Jan-Feb 2019
The Key to Successful Inflation Targeting Ralston Hyman
Music in Dance Kerry-Ann Henry
Making Industry from Your Imagination Ewan Simpson
Table of Contents
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Team Message
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Making Industry from Your Imagination
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Productivity - The Key to Successful Inflation Targeting
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Music in Dance
Ewan D.A Simpson
Ralston Hyman
Kerry-Ann Henry
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How Digital Transformation can be Utilized Effectively in the Food Industry
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How the Development Bank of Jamaica Helps Businesses to Grow
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Factors Limiting the Growth of Small Businesses
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Developing the Right Business Plan
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Steer Town Academy
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A Real Life Entrepreneur’s Vision
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In the Mind of an Entrepreneur
Balie Denniston
Development Bank of Jamaica
Winsome Minott
Exim Bank
Winners of Katalyxt 2017/18 Youth Innovators Competition
Tyrone Wilson
Katalyxt Incubatees
Team Message “Conquering the Mountain�
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e are several days into 2019. We must therefore learn from mistakes made in the past year and position ourselves in anticipation of the next big opportunity (the mountain). The Katalyxt team takes this opportunity to wish entrepreneurs, business partners and colleagues continued success and prosperity for the New Year and beyond. Katalyxt will continue to invest in the lives of Jamaican micro, small and mediumsized entrepreneurs. Our team will also continue to promote entrepreneurship in schools in an effort to contribute to nation building. We recognize that while it is the government’s responsibility to institute systems and policies, we must all play our part in helping our country achieve the goals of vision 20/30. A major financial institution reported a 4% growth in their SME lending portfolio. This augurs well for the sector. We continue to forge alliances with stakeholders from academia, private sector corporations, non-governmental organizations and government bodies in an effort to train new businesses and so encourage growth. We are committed to the promotion of technology. Our training initiatives will continue to include: Corporate Governance, Business Registration, maximizing your Social Media Presence, Marketing, Business Communication, Financial Reporting, Costing, Customer Service, Business Planning, Cash Flow Management, Financing, Legal, Improving Production Processes, Risk Mitigation. 2019 activities will include Round Table Discussions, The Annual Katalyxt Business Development Conference and our Incubator Training Programme. Let us embrace the New Year with enthusiasm, confidence and determination with the knowledge that we can achieve much if we first believe that we can. Wishing you a wonderful year ahead! W. Minott
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Making Industry from Your
By: Ewan D.A Simpson
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e grew up in a society which taught us that brilliant people either became professors, researchers or specified professionals such as Doctors, Lawyers or Engineers. The same society taught us to engage our creative imaginations primarily in our spare time and considered artistic endeavour extra-curricular, or in more modern times, co-curricular. This is the background against which we have been conditioned to squander our Godgiven fundamental inputs into an industry for which no other set of people on earth have been better gifted. The result? Other nations with more sophisticated processes, have benefitted artistically and economically, from the very outputs of our creative imagination while we as individuals and as a nation continue to struggle economically or simply hang on to the emotional notion that we are one of the most talented and artistic nations in the modern world.
imagination, otherwise known as intellectual property, are properly harnessed, protected and exploited. The truth is, all of those musical superstars mentioned above could have explored other professions in the hope of being taken seriously, and with the intention of becoming a ‘respectable professional’. In fact, at least one of them (Shaggy) made a serious foray into another professional sphere and did a stint in the US Military, but still had to come back to his real calling, and thankfully was able to establish himself as a true player in the global music industry with a diamond selling record to show for it.
From The Bob Marley Dynasty, Toots and Jimmy Cliff, to Sean Paul, Shaggy and Chronixx, there are sufficient examples of the life changing opportunities possible when the tangible manifestations of the creative
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words and adding words to a melody, which then become a song then a sound recording, then a product which can be licensed for consumption in various ways all over the world.
Imagining a world without the music of these Jamaican stars could be a very difficult endeavour, and the cultural, spiritual, economic and aesthetic value of their craft can never be overstated. The real inspiration however, should lie in the contribution they have made, and the contributions that others can now make, to the development and maturity of an industry comprising musical and entertainment products. In order to appreciate how this industry could look and should look, we need to appreciate the inputs that make up an industry in broad terms. Critical to any industry, is a system inclusive of creators (providers of raw material or derivative products), developers, buyers, users and support services for all of the above. The support services are meant to assist each sector in the system, to identify and achieve efficiencies, seek out the best deals as well as optimize output, throughput and consumption. This is as true of traditional industries including bauxite and oil, as it is of poultry, coffee or dairy farming and is equally true of the music industry. Creators (writers and composers) need support services to assist them not only in creating, but also in securing the benefits which should flow from their creations and in acquiring the tools to optimize the quality and quantity of these outputs. In this regard, publishers, publicists, musicians, producers, agents, collective rights management organizations, attorneys, promoters, journalists, booking agents, accountants, technicians and managers are critical stakeholders in moving an idea to
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The beauty of intellectual property reposed in these works, is that it can be exploited by numerous persons worldwide at the same time in varying ways, resulting in multiple income streams for several interests simultaneously. Writers, musicians, performers, publishers, collecting societies, agents and administrators, record companies and distributors can all benefit from a single song just moving steadily up the charts and being enjoyed by millions in clubs, on radio, via streaming sites, by downloads or otherwise. This is even further multiplied if this song is then included in advertising or motion pictures or if adaptations are made or derivative versions made from it. Musical works are amazingly multifaceted, in that they can be dissected and consumed in parts which can be separately exploited as literary works, or musical works, or as a composite. The Musical works can be further dissected by using the whole or part of the melody or otherwise using the musical bed (known in Jamaica more popularly as the riddim).
