Gem Jamaica Report2006

Global Entrepreneurship Monitor 2006 Jamaica Report

Vanetta Skeete Claudette Williams-Myers Olusegun Afis Ismail Sandra Glasgow

DISCLAIMER The authors have attempted to ensure the accuracy and completeness of the information contained in this publication, however, no responsibility can be accepted for any errors and inaccuracies that occur. Whilst this work is based on data collected by the GEM consortium, responsibility for analysis and interpretation of those data is the sole responsibility of the authors.

Vanetta Skeete, Claudette Williams-Myers, Olusegun Afis Ismail, Sandra Glasgow (2007).

Global Entrepreneurship Monitor Jamaica 2006 Report Š Vanetta Skeete, Claudette Williams-Myers, Olusegun Afis Ismail, Sandra Glasgow University of Technology, Jamaica Kingston, Jamaica ISBN 978-976-2087-26-9

Executive Summary Executive Summary Key Results The outlook for entrepreneurship in Jamaica is positive. Financial analysts and other parties are of the view that the Jamaican economy is poised for growth. The GEM data has shown that the level of start-ups within the past year has increased by 3.3%.

The data also reveals that the rate of transition of new businesses into established businesses has increased.

This indicates that entrepreneurial activities will play a significant role in the achievement of Jamaica’s 3% projected growth target in the oncoming year.

The consumer oriented sector which encompasses retail trade, hotels and restaurants, has been the most buoyant during 2006. The sector had the highest levels of entrepreneurial activity for both 2005 and 2006, recording an increase of 4.5%. The parishes of St. Catherine and St. Andrew recorded the highest prevalence rates in the nascent and new categories respectively.

There were no significant changes in the demographic characteristics of entrepreneurs in 2006. However, the data showed that there is now a gender balance among early stage entrepreneurs in Jamaica, unlike the other GEM countries.

The Most positive and Negative Conditions Affecting Entrepreneurial Activity

Recent Initiatives for Encouraging Entrepreneurial Activity In October of 2006, Jamaica’s Prime Minister launched a one billion Jamaican dollar (approximately US$15m) loan scheme for micro and small businesses, using money from the National Insurance Fund (NIF). Plans are also underway for the development of a mutual guarantee loan scheme that will provide greater access to financing for qualified micro and small businesses.

The government of Jamaica, through the Ministry of Commerce, Science and Technology has signaled support for the development of a research and innovation park on the campuses of the University of the West Indies, Mona, and the University of Technology, Jamaica.

Current Entrepreneurial Policy Government policies in conjunction with private sector development agencies, continue to provide incentives designed to boost entrepreneurial activity.

The government’s policy on the “development of an entrepreneurial culture” seeks to provide the framework and the necessary institutional support for the development of enterprise skills in young people and to encourage the creation of new and innovative enterprises in order to achieve economic growth and increased productivity.

Significant increases in the price of crude oil on the world market since 2005 have affected the cost of goods and services and thus start-up and operating costs for new and existing businesses. Nevertheless, Jamaica’s economy exhibited a degree of resilience by recording positive economic growth of 2.5% in 2006.

The main economic drivers continue to be tourism and bauxite/alumina mining.

Infrastructural development through the construction of new highways, foreign direct investment in new hotels and the issuing of additional licenses by the government in the Information and Communication Technology (ICT) sector are factors that have created new opportunities for entrepreneurs.

Access to capital continues to be an impediment in entrepreneurial development.

The continued absence of angel investing and venture capital funding severely limit the prospects of new start-ups that have limited or no access to high-cost debt financing.

Global Entrepreneurship Monitor JAMAICA 2006

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Table of Contents Table of Contents Executive Summary …………………………………………………………………i List of Tables …………………………………………………………………………iii List of Figures ………………………………………………………………………iv Acknowledgements …………………………………………………………………1 Introduction to the Global Entrepreneurship Monitor ……………………2 The GEM Conceptual Model ………………………………………………………3 Research Methodology

……………………………………………………………4

Entrepreneurial Activity in Jamaica Early Stage Entrepreneurial Activity ……………………………………………6 Established Businesses ……………………………………………………………6 Entrepreneurial Activity and Economic Growth ……………………………7 Entrepreneurial Activity within Jamaica ………………………………………8 Types of Business Activities ……………………………………………………10 Conditions Influencing Entrepreneurial Activity …………………………13 Outlook for Entrepreneurship …………………………………………………21 Recommendations …………………………………………………………………24 References ……………………………………………………………………………25 Appendices Appendix i: Our Sponsors in 2005 ……………………………………………26 Appendix ii: List of Key Informants/Experts …………………………………27

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Global Entrepreneurship Monitor JAMAICA 2006

List of Tables List of Tables Table1:

Comparison of GDP and Prevalence Rate for 2005 and 2006

Table 2:

Prevalence Rate by Parish

Table 3:

Distribution of Entrepreneurial Activity by Industry Type

Table 4:

Age Categories of Persons involved in Early Stage Entrepreneurial Activity

Table 5:

Gender Profile of Persons Involved in Early Stage Entrepreneurial Activity

Table 6:

Percentage Distribution of Persons Expected to Start Business Within 3 years

Table 7:

Percentage Distribution of Sources of Financing for Start-ups

Table 8:

Educational Levels of Persons Involved in Early Stage Entrepreneurial Activity

Table 9:

Ease of Doing Business in 2005

Table 10:

Ease of Doing Business in 2006

Global Entrepreneurship Monitor JAMAICA 2006

iii

List of Figures List of Figures Figure 1:

The GEM Conceptual Model

Figure 2:

Early Stage Entrepreneurial Activity by Country 2006

Figure 3:

Early Stage Entrepreneurial Activity by Country 2005

Figure 4:

Established Business Ownership by Country 2006

Figure 5:

Established Business Ownership by Country 2005

Figure 6:

2006 Sector Distribution

Figure 7:

2005 Sector Distribution

Figure 8:

Early-stage Entrepreneurial Prevalence Rate by Industry Type

Figure 9:

Entrepreneurial Activity by Age and Country Cluster

Figure 10:

Gender of Entrepreneurs

Figure 11:

Funding by Business Angels – 2005

Figure 12:

Funding by Business Angels – 2006

Figure 13:

Reasons for Discontinuing Business

Figure 14:

Experts’ Views on Availability of Funding

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Global Entrepreneurship Monitor JAMAICA 2006

Acknowledgements Acknowwlegements On behalf of the Faculty of Business and Management, University of Technology, Jamaica (UTech), I thank the many contributors to this 2006 study on entrepreneurship in Jamaica. This is the second successive year in which UTech is participating in this well established and recognized global research effort. Critical to the success of this project are our sponsors, without whose help we would have been greatly challenged. (See Appendix I for list of Sponsors) We thank the 36 national experts – leaders in the private and public sectors – who gave willingly of their time and shared their insights on entrepreneurial activity in Jamaica. We acknowledge the support of faculty in the sister Schools of Business Administration and Hospitality and Tourism Management, who, on their own time and with little reward, conducted the experts’ interviews. To Koci Market Research Services Limited, the firm contracted to conduct the national survey and the 3669 Jamaicans from all walks of life who participated in this very important research effort, we say thank you. We also acknowledge the continuing guidance and support of our GEM colleagues at the London Business School and Babson College.

