2. Mission
Increase availability of equity & debt
financing options available to Entrepreneurs
(of all stages and sectors) in Barbados in
order to be the #1 Entrepreneurial Hub in the
World by 2020
3. Measures of Success 2011
Finance Web portal launched online by 1 April 2011
4 Business Finance workshops offered covering capital
structure and financing alternatives in 2011 (consider
Kauffman Fasttrac program)
One or more Angel Investor Groups activated:
Invests in 10 Ventures in 2011
Professional and other groups help companies
prepare to pitch and refer entrepreneurs to angels
Possible tax incentives to Angels
4. What does World Class look like?
World class investors to world class
entrepreneurs
Understand your business idea ‘domain
knowledge
Willing to share risk & rewards
Trust
Responsive
No ‘pie in the sky’ valuations
5. What does World Class look like?
Product/Situation Barbados Today World Class Requirement
Micro-enterprise Loans √ √
Active Angel Investors √
Active Venture Capital √
Venture Debt √
“Growth Capital/PE” √
Mezzanine Financing √
Senior Bank Debt √ √
“Frictionless” Foreign
Investment – Central Bank
√
Advisor Ecosystem √
6. Benchmark / Indicators World Class Barbados
There is no “one size fits all” for financing entrepreneurial
ventures at different stages (eg start-up) and sectors (eg
services) – equity is critical to ensure B/S strength
Full range of
Financing vehicles
exist
Limited – micro
and bank loans –
little to no equity
Culture must accept role of outside equity investment in
high-growth entrepreneurial companies – “smaller piece of
bigger pie”
Understood as a
premise for high
growth – more than
just $
Chicken vs. egg?
Is it culture or lack
of availability –
younger group -
latter
Private sector “Ecosystem” that supports company
formation and financing – attorneys, banks, lawyers etc.
“discount” fees in early years and have programs to support
new business development
Long-term view –
grow your future
market leader
pipeline
“One fee fits all”?
No commitment to
ecosystem
Stable government policy – frictionless opportunity for
foreign investment and repatriation (subject to tax rules etc.)
Tax regimes can be
complex but no
FX/CB restrictions
CBOB “sand in the
gears”
Where is Barbados on the Benchmark
Indicators?
7. Situation: Barbados characteristics
Individual traits
Lack of information available on how to access
funds
Risk averse – investments are typically long
term & fully guaranteed with limited ‘skin in the
game’
Reluctance to give up control for equity financing
Businesses are built not sold – ‘exit strategy is
counter cultural’
8. Situation: Barbados characteristics
System traits
Banking system is not set up to encourage
entrepreneurs
Not yet a truly competitive market
Regulatory environment hinders equity driven
investment
Protectionist – constraints in free trade
Investments are typically small scale & ROI
expectations are low
9. Narrowing the gap
1. Educate Barbadians on Financial ‘language’
and types of investment available to raise
capital
2. Lack of government support & policies directed
at promoting the availability of finance
3. Lobby Government for regulatory reform
4. Work with Government & Central Bank to
develop incentives and breaks for
entrepreneurs
5. Relax FOREX controls & implementation of
credit bureau solutions
10. Key Themes
Fear of Failure – less acceptable than in
other cultures
Role of angel investment in developing
markets
Reform to Pension fund regulation
Foreign Direct Investment - raise profile of
Barbados brand to international
entrepreneurs
11. What Why When Who Status Remarks /Actions
Measures
Create a web portal • Source for
Information &
Education on finance
• Promote key events
April
2011
Establish an Angel
investor network in
Barbados
• Act as a source of
capital for start ups
Jan
2011
Explore establishing a
dedicated Venture
Capital enterprise
growth fund
• Raise new sources of
capital
Nov
2011
2011 Action Plan – Top 3 priorities
12. Reconfirm Mission
Increase availability of equity & debt financing
options available to Entrepreneurs (of all
stages and sectors) in Barbados in order to
be the #1 Entrepreneurial Hub in the World
by 2020