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Writers, musicians, performers, publishers, collecting societies, agents and administrators, record companies and distributors can all benefit from a single song just moving steadily up the charts and being enjoyed by millions.
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This is much the template on which the music industry can be developed and sustained. The lyrics of a song can be separately licensed in multiple pieces for inclusion in various products, whether in other songs, as slogans, prints on merchandize or for inclusion by synchronization in other entertainment products such as ad campaigns and movies. Simultaneously and separately, multiple parts of the sound recording can be sampled for inclusion in other similar products as above for simultaneous use by several licensees over time, while the various melodies associated with the song can also be used in the same way. An appreciation for this should encourage more of our people to accept that the global music industry (from which we should create our own local subset), is in fact a pie for which there is a piece for all of us, and from which we can all feed if we subscribe to an organized system. Collecting societies such as JACAP and JAMMS or ASCAP and BMI can assist in collecting and distributing performing rights royalties, while publishers and other rights managements agents and agencies allow for additional forms of exploitation of these works. Not everyone with the gift and talent to write, or play an instrument needs to become an artiste. Segmentation and specialization of roles will become a key factor in organizing an industry for the benefit of all. Great voices
need great writers to pen amazing songs and the combination of talented lyricists and skilled composers making catchy melodies, will give gifted musicians amazing tracks to record on, while well trained engineers assist top class producers in making a hit record. Well connected publishers and shrewd publicists will then find amazing ways of having these works exploited globally and attorneys, collecting societies distributors and accountants assist booking agents in properly directing the proceeds of the performance income and royalties to be earned. It is about time that those of us who find that those of us gifted in language and literature, use those gifts to add to the pool of excellent writing talent in the industry. Those of us skilled in business should equally look toward a career in the business of music, providing investment and business management guidance to the creators, owners and performers in the industry. There is still room for lawyers and doctors to provide specialized services for the various peculiar needs of the industry while those with peculiar performing talent do what they do best. Shall we mention legislators in parliament who will provide the necessary support by way of law and government policy? An industry has disparate but complimentary parts. The sooner we tap into that as a nation, the sooner we will move towards a mature entertainment industry.
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The Key to Successful Inflation Targeting
Productivity: By: Ralston Hyman
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inance minister, Nigel Clarke and central bank governor Brian Wynter have been telling the country that we must now focus on the inflation rate, rather than on the exchange rate and calling it inflation targeting. This is being done as if there is no relationship between the inflation rate and the exchange rate and as if this is something new. The fact of the matter is that inflation targeting is as old as Alexander Hamilton who was America’s first and greatest treasury secretary-serving between 1788 and 1795. Hamilton who was from St. Kitts Nevis died in 1804 after he was shot in a duel by vice president Aaron Burr argued that there have been three great inventions since the beginning of time. Fire, the wheel and central banking. The great economist, soldier and statesman further stressed that the primary role of the central bank is to control the flow of bank money in an economy at a level that will lead to the highest employment possible and stable prices. International central banks, including the ones of our major trading partners the US, Canada; United Kingdom (UK) and China target an inflation rate of 2% and unemployment of 5%. Jamaica’s inflation target of 4-6% or an average of 5% is therefore higher than those of our major trading partners, which means that the Jamaica dollar would have decline at an annual average rate of 5% if the country’s is to maintain its international competitiveness. This tells you that unlike what minister Clarke and governor Wynter are saying, there is a connection between the inflation rate and the exchange rate. Meanwhile, there is also a relationship between productivity, the inflation rate and the exchange rate. High levels of productivity
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means a lower inflation and a lower inflation rate leads to a more stable currency, which facilitates growth.
There is also a connection between productivity and the level of education and training as well as in investments in science and technology and research & development. Investments in social and economic infrastructure and the optimal utilization of the country’s land, labour and money as well as real capital are also of paramount importance to enhancing productivity, which leads to lower inflation, exchange rate stability and accelerated growth and development or a virtuous cycle. It is therefore against this background that we are exhorting minister Clarke and governor Wynter to focus more on the real economy in order to maximise productivity, which is the key to successful inflation targeting. The minister and the governor must also ensure that the real economy gets the support it needs to operate efficiently, particularly as it relates to provision of affordable financing. The economy is not a mathematical equation being conducted at the 6B level. It is real. Economics is fundamentally about the production and distribution of goods and services. The inflation and exchange rate is a reflection of the cost of producing and distributing them.
music in Dance By: Kerry-Ann Henry
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hen the School of Dance at The Edna Manley College of the Visual and Performing Arts (EMCVPA) was to introduce the course Music In Dance into its BFA Performance and Choreography Programme there was a discussion on the course title being Music For Dance or Music In Dance. The title Music In Dance was chosen based on a philosophical perspective that music and dance were so integrally linked that Music In Dance would create a more tangible exploration as an implicit element in dance making, choreography and performance processes more so than Music For Dance, which implies music serving/ accompanying dance. The aim of the course Music In Dance is to increase the knowledge and experience of dance majors in the understanding, use and expression of music in dance. It recognises selection and understanding of music in dance as essential skills a performer, choreographer or educator must have knowledge of.
dance movements. The popular beats, rhythms and lyrics of dancehall1 have shared with the world dances (and songs) such as Bogle, Willie Bounce, One Drop, Haffi Come Back, Flairy and Fling in an instructional and call and response format. The instructional and call and response framework can also be seen in traditional dances such as Kumina, Dinki Mini, Ettu and Gherre2, in which movements respond to the drummers and the ‘breaks’ in the music.
