solely dependent on fossil fuel as they certainly have to march more towards renewable energy”.
He further disclosed that Government was fully committed to improving business facilitation, in terms of removing some of
the barriers in doing business in Barbados. Noting that he recently met with Government and private sector officials from
various agencies to “agree and decide on the way forward”, Minister Inniss said he looked forward to the support of entities
like Roberts Manufacturing and the private sector in achieving this effort.
In addition, the Minister stated that he had made a commitment to the rum manufacturers, with whom he met recently, that
he would work on eliminating the Spirits Act, which should reduce the cost of production of rum in Barbados.
MISSION TO ATTRACT FDI
As part of Barbados’ strategy to attract Foreign Direct
Investment to the island, government officials took part in
a mission to Halifax, from May 21 to 23, and a second trade
mission to Prince Edward Island (PEI) and Nova Scotia,
Canada May 24 to 30, aimed at strengthening the partnership
and developing trade relations with that province. Led by
Minister of Industry, International Business, Commerce and
Small Business Development, Donville Inniss, the Barbados
delegation and a team from Invest Barbados hosted Road
Shows aimed at targeting the legal, accounting and tax
advisor community as well as CEOs, CFOs, and Presidents of
potential investing companies.
During the Road Show, the delegation used the opportunity
to deliver the message that International Financial Centres
are beneficial to both the Canadian investor and the
economy.
Additionally, the team communicated the benefits of using
Barbados relative to other jurisdictions.
The second part of the mission saw officials and a team
from the Barbados Chamber of Commerce and Industry,
(BCCI) and the Barbados Investment and Development
Corporation head to PEI and Nova Scotia. The Memorandum
of Understanding signed between the Greater Charlottetown
Area Chamber of Commerce and the BCCI will provide the
framework for coordinated trade activities in Barbados and
Atlantic Canada.
The trade initiative consisted of two days of scheduled
business-to-business meetings in PEI and two days in
Nova Scotia. During that time, Minister Inniss also met with
political and business leaders in the PEI area.
25
ECOSCOPE
SIDS
Tapping Into
New Opportunities
Barbados and other Small Island Developing
States (SIDS) are on the verge of tapping into
new opportunities presented through renewable
energy which could not be achieved 20 years ago,
but will benefit their environments now.
Executive Director with the United Nations Environment
Programme (UNEP), Achim Steiner, made this declaration
recently as he addressed World Environment Day 2014
celebrations in Independence Square, The City, on June 5.
“Renewable energy is not only a hypothetical option any
more, it is in fact knocking on the doors of economies across
the world, and 20 to 30 years from now we will be at the
beginning of an era when the supply of energy for the first
time in human history, will be at our disposal,” he stated.
Steiner said Barbados’ transition to a green economy did not
just happen overnight, but began when the seeds were sown
from as early as the solar water heater programme.
He added that the revolution of clean and renewable energy
in Barbados was gaining momentum, while the solar water
heating programme saved the country over $100 million since
it was introduced.
“If Barbados were to be able to achieve its objective of going
towards 20 to 30 per cent of renewable energy in the coming
decade, it would make a significant difference to the balance
of payments, and indeed to every consumer on the island,”
he noted.
Steiner further observed that the nations of the world invested
over $240 billion in renewable energy and infrastructure
26
investments. “This is more than the combined total of oil and
gas put together. Who would have thought that was possible
10 years ago?” he asked.
The Executive Director stressed that such interventions were
necessary, particularly as SIDS were immensely threatened by
the impacts of climate change, with economies like fisheries
and tourism being at risk.
“These changes would be so disruptive that in some places
on this planet people will have to leave. They would no longer
have a home, they would have to abandon their nations, their
land, their ancestry,” he predicted.
However, he told those present that this year’s World
Environment Day slogan of Raise your Voice and not the
Sea Level, spoke to over seven billion citizens on the planet,
including those in the United States of America, Africa, China
and Europe.
“Wherever they may be, World Environment Day is about the
principle of solidarity; it is also a day once a year across the
globe when tens of thousands of people are raising their
voices…,” Mr. Steiner stated.
He also cautioned that development which did not take the
social and environmental consequences of sustainability into
account was ultimately doomed to fail.
“It is an understanding that the environment is not something
to be exploited but should be used sustainably, to be
conserved, and be used wisely to enable future development
to take place,” he said.
TRADESCOPE
FRESH APPROACH TO EPA NEEDED
Despite numerous seminars on the benefits of the Economic
Partnership Agreement (EPA), a government minister is calling
for a fresh approach to pursuing business ventures outside of
Barbados.
Minister of Foreign Affairs and Foreign Trade, Senator Maxine
McClean, made this observation, while responding to a question
posed by a participant attending the Cave Hill School of Business’
breakfast roundtable under the theme: Global Competitiveness:
Prospects for the Future.
