Entrepreneur Aruba Q1 2018

ENTRE PRENEUR ARUBA Q1 2018

DOC Opleidingen Lead by learning

Qredits

Creating wearable Art

Tourism

Supply and Taxes

Supply Services

Tangible and intangible Goods

Sickness Absence

Three Tips

Chamber of Commerce

Delivery

The Correct Attention

Facts and Figures Q4 2017

Distribution Agreements

The best Services

Supply of Inspiration

Business Magazine Aruba in Collaboration with the Aruba Chamber of Commerce | Q1 / 2018

Aruba

Content 4 DOC Opleidingen Freezone

Supplying Services

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Lead by learning

Facts and Figures Q4 2017

8 Sickness Absence

28 Aruba Chamber of Commerce

The correct Attention 10 Freezone From tangible to intangible Goods Qredits

Creating wearable Art

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12 Tourism Supply and Taxes 15 Apps Stay updated 16 Three tips for...

Distribution Agreements

ACOC

What’s in a Trade Name?

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18 Qredits Creating wearable Art 22 Profile Omar Felipe Tromp

Growth Strategies How to find and work with Suppliers

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23 Aruba Chamber of Commerce

Events MARCH - MAY ‘18 30 Aruba Chamber of Commerce What’s in a Trade Name 32 Supply of Inspiration 34 How to find and work with Suppliers 37 Column Viscious Circle 38 Rising Entrepreneurs Dutch Caribbean 39 Next theme Demand

Entrepreneur Aruba 2017

Content

Preface

Offering help

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Unmanageable workloads can be a source of stress, and hence a big problem. Having to offer help to overworked colleagues who are struggling to get the job done might sound more familiar and, unfortunately, is less uncommon than we would like it to be.

Pressure at the workplace is unavoidable due to the demands of the contemporary work environment.

Moreover, a healthy workload is acceptable and may even keep workers alert and motivated. However, structural heavy workloads or excessive pressure leads to work-related stress and stress can damage an employee’s health and business performance.

Still, to hire more people to reduce the pressure might not be the only solution. Recognition, respect and support at work, for example, are fundamental human needs and this includes taking care of a more efficient and fair distribution of the tasks and responsibilities at hand.

An organization in which employees feel respected, appreciated, and supported grows and flourishes.

In other words, offering a better work environment improves people’s performance, hence productivity.

And isn’t that what we all want?

DOC Opleidingen Lead by learning

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Marnix Stoorvogel Colophon Publisher Conté | Marnix Stoorvogel Authors Chamber of Commmerce Aruba Patricia Bergwijn Brechtje Huiskes Paul Janssen Entrepreneur.com Tom Kok James Lokas Tristan Monzon Atla Ruhe-Simou Anika Stevens Marnix Stoorvogel

Distribution Agreements Three Tips

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Final editing: Write | Patricia Bergwijn Realisation Conté Distribution Fast Delivery Services N.V. Photography Conté \ CoCA \ VondelPhoto \ DOC Edition 4 times a year If you would like to advertise or react, please contact the publisher: +599 770 7723 | info@studioconte.nl HVO paper represents woodfree offset paper.

This magazine is printed on wood-free paper also called tree-free paper.

The raw material used might be, inter alia, rice, straw, bamboo, hemp or cotton.

Facts and Figures Q4 2017 Aruba Chamber of Commerce

Entrepreneur Aruba 2018

Text: Patricia Bergwijn | Picture: DOC Opleidingen

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doc

opleidingen Entrepreneur Entrepreneur Aruba Aruba 2018 2017

Lead by learning Eddy has never been happier, today was his last day at the hotel.

After working as a bellboy for ten years, he got himself a job in the accounting department of another hotel. Five years ago his hotel employer was not willing to give Eddy a chance to grow and educate himself.

Although Eddy’s request for support surprised the big boss at first, he saw neither the potential nor the need for development of his own personnel nor the benefits such development would bring about. That’s when Eddy decided he would pay for his own education one way or another.

He went to DOC Opleidingen (Training Institute for Adults), explained his situation and signed up for the basic management course.

Because his salary was far from sufficient, he could, in fact, not really afford his desire to study and educate himself. With the tips he collected from the customers at the hotel, however, he managed to pay for his courses, one by one and little by little. DOC Opleidingen recognized his eagerness and passion to learn, and they were able to help Eddy to complete all seven management courses from basic to middle to executive level.