The prominence given to the music industry locally and internationally is also seen in the relationship of music in dance. In popular dance culture in Jamaica and Trinidad and Tobago, two Caribbean countries that have generated indigenous musical expressions, dance and music go hand in hand and in some cases are inseparable. In Jamaica, specific rhythms and songs are created for and/or celebrate specific 1 2
The name given to a Jamaican Popular Dance form as well as a genre of Jamaican popular music. Traditional dance forms practiced in Jamaica. The forms are African retentions from slaves who were brought to and settled in Jamaica, These forms are practiced primarily in rural communities and in some instances by families, for example Kumina and Ettu, on the island.
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In the commoditisation of art in the form of productions, dancers and choreographers often collaborate with composers to create musical arrangements. This can be seen in Musicals and choreographic works, locally and internationally, for Pantomimes, Musical Theatre Productions and Seasons of Dance. In the creation of many choreographic works the late Professor Rex Nettleford3 worked with Marjorie Whylie, past Musical Director of the National Dance Theatre Company (NDTC), to develop works influencing and influenced by the music. Noteworthy mentions are Gherrebenta, Character Sketches, and Kumina. This process continues in the Company today and can be seen in the works of their new generation choreographers like Professor Christopher Walker. Walker, in the creation of his choreographic work titled Rough Drafts, worked with past musical director of the NDTC, Ewan Simpson, to develop original score to marry the expression of movements to story line, singers’ voices, and instruments. Many works are created using pre recorded music using two main approaches - one may hear a piece of music and be moved to create a movement or piece of choreography or one may create a movement or piece of choreography and then search for a music to complement the concept, vision, mood, theme or expression of the movement or piece. Often within these processes there is the practice of editing a piece of music. A piece of music can be edited to match the length of the piece and/or to change the sequencing of the original track in order to fit the different movements (sections) within a piece of choreography. There are many arguments to condemn or to justify this act, a point worthy of further exploration but goes beyond the scope of this article. Suffice it to say that if the process of selecting and using music in dance goes the route of pre recorded music that needs editing then one should do so responsibly. In the creation process, the user should respect the composition aesthetic of the creator of the track and as such should edit in a way that safeguards the integrity of the work.
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Cultural discourse has interrogated the relevance of the type of music used in dance making and performance. Within this discourse there are proponents for use/integration of music that is considered representative of the country or the region. A variety of genres are explored in choreography at the EMCVPA as well as in Ballet, Modern and Contemporary Dance Companies locally and internationally. How does one define representativeness, particularly in a space that has been generated from a mixture of many diverse cultures? On a broad level categorisation one may look at manifestations within classical, traditional, and popular forms of music, dance and aesthetics. Social and political discussions add to cultural discourse to fuel what I would term ‘a perceived conflict’. I say ‘perceived’ as all genres express some element of our history whether through acculturation, assimilation or enculturation. The writings of Nettleford suggest the concept of embracing this conflict – Caribbean dance, like other definitive genres of artistic expression, is demonstrably capable of multiple and interactive modes of expression, better perceived and described as ancestral/ traditional, contemporary/popular; classic. (“Jamaican Dance Theatre: Celebrating the Caribbean Heritage” 84).
Co-Founder and past Artistic Director of the National Dance Theatre Company (NDTC) from 1962 until his death in 2010.
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Principles such as contraction-release, rippling of the back or body waves amongst others are seen in the work of dancers in the NDTC system and choreographic works in Seasons of Dance (“Jamaican Dance Theatre: Celebrating the Caribbean Heritage” 91). These aesthetic qualities, rhythms and expressions are also seen in Haitian Yanvalou5, and in the execution of movements of Obatala in Santeria6. The movements themselves create rhythm and energy that signify the history and experience of a nation and a region Nettleford further comments on these modes of expression having an inherent quality or aesthetic that creates movement naturally (“Jamaican Dance Theatre: Celebrating the Caribbean Heritage” 88). Dance performers or choreographers will testify tell you that you can perform or choreograph a piece to or with no accompaniment, whether musical or vocal, or any sound for that matter. In such a case it is the choreography, movements, steps, sequences that set the rhythm and/or flow. One would therefore say that movement inherently has its own song – ..there is a logic and inner consistency in the way Caribbean people move that gives to the commonplace crawl, hop, skip, jump, and walk distinctive aesthetic significance’ (Nettleford, “Jamaican Dance Theatre: Celebrating the Caribbean Heritage” 88).
The arms, like the other parts of the body, must be able to describe the curve of the mountains, flow of rivers, and the ebb and flow of oceans, just as in other traditions the movements of swans and the shapes of Gothic cathedrals, skyscrapers, and pine trees piercing the winter sky have found correspondences in dance attitudes (Nettleford, “Jamaican Dance Theatre: Celebrating the Caribbean Heritage” 88).
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Nettleford, in years of exploration and experimentation in the development of the NDTC system (Dance Jamaica, Renewal and Continuity, The National Dance Theatre Company of Jamaica 1962-2008, xvi), often expressed that the movements themselves were created through a recognition and representation of the energy, expression and aesthetics of Caribbean cultural realities. Nettleford references Cheryl Ryman4 in the description of principles of movements.