We are particularly proud of the fact that being the first university in the English speaking Caribbean to be accepted on the GEM team we are in effect playing a lead role in representing the Caribbean region in this most important global entrepreneurship research effort.

Finally to the members of the GEM Jamaica team for 2006 – Vanetta Skeete, Dr. Claudette WilliamsMyers, Afis Ismail and Sandra Glasgow who worked tirelessly to produce this report, I congratulate you on another outstanding product.

L. Garth Kiddoe Dean, Faculty of Business and Management & Editor for GEM Jamaica 2006 Report

Global Entrepreneurship Monitor JAMAICA 2006

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Introduction Introduction Currently in the eighth cycle of its global research activities, the Global Entrepreneurship Monitor (GEM) has expanded from 10 member countries in 1999 to include 42 countries in 2006. This unique, international research programme was conceptualized, initiated and founded as a joint research project by the London Business School, UK and Babson College in the USA. GEM’s goal is to study and report, based on a common framework, entrepreneurial activity and its contribution to economic development through a team of scholars from each GEM country. To date, no other data set exists that provides consistent cross-country information and measurements of entrepreneurial activity in a global context.

GEM Jamaica is pleased to be a part of GEM’s renewed vision that will allow researchers to further increase their ability to inform policy makers and make a difference in their economies. The GEM research captures national data from an Adult Population Survey (APS), Expert Interview and Expert Questionnaire. In order to realistically reflect entrepreneurial activity, countries are categorized as high income and middle income countries. This allows for comparison among similar countries and between each of the two categories of countries in the GEM. Jamaica is classified as a middle-income country.

The Global Entrepreneurship Monitor’s (GEM) objectives are to: 1. Measure differences in the level of entrepreneurial activity between countries 2. Uncover factors determining the levels of entrepreneurial activity 3. Identify policies that may enhance the level of entrepreneurial activity A GEM consortium assessment and planning meeting is held in January of each year and national teams collaborate with the GEM coordination prevalence rate in the collection of data and development of national projects and GEM’s global report.

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Global Entrepreneurship Monitor JAMAICA 2006

GEM Conceptual Model GEM Conceptual Model The objectives of GEM to measure differences in the level of entrepreneurial activity between countries; to identify factors that lead to appropriate levels of entrepreneurial activity and to recommend policies that may enhance entrepreneurship at the national level are examined and explored in the context of a conceptual model (Figure 1).

Before GEM, studies of economic growth and development focused on established businesses with the value of emerging businesses missing.

The conceptual framework of GEM therefore, is the basis of the national survey, the structured questionnaire and an unstructured interview with experts. The inter-relationships among the nine framework conditions highlighted in the model are country-specific and create a unique environment and opportunity in which to do business. These framework conditions are the main determinants of a country’s economic environment and are influenced by entrepreneurial opportunity and capacity. By considering the complementary nature of economic activity among different groups of firms, GEM links a nation’s economic activity to the interplay of established, new and small firms.

This perspective gives a clearer understanding of why entrepreneurship is vital to the whole economy.

Figure 1: The GEM Conceptual Model

General National Framework Conditions • • • • • • • •

Openness Government Financial Markets Technology and R&D Infrastructure Mangement Labour Markets Institutions

Within the social, cultural and political context of an economy, the primary sources of economic progress as illustrated in the top section of the conceptual model reflect the role of larger established firms.

This is based on the assumption that if the general conditions are appropriately developed, the international competitive landscape will also be enhanced. As these firms grow, so will the demand for goods and services; thus creating an openness in the market for increased innovation, filling of market niches, increased competition and more and medium and small enterprises (MSEs).

Illustrated in the lower section of the conceptual model is the emphasis on the role of entrepreneurship, specifically in the creation and growth of new firms. The entrepreneurial framework conditions (of commercial, legal infrastructure, access to physical infrastructure, government policies, government programmes, education and training, research and development, physical infrastructure) and the social and cultural environments will determine whether or not there is an emergence and growth among new firms. Ultimately, this will determine whether or not individuals respond to the opportunity for starting new businesses and further, whether their response is motivated by necessity or the opportunity being presented.

Major Established Firms (Primary Economy) New Establishments

Micro, Small and Medium Firms (Secondary Economy)

Social, Cultural, Political Context Entrepreneurial Framework Conditions • • • • • •

Government Policies Government Programmes Financial Support Education & Training R&D Transfer Commercial, Legal Infrastructure • Market Openness • Access to Physical Infrastructure • Cultural, Social Norms

National Economic Growth (Jobs and Technical Innovation)

Entrepreneurial Opportunities

New Firms

Entrepreneurial Capacity • Skills • Motivation

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Research Methodology Research Methodology The methodology used by GEM research seeks to measure differences in entrepreneurial activity between countries; uncover factors leading to entrepreneurial activity and suggest policies that may enhance entrepreneurial activity nationally.

were in the age range 18 – 64 years. This report is therefore based on the usable responses; representing 96.8% of those surveyed.

GEM defines entrepreneurship as: “any attempt at new business or new venture creation, such as self employment, a new business organization, or the expansion of an existing business, by an individual, prevalence rate of individuals, or established business.”

(GEM Procedures Manual, 2006)

Experts were selected to participate in the project, based on their knowledge, reputation and experience with a number of framework conditions. At the interview, key informants/ experts were asked three critical questions:

Data for this research are collected using three methodological strategies: the adult population survey, the expert interview and the expert questionnaire.

The Key Informant/Expert Interview

1.

2.

The Adult Population Survey (APS) Koci Market Research Services conducted an island-wide household study to examine the prevalence rate of entrepreneurial activities and other critical issues influencing entrepreneurship. The Statistical Institute of Jamaica (PLANNING INSTITUTE OF JAMAICA (PIOJ)) was instrumental in the design of the sample of 3669 to ensure proportional distribution within Jamaica’s fourteen parishes.

The interviews were completed during the months of May and June, 2006.

Within the three core questions that GEM uses to guide its research process is a set of underlying issues that the APS seeks to capture:

3.

What are the factors that limit entrepreneurship and the number of independent and/or corporate start-ups in the country?

What are the most significant factors that contribute to entrepreneurship and the number of independent and/or corporate start-ups in the country?

Can you make recommendations about what can be done to increase entrepreneurship and the number of independent and/or corporate start-ups in the country?

The Key Informant/Expert Questionnaire Key Informant (KI) questionnaires were sent to experts at their request (ahead of the scheduled interviews). Instruments comprised of fixed standardized (Likert-type) evaluations on each of the nine entrepreneurial framework conditions and the opportunity, capacity and motivation associated with the national entrepreneurial sector.

The 2006 Jamaica Report

1.

2.

3.

4.

5.