In the meanwhile he managed to get promoted to Front Desk Agent, and now, at the end of five years of hard work, perseverance and endurance he could take up a position in the accounting department of another hotel.

Of course this success story is just one of the many examples Training Institute DOC Opleidingen has been part of during its twenty years of existence.

According to the Managing Director Frits Israël, who took over the business in January 2016, it perfectly illustrates the institute’s Lead by learning mission: “To help Aruba succeed and make progress is to enable people to educate themselves and develop; Education is the ultimate key to empowerment and growth and therefore one of the pillars of a flourishing economy”.

Private Adult Education DOC Opleidingen is one of the island’s most popular suppliers of Private Adult Education. With a portfolio of over forty different courses in total, DOC supplies new and up-to-date knowledge to about 800 to 1,100 adults a year. Although some of the courses are hybrid, meaning a combination of e-learning and the more traditional classroom approach, most of the courses follow the classroom teaching method.

Every night, except for the weekends and national holidays, eight to fifteen very motivated students enter one of the six classrooms of the training institution to get educated by one of the twelve to twenty freelance teachers of the institute. Whether the topic is business administration, law and legislation, insurance, management, improving your language and/or 5

writing skills, coaching, corporate governance, marketing, economics or a customized in-company training Doc Opleidingen’s team not only offers knowledge according to the latest technologies, developments and theories but their courses are also in line with the needs and demands of the market. This is one of the secrets of the institution’s success. Due to its broad and international network in the corporate world, its widespread earned reputation, its links with Dutch training institutes and their educational accreditation bodies DOC has acquired credibility and reliability throughout Aruba and its different corporate and public sectors.

Compared to public educational institutions DOC Opleidingen has another advantage. Its courses are not bound to accreditation and this makes their portfolio more pragmatic because participants are able to put what they have learned into practice immediately according to the managing director.

A downside of a private educational set-up like DOC, however, might be the price of the courses. Signing up for a course at the training institute is not cheap. Depending on the course, its popularity, exclusivity, duration and/or intensity prices vary between AWG 325 (Creative Writing for Teens) and AWG 3,600 (the five mornings Chief Happiness Officer Workshop), with an average of AWG 1,500.

Be that as it may, high standards of education and service come at a price

Entrepreneur Aruba 2018 2017

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Entrepreneur Aruba 2018

and the team of DOC Opleidingen stands behind the quality they deliver.

Moreover, DOC has been known, for example, to help out participants who show great promise by going the extra mile and act as reference or intermediary for a promotion or a new job.

Homework and Consultancy Since supplying private adult education is the training institute’s main course, one might not immediately notice two other very important dishes DOC Opleidingen has to offer, namely its homework institute and consultancy branch. Both services are operating under the same mission statement.

The specialized teachers of the homework institute help youngsters to prepare better for their exams, clear possible backlogs and improve their self-esteem and motivation. In other words: DOC helps them to become more successful and by doing so the teachers are enhancing the

youngsters’ future perspective.

The consultancy branch of DOC offers companies assistance in improving their marketing, management and communication strategies.

The institute’s consultants can help you with the start-up, the implementation and/or help you solve any hiccup in the process.

Future Plans Besides the ongoing process of updating and improving the existing courses, expansion into new areas of hospitality is the future focus of the private training institute.

Since tourism is a major if not the most important player in Aruba’s economy, the DOC is working to extend its courses concerning the hospitality business. “Tourists, consumers in general have become more critical and more demanding, that means the services you offer them need to be top-notch if you want them to return and compete with other

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popular destinations in the region.”

With his background in hospitality and marketing Frits Israël knows what he is talking about. According to the director there is also much ground to gain on the matter of cooperation. “Improving our collaboration beyond the borders would strengthen our portfolios and enhance the quality of the education even more”, he adds.

Introducing Frits Israël

Born on Aruba but partly raised in Holland, Frits Israël never quite felt at ease, The Netherlands just weren’t his cup of tea. With plans to go back to Aruba, he studied hospitality management and marketing at the Hotel Management School in The Hague. For his internship he went to Aruba and worked at a large hotel.

After his graduation he moved to his beloved island and has been working and living in Aruba ever since.