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Researcher and past Principal Dancer with the NDTC Yanvalou is the name given to a form of dance associated with Haitian Vodou. It originated in Benin, West Africa. 6 Santeria is an Afro-Caribbean religion found in Cuba that developed out of the enslavement of Africans in Cuba. The syncretic religion combines Yoruba beliefs and traditions and Roman Catholic elements. Obatala is an Orisha in the Santeria religion. 5
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Nettleford quotes past Washington Post critic Alan Kriegsman who wrote on August 3, 1976, describing a performance by the National Dance Theatre Company – “the stage was vibrant with rolling shoulders, swaying pelvises, flitting feet, an torsos rippling like windswept vines” (“Jamaican Dance Theatre: Celebrating the Caribbean Heritage” 94). The description invokes a sense of rhythm, dynamism, and imagery which evokes the music being created by the very movements themselves; music in dance thus becoming more implicit in the execution and expression of movement than the use of music in dance. When this relationship is understood and applied then both performer and audience member begin to partake in a wholesome experience that moves beyond accompaniment, purveyor and viewer to one of embodiment. At the end of the day is it not the duty of the arts to make us feel? I charge you to immerse yourself in the embodied experience of dance. When next you perform, create, view, or compose for a dance try to see, and experience, the inherent music in the movements. You will find and feel that the movements themselves create their own song or track for the dance. Bibliography Nettleford, Rex. “Jamaican Dance Theatre: Celebrating the Caribbean Heritage”. Caribbean Dance: From Abakua to Zouk. Ed. Susan Sloat. Florida: University Press of Florida, 2002. pp. 81-94. Print. Nettleford, Rex. Dance Jamaica, Renewal and Continuity, The National Dance Theatre Company of Jamaica 1962-2008. Kingston: Ian Randle Publishers, 2009. Print.
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HOW DIGITAL TRANSFORMATION CAN BE UTILIZED EFFECTIVELY IN THE FOOD INDUSTRY
By: Balie Denniston
“Digitization must be acceptable in the households, schools, restaurants and other areas� Forbes magazine reported that (67%) of Global 2000 enterprises have digital transformation as part of their plans moving forward.
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igital Transformation is not solely about digital technology but also the effect it has had on the growth of many business industries worldwide. Simply put, digitization is the process of converting information into digital (computer readable) format. The impact has been positive as many industries have used this technology to transform internally and externally, as an impactful way to scale upwards. Europe is currently operating at 12% of its digital potential while the United states is currently operating at 18% of its digital potential. These statistics demonstrate that although digital transformation has been impactful in both Europe and the United States, the full potential has yet to be fully exploited as there are great changes and adaptation still happening with the process of digitization. The transformation is still very much prominent. In fact
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Digitization has provided a platform for technology, the business industry, socioeconomic structures, consumption patterns and shrinking of cultural barriers. All this creates a change in the overall society right across all platforms. It is without a doubt that the business industry benefits but from a greater vantage point, we have seen movement also culturally. In fact, when viewing this impactful change, we must also address it from a cultural perspective. It is the cultural acceptance that has also allowed this process to spread at such an exponential rate. Digitization must be acceptable in the households, schools, restaurants and other areas. People in society must be able to see how it applies to them on a daily basis and must be within easy proximity for usage. In other words, the general public must have easy access to the digitization process within the marketplace and daily course of their lives. For example, the digitization process would not have become popular without e-commerce activity. Restaurants have made good use of this, big players such as Amazon and Alibaba are also an example of the interaction between e-commerce and digitization.
Having succinctly defined the term, as well as enumerated some of its effects on various industries. The focus of its impact within the restaurant industry will be examined. Digitization has indeed reshaped the restaurant industry in various ways. Almost every successful restaurant has a website. Before websites became prominent, restaurant owners heavily relied on word of mouth, flyers, newspapers and even yearly restaurant review books. Nowadays with websites being available, the review of a restaurant can be found easily on the restaurant’s website or social media platforms instantly. The traditional methods are still very much effective and alive, however, by having a website, a restaurant owner can have greater access to a wider customer base both locally and internationally. For example, an island such as Jamaica, which is known for its booming tourism industry, technological access for restaurants through websites works favorably for such an industry. Now Tourists can get information on restaurants easily through having access to a restaurant website and also reviews, before arriving to their destination. With such a facility they can make a decision before physically being in that restaurant. Having access to google maps they can also explore and arrive at any restaurant that is to their liking. Websites also boost marketing skills and allows the restaurant owner to become creative as they are aware that potential customers will be feasting with their eyes. Digitally recorded customer reviews also helps a restaurant to monitor its customer service product and take remedial steps to improve. Expanding your business is not only dependent on the quality of food but also the customer’s experience. This experience will be determined by the level and quality of customer service. Because of the brand awareness digitization creates to mass markets, there is the potential for expanding the business itself towards an international capacity as one’s customer base grows. Another benefit Digitization has provided is that it has made it possible for orders to be made online. This benefits the on the go person and reduces waiting time for guests who can now place their order ahead of their reservation. Nowadays there are apps
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available to order from. This eliminates the problem of standing in long lines and the experience of a crowded environment. The digital transformation has certainly enhanced the food industry by creating greater exposure and also made the process of ordering faster and more efficient.
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Along with proper marketing and media, the impact would not have been this widespread or influential without the ‘digital transformation’ used to transform the food industry.
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“Eating healthy” has definitely become a vogue lifestyle choice. Digitally this has been made easier for consumers by allowing greater accessibility of those product. The Marketing of this healthy trend would not have been possible without digital transformation taking place. In other words, this worldwide trend could not have spread rapidly without the use of technology. This in itself is a transformation which accelerates minute by minute. Take for example, Jenny Craig or Weight Watchers that have people buying online and food delivered right to their homes to help them lose weight, for example. This fast-growing trend owes this boost to mainly social media and website access, which has overtime demonstrated the myriad of benefits that come with eating healthy. This impact has become notable, so much so that it has influenced the menu choices at many restaurants. Almost every restaurant has a vegan option on the menu as a result of the growing international trend. This type of awareness of growing trends like this can be experienced instantly because of websites,
apps and social media. Chefs and caterers through technology have access to vegan and health specific recipes that can be easily found on the internet. Additionally, owing to the digital impact, restaurants, chefs and caterers can build some degree of connection and customers loyalty by providing useful content via their digital platforms. This is both cost effective and less time consuming. A fine example of this is Instagram. Restaurants in Jamaica have followers and is able to engage an audience from all around the world, who have never visited. Their brand recognition and loyalty have increased by the well-curated images of food and lifestyle aspirations captured even the personality or personal life of the chef or owner. Digitization makes any business accessible. Business owners have now realized that this interaction that makes you accessible and relatable, is the key in ensuring growth of one’s customer base and future expansion of the business. This transformation has pushed boundaries, by getting rid of barriers of interaction in the world. Without a doubt, the Digital transformation has changed the appetite of the restaurant experience and will continue to do so.