Whether individuals’ pursuit of entrepreneurship is because of motivation or necessity The demographic profile (age, gender, education) of those who pursue entrepreneurial activity The type of businesses being pursued Factors that facilitate an understanding of differences in entrepreneurial activity between Jamaica and other participating countries and those within Jamaica itself The impact of public policy and the role that government can play in enhancing entrepreneurship

GEM examines entrepreneurial activities among individuals aged 18 to 64 years old in a population. Of the 3,669 adults surveyed, 3,554

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Global Entrepreneurship Monitor JAMAICA 2006

The sections of the report which follow, document the findings from the adult population survey and discuss these in the context of Jamaica’s historical and social environment and current policies and programmes that support entrepreneurial development. The analysis of the findings of the APS focuses on the level of entrepreneurial activity, entrepreneurial capacity and entrepreneurial motivation.

In the final section of the report, experts’ responses are presented in projecting the future of entrepreneurship in Jamaica. The outlook for entrepreneurship in Jamaica focuses on finance, education and training and initiatives such as business incubators and science parks.

Entrepreneurial Activity Entrepreneurial in Jamaica Activity Total Entrepreneurial activity is the total of nascent entrepreneurs and new businesses as defined by the Global Entrepreneurship Monitor (GEM). Nascent entrepreneurs are individuals between the ages of 18 and 64 years, who have taken steps toward creating a new business in the past year. These individuals must also expect to own a share of the business they are starting and the business must not have paid any wages or salaries for more than three months. New business owners, on the other hand, are owners/managers of new firms that have paid wages or salaries for more than three months, but for less than 42 months. These two categories, nascent entrepreneurs and new businesses when combined represent early stage entrepreneurial activity in the country and this, when measured is known as the prevalence rate (formerly called the TEA index).

45%

40%

Percentage of adult population between 18-64 years

Figure 2: Early Stage Entrepreneurial Activity by Country 2006

35%

30%

25%

20%

15%

10%

5%

Peru

Jamaica

Philippines Colombia

China

Indonesia

China

Jamaica

Uruguay

Thailand

Brazil

Australia

India

Malaysia Iceland

Argentina

Chile USA

Greece

Croatia Singapore

Norway

Czech Republic

Latvia

Spain

Ireland

Greece

Canada

Turkey Latvia Mexico

UK

Hungary Spain

Denmark

Netherlands

Mexico

South Africa

Finland Finland

Slovenia

Slovinia

Singapore Russia

Germany France

Sweden

Italy

Italy

U. Arab Emirates

Belgium

Japan

30%

25%

20%

15%

10%

5%

Venezuela

Thailand

New Zealand

United States

Chile

Brazil

Australia

Iceland

Ireland

Argentina

Canada

Norway

Croatia

United Kingdom

Switzerland

France

Germany

Austria

South Africa

Denmark

Netherlands

Japan

0%

Hungary

Percentage of adultp population between 18-64 years

Figure 3: Early Stage Entrepreneurial Activity by Country 2005

Sweden

Belgium

0%

Global Entrepreneurship Monitor JAMAICA 2006

5

increase in Jamaica’s prevalence rate is second only to Hungary’s 4.1% increase, and is followed

by China with a 2.5% increase in prevalence rate.

Early-Stage Entrepreneurial Activity The prevalence rate of early–stage entrepreneurs in 2006 is 20.3% (Figure 2) compared to 17% for 2005 (Figure 3). This increase of 3.3% means that in 2006, the number of start-ups in the Medium and Small Enterprise (MSE) sector has increased over the previous year. This increase in entrepreneurial activity over the period 2005 2006 could be attributed to several factors. The Caribbean Region will be hosting World Cup Cricket in March of 2007. Preparations are in high gear for this event, and this has resulted in start-up businesses; construction of new hotel rooms, rise in the creative industries and new food entities. The Retail Trade, Hotel, and Restaurants Sector is the sector that has recorded the highest level of activity in 2006.

Also, the Telecommunications sector continues to record increases in entrepreneurial activity with the number of licences approved amounting to 16 (Planning Institute of Jamaica (PIOJ), 2007).

Established Businesses The established business category, as defined by GEM, includes individuals in a population who have owned and managed a company that has paid wages or salaries for more than 42 months. A prevalence rate for established businesses in Jamaica of 10.5% was recorded for 2006 (Figure 4) and 9.5% for 2005 (Figure 5), an increase of one percentage point. The rate at which early-stage entrepreneurs become established businesses is referred to as the transition ratio. Increases experienced in both the early-stage entrepreneurial activity and the established businesses and the prevalence rate for the period 2005 -2006 suggest a corresponding increase in the transition from starts up to established business.

Medium income countries such as Brazil, Thailand, South Africa and Argentina recorded an increase in both start–ups and established businesses in comparison to some developed countries such as Canada, Germany, France and Spain that recorded decreases for the 2005 -2006 period. United States and Denmark are developed countries that recorded increases in start-ups and established businesses simultaneously.

Jamaica’s 3.3% increase in the prevalence rate also projects Jamaica as having the highest growth rate in entrepreneurial activity out of all GEM middle-income countries in that participated in both 2005 and 2006 (Table 1).

When compared to these other countries, this

25%

20%

15%

10%

6

Global Entrepreneurship Monitor JAMAICA 2006

Indonesia

Philippines

Peru

Thailand

Brazil

Turkey

Jamaica

Colombia

China

Australia

Greece

Ireland

Finland

Iceland

Malaysia

Argentina

Chile

Uruguay

Hungary

Norway

Netherlands

India

Latvia

USA

Spain

UK

Czech Republic

Canada

Denmark

Japan

Sweden

Croatia

Slovenia

Singapore

Mexico

Belgium

South Africa

France

U. Arab Emirates

Russia

0%

Italy

5%

Germany

Percentage of adult population between 18-64 years

Figure 4: Established Business Ownership by Country 2006

25%

20%

15%

10%

Indonesia

Philippines

Peru

Thailand

Brazil

Turkey

Jamaica

Colombia

China

Australia

Greece

Ireland

Finland

Iceland

Malaysia

Argentina

Chile

Uruguay

Hungary

Netherlands

India

Latvia

Norway

USA

Spain

UK

Czech Republic

Canada

Denmark

Japan

Sweden

Croatia

Slovenia

Italy

Mexico

Belgium

South Africa

U. Arab Emirates

Russia

France

0%

Singapore

5%

Germany

Percentage of adult population between 18-64 years

Figure 5: Established Business Ownership by Country 2005

Entrepreneurial Activity and Economic Growth According to the GEM 2006 Global Report, “A systematic relationship exists between a country’s level of economic development and its level and type of entrepreneurial activity. Countries with similar per capita GDP tend to exhibit similar levels of entrepreneurial activity, while significant differences exist across countries with different per capita GDP levels”. This relationship can be seen in 15 of the 30 countries that participated in both 2005 and 2006 (Table 1). In the case of Jamaica, real GDP per capita was $3,532 in 2005, while the prevalence rate stood at 17%. In 2006, the country’s real GDP per capita increased to $3,877, while the prevalence rate increased to 20.3%. A similar trend was reflected in other middle income countries such as Brazil and Hungary.