CORRECT ATTENTION FOR

sickness absence Text: Tristan Monzon | Drawing: Hein de Kort

As a managerial and re-integration expert at Corporate Health Solutions (CHS) at Medwork we quite regularly are confronted with questions from employers, unions and employees about sickness absence and related policy choices. After an explanation about a number of examples of ‘best practices’ and the current issuing of rules, our customers in the Dutch Caribbean often choose to organize training sessions for managers and information sessions for their employees. “Is that the way it works?” is the response we get during the sessions. “Our people should also be informed about this.”

Training sessions for managers and information sessions for employees are very useful because managers usually underestimate their role as a concerned absence councilor.

Employees, in their turn, often overestimate the role of doctors and medical specialists during a period of sickness absence.

We regularly hear from managers that they are not doctors and therefore do not want to have anything to do with the absence through illness.

The employees generally think that they have the right to sickness absence. But both parties are wrong.

Role of the Manager A manager is the most prominent supervisor and/or coach an employee will experience during his or her career. The evolving connection between these two parties has an enormous impact on the productivity of a company. In that light, doesn’t it seem strange that the same manager suddenly is not available when an employee reports sick for whatever reason or cause? And as is the case right at the moment something happens and this employee might be in need of help. So our advice is: doctor or no doctor simply be there for your employees at the moments they need you the most and learn how to handle this as carefully as possible.

Because what has to be done or must be done, can be learned.

Moreover, you will notice that much more can be done and is allowed than you had ever thought possible.

The impact of the involvement of a manager on the counselling process 8

during the sickness absence should not be underestimated. It demonstrably has much more influence on the availability of employees than that of all the doctors involved, including the company doctors.

Role of the Employee Employees often think, as has been mentioned before, that they have the right to sickness absence and this is confused with the right to report sick.

In fact, the moment an employee reports sick, he or she does not comply with his or her contract obligations anymore.

The employee actually says: “We have agreed that I was going to work for a salary, but today I am not coming to work and so I do not comply with the agreed contract obligations. The reason? I am sick “.

But is that person really sick?

Is the absence legitimate?

You see, the employer must decide whether payment of salary can be justified without the reception of the agreed employment. Suppose this is not the first time and someone

Entrepreneur Aruba 2018

Gadgets Game Of Thrones Notebook Are you a fan of the Game of Thrones series and do you want to write your notes in style?

Then choose Sigils’ specially designed Game of Thrones notebook.

This booklet has a brown color with black lines that show symbols of the series. The Game of Thrones logo is in the middle of the booklet.

The notebook is 5.9″ -by- 8.3″. reports sick because his or her child is ill. Is the employee sick as well because of the ill child? Doctors still have not found a medicine for this ‘disease’. As expert counselors we can mention more examples of non-medical causes for sickness absence which employees use to report sick. But that discussion is, in fact, mainly about correct manners and ways to react. The best way, however, is just to be honest. The employer, in his or her turn, should make sure that employees can and dare to show the necessary openness. We call that an organization with healthful working conditions. Somebody who is suddenly confronted with a calamity at home and/or has to perform a care duty, just happens to be in a difficult situation and can really use the understanding and care of his or her employer in those moments. An employer shall have to consider it very carefully, but most of the time it will be possible to accommodate the absence in consultation with a good team. Employers will be surprised to see how much understanding employees can muster for their position. So arrange it in a different way. No sickness absence, but for example a form of leave of absence.

Organize a possibility for a leave of care, calamity or something else and learn to react to this in the right way.

The understanding for somebody’s absence contributes to an understanding reaction of the team which maintains a more positive atmosphere within the team.

So react sharply and correct on sick reports and learn how to discuss it with each other. By doing so organizations will get back so much more. There is proof in abundance.

Thus: BAN KWIDA PA OTRO! (Start taking care of eachother)

Mini Wooden Clock Original A beautiful and handy digital clock that looks like a little block of wood. As soon as you turn it on, out of the blue the red numbers appear stating the time. Moreover, the clock can also be used as a travel alarm clock.

• Sleek design • Ideal for travelling • Very nicely finished • Ideal to take on a trip

Entrepreneur Aruba 2017

Supplying services:

the shift from tangible to intangible goods Text: Anika Stevens | Freezone Aruba

Traditional manufacturing and international trade in goods are the most well-known types of free zone activities.

Large trading companies make use of the benefits offered by free zones to efficiently store, distribute, and maximize their sales in different regions in the world. Handling the trade in tangible goods from small islands is more expensive in general than using the larger free zones in bigger countries, especially due to the volume of goods being traded and the availability of cost-effective air and sea transportation.