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HOW THE DEVELOPMENT BANK OF JAMAICA HELPS BUSINESSES TO GROW This article is part two of a two-part feature.
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tarting a business can be daunting. The problems of getting financing, appropriate facilities and equipment, good talent and customers scare many entrepreneurs. But, very often, their innovative and marketable ideas need only a slight push to become viable businesses. With small businesses so vital for growth in any economy it’s usually a no-brainer for governments to lend a helping hand. Part two will highlight the various products and services offered by the Development Bank of Jamaica. Other DBJ products and services that assist entrepreneurs at all stages of development include:
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The Credit Enhancement Facility (CEF), a partial guarantee programme that helps micro, small and medium-sized enterprises (MSME) which do not have the necessary collateral, to access loans from financial institutions. Since the establishment of the CEF in 2009 up to the end of December 2017, DBJ has issued guarantees totaling $1.73 billion allowing 366 MSME sub-borrowers to access totaling $3.99 billion for 394 loans - for which they would not have otherwise qualified.
DBJ-World Bank Small & Medium-Sized Enterprises (SME) Loan to provide appropriate loan financing with longer tenors: The DBJWorld Bank SME Loan, an outgrowth of the Jamaica Foundations for Competitiveness and Growth Project (FCGP), empowers small businesses in DBJ-approved sectors by supporting working capital and investments.
Micro Finance Institutions (MFI) lending window to provide capital for MFIs to onlend: DBJ has lent more than $6.9 billion to MFIs for on-lending to micro entrepreneurs. Since inception of the MFI in 2009 to December 31, 2017, approximately 81,730 loans have been approved, valued at $6.92 billion. These loans are accessible through any of the DBJ’s 13 MFIs. Jamaica Venture Capital Programme (JVCP) to create an environment for equity investments: The JVCP offers long-term capital and mentoring to SMEs to support their growth and development. Success is achieved through activities such as funding investments, angel investor networks, entrepreneurship development through StartUp Jamaica and the National Business Model Competition, and knowledge development through workshops.
The Innovation Grant from New Ideas to Entrepreneurship (IGNITE) to assist start-ups involved in innovation: The IGNITE programme gives grants to MSME start-ups to help grow their innovative business ventures. The success of this programme is helped by DBJ’s partnership with the Branson Centre for Entrepreneurship, the Jamaica Manufacturers Association and the Jamaica Business Development Corporation. Several of the IGNITE’s awardees have won business awards both locally and internationally. These include Temper Tantrum Limited, EcoFarms, KB Robotics, One-on-One Educational Services Limited, Rheskynate, Herboo Corporation Limited, Ire Rock Yaad Spa, True Shade Cosmetics, Factory 75 and Bresheh Enterprises. Voucher for Technical Assistance (VTA), which provide services which will better enable MSMEs to access capacity-building services. The VTA programme offers electronic vouchers to SMEs that are used to access business support services from accredited Business Development Organisations. Vouchers are valuable for entrepreneurs who want to improve business operations and access equity or loan investments. Since inception of the programme in May 2014 to January 31, 2018, approximately 1,920 vouchers have been issued to MSMEs. Privatisation and Public-Private Partnerships (P4) services: DBJ facilitates private sector investment and participation in the Jamaican economy through ownership, expansion or operation of state-owned assets/enterprises and providing public infrastructure and services. Companies which have been privatised or involved in public-private transactions under the DBJ’s P4 programme include the Sangster International Airport, Mavis Bank Coffee Factory, Kingston Container Terminal, Jamaica Public Service Company, Highway 2000 and the North Coast Highway. If your business needs assistance in accessing loans or support services, please contact the DBJ at 929-4000 or visit its website at www. dbankjm.com
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FACTORS LIMITING GROWTH OF SMALL BUSINESSES By: Winsome Minott
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uccessful small businesses have been defined for the purpose of this paper as businesses that have demonstrated consistent growth at some time. The business must have been in business for more than three years. Growth is measured by growth rate in the number of employees, or growth rate with respect to initial turnover. To qualify, the business must have started small, that is, had more than ten employees but less than or equal to forty nine full time workers. The study includes businesses that having started small migrated into the categories defined as medium or large. The study assesses growth of businesses by measuring growth rate with respect to the number of employees at the start. The turnover in the first year was used to assess the rate of turnover. Turnover was adjusted for inflation, in industries heavily dependent on part time labour two part time employees equaled one. In the Jamaican business environment security firms rely on part time workers. Where businesses had been in existence over ten years, ten year markers/mid point markers were assessed with respect to number of employees when data was available. Challenges to definition of success were mitigated by also utilizing turnover as an alternative measure of success. Several financial measures have been utilized to evaluate small business performance taking into consideration previous academic studies.
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Terrence Zinger 7 highlighted the dearth of available financial data to the public and the inability/unwillingness of small business owners to provide financial data. He also made reference to practical limitations with respect to gathering and analyzing objective data. Researchers have tried to minimize the limitations by utilizing subjective measures of performance. In recent years, the information Technology Revolution has impacted the sector creating a new category of entrepreneur. Emerging businesses which do much more than income replacement were sometimes owned and operated by only a few persons, certainly less than ten. The paper acknowledges the existence of this category. However, these businesses were almost nonexistent in Jamaica, and not represented in the survey. Sookram and Watson in a recent study noted that the informal sector was not just a survival
Zinger, J. Terence, LeBrasseur, Rolland, Zanibbi Louis R., “ Factors Influencing Early Stage Performance in Canadian Microenterprises� Journal of Developmental Entrepreneurship 6, 2 (August 2001): 130.