Table 1: Established Business Ownership by Country 2006 Country

Argentina Australia Belgium Brazil* Canada

Prevalence Rate 2005

Real GDP 2005 Per capita, Current Prices (US$)

Prevalence Rate 2006

Real GDP2006 Per capita, Current Prices (US$)

9.50%

4,704.30

10.20%

5,455.27

10.90%

34,941.50

12.00%

36,594.25 37,300.69

3.90%

35,450.74

2.70%

11.30%

4,788.92

11.70%

5,716.67

9.30%

35,199.01

7.10%

39,141.33

Chile

11.20%

7,350.79

9.20%

8,903.35

China *

13.70%

1,715.93

16.20%

2,012.52

Croatia *

6.10%

8,753.37

8.60%

9,664.10

Denmark*

4.80%

47,905.52

5.30%

50,930.57

Finland

5.00%

37,320.20

5.00%

39,993.57

France

5.40%

35,043.56

4.40%

36,708.33

Germany

5.40%

33,919.09

4.20%

35,432.74

Greece *

6.50%

25,606.60

7.90%

27,751.35

Hungary *

1.90%

10,943.86

6.00%

11,204.05

10.70%

54,115.71

11.30%

53,001.20

Ireland

9.80%

48,705.22

7.40%

51,800.07

Italy

4.90%

30,524.59

3.50%

31,790.63

17.00%

3,532.04

20.30%

3,877.15

Japan*

2.20%

35,671.50

2.90%

34,180.72

Latvia

6.70%

6,955.25

6.60%

8,760.11

Mexico

5.90%

7,446.86

5.30%

8,066.25

Netherlands*

4.40%

38,871.29

5.40%

41,049.25

Iceland*

Jamaica*

Norway

9.30%

65,509.21

9.10%

72,429.55

Singapore

7.20%

26,879.15

4.90%

29,917.20

Slovenia*

4.40%

17,559.12

4.60%

19,021.38

South Africa*

5.20%

5,158.84

5.30%

5,376.19

Spain*

5.70%

26,083.04

7.30%

27,902.73

Sweden

4.00%

39,621.04

3.50%

42,178.97

UK

6.20%

37,303.31

5.80%

39,630.38

12.40%

41,885.91

10.00%

44,024.17

USA

NB: These countries participated in GEM in both 2005 and 2006 * Countries experiencing growth in GDP and Prevalence Rate Source for GDP Per Capita: The International Monetary Fund (IMF) website.

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Entrepreneurial Activity within Jamaica The geographic divisions within Jamaica are known as parishes. In 2006, there were mixed results regarding the trend in entrepreneurial activity in each parish. Of the 14 parishes, 10 parishes recorded increases in prevalence rate while the remaining 4 parishes of St. Mary, Hanover, St. James and St. Elizabeth showed decreases (Table 2).

Nascent entrepreneurs when combined with new business owners represent early stage entrepreneurial activity. Table 2 displays the prevalence rate of early stage entrepreneurial activity across Jamaica for the years 2005 and 2006.

Total entrepreneurial activity in each parish including nascent and new businesses when combined, represent Jamaica’s prevalence rate of 20.3% in 2006 (Table 2 ). The increase in Jamaica’s prevalence rate of 3.3% over 2005 represents the composite prevalence rate of all the parishes.

Table 2: Prevalence Rate by Parish (18-64 years) Early Stage Entrepreneur Prevalence rate Across Parishes 2005-2006

Parish

Nascent Entrepreneurs Difference(+/-)

New business Owners

Parish

2005

2006

Kingston

0.20

0.79

St. Andrew

1.91

1.63

-0.28

1.31

2.19

+0.89

St. Thomas

0.05

0.37

+0.32

0.00

0.65

+0.65

+0.59

2005

2006

0.21

0.56

Difference(+/-) +0.35

Portland

0.25

0.68

+0.43

0.23

0.28

+0.05

St. Mary

0.72

0.34

-0.38

0.46

0.23

-0.24

St. Ann

0.00

1.21

+1.21

1.32

1.07

-0.25

Trelawny

0.26

0.25

-0.01

0.20

0.48

+0.28

St. James

1.23

0.14

-1.09

1.20

0.42

-0.78

Hanover

1.07

0.62

-0.45

0.24

0.56

+0.32

Westmoreland

0.30

1.55

+1.24

0.32

0.11

-0.21

St. Elizabeth

1.58

0.39

-1.18

0.05

0.28

+0.23

Manchester

0.40

0.96

+0.55

0.13

0.25

+0.12

Clarendon

0.64

0.42

-0.22

0.22

0.45

+0.23

St. Catherine

2.01

2.10

+0.10

0.52

1.31

+0.78

10.62

11.44

0.83

6.41

8.85

2.43

Total

In the nascent entrepreneurial category, 7 parishes recorded increases in entrepreneurial activity, while the other 7 parishes showed decreases (Table 2). This indicates that the rate of startups in 2006 is similar to that of the previous year.

The parish of St. Catherine continues to be the most nascent entrepreneurial, recording a 2.01% prevalence rate in 2005 and 2.10% in 2006. The rate of start-ups in St. Catherine increased by 0.09% over the previous year. The parish of Westmoreland showed the highest growth rate (1.24%) in startups when compared to 2005, while the parish of St. Ann ranked second. Increased capacity in the country’s tourism sector through the construction of new hotels in St. Ann could account for the increased prevalence rate in the two parishes in 2006. Growth in the hotel industry tends to provide spin-offs in entertainment, food and travel industries, which are open doors for entrepreneurial opportunity.

Accordingly, the Planning Institute of Jamaica (PIOJ) reported that the Clubs and Restaurants segment of the services sector in Jamaica, grew by 12.3% in 2006 (PIOJ, 2007).

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Global Entrepreneurship Monitor JAMAICA 2006

The four western parishes, Trelawny, St. James, Hanover and St. Elizabeth recorded a decline in the nascent prevalence rate over the previous year. St. Elizabeth was the parish that showed the highest rate of decline (1.18%%) in this category. This may be attributed to the adverse impact of the weather on this largely agriculturally oriented parish.

In the new business category (businesses in existence between 3 and 42 months), St. Andrew was the parish that was most entrepreneurial with a prevalence rate of 2.19% in 2006. St. Andrew, however, recorded a decrease in the nascent category implying that there were less starts-ups, but there were increases in the transition from start–ups to stable businesses. St. Catherine adjoins the twin parishes of Kingston & St. Andrew and includes the community of Portmore which is the fastest growing community in Jamaica for business startups as well as residential housing. Additionally, the increase in entrepreneurial activity in Kingston & St. Andrew could be partially attributed to the preparation to host World Cup Cricket 2007 in the Caribbean, Kingston & St Andrew being venues.