From tangible to intangible Besides international trade in tangible goods, trade in intangible goods or services is increasing on an international scale. The operational costs and labor force that are required in the service sector are totally different from those in the

trade sector. In general, trade and manufacturing activities require a large labor force for which higher education is not always necessary.

While trading in intangible goods often requires a smaller labor force and highly educated employees with specialist backgrounds. In Aruba we can’t compete with the lower wages in the region, however, our educated labor force and multilingualism give us a unique competitive edge when it comes to services. That is why the Aruba free zone is more focused on attracting companies that are trading in intangible goods and bring new knowledge into our economy.

In recent years, we have been noticing significant changes within the trade sector. A good example is e-commerce combined with drop shipment. Instead of shipping all the goods to your warehouse, you can make use of drop shipment facilities offered by third parties and ship the goods directly to your international customers. The goods do not have to physically go through the free zone to be considered as an export activity.

This makes international business 10

more attractive, due to time and cost savings. In the free zone of Aruba we notice that many companies are increasingly making use of our free zone for their e-commerce and drop shipment activities.

Intangible Goods Supply in Aruba Due to these global changes, the free zone in Aruba made some significant changes during the past years.

To follow the international trends in the service sector, Aruba’s free zone became one of the first in the region with an open and friendly environment for service companies. Moreover, we have a transparent and efficient free zone. Many free zones around the world still focus on traditional trade in tangible goods and aim to attract large multinationals to create more jobs, especially in developing countries.

In many countries, the free zone incentives are only valid for a limited time and many of these companies leave when these incentives come to an end. Furthermore, in most free zones it is still not allowed to sell intangible goods. In contrast to these free zones, we offer a different approach in which we are focused on

Entrepreneur Aruba 2018

smaller quality and knowledge-driven service companies.

The companies established in the Aruba free zone make use of the benefits and incentives as long as they are admitted to the free zone and meet the requirements.

There are many opportunities in the following sectors: • Green technology: building knowledge. Aruba is an attractive hub to promote green technologies on an international scale; • Maritime and logistics: well positioned as logistic hub.

In comparison with other islands in the region, Aruba is well connected with different international markets; • Creative industries: opportunities for creative entrepreneurship. The popularity of this sector is growing; • Value added tourism: integration of knowledge to diversify our tourism product. All sectors mentioned can be used to add value to tourism.

As a small free trade zone, it is easier to adapt to international business trends and make changes in the areas where new opportunities appear. A good example of some recent changes that are made is the establishment outside the free zone.

You can run your free zone business from anywhere on the island if there is no flow of tangible goods that needs to be controlled by customs.

Companies that are trading tangible goods are required to establish themselves in a customs-controlled free zone area.

In the Zone Facts If you want to establish yourself in the free zone you need to incorporate a NV or VBA that is designed for free zone activities. Different successful businesses that sell intangible goods make use of Aruba’s free zone. Basically, the only limit is the entrepreneur’s creativity.

Did you know that: • One of the world’s biggest music producers is established in our free zone?

• That many domain names were sold out of Aruba?

• The solar park at the airport is using Aruba’s free zone?

• An international business makes use of a free zone company in Aruba for intellectual property registration?

• Engineering consultants can make use of the excellent air connections to visit their clients?

• International medical consulting services are offered via Aruba?

• International application development companies have an interest in establishing themselves on our island?

We are open to explore international business opportunities with you.

If you think your business has the potential to expand internationally, feel free to contact us.

Tourism, Supply and Taxes Text: Atla Ruhe-Simou | Meijburg & Co Caribbean

The Caribbean islands are a well-known travel destination.

Aruba with its white sandy beaches and its crystal clear blue sea is no exception. The happy island, as it is called, attracts a lot of tourists

every year. Nowadays, tourism is the most important source of income for Aruba.

Tourism offers all kinds of opportunities for entrepreneurs and individuals to supply goods and services.

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There are various tax aspects that need to be taken into account when someone is supplying these goods and services in the tourism industry.

This article highlights some of those tax issues.

Entrepreneur Aruba 2018

The Supply of Goods and Services in the Tourism Industry Most common in the tourism industry in Aruba are the rental of goods and services and the provision of all kinds of activities on the island, such as:

entrepreneurs in Aruba. Goods that are imported into Aruba are therefore not subjected to BBO. Goods that are sold to customers outside Aruba are exempted from BBO under certain conditions.