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mechanism for the poor but rather a means by which educated and skilled individuals evade income taxes.8 The informal sector was accepted to span the micro, small, and medium sized businesses thereby creating another exception.
- The Entrepreneur Researchers have two distinct lines of enquiry a) to differentiate between the entrepreneur and manager and b) to differentiate between entrepreneur and other kinds of business owners.9 The adoption of a, or b, has implications for the inclusion/non inclusion of characteristics. This thesis recognizing characteristics that have been associated with entrepreneurs: opportunistic, innovative, creative, imaginative, ideas-people, proactive, agents of change, adopted the more generic statement that is more embracive, thereby allowing for the research process to identify characteristics that are also linked to the manager/business owner. - Growth Ratios The Sales Growth Rate variable (SGR) was computed from data supplied by small business owners/managers who were willing to provide same and from additional data that was available through the government regulatory departments. Growth ratios were arrived at by dividing currentyear-sales by sales from the earliest period. Further analysis of Sales could be achieved by analyzing trends created by Sales Growth Rate. An Employee Growth Rate variable, (EGR) was computed from data collected from small business owners/managers. The Growth ratios were arrived at by dividing current year number of employees, by the number of employees in the first year. Further analysis of success may be achieved by analyzing trends created by SGR and or EGR.
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The business venture must be capable of being classified as a successful venture. Harwood (1982) suggested that an entrepreneur was a person who “takes initiative, assumes considerable autonomy, in the organization and management of resources, shares in the asset risk, shares in an uncertain profit, and innovates in more than a marginal way.� Findings: Factors impacting growth of SMEs I. Inadequate motivation II. Failure to keep adequate documentation III. Failure to utilize financial information IV. Failure of owner/manager to respond to a changing environment V. Personal decision including: migration, illness
Chell,et al, p.7 Sandra Sookram, Patrick Kent Watson, Small -Business Participation in the Informal Sector of an Emerging Economy.
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DEVELOPING THE RIGHT BUSINESS PLAN
O
ne of your first steps on your road to becoming a successful business owner, is having a business plan. A business plan is how you to communicate your vision to others and persuade them to help you meet your goals. It serves as your road map for your business. It should give clear directions about the nature of your business operations, its purpose, goals and objectives and should document the path to follow in achieving them. Most businesses, somewhere in the life of its operation, will need to establish a relationship with a lending institution. This makes having a viable Business Plan even more critical as nearly all financial institutions require one before business loans are approved for disbursements. Every business plan is comprised of the following sections: • Executive Summary: The first section should be a concise overview of your business plan. Your goal is to draw readers in, so they want to learn more about your company. The executive summary for a business plan should include; your business name and location, products and/or services offered, mission and vision statements and the specific purpose of the plan.
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• Company Description: This high-level view of your business should explain who you are, how you operate and what your goals are. • Products and Services: Clearly describe what you’re selling, with a focus on customer benefits. This section should include details about suppliers, product or service costs, and the net revenue expected from the sale of those products or services. Pictures or diagrams could be helpful in this section. • Market Analysis: This is where you show your industry knowledge, and present conclusions based on thorough market research. Any detailed findings of any studies should be placed in an appendix. • Strategy and Implementation: This is where you summarize your sales and marketing strategy, and how you’ll implement them with an operating plan. This section should also include an explanation of how you’ll promote your business to customers and enter the market, details about costs, pricing, promotions, and distribution/logistics, and other important details about how the company will operate and generate sales.
• Organization and Management Team: This serves to outline your company’s organizational structure. Identify the owners, management team and board of directors. An organizational chart with descriptions of departments and key employees should be included as well as information about owners, including their names, percentage of ownership, extent of involvement within the company and a biography. • Financial plan and projections: This last section of your business plan should be developed with a professional accountant after you’ve completed a market analysis and set goals for your company. Some of the important financial statements that should be part of your plan include; historical financial data, income statements, balance sheets and cash flow statements for the past three to five years. As well as realistic prospective financial information, including forecasted income statements, balance sheets, cash flow statements and capital expenditure budgets for the next five years and a brief analysis of your financial data. We recommend that you get assistance from a trained professional to develop a comprehensive Business Plan that will help to safeguard the future of your business, but for those looking to write their business plan themselves it can be difficult to get started so here are 6 steps to writing the perfect business plan. 1. Research, research, research: Research and analyze your product, your market and your objective expertise. It’s your responsibility to know everything you can about your business and the industry that you’re entering. Read everything you can about your industry and talk to your audience. 2. Determine the purpose of your plan: Your business plan can serve several different purposes.
If you want to attract investors, then your plan will have a different purpose than if u were presenting the plan to a lending institution. Ensure that you write a plan with your target audience in mind and be as clear and concise as possible. 3. Create a company profile: This should include the history of your organization, products or services you offer, your target market and audience, your resources, and what makes your business unique. Your profile can be used to describe your company in your business plan. It is an essential component of your business plan. 4. Have a strategic marketing plan in place: A great business plan will always include a strategic and aggressive marketing plan. In the objectives section of your marketing plan, you focus on the ‘what’ and the ‘why’ of the marketing tasks for the year ahead. In the implementation section, you focus on the practical, sweat-and-calluses areas of who, where, when and how. This is life in the marketing trenches. 5. Make it adaptable based on your audience: Make sure that your plan can be modified depending on the audience reading your plan. However, keep these alterations limited from one plan to another. This means when sharing financial projections, keep that data the same across the board. 6. Explain why you care: Your plan needs to show that you’re passionate, dedicated, and care about your business and the plan. You could discuss the mistakes that you’ve learned, the problems that you’re hoping to solve, listing your values, and what makes you stand out from the competition. Explaining why you care about your business creates an emotional connection with others so that they’ll support your organization going forward. Whether you’re starting a small business or exploring ways to expand an existing one, a business plan is an important tool to help guide your decisions, as well as gaining investors or funding from financial institutions.
