eKatalyxt by Katalyxt Business Development

CONTENT SUCCESSFUL ENTREPRENEURS, SUCCESSFUL BUSINESS WOMEN PAGE 3. SUCCESSFUL OR SENSELESS? PAGE

ENTREPRENEUR ON TRACK WITH STEPHEN MADDEN PAGES 5-6. YOUTHFUL BEGINNINGS PAGES

7-8.

BEHIND THE SCENES: KATALYXT ROUND TABLE

PAGES 9-10.

M-PESA: THE NEW FRONTIER FROM BANKS TO MOBILE PHONES PAGE 11-12 BUSINESS CONTINUITY PLANNING: TIME IS MONEY, BE PREPARED OR ELSE! PAGE 14. KATALYXT: A VISION FOR JAMAICA PAGE

15-17.

Successful Entrepreneurs Successful Women in Business In Jamaica

he business community accepts that success is evidenced by the creation of wealth. How can entrepreneurs create wealth and how can wealth be measured, are frequently asked questions. Businesses that succeed often change to meet the needs of consumers. Frequently accepted measures of success include growth in revenue and growth in the number of employees over a specified time period. However, a growing number of societies have rejected numeric measures which do not take into account socio-economic factors: stability of the family, health concerns, pollution, or other factors that may negatively impact the community. Many would argue that companies that manufacture cigarettes and are profitable are successful. However, social economists are adamant that these companies present a real danger to the economy with a resultant burden on the health sector exacerbated by the cost of man-hours lost. In other words, we must not buy into recognizing profit as the only measure of success. In Jamaica when one mentions “successful” women entrepreneurs in a business, a few names readily come to mind; Thalia Lyn, Jennifer Samuda, Audrey Hinchcliffe, Lorna Myers, Lois Sherwood. Successful entrepreneurs share several of the same undergirding traits and skill sets with entrepreneurial managers. Successful entrepreneurial managers in Jamaica include Minna Israel, former President of RBC Royal Bank and former Deputy Managing Director of the Bank of Nova Scotia, and Fay McIntosh, the former Chief Financial Officer of Grace Kennedy. But key factors to an entrepreneur’s success include risktaking and a willingness to defer gratification in an effort to invest in capital assets, and so create a store of wealth.

The successful entrepreneur often works 12 to 14 hours per day especially in the early years to make the business a success. Audrey Hinchcliffe, CEO of Manpower & Maintenance Services, will rank above many male or female entrepreneurs, where success is measured by the number of employees. Audrey is quick to tell you that she is often out of her bed and at her desk each morning by 6: 00 a.m., to set the day’s operations in motion. Ms. Hinchcliffe has an open door policy. She is relentless in her pursuit of efficiency and meeting client needs. She is assertive and passionate about her business. She is always on the lookout for opportunities. “The Rat Story” is a compelling illustration of her innovativeness. In a 2012 news report, rats had infested a corporate area school resulting in the closure. Ms Hinchcliffe turned this problem into an opportunity. She offered the Ministry of Education a training programme for school janitors and maintenance staff. Her success has not been without challenges. Revenue constraints and staff turnover are normal trials for entrepreneurs in Jamaica. Success is often about overcoming the immediate challenge. Successful entrepreneurs will agree that problems are a normal part of business: pilferage, staff misconduct, insufficient financing, and high energy costs. Nevertheless, the true entrepreneur will “keep on keeping on” until success is achieved. Ms. Hinchcliffe is a good example of a successful entrepreneur.

Contributor: Winsome Minott, Jamaican correspondent

Successful or Senseless?

omen business owners usually have different motivations for starting and running a business, these include being their own boss, having a flexible work schedule to incorporate their family and to do something that they actually love doing. They also define success in many different ways. Terry*, a single mother from East London used her passion of photography to start a home based business using her unique images to make household items for the kitchen and living areas. The business allowed her to be at home after the school run and to spend time with her young family, she considered herself to be successful. As part of the growth path, she participated in a number of trade fairs annually where buyers from large local and international retail stores would attend. At a trade show, one of the largest retailers in the world sought out her products. They expressed interest in having her line of products placed in their chain. Representatives of the retail chain offered to assist by linking her to mass production facilities in Asia. This was easily a six figure deal; apart from the money the international exposure was immense! Terry, having met with the retail giant, decided to turn down their initial offer. The deal necessitated substantial international travel and being away from her family at regular intervals. However , she renegotiated with them a deal where they would be able to use her images as part of their mass production and receive royalties and other related payments.Many friends and associates advised Terry to “Take The Deal”. Terry would be “financially set for life”, but Terry felt that her definition of success was her own and decided to remain true to herself.