Senator McClean said there were a number of factors that have
led to inaction thus far. She explained that the EPA was forged
between the European Union and CARIFORUM (CARICOM plus
the Dominican Republic) and not with CARICOM. As a result, the
Foreign Minister admitted that “we have had difficult times in
making that marriage” between CARICOM and the Dominican
Republic work.
She also pointed out that the EPA came at the time just prior
to the start of the global economic crisis and as a result,
the circumstances of the European countries had changed
dramatically, and this might have led to a rethinking of the EPA.
Senator McClean added: “They are saying now that we have to
justify to our taxpayers, the availability of resources and that
has given rise to some changes. I think that where the resources
were made available to governments in the region, part of the
challenge we had was the mechanism for access to that was
probably made difficult. But, we have been working to utilise
those resources.”
However, Minister McClean said over the years, measures were
put in place to make it easier for businesses to access and take
advantage of the Agreement, and she commended the Caribbean
Export Development Agency for its work in assisting companies
in benefiting from it.
Meanwhile, guest speaker, Professor Avinash Persaud, said the
private sector had failed to take advantage of the opportunities
and floated the idea that the region had negotiated too “good a
deal”.
“We gave ourselves too much time and as a result, let me be
frank; the private sector has failed us. The private sector was
given tremendous opportunities on the EPA, but it requires them
to invest and for some reason, our private sector is happy to wait
to be forced,” he added.
Professor Persaud further stated: “The EPA basically provides
us unprecedented access whilst stopping the Europeans having
preferred access for a certain length of time. That length of time
has almost run out and what have we done with that time? Very
little. So, I think we negotiated too good a deal because we
somehow need to force the private sector to be internationally
competitive and not hoping that they will always find a way of
protecting themselves.”
ENHANCING RELATIONS WITH BRAZIL
Brazil’s Ambassador to Barbados, Luiz Gilberto Seixas De Andrade
would like to see this island placing more interest on learning to
speak Portuguese.
However, he pointed out that research and innovation were also
areas of interest and praised Brazil’s substantial leaps in science,
technology and innovation, over the past two decades.
The Ambassador acknowledged this as he paid a courtesy call
recently on Minister of Education, Science, Technology and
Innovation, Ronald Jones.
“Brazil is not only developing its educational structure and
system but also technological developments are occurring as
well as research, as [Brazil is] … one of the world’s leaders in biofuel technology. There are some things that surely we can learn
from,” observed the Education Minister.
“We do need to develop these language exchange programmes,”
said Ambassador De Andrade, noting that Brazil was considering
a project with the University of the West Indies (UWI) to have a
Centre for Brazilian Studies.
Stating that they were looking for a building to house the Centre
here in Barbados, he said: “It will be accessible since we have
flights out of Brazil; they can bring people here and I think to
have this Portuguese programme in place would be very useful
for business.”
Ambassador De Andrade also told the Minister that he was
prepared to learn about the projects of priority to Barbados, and
of the many ways in which there could be cooperation in the area
of science and technology.
Minister Jones, in responding, said Barbados was committed to
working with Brazil in the area of language development and,
in particular, assisting with that country’s English language
development.
He added that Barbadian students participating in university
research in Brazil, particularly at the Masters and Doctoral
levels, was something to be explored, particularly in relation to
renewable energy.
Mr. Jones noted that Barbados would wish to focus on specific
areas of research such as agriculture, agro-processing and other
areas with a science orientation. He further added that there was
a research culture in Barbados but it was not as developed as in
Brazil and therefore possibilities existed for enterprising young
Barbadians to be assimilated into the research culture.
The two officials also discussed aspects of trade with both
agreeing there was a need to work together to realise benefits
that could accrue from South-South trading and cooperation.
27
CULTURAL ETIQUETTE
When In.…Bolivia
Modern business is global and demands people travel to foreign
countries and mix with foreign clients, colleagues or customers. Each one
of those cultures will also have their own etiquette rules, many of them
unwritten. When two or more different cultures mix, it is easy for small
etiquette mistakes to be made that could have negative consequences.
Not understanding the etiquette of another culture can and does lead
to soured relationships, lost deals and in the end poor business results.
The Barbados Business Catalyst explains the etiquette behind business
dealings with Argentina.
The Cultural Etiquette Critical for Success
The People
Bolivians are very proud of being one of the few countries
that have successfully promoted multicultural integration.
Vice President Víctor Hugo Cárdenas, elected in 1993, was
the first indigenous person elected to this high office in South
America. Bolivians are kind, gentle people, who are concerned
for each other’s welfare. Friendship is a very important value.
The family is the central unit in the social system. Education
is valued, but still not achievable for all people. Although it
is legally compulsory for ages six to 14, fewer than half of all
children finish primary education.