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STEER TOWN ACADEMY WINNERS OF KATALYXT 2017/18 YOUTH INNOVATORS COMPETITION
Steer Town Academy
Winners Circle
“Steer Town Academy, as a Centre of Excellence, aims to create through quality education, learners who possess the requisite knowledge and skills in the areas of Hospitality Management, Entrepreneurial Skills Training and Applied Sciences that will enable them to function effectively in the world.” In keeping with our mission statement, Steer Town Academy aims to mould its students into innovative entrepreneurs who will contribute to the growth and development of the economy. The academy was established in 2010 as one of three schools of excellence in Jamaica. During the past eight years the school has become celebrated for creating innovative projects as well as winning several awards for innovation. Continuing with our culture of excellence a team of five students and myself participated in the Katalyxt Youth Innovators Competition 2017/18. Being neophytes to the competition, it came as a surprise that we emerged the victors after challenging schools that are former champions.
“We winning right now!” The words of the popular Dancehall song “winning right now” by Dancehall exponent, Agent Sasco resonated in our minds as we held on to the coveted First Place trophy. This moment in time will be forever etched into the memories of the students who prefect our products. This team of spirited, young innovators did not stop there, they were awarded Most Facebook Likes, as well as the Most Sustainable Project and 2nd Place Best Teacher.
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One of the most rewarding experience as a teacher is to see the joy of accomplishment on the faces of his or her students. I am optimistic that all the students who participated will use this experience to propel them further as young innovators and entrepreneurs.
Blue-Blue XL: “Kill dem wid di Blue”
Life After Katalyxt Youth Innovators
Blue-Blue XL is an organic broad-spectrum pesticide that is made from local and indigenous plant extracts. The concept for an organic pesticide was born out of the need for an effective pest control system that can be used on the school’s first notable invention, the Automated Mobile Farm, which went on to winning several competitions both locally and internationally. The formula for Blue-Blue XL is unique as the plants that are used to make it possess natural pest deterring compounds. These compounds were extracted using a very delicate process and combined in a specific chemical ratio that ensures that it is effective against the targeted pest. Subsequent to our participation in the Katalyxt Youth Innovators Competition, Blue-Blue X formula was modified and renamed BlueBlue XL. A new line of products was made from this formula, these include: Blue-Blue Power Powder, Blue-Blue Blast (mosquito repellent) and the Blue-Blue Baits (slug baits). This gave our team an edge over our fellow competitors as we showcased the originality and effectiveness of our products.
Following our victory, the school has been invited to numerous events where we displayed our products. One such event was the St. Ann’s Bay Primary School’s annual Innovators Expo. Currently, Mystic Mountain Rainforest has challenged us to create an anti-fungal version of the pesticide to treat their infected plants. We have taken up the challenge and are in the first stages of synthesizing a batch for testing. It is our hope as a school to further develop the product and have it approved by the Bureau of Standards and certified for industrial and household use in the near future. Finally, I take this opportunity to thank the Katalyxt team for providing schools with the opportunity to showcase their entrepreneurial and innovative skills. I applaud them for their diligence and contributions to nation building.
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VISION A Real Life Entrepreneur’s
By: Tyrone Wilson
This article is part two of a two-part feature.
T
wo years ago, with the announcement of the eMedia Interactive Group’s partnership with the then University College of the Caribbean (now University of the Commonwealth Caribbean) to house our iCreate Institute, I wrote about how the creative economy is a prime area of growth for Jamaica. It is a song I have been singing for the last nine years and I do not foresee me changing my tune any time soon. The long and short of it is that the cultural and creative industries (CCIs) worldwide are generating billions of dollars in revenue per annum — US$2.250b or 3% of global GDP, according to a 2015 Ernst & Young study, and have generated approximately 29.5 million jobs, according to the same study. If Jamaica is to truly take advantage of the tremendous value of our cultural products, the powers-that-be must have a sustainable vision for what the industry will look like in the future, and clear steps to get there. Part two will continue to highlight Tyrone’s vision for the film industry.
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According to PricewaterhouseCoopers’ Special Report: Global Entertainment & Media Outlook 2016–2020, content is still king, and this will continue to be evident as OTT (over the top) platforms “seek to differentiate and expand internationally. In a world in which Netflix can launch its streaming services in 130 new countries in a single day, it’s easy to assume that content is becoming more globally homogeneous. But the reality is that content is being redefined by forces of globalization and localization simultaneously… Netflix, for example, has said that locally produced content is its future.”
We cannot afford to miss out on that opportunity. I’ve already mentioned that creative industries globally employed approximately 29 million people in 2014/2015, many of those people in film and television production. I believe this sector is ripe for entrepreneurship, from content creators to production companies to distributors and more in between. Regarding distribution, I think we also need to look at different models and devise ways to make our films more cost-efficient in terms of pricing at different tiers (eg. low budget versus high budget), and encouraging product placement with top local brands, which can help to subsidise production costs. We should not rely on the two major Jamaican television stations to grow the creative economy. We must look at online options, such as Television Jamaica’s 1Spotmedia, OTT platforms, and subscription-driven streaming services like iVu TV, which we are going to relaunch with a subscription-based model. We should target the appetite of i) the diaspora; Jamaica is bigger than the three million people who live here. It extends to first, second and third generations living overseas as well as those non-Jamaicans who are simply fascinated by our culture. Online TV and streaming services are a savvy way to tap into this huge market. If we can replicate just a fraction of the international success of our local music, we’d be good to go. People overseas are fascinated by our artistes, from late icons like Bob Marley, Peter Tosh, Dennis Brown, and Gregory Isaacs, to current stars like Alkaline, Popcaan and Vybz Kartel. These people are the ones buying the albums and attending the tours, so it stands to reason that they may be just as willing to spend money on our other cultural products such as films and TV shows.