In Trinidad and Tobago, a number of women business owners have identified that success for them in business is a combination of making a profit, defying the odds, and having a lifestyle which will allow comfort and peace of mind. Another entrepreneur who defied the odds is Kerri*. Kerri’s real passion was natural hair. Her dream was to open the country’s premier salon for natural hair styles. However, she discovered that this was not a bankable business. The banks were unwilling to provide loan funding, and landlords in the area that she had targeted were not willing to take a chance. One banker actually said to her, “We have never heard about a loctician and frankly we don’t see how being one can make enough money to allow you to repay these loans”. However, Kerri persevered and decided to start small. Within one year, she had many satisfied clients, savings, a cash flow projection based on the year’s cash flows, and a savvy business plan. The bank was very impressed and was now willing to provide funding for upgrading her shop in an exclusive part of the capital. Kerri is now the proud owner of a building and can boast of being one of the best in the country.

Success for Kerri was meeting her goals and persevering no matter what!! Akosua Dardaine Edwards is the National Co-ordinator of the Enabling Enterprise Project. The Enabling Enterprise Project is a progressive and interactive pilot project which aims to partner Caribbean and International women’s business support agencies, policymakers and women entrepreneurs from all over the world.

Contributor: Akosua Edwards, Trinidadian correspondent

The Beginning

“The Entrepreneur On Track: Stephen Madden”

tephen “Tropitopia” Madden is one of Jamaica’s young, vibrant entrepreneurs. With the hustle and bustle of an entrepreneur’s life, Stephen spared some time to tell us about his new “baby” Tropitopia. Tropitopia, a cosmetic manufacturing company, that produces lotions, soaps, body sprays and other bath & body products, was developed in Stephen’s garage at home. With a background in Information Technology, Stephen studied Computer Science for a year at the University of Technology before he jetted off to Houston Texas where he holds an Associate’s Degree in Networking and Telecommunications from Houston Community College (HCC). With his curious mind, encouragement and support from his parents and close friends, Stephen continued to test and experiment, until 2011 when he officially formed the cosmetic company.

I’m on to something... When asked, how much he would be willing to sell Tropitopia if Warren Buffet wanted to negotiate? He said; “I’m enjoying the experience and couldn’t put a value on it right now, even if I could, I would not sell it outright, it’s my baby!”

“I’m enjoying the experience and couldn’t put a value on it right now, even if I could, I would not sell it outright, it’s my baby!”

One could argue that Stephen is extremely confident; however, such confidence is not short of mentorship and inspiration garnered from icons and business leaders such as Bill Gates and the Late Steve Jobs. Stephen shared with the Katalyxt team that he studied the methods and personalities of his mentors and compared them with how he measured up as he builds his business. Stephen studies the competition and industry trends, he figures out what is lacking and essentially tap into the opportunities.

“Having the ability to be a creative thinker is arguably one of the traits found amongst successful entrepreneurs. Stephen said this trait was not encouraged enough during his days as a high school student.” “How to be creative as opposed to regurgitating problems and answers” is an area that Stephen finds lacking in the Jamaican education system, “the system really does not teach you how to think.” Stephen said that he was surprised when his first exam at HCC was “open book”. He recalls the professor saying “it’s not what you remember but how you use the information on hand to solve issues”. Stephen wants to see a greater push of “brand Jamaica” with an export driven focus.

Jamaica a Powerhouse in Manufacturing and Services in 2030? Stephen was upbeat about Jamaica’s prospects even with our high energy costs and struggles to be competitive with countries such as China and the United States. He stressed that any competitive advantage would come through producing “exotic” products on a “high scale”. He explained it can be anything from making ice cream, natural teas and herbs to services speciﬁcally tailored with Jamaican authenticity. Stephen believes that further re-investment in the nation’s agriculture and manufacturing sectors by successful business leaders and the private sector is necessary for growth.