Global Entrepreneurship Monitor JAMAICA 2006

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Types of of Business Activities Types Business Activities GEM research has shown that there is a relationship between the type of business activity within a country and the country’s level of development. GEM uses the International Standard Industry Code (ISIC) to categorize the sectors in which people attempt to start businesses and have established businesses. The four sectoral categories are Extraction, Transformation, Business Services, and Consumer-Oriented. The components of each sector are broken down as follows: ∑• ∑• ∑• ∑•

Extraction: agriculture, forestry, fishing, and mining (extraction of products from the natural environment) Transformation: construction, manufacturing, transportation, and wholesale distribution (physical transformation or relocation of goods and people) Business Services: where the primary customer is another business Consumer-Oriented: where the primary customer is a physical person (e.g. retail, restaurants and bars, lodging, health, education, social services, and recreation).

Figures 6 & 7 show a comparison of sectoral activities in GEM countries in the high and middle income categories for 2005 and 2006. For both years, the consumer oriented sector has been the dominant sector in the middle income countries, accounting for over 60% of early stage entrepreneurial activity in 2005, and over 50% in 2006. In 2005 this was followed by the transforming sector and the trend was maintained in 2006. The business services sector now accounts for the lowest level of entrepreneurial activity in middle income countries, moving down fro 9% in 2005 to 7% in 2006. Extractive activities remain the sector with the least amount of entrepreneurial activity in the GEM high income countries.

Figure 6: 2006 Sector Distribution

Sector distribution

Consumer oriented Business Services Transforming Extractive 0

10

20

30

Middle income countries

10

Global Entrepreneurship Monitor JAMAICA 2006

40

50

High income countries

60

Figure 7: 2005 Sector Distribution

Sector distribution

Consumer oriented Business Services Transforming Extractive 0

10

20

30

40

Middle income countries

50

60

High income countries

The consumer oriented sector accounted for 76.38% of early–stage entrepreneurial activity in 2005 and 72.33% in 2006 (Figure 8). This was followed by 11.20% in the extractive sector, an increase of 3.7% over 2005. This may be due largely to the increase in mining and quarrying activities, bauxite being one of Jamaica’s primary exports and also to increased activities in the quarrying of limestone. Similarly, entrepreneurial activity increased by 3% in the transforming sector, from 11.88% in 2005 to 14.17% in 2006. The business services sector which accounted for3.75% of entrepreneurial activity in 2005 declined by 1.5% in 2006, displaying a similarity in the pattern of the GEM middle income countries.

However, unlike the trend in the GEM among these countries, entrepreneurial activity in the extractive sector surpassed that of business services.

Figure 8: 2006 Early–Stage Entrepreneurial Prevalence Rate by Industry Type

76.88% CONSUMER ORIENTED

72.33%

3.75% BUSINESS SERV

2.29%

11.88% TRANSFORMING

14.17%

7.50% EXTRACTIVE

11.20%

0.00%

10.00%

20.00%

30.00%

2006

SECTOR DISTRIBUTION

40.00%

50.00%

60.00%

70.00%

80.00%

2005

2006

2005

Extractive

11.20%

7.50%

Transforming

14.17%

11.88%

Business Services

2.29%

3.75%

Consumer Oriented

72.33%

76.88% Global Entrepreneurship Monitor JAMAICA 2006

11

A further breakdown of the four sectors (Table 3) reveals that consumer oriented activities in retailing, hotels and restaurants, etc., account for the highest level of early- stage entrepreneurial activity for both 2005 and 2006. The vibrancy in the hotel and lodgings sector may be due largely to the building by Spanish investors of several hotels on Jamaica’s north coast over the last two years. This has triggered startups in entertainment, transportation and the creative industries that are linked to tourism. There is also an increase in start-ups in agriculture over the previous year from 8.1% to 10.8%. The agricultural sector is also linked to tourism whereby farmers in the island supply hotels and restaurants with produce.

The manufacturing sector grew by 3.8% and this could be largely attributable to an increase in agroprocessing and the production of indigenous goods.

Table 3: Distribution of Entrepreneurial Activity by Industry Type 2005

2006

Type of Businesses

%

%

Agriculture, Forestry, Hunting, Fish

8.1

10.8

Mining, Construction

1.4

0.6

Manufacturing

3.5

7.3

Utilization, Transport, Storage & Communications

2.9

3.7

Wholesale Trade

11.0

7.1

Financial Intermediation, Real Estate Activities

1.2

0.4

Business Services

2.3

1.9

Retail Trade, Hotels & Restaurants

54.2

56.2

Government, Health, Education, Social Services

1.2

1.2

Personal/Consumer Service Activities

14.1

11.1

Total

100

100

12

Global Entrepreneurship Monitor JAMAICA 2006

Conditions Influencing Conditions Influencing Entrepreneurial Activity Entrepreneurial Activity Environmental factors along with entrepreneurial capacity play an important role in determining the scope of entrepreneurial activity in a country. This section examines some of the socio-economic, demographic, financial and institutional factors that influence the level of entrepreneurial activity within Jamaica.

Age The GEM data is captured in two country clusters, high income and middle income countries. Within these countries, the focus is on individuals between the ages of 18 and 64 years. Figure 9 displays the age distribution of the population in the two clusters. In middle income countries, for early stage entrepreneurs, 14% fall in the 18-24 age group while 11% are in the 35-44 age category giving a combined 25% of the population in the 18-44 age group. Age is one of the factors that influence individuals to start their own business. Findings suggest that younger persons are more likely to start their own businesses than older persons.

Figure 9: Entrepreneurial Activity by Age and Country Cluster

1 6 %

1 4 %

12%

10%

1 8 -2 4 Y R S 2 5 -3 4 Y R S 8%

3 5 -4 4 Y R S 4 5 -5 4 Y R S 5 5 -6 4 Y R S

6%

4%

2%

0%

Middle income countries

High growth countries Early stage

Middle income countries

High growth countries Established

Global Entrepreneurship Monitor JAMAICA 2006

13

Table 4 shows the age distribution of persons involved in early stage entrepreneurship in Jamaica in 2006. Thirteen per cent of persons in the 18-24 age group were involved in entrepreneurial activities while in the 25-34 age group, 40% were involved. Most persons involved in entrepreneurial activities fell in the 25-34 age group. This pattern is similar to 2005 where most persons fell within the 25-34 age category. There is a correlation between age and startups; fewer persons become involved in entrepreneurial activities at an advanced age.

Table 4: Age Categories of Persons Involved in Early Stage Entrepreneurial Activity Age Categories

2005 Sample

2006 Sample

(%)

(%)

18-24 YRS

12

13

25-34 YRS

44

40

35-44 YRS

27

29

45-54 YRS

13

14

55-64 YRS

5

5

Gender Most early stage entrepreneurs are male. As shown in Figure 10, in all GEM countries, men were more active in starting a business than women (GEM 2006).

Percentage of adult population between 18-64 years

Figure 10: Gender of Entrepreneurs

Table 5 shows equal numbers of male and female entrepreneurs in Jamaica in 2006, closing the 5% gap from 2005.

Table 5: Gender Profile of Persons Involved in Early Stage Entrepreneurial Activity GENDER

2005 Sample

2006 Sample

(%)

(%)

MALE

55

50

FEMALE

45

50

14

Global Entrepreneurship Monitor JAMAICA 2006

Potential for Entrepreneurship There should be a significant increase in Jamaica’s prevalence rate within the next three years, if the ambitions of the prospective entrepreneurs in Table 6 are realized. Thirty-eight percent of respondents expressed the view that they expected to start their business within the next three years.