Greetings
The customary greeting is a handshake. Shake hands when
meeting and departing.
Close male friends may embrace. Female friends embrace
and touch cheeks. Titles are very important and it is best to
address people directly by using their professional title only.
If they do not have professional titles like, Doctor, Lawyer, etc,
they should be addressed as Señor, Señora, Señorita, plus
their surnames. Bolivians stand very close when conversing.
You will be viewed as untrustworthy if you do not maintain
direct eye contact. Correct posture while sitting and standing
will be noticed. A slumping posture is rude. The “so-so”
28
gesture (rocking your palm-down open hand from side
to side) means “no” in Bolivia. It is rude to not say hello or
goodbye when coming and going. Also, not listening when
someone is speaking and not accepting an invitation to eat
are considered rude.
Business Attire
For Men: In La Paz, a dark, three-piece suit is best. A
lightweight suit is more common in Santa Cruz. Follow your
Bolivian colleague’s lead with regard to wearing ties and
removing jackets in the summer. Women should wear suits,
dresses, skirts and blouses. Do not wear shorts in cities.
Meetings
Although punctuality is not a high priority in Bolivia, visitors
should be punctual for business meetings. However,
meetings rarely start on time. Like many South American
countries, Bolivians arrive fashionably late, often at least
an hour after the appointed time. However, a punctual
person is much appreciated since it shows their sense of
responsibility and professionalism. It is important to be on
time in business situations. More than one meeting may
be necessary to negotiate and close a deal. Plan on making
several trips to complete business transaction, since face-
to-face communication is preferred over phone calls, faxes
and e-mail. Know something about Bolivian sports. It will
be appreciated. Don’t talk about poverty, religion, drugs or
the United States’ drug policy. The United States’ military
activity in Bolivia is a sore spot with many citizens. Do not
give political opinions on Bolivia. Never praise Chile, Brazil
or Paraguay. Bolivia has lost wars with and land to all its
neighbours. Make an effort to use Spanish in conversation.
It will be appreciated. Bolivians appreciate people who are
warm and friendly.
Business Cards
Business cards are usually given right after the introduction
and are presented with one hand. They are given right away
so that it is easier to visualize the first and last name of your
acquaintance. Be prepared to present business cards to
everyone in a meeting.
It is advisable to have one side of your business card translated
into Spanish. Present your business card with the Spanish
side facing the recipient.
Negotiations
The pace of business negotiations is generally much slower
than you may be used to. Never attempt to rush a deal. Final
decisions are usually made by the highest ranking officers,
so it is best to have them in the meeting if possible. Expect
to hold several meetings, not just one. An indirect style of
communication is preferred over a direct style, so try to
avoid questions that need to be answered with a straight
“yes” or “no”. Showing nervousness during negotiation is a
disadvantage. It’s best to negotiate price calmly and rationally.
Applying pressure may cause a deal to fail. Remain low key.
Hire a local contact to assist you in the Bolivian business
community. Third-party contacts will be vital to your success.
A contract is not finished until an agreement is reached on all
parts. Each part is subject to re-negotiation until the entire
contract is signed. Take the time to get to know your Bolivian
customers and colleagues. Personal relationships are vital to
corporate success. Deadlines are not considered important.
Gifts
A gift given sincerely will be appreciated regardless of the
value. The intention is what counts. The recipient may not
open gifts until after the giver has left. Give your hostess
flowers, wine, whiskey and high quality chocolates. Don’t give
yellow or purple flowers. Bring a bag of assorted candy for
the children. It will be very well received. Give your colleagues
high quality pen and pencil sets, office organizers, books and
art from your home region. If your company logo is on a gift,
it should be small and understated. Avoid gifts like a letter
opener, knives, and or scissors as they can mean a severing
of relations.
Dining
It is impolite to show up on time to a social occasion. Guests
are expected to be 15 to 30 minutes late for dinner or parties.
Decline the first offer of food; wait until your host insists.
Never touch food or eat anything with your fingers. Even fruit
is eaten with a fruit knife and fork. It is polite to eat everything
on your plate. Complimenting the food will be viewed as a
request for more food. Wait until the dinner is over if you
don’t want more. Stay at least 30 minutes to one hour after
dinner is finished. The host usually insists on paying for the
meal in a restaurant.
Especially for Women
Machismo is very strong in Bolivia, and women are considered
subordinate. This puts severe restrictions on women’s social
and work behavior. When doing business with Bolivian men,
women should emphasize their credentials and experience.
29
MANUFACTS: INDUSTRY BY NUMBERS
30
Industry By Numbers
MANUFACTS: INDUSTRY BY NUMBERS
31

BIDC Business Catalyst Vol 10 #2

Transcription

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