Above: Tropitopia develops new products

What Next? Building Tropitopia into a global brand is Stephen’s ultimate goal. Stephen believes that markets such as Japan, Russia, Turkey and other nations that “crave” our Jamaican culture would provide a thriving avenue for his products. Tropitopia will expand its variety to offer Jamaican natural and organic products. Stephen believes that, “There are people with ideas and perhaps with finances, but do not have the wherewithal to implement or execute, Katalyxt is a good medium for entrepreneurs to tap into to make it happen”. Left:shot of initial setup of Stephen’s new location

Staff writter

YouthVators Youthful Beginnings

The ability to innovate has never been more important. We live in an era driven by technology where instant gratification is anticipated.Facebookers and Instagram users know that these computer programs contain intrinsic ‘value’ and so created wealth for innovators. However, there is an added dimension, one not tied to money, i.e., creating a culture of innovation. This is an invaluable asset, one that Katalyxt and Jamaica’s business community must nurture. To this end, Katalyxt launched the Youth Innovators’ Competition 2012, targeting high school students and providing incentives to unearth their entrepreneurial potential. The competition ended with joint winners, Campion College & Merl Grove High School. Both teams submitted very impressive entries. The team found it difficult to identify a clear winner. Campion College fielded a team of three (3) students, 18 year old Kavel Francis and John-Paul Martin, as well as 19 year old Adrianna Dennis. Campion College’s entry project was titled the: Transformer Bag. This bag had the ability to transform into a T-shirt. The bag

Locust, locally dubbed “stinking toe.” But, there’s nothing “stink-

served as a multi-functional fashion accessory. This

ing” about this culinary creation. Both beverages are sure to

ability to have one fashion item with two exclusive

be a market favourite. The value, after all, is in the taste. The

usages is unprecedented.

students, with the aid of their committed faculty advisor, TheaRachelle Flemmings, would like to perfect the product for the

“We think it will be very successful. We hope to tar-

Jamaican market, which will ultimately be available to sell the

get young adults and teenagers who will find value

product in hotels, restaurants, smoothie shops and more.

and excitement in this product,” noted Kavel Francis. “I am blessed to be a part of Campion College

“We believe there is a market for this product. The public is

because it pushes you to think outside the box.”

ready and we’re ready to serve. We have received posi-

Francis’ advice for up-and-coming entrepreneurs is

tive feedback from many persons about the taste of our

to “go for it, if the idea is worthwhile. Friendship is a

smoothie and wine. We want this on the shelves as soon as

really important resource.”

possible,” commented an eager Ms. Flemmings. Katalyxt is excited about the prospects of these products for commer-

Merl Grove High School fielded a team consisting

cial success. “We would like to thank Katalyxt Jamaica for its

of two (2) students, Michela Richards and Davina

commitment to business ventures and entrepreneurship.”Ms.

Hamilton, who presented a delicious product of

Flemmings continued. “If students tap into their creativity, our

fruity goodness. They created the Cranscusberry

economy will grow.”

smoothie and wine from a plant, the West Indian

Jamaica College (JC) became the first Jamaican high school to institute robotics in the schoolâ&#x20AC;&#x2122;s extra-curriculum activities. This leadership has paid dividends, not only in cash but also, in continuing the prestigious legacy at the institution. Jamaica College placed third at the FIRST Tech Challenge (FTC) robotics competition held in the United States. The winning team comprises three (3) sixth form students: David S., Gavin S. and Paul P. The impetus that got the boys involved in Robotics came from the Jamaica College Old Boys Association. The alumni felt that this would be a great opportunity for the students to challenge themselves and explore the depths of their ingenuity. The Jamaica College students received support through sponsorship from the JC Old Boys Associations and corporate sponsorship. As a result of the win, JC will be able to access scholarship opportunities for higher education. It is the hope of Jamaica Collegeâ&#x20AC;&#x2122;s robotics team that this conversation will start a national dialogue around nation-building.

Staff writter

The ability to innovate is key for success as we find ourself going forward in this technological era. 8

Behind the Scenes! Katalyxtâ&#x20AC;&#x2122;s 1st Live Streaming Event: Roundtable Discussions

Katalyxt, committed to “Creating a Platform for Business Success,” hosted the first live stream ‘Round Table Event” on November 22nd, 2012. Experts and entrepreneurs shared the stage to discuss pertinent topics: “Raising Business Capital” and “Real Deal Business”. Viewers tuned in from the Caribbean, United States, Canada and the United Kingdom. Stay tuned for our next Round Table Talk which will be held in March 2013. Staff writter.