Table 6: Percentage Distribution of Persons Expected to Start Business within 3 years Expects to start-up in the next 3 years

n=3581 Percentage

NO

62

YES

38

Sources of Funding and Access to Capital Access to capital continues to be one of the major challenges faced by new businesses and prospective entrepreneurs. Banks and other financial institutions account for only 35% of the total funding provided for new businesses, the other 65% originating from a variety of sources (Table 7).

In 2005 our key informants cited access to capital as the number one inhibitor of entrepreneurship and the results were no different for 2006. According to the experts, the high lending rates in the sector and the harsh requirements to qualify for loans continue to deter prospective entrepreneurs. The burdensome debt servicing requirements for new businesses leave very little scope for profitable ventures.

Table 7: Percentage Distribution of Sources of Financing for Start-Ups Sources of Financing Banks or other financial institutions

n=305 Percentage 35

Close family member, such as a spouse, parent or sibling

29

Government programs

12

Close family member, such as a spouse, parent or sibling

29

Other relatives, kin, or blood relations

10

Other

8

Work colleagues

4

Friends or Neighbors

2

Stranger

1

Table 7 is based on cumulative responses of ‘yes’ for respondents seeking other sources of start-up financing The importance of family members providing this significant proportion (29%) of start-up capital, (only 6 percentage points below that provided by financial institutions), should be noted. The role played by the financial sector in MSE financing is quite minimal when compared to the vast needs of the sector.

The government continues to support the sector by disbursing funds through its various agencies.

However, this accounts for only 12% of total financing (Table 7), still leaving a critical gap in the financing of new and growing businesses.

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Absent from the above list of financing sources are business angels and venture capitalists. These are sources of financing used in many countries both in the high and middle income categories. This practice has not been embraced in Jamaica and its popularity seems to be on the decline. Figure 11 shows that in 2005 business angels funded 9% of startups; down to a disappointing 3% in 2006. (Figure 12).

Figure 11: Funding by Business Angels - 2005

Pe rce n tag e Distrib u tio n o f Bu sin e ss An g e ls 2005 Samp le

9%

N O /N O N E YE S

91 %

Figure 12: Funding by Business Angels - 2006

Pe rce n tag e Distrib u tio n o f Bu sin e ss An g e ls in th e 2006samp le

3%

YE S NO

97 %

The provision of venture capital on the other hand seems to be an elusive issue. There have been many calls from the wider business environment for the establishment of venture capital firms and to establish a transition link between angel investing and venture capital. The government has gone to the extent of introducing legislation to encourage venture capital: “Venture capital companies incorporated under the Companies Act and resident in Jamaica, if engaged in ‘venture capital transactions’ as defined in the Income Tax Act, may obtain relief from income tax for up to ten years” (The Income Tax Act (Agricultural & Venture Capital Incentives). Venture capital is a high risk business with the main 16

Global Entrepreneurship Monitor JAMAICA 2006

objective of reaping capital gains, therefore the product or service involved has to be commercially viable.

Venture capitalists have paid little attention to the MSE sector in Jamaica, unlike other middle income countries such as Hungary and South Africa where this method of small business financing is prominent.

Increasing accessibility to capital is therefore important to the introduction, survival and growth of businesses in the MSE sector. Thirty seven percent of respondents cited financial reasons as the main cause for discontinuing business as shown in Figure 12. Inability to access capital discourages new entrepreneurs, retards business growth and may lead to business failure.

Figure 13: Reasons for Discontinuing Business

40 37 35

30 25 25

20

15 11

11

11

10 5 5 1 0 TOO MUCH COMPE TITION

FINANCIAL REASONS

RETIR E MEN T

O THER

Reasons

Economic Conditions Jamaica’s economic growth projection of 3% to 4% for 2006 was not realized. Soaring oil prices on the world market coupled with other factors such as devaluation of the local currency, pushed inflation to a double digit figure of 15% for year 2006 which was way beyond the 6% target. Despite these setbacks, the country made the necessary adjustments, reducing the monthly inflation rates toward the end of the year, and recorded positive economic growth of 2.6%, the highest rate recorded in over ten years (PIOJ, 2007). Interest rates are trending downwards but still remain high, and therefore continue to hamper local investment.

The economy is poised for growth, and the emergence of new enterprises in the medium and small enterprise sector should be a significant factor, as depicted in the country’s 3.3% increase in prevalence rate. The MSE sector continues to make a significant contribution to employment in Jamaica. In 2005 the sector accounted for 33.7% of persons employed in the “own account category”, and 34.2% in 2004 (PIOJ, 2006). The figures are expected to increase to 40% in 2006. National statistics also reveal that unemployment figures are trending downward, so therefore an assumption may be made that more persons are finding employment through the creation of new businesses.

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Access to Training Table 8 shows that the majority of persons involved in early stage entrepreneurial activity have gone through the formal education system.

Exposure to entrepreneurship in schools and tertiary institutions remain limited. Specialized training in entrepreneurship and early exposure to the field would enhance the sector’s development. The views expressed by the experts suggested that entrepreneurship should be taught at all levels in the educational system – from primary up to the tertiary level.

Table 8: Educational Levels of Persons Involved in Total Early Stage Entrepreneurial Activity Level of Education

No form of schooling

Nascent Entrepreneur

New Business Owners

(%)

(%)

7

8

Attended primary school but did not complete

23

19

Completed primary school

11

14

Attended secondary school but did not complete

14

16

Completed secondary school

35

33

Attended post secondary school without degree completed a degree Posses a postgraduate degree

7

8

2

1

0

1

Institutional Factors Data from the experts’ interviews reveal that there are endemic institutional factors that inhibit entrepreneurship in the country. Experts’ data revealed that along with access to capital, the tax system and the bureaucratic procedures involved in starting and conducting business were major deterrents (Table 9).

The Government of Jamaica offers tax holidays and other incentives to foreign investors in certain sectors, but the benefits extended to local entrepreneurs are limited. At the same time, new businesses are taxed at the same rate as established businesses. Additionally, the numerous procedures involved in order to pay taxes (Tables 9 & 10) are often times frustrating and discouraging to the entrepreneur.

There are growing concerns about the number of activities involved and the time it takes to register a business and secure licenses. The numerous government agencies at different locations frustrate the entrepreneurial effort. An unfriendly tax system deters startups and at the same time minimizes the number of entrepreneurs captured in the formal sector. If new enterprises remain a part of the informal sector then they will not be able to borrow funds for expansion and will remain stagnant. Also they will not be captured in the government’s tax net and thus will make minimal contribution to national development.

The World Bank’s publication Doing Business highlights some of the bureaucratic requirements and how they affect startups. In the report Doing Business 2006, Jamaica ranked 10th in the world “where starting a business is easy”, out of the 155 countries in the report. Jamaica maintained this 10th position in 2006 even though the number of countries in the report had increased to 175. This number 10 world ranking would place Jamaica 8th in the total GEM countries and 2nd behind China in the GEM middle-income countries, where starting a business is easy (Tables 9 & 10).