Advertisers often use singers. What are these artistes singing about? Jamaica and Jamaican life. This viewing/listening public have an appetite for Jamaican culture as much as they do for other cultures. Viewers/listeners are attracted to programmes and products (offerings) from the United States, but the difference is that the number of people inside the United States of America is 300 million, compared to 3 million in Jamaica. As a result producers can build mega-industries from their culture and stories. When we examine the success of films like The Fast and The Furious (the most recent one), the largest viewership comes from outside of America, generating more than 5 times the local (US) box office. USA Marketers have done an excellent job of marketing their culture outside of their country and that’s what we need to do. In order to get to where we should be, agencies like JAMPRO need to be more involved, with more money allocated to development and international promotion of our films and stories. The Jamaica Tourist Board can also do more as a strategic partner positioning our films. It’s not just about going to a few film festivals overseas, but trying to develop an industry here that people can make a living from, and build careers and businesses.
We must understand public engagement, i.e., what attracts and fascinates. Marketers should be interested in capitalizing on hooks.
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eMedia is one company trying to do just that. We’re creating jobs in video production, graphic design, storytelling and more, and with iCreate, we’re training people to take advantage of what’s happening locally, or create their own opportunities. With iVu TV, we’re primarily trying to build a strong distribution platform for Caribbean content. Those are the models we need to be replicated across sectors with other businesses.
Another part of my vision is to get more private investors involved. Sagicor invested in us in 2012. They also invested in a film, Ghett’a Life, around the same time. We need more private investors to take a second look at these types of businesses. Growing this thing is going to take money and time. We need investors who are going to make the effort to understand the nature of the business and understand that in many cases, the ROI won’t be immediate. Investing in one film might take you a few years to get some gains, unless it’s hugely successful immediately. For some films, the earnings from their entire box office take only covers the cost of production; it’s only when they start distributing on DVD/BluRay and OTT sources, and when merchandising comes into play that the investors start recouping significant returns. The type of investor has to match the business. It doesn’t make sense to approach people who are looking for returns in one to three years as some films can take that long just to get to production. FirstAngelsJA iis also making some inroads in this area. They’ve participated
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in several related JAMPRO conferences and have a good set of investors who understand entrepreneurship and what it takes to build a business from the ground up. Partners like this we want to invest in films.
We also need to tap into the public capital markets and the stock exchange with IPOs for film production companies. This is not an alien concept. In the US, Time Warner, Comcast and the Walt Disney Company — the world’s largest entertainment companies in terms of revenue — are all publicly listed. Those are the types of businesses we have to look at to unearth best practices and develop new models around. Taking all of what I’ve said into consideration and actually making the necessary steps will help these visions become reality. We can build a Jamaican film industry that not only survives, but thrives. Once we get on stable ground in the local market, we can turn our attention overseas. Too many times, people talk about expansion when we haven’t even begun to exist in our own domestic space. In the US, a film’s success is first gauged by how well it does in their domestic market. The focus on international numbers is secondary. Yes, Jamaica is small, but what that means is that we have to build a business that fits this scale, survive here, and then level up.
In the
Mind
of an
Entrepreneur By: Katalyxt Incubatees
The fun part about being an entrepreneur is the journey from start to success. It is like watching a child grow. Ricardo Phillpotts-Brown
The freedom and opportunities that are available.
The fun part about being an entrepreneur is that I get to know my consumers; their likes and dislikes.
Adam Cummings
Sheril Bailey
What is the fun part about being an entrepreneur?
The fun part about being an entrepreneur is the satisfaction of being a business owner and channelling my passion and beliefs into something worthwhile. I also like the fact that I have full control over my workplace and destiny. Mark Scott
The fun part of entrepreneurship is that there is always something to do, you always have to be on the ball whether it’s pitching to investors or interacting with customers. Life never gets boring! Dionne Brown
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How do you use failure as a positive force to grow your business?
Failure is not the end but more of an opportunity to learn and improve. Mark Scott
It was Henry Ford who said failure is an opportunity to begin again more intelligently. When we fail, it creates an opportunity for us to learn and make the necessary changes to achieve the desired outcome.
Failure means something went wrong. This realization allows you to find the mistakes and implement new strategies. Ricardo Phillpotts-Brown
Failure is the best way to learn how not to do something so that you can do more of the right thing. Adam Cummings
Dionne Brown
Don’t be quick to quit. Our journey so far has been filled with many hardships, but if we had given up when we really felt that we wanted to we would have never won second place at the local and national business model competition and received honorary mention at the international business model competition in 2017 not to mention the exceptional growth opportunity provided by the Katalyxt team.
My motto is hard but possible elusive but inevitable. Ricardo Phillpotts-Brown. Ricardo Phillpotts-Brown
Dionne Brown Never be satisfied. There is always more that can be done and things are only impossible until you have done it. Adam Cummings
My motto would be you can live with the pain of discipline or the pain of regret. Mark Scott
Martin Luther King said “Yes We Can” and it inspired many. If you had your own motto to inspire upcoming entrepreneurs, what would it be?
I will adopt Martin Luther King’s motto because if we believe we can we will. Entrepreneurs - Yes I Can! Sheril Bailey
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Graphics Kayon Curvin