M-Pesa, The New Frontier: From Banks To Mobile Phones

osa Muraguri-Mwololo, who hails from Nairobi, Kenya is a champion of African entrepreneurial and has been instrumental after the development of numerous SME establishments. She holds a PhD in Education for Business Management from the University of Illinois. Dr. MuraguriMwololo was the keynote speaker at the Katalyxt Business Development Conference 2012. Rosa’s presentation featured the M-Pesa system. ‘M’ representing ‘mobile’ and ‘pesa’ is the Swahili word for ‘money.’ The idea and novelty behind this new form of microfinance banking is that it allows those who are outside the traditional formal banking systems, who Mwololo termed the ‘unbanked’, get access to its benefits and provides opportunities for saving. All the advantages of being included the formal banking system is had via one’s cellular phone. Simply, how it works is that physical cash is transferred into e-value. This ‘unbanked’ sector of the population is immensely large. For example, 78% of Mozambique is unbanked, meaning they are excluded from all formal and informal financial services.

Banking On Mobile Services By using the M-Pesa system, the poor and unbanked will be able to purchase goods and services essentially cashfree without hidden charges. The system is used to support the rural and urban poor in developing countries in sub-Saharan Africa. For this idea to hold any practical value, these markets must be heavily saturated with cellular phone usage and ownership. Based on the 2011 (CCK) figures, out of 40 million people, 24 million have access to mobile phones.

Mwololo insists that there is a huge African market that anxiously awaits entrepreneurs to take advantage of the opportunities that M-Pesa is creating. These opportunities include reaching customers online through mobile-financial transactions. The foundation has been laid, now all that is required is the creation for more, innovative channels for customers to spend their money.

Universal Application The M-Pesa system is the new debit card of our time on the African continent. And, where there is money and new ways to spend it, there is chance for success. The true value of the M-Pesa system is its universality. Such a system can penetrate and be seamlessly integrated into the Jamaican (and Caribbean) market, where cell phone subscription is more than the actual population. The beauty of good innovation is that it can come from anywhere including poor, developing countries and regions. The M-Pesa has great financial viability for implementation not only in the Caribbean but North America and other continents around the world. The advent of ubiquitous mobile usage is the lifeline of the M-Pesa.

The poor and unbanked will be able to purchase goods and services essentially cash-free without

hidden charges.

M-Pesa

M-Pesa system could be of value in Jamaica and the Caribbean.

Credit The M-Pesa Lime and Digicel are two telecommunication providers in Jamaica. As they compete for dominance in the market, each should be interested in exploring how the M-Pesa system could be of value in Jamaica and the Caribbean. The use of the cell phone as a medium for transacting value, would increase revenue for opportunity-ready telecommunication providers. It is no secret that most Jamaicans cannot make a move without their cellular phones—yes plural! Many cell phone users own two cell phones, one from each of the two powerhouse companies. Much like the idea of buying credit in order to ‘top-up’ one’s cellphone by visiting retail outlets to purchase calling cards, which can be accessed at every turn and corner, the M-Pesa, similarly, requires available and accessible retail outlets that allow for deposits and withdrawals. The long lines at the banks are at thing of the past; long lines at the ATM are, at a moment’s notice, non-existent and school fees could be paid from the luxury of home with a cellphone in hand. However, we are running ahead of ourselves, legislation must catch up with technology and our imagination. The Central Bank must buy into the vision, while protecting against money laundering and persons who would use the medium for unfair practices. A cellular phone, especially the most basic, is easy to use for old and young, the lettered and unlettered. It is time for most of us to take mobile banking to even higher heights, which can be independents of the banks. In a place where cellular phones outnumber credit and debit cards, it is only reasonable that we find ways for the cellphone to be the new cash dispenser. The M-Pesa system begins that conversation. We need only to capitalize on it.

Staff writter

The M-Pesa system is the new debit card of our time.