With regard to the “ease of doing business”, Jamaica moved down from 43rd in 2005 to 50th in 2006. The ease of doing business index in 2005 ranked economies from 1 to 155 using ten topics (Doing Business

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Global Entrepreneurship Monitor JAMAICA 2006

2006). The ease of doing business index in 2006 ranked economies from 1 to 175 using the same ten topics. Below are extracts that are used to compare Jamaica with two other GEM countries, Canada and Venezuela. Canada was selected because it is the number 1 ranked high income country and Venezuela because it falls in the middle income category of the GEM countries, it is in the Latin American and Caribbean region, and it is also one of Jamaica’s trading partners.

Table 9: Ease of Doing Business in 2005

Starting a Business

Dealing with Licenses

Paying Taxes

Country

Procedures/payments (Number)

Time

Cost (% of income per capita)

Jamaica Canada Venezuela

6 procedures 2 procedures 13 procedures

9 days 3 days 116 days

8.3 0.9 15.7

Jamaica Canada Venezuela

6 procedures 15 procedures 13 procedures

242 days 87days 276 days

526.1 123.0 547.2

Jamaica Canada Venezuela

72 payments 10 payments 68 payments

414 hours 119 hours 864 hours

n/a n/a n/a

Source: Doing Business 2006

Table 10: Ease of Doing Business in 2006

Starting a Business

Dealing with Licenses

Paying Taxes

Country

Procedures/payments (Number)

Time

Cost (% of income per capita)

Jamaica Canada Venezuela

6 procedures 2 procedures 16 procedures

8 days 3 days 141 days

9.4 0.9 25.4

Jamaica Canada Venezuela

6 procedures 15 procedures 13 procedures

242 days 87days 276days

526.1 123 388.4

Jamaica Canada Venezuela

72 payments 10 payments 68payments

414 hours 119 hours 846 hours

n/a n/a n/a

Source: Doing Business 2007

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Jamaica compares favourably with Venezuela in terms of the procedures and time it takes to start businesses, obtain licenses and paying taxes but needs to emulate Canada if it wants to achieve its 2030 objective of being a first world country (Jamaica, 2030).

Clearly, there is a need to reduce the number of government agencies and integrate the activities and procedures into a single process that will save time and reduce costs.

The government, in its quest to create a more entrepreneurial and investment friendly economy, has made progress in the following areas: • The revision of the Company’s Act makes it easier for startups.

• On-line registration for companies was introduced in 2006.

• On-line payment of some taxes was introduced in 2006.

• Creating a more investment friendly economy through the organization “Jamaica Trade and Invest”, a facilitator of startups locally and inward bound foreign direct investors.

• The 2030 development plan which is deemed to take Jamaica to first world status by the year 2030 (Jamaica 2030).

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Global Entrepreneurship Monitor JAMAICA 2006

Outlook for Outlook for Entrepreneurship Entrepreneurship Financing Interviews with experts revealed that they strongly perceived that adequate funding is not available for new and growing firms. They further indicated that there is insufficient funding from Government subsidies and private individuals, venture capitalists and through public offerings. (Figure 14)

Figure 14: Experts’ Views on Availability of Funding

100% 90% 80%

86%

81%

75%

72%

67%

70%

53%

60% 50% 40%

31%

30% 20% 10%

8%

6%

11% 3%

0%

0% KA01

KA02

KA03 FALSE

Key: KA01 KA02 KA03 KA04 KA05 KA06

NEUT RAL

KA04 TRU E

KA05

KA06

DN K

-There is sufficient equity funding available for new and growing firms -There is sufficient debt funding available for new and growing firms -There are sufficient government subsidies available for new and growing firms -There is sufficient funding available from private individuals (other than founders) for new and growing firms -There is sufficient venture capital funding available for new and growing firms -There is sufficient funding available through initial public offerings (IPO) for new and growing firms

Global Entrepreneurship Monitor JAMAICA 2006

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The government, the private sector and international agencies have introduced several programs that will make access to capital and business development much easier for entrepreneurs, some of which are highlighted below: International Donor Agencies The contribution of International Agencies to the development of the MSE sector in Jamaica has been tremendous. These organizations include the World Bank, the Inter American Development Bank (IDB), The European Union (EU), the Caribbean Development Bank (CDB), and the Canadian Development Agency (CIDA). These agencies have assisted the sector in areas of business development, institution and capacity building and accessing credit, among others. These donor agencies continue to support the MSE sector through special projects. Below are highlights of some of the IDB projects: • JA-M1003: Productive Integration of Microenterprises in Jamaica. The project was signed in May 2006 and is executed by the Jamaica Business Development Centre. It is geared toward micro enterprise development.

• JA-T1013: Jamaica Angel Investor Network. This is directed toward the development of capital markets. The project was completed in January 2006.

• JA-L1004: First Global Bank Limited TFFP. This falls in the category of trade financing and is a private sector loan amount of USD$5,000,000 to be managed by First Global Bank. The project was approved in December 2006.

(Source: Project Gateway-IDB, 2007)

The Private Sector Development Programme (PSDP) This is currently one of the major programs underway that is designed to further develop and strengthen the MSE sector in Jamaica. The program is funded jointly by the European Union (EU) and the Government of Jamaica (GOJ with the objective of increasing the competitiveness of businesses in the MSE sector in local and international markets. The PSDP offers technical assistance to micro, small and medium enterprises in the areas of market research, marketing and promotions, quality improvement, business plan development, product development, among others. It has at its disposal a sum of ?29 million, the equivalent of 2.3 billion Jamaican dollars. The PSDP is managed by the organization, Jamaica Trade and Invest (formerly JAMPRO), in partnership with the Jamaica Business Development Centre and the Private Sector Organization of Jamaica.

Loan Guarantee Project This is an arrangement between the Ministry of Finance and participating lending institutions. Under this project, banks are to lend directly to borrowers as they normally do. However a portion of the loan will be guaranteed by the government so that in cases of default the risk will be shared between the bank and the government. The objective of this project is to create an environment that facilitates the growth of small businesses by removing some of the impediments in accessing capital.

Prime Minister’s Initiative With the emphasis being placed by the government on developing the MSE sector the prime minister of Jamaica has earmarked funds to be injected into the sector. Money will be diverted from the National Insurance Fund (NIF) and disbursed into the sector with the objective of creating new opportunities for entrepreneurs and reducing the unemployment figures.

Education and Training Jamaica’s National Training Agency, HEART (Human Employment and Resource Training), has increased its reach into the educational system to incorporate entrepreneurial training in the curriculum.

HEART now facilitates entrepreneurial training in Kingston’s technical high schools. HEART has also increased the offering of its entrepreneurial training program by extending its reach to Kingston’s inner city residents. The three major universities in the country have increased the scope of studies in Entrepreneurship in their curricula both at the undergraduate and graduate levels.

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Global Entrepreneurship Monitor JAMAICA 2006

Incubators and Science Parks The Technology Innovation Centre located on the campus of the University of Technology, Jamaica, remains the only provider of business incubation services in the country for technology based startups.

The majority of experts interviewed in 2006 were of the view that incubators should be an integral part of entrepreneurial development but such facilities are grossly inadequate. The Jamaica Business Development Company (JBDC), a government agency has undertaken steps to develop incubation facilities for creative enterprises. Also, the Inner City Renewal Initiative funded by the (IDB), is also developing business incubation facilities in some of Kingston’s inner cities.

The government has taken note of the situation and through the Ministry of Commerce and Industry has signaled its support for the development of a Research and Innovation Park and a Bio-technology Park on the campuses of the University of Technology, Jamaica and the University of the West Indies respectively. The two parks are expected to facilitate research and innovation with local and global knowledge institutions and firms. They will also seek to foster the establishment and growth of science and technology based enterprises in Jamaica and the Caribbean.

Global Entrepreneurship Monitor JAMAICA 2006

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Recommendations Recommendations Based on the findings in the 2006 data and those made by the key informants, the following recommendations are proposed especially for the Government of Jamaica: 1.

Consolidate the various government agencies and programmes that are involved in the administration of entrepreneurial activities into a central organization. This organization will monitor, facilitate and provide linkages for entrepreneurial activities on a national basis.

2.

Actively pursue the project for the development of the research and innovation, and bio-technology and science parks.

3. Reduce the bureaucratic encumbrances that discourage and frustrate entrepreneurs. These include time and procedures involved in business registration, paying taxes and obtaining licenses. If these are integrated into a single process, much time and money would be saved.

4.

Introduce more incentives such as tax relief for new and growing businesses in all sectors of the economy.

5. Introduce entrepreneurship into the school curriculum at all levels of the educational system.

6. Implement crime reduction measures as an imperative. The high crime level increases operational costs and also poses a security risk. These are inhibitors for existing and potential entrepreneurs.

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Global Entrepreneurship Monitor JAMAICA 2006

References References Bosna, N. & Harding, R. (2007). Global Entrepreneurship Monitor. GEM 2006 Summary Results.

Babson College and London Business School.

Glasgow, S., Williams-Myers, C., Ismail, O., & Skeete, V. (2006). Global Entrepreneurship Monitor Jamaica, 2005 Report. University of Technology, Jamaica.

Inter-American Development Bank (2007). Project Gateway – Inter-American Development Bank.

Retrieved from www.iadb.org/projects, June 11, 2007.

Jamaica Information Service (2007). Laws of Jamaica, The Income Tax Act. Retrieved from www.jis.gov.jm, June 6, 2007.

Jamaica Information Service (2007). Jamaica 2030 – National Development Plan.

Retrieved from www.jis.gov.jm, June 6, 2007.

Minnitti, M. (with Bygrave, W.D. & Autio, E). Global Entrepreneurship Monitor 2005 Executive Report. Babson College, MA:USA. Planning Institute of Jamaica (2006). Economic and Social Survey (2005). Planning Institute of Jamaica. Kingston, Jamaica.

Planning Institute of Jamaica (2005). Economic and Social Survey (2004). Planning Institute of Jamaica. Kingston, Jamaica.

Planning Institute of Jamaica (2007). Overview, 2006.

Retrieved from www.pioj.gov.jm.,September 24, 2007.

World Bank & International Finance Corporation (2007). Doing Business 2007. The International Bank for Reconstruction and Development/World Bank. Washington, DC. World Bank & The International Finance Corporation (2006). Doing Business 2006.

The International Bank for Reconstruction and Development/World Bank.

Washington, DC. World Economic Outlook database (2007, October). Retrieved from www.imf.org/external.pubs/fx/neo.

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Appendix I Appendix I Our Sponsors in 2006 •

Academic Affairs Division, University of Technology, Jamaica

•

Digicel Jamaica Ltd.

•

Faculty of Business and Management, University of Technology, Jamaica

•

G-Tech Limited

•

National Commercial Bank Jamaica Limited

•

National Export-Import Bank of Jamaica

•

National Investment Bank of Jamaica

•

Planning Institute of Jamaica

•

Port Authority of Jamaica

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Global Entrepreneurship Monitor JAMAICA 2006

Appendix II Appendix II List of Experts by Entrepreneurial Framework Condition EFC1: 1.

2.

3.

4.

Financial Support Mr. William Clarke, Scotia Bank Mr. Donovan Perkins, Pan Caribbean Merchant Bank Dr. Megan Deane, National Investment Bank of Jamaica Mr. Aubyn Hill, Corporate Strategies Ltd.

ECF2: 5.

6.

7.

8.

Government Policies Miss Rose Forbes, Ministry of Tourism Mr. Joseph Matalon, ICD Group of Companies Mrs. Judith Ram-Logan, Registrar of Companies Mr. Ralston Hyman, Sunday Herald

ECF3: 9.

10.

11.

12.

Government Programmes Ms. Valerie Veira, Jamaica Business Development Centre Mrs. Paulette Rhoden, Crimson Dawn Manufacturing Company Ms. Lola Fong-Wright, Consultant Mr. Harold Davis, Jamaica Trade and Invest (formerly JAMPRO)

ECF 4: Education & Training 13.

Mrs. Dahlia Repole, Excelsior Community College 14.

Mr. Ruel Reid, Jamaica Teachers Association 15.

Miss Paulette Perry, Northern Caribbean University 16.

Mr. Wayne Chen, Super Plus ECF 5: R & D Transfer 17.

Dr. Audia Barnett, Scientific Research Council 18.

Mr. Michael Ranglin, Grace Kennedy Limited 19.

Professor Ronald Young, Head, Department of Chemistry, UWI 20.

Miss Dianne Daley; Foga, Daley

ECF 6: Commercial & Professional/Legal Infrastructure 21.

Mrs. Janet Morrison, Dunn Cox 22.

Mr. Gregory Shirley, KPMG, Peat Marwick 23.

Mr. Carlton Grant Technology Innovation Centre 24.

Mr. Brian George, Supreme Ventures ECF 7: Marketing Openness 25.

Ambassador Ellen Bogle, Wray & Nephew Ltd. 26.

Dr. Gavin Chen, Department of Management Studies, UWI 27.

Ms. Marlene Parker, Private Sector Organization of Jamaica (PSOJ) 28.

Ambassador Lorne McDonnough, Ministry of Foreign Affairs and Foreign Trade

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27

ECF 8: Access to Physical Infrastructure 29.

Ms. Illsa Duverney, Consultant 30.

Mr. Grayson Alert, Aura Technologies 31.

Ms. Janette Phillip, PIOJ 32.

Mr. Lloyd Distant, Cable and Wireless Jamaica Ltd. ECF 9: Cultural & Social Norms 33.

Mr. Keith Collister, Gleaner Company 34.

Mr. David Riley, Technology Innovation Centre, UTech 35.

Mrs. Audrey Hinchliffe, President, Jamaica Employers’ Federation 36.

Dr. Kingsley Stewart, Faculty of Social Sciences, UWI

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29

30

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