Business Continuity Planning:

TIME IS MONEY BE PREPARED OR ELSE!

usiness continuity planning can be defined as the set of procedures developed by the management of an organisation that will assist the business to continue its operations despite a significant interruption (to its buildings, IT systems or employees) with the ultimate objective of restoring the business to pre-disaster levels. These interruptions include fire, flood, earthquake, riots or similar event. Most persons think of business continuity only in terms of the recovery of information technology systems. However, the components of business continuity planning are much broader in reality. A solid business continuity planning program should include three key elements: emergency response planning, which deals with the people element; disaster recovery planning, which covers IT systems and business resumption planning which deals with the activities of the business units e.g. payroll processing. How much money should you spend on business continuity planning? “While costs is one reason cited by some company or not implementing a business continuity program, there are other reasons. An AT&T study found that 75% of companies surveyed had business continuity plans while another 25% did not. Those that did not have

plans were asked to give the reason for the absence of plans. There explanations are summarised below: Why companies don’t have a business continuity plan? 1. 48% - think it is not a high priority 2. 25% - don’t believe a major disaster will happen 3. 21% - too expensive 4. 15% - not familiar with what is required NB – multiple responses were allowed Does your company have a plan? If not, what is the reason? You should seriously raise this issue at your next Board or Senior Managers’ meeting. But do you know how much you should spend on developing and implementing a plan? Do you know how to even go about developing a plan? Stay tuned for the answers to these and other questions in future articles.

Contributor: Bruce Scott Jamaican correspondent “Three key elements: emergency response planning, disaster recovery planning, and business resumption planning.”

MEET THE KATALYXT TEAM Katalyxt Jamaicaâ&#x20AC;&#x2122;s Vision!

Fay McIntosh Winsome Minott Dalma James

Katalyxt is a private sector initiative committed to forming partnerships with other Private Sector Corporations, Non Governmental Organizations, Government Bodies and entrepreneurs in an effort to strengthen the capacity of SMEs operating in Jamaica. The long term goal of Katalyxt is to provide practical and theoretical solutions for business development through innovation and increased efficiency and to enhance entrepreneurial impact in businesses of all sizes. We invite your organization to partner with us as we engage in activities for the period 2012-2013. These include ongoing workshops, training initiatives, information sharing platforms, which will culminate in the Annual Conference to be held in May 2013. Katalyxt provides entrepreneurs and entrepreneurial managers with a variety of accessible development pathways for business success. Katalyxt provides options in assessing how to raise business capital; how to engage existing technology platforms while creating new ones; how to improve communication and build relationships that will enable growth. Katalyxt facilitates access to: Diaspora markets to enhance trade possibilities; information re tax reforms; expert assistance covering a range of services: accounting, legal, risk management,

Bruce Scott

Katalyxt was born, providing an economic reaction to stable and sustainable businesses.

tax planning and administrative support. These have all been identified as factors that influence success of businesses. Katalyxt provides access to strong international and local business leaders and experienced entrepreneurs. The conference provided new insights and gave new avenues for Katalyxt to explore and engage with the business community. Katalyxt makes available several skill sets to entrepreneurs. During 2011, we started the incubator programme. Each year 10 companies were evaluated based on our critical assessment of the enterprise and the needs of the entrepreneurs. Incubatees are paired with mentors whose skill sets compliment the needs of the entrepreneur. We have also instituted an internship programme that provides extensive and valuable training for future business leaders who have demonstrated keen interest in entrepreneurship.

Douglas Orane Ramon Pitter

Parris Lyew-Ayee

Stefanie Thomas

Dr. Rosa Muraguri-Mwololo

Mariame McIntosh

The Caribbean, futile ground for the creation of a boom of small and medium sized businesses.

Robert Johnson

This investment in the potential of Jamaica is also evidenced by the establishment of the Katalyxt Youth Innovatorâ&#x20AC;&#x2122;s Competition, where high school students across the island were given the opportunity to be innovators and fresh thinkers. Students created new products. Our joint winners, Campion College & Merl Grove High School presented fashionable apparel and delicious beverages, in the name of entrepreneurial curiosity. As we look to the future, Katalyxt has many initiative planned. First among them is the continued expansion of current programs such as, our internship programme, incubator programme and mentorship programme. We are in the process of building a detailed library consisting important references to aid the growth of businesses in Jamaica. We take this opportunity to thank our supporters, sponsors and partners for coming along this journey with us as we endeavour to make Jamaica and by extension, the Caribbean, fertile ground for the creation of a boom of small and medium sized businesses.

Staff writter

JAY BRENNAN

Professor Jay Mandel

John Nozell *The pictures above include members of the Katalyxt team including both the core and extended team.

DONT FORGET TO CHECK OUT THE NEW ISSUE OF CULTURAL VOICE

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