• The rental of rooms and apartments; • The rental of cars, bicycles, scooters, and boats; • The rental of diving equipment; • Offering island tours and excursions; • Restaurant and catering services; • Taxi and bus transport; • Selling products on markets and in shops.

The BBO is neither a value-added tax nor a sales tax. It is but a business turnover tax. Hence, all services and goods supplied in Aruba by an entrepreneur are taxable, unless an exemption is applicable.

The abovementioned activities in the tourism industry on Aruba can lead to different outcomes for the BBO. The rental of hotel rooms and apartments for which tourist levy or tax is due, for example, is exempted from BBO. Tax consequences for renting out other immovable property can lead to different outcomes. These are not taken into account in this article.

BBO is due on the rental of diving equipment, offering islands tours and excursions, restaurant and catering services, taxi and bus transport, and selling products on markets and in shops in Aruba. The BBO rate for all these examples of supplying goods and services is 1.5 percent of the revenue. This turnover is the remuneration received in cash or in kind.

Aruba has both direct taxes and indirect taxes. This article will only shed some light on the indirect taxes.

More specifically and regarding the supply of goods and services in the tourism industry, it will discuss the business turnover tax, hereinafter referred to as BBO (belasting op bedrijfsomzetten in Aruban tax law) and the health levy, hereinafter referred to as BAZV (Bestemmingsheffing algemene ziektekostenverzekering in Aruban tax law). In addition, the tourist levy, the tax on the rental of motor vehicles, and the special tax on stays, hereinafter referred to as BBV (bijzondere belasting verblijf in timeshareresorts, logementen en hotels in Aruban tax law) will be addressed as well.

BBO Everyone, regardless of the type or legal form of business, is an entrepreneur for the BBO if the person carries out a business or profession independently.

BBO is levied on the revenue of the supply of goods and services of

BAVZ In many ways the BAVZ is similar to the BBO. Its tax base and other characteristics are very much alike.

Just as the BBO, everyone, regardless of the legal form, is an entrepreneur for the BAVZ if the person carries out a business or profession independently.

BAVZ is levied on the revenue of the supply of goods and services sold 13

by entrepreneurs in Aruba. The same exceptions apply to both BAVZ and BBO. The BAVZ rate is two percent of the revenue. This turnover is the remuneration received in cash or in kind.

As a result, both BBO and BAVZ will be charged and are due by the entrepreneur who is supplying goods and services in the tourism industry in Aruba.

Tourist Levy According to the Tourist Levy Ordinance (hereinafter: ‘Tourist Tax’), a levy is due during the stay of a tourist in a guest house or hotel accommodation. A guest house includes any space provided for accommodation for at least four persons with a maximum of nine persons including services.

A hotel accommodation includes a space provided for accommodation for at least ten persons including services. Hence, no tourist levy is due when someone accommodates one to three persons. The tourist levy is payable by the person who rents the accommodation and this person is therefore entitled to charge the guest for the payable tourist levy. There are other rules at play regarding condominiums, since renting them out requires an agreement with a third party.

The landlord of the guest house or hotel accommodation has to pay tourist levy over the remuneration including the charges imposed on the tourist.

The tourist levy is 9.5 percent of the remuneration paid by the tourist for the stay and use of services at the guest house or hotel accommodation.

There are different rules for timeshare and all-inclusive packages. If someone is registered at the civil registry and

Entrepreneur Aruba 2018

makes use of a hotel accommodation or guest house in Aruba, no tourist levy is due. The same is applicable to an owner of a condominium who makes use of his own immovable property.

BBV The special BBV tax is levied on stays in timeshare resorts, lodging, and hotels.

This tax is very similar to the tourist levy.

A timeshare resort is defined as an accommodation if the right to use a timeshare is exercised.

Lodging means every occasion where at least four persons with a maximum of nine persons are given accommodation including services. An apartment in a house that is rented out to tourists is considered to be an accommodation as well. Whether the rental is commercial or private, is not taken into account.

As a result BBV can be due if one provides accommodation in an apartment to a maximum of three persons. Hotels are described as places where ten or more persons receive accommodation including services. The BBV is payable by the holder or the operator of a timeshare resort, lodging or hotel. The special tax is levied on the stay in a timeshare resort, regardless of the duration.

In the case of a guest house or hotel, BBV is levied on the overnight stay and per occupied room. The rate of the BBV for stays in timeshare resorts depends on the kind of room. The rate can either be AWG 26.85 for a studio or AWG 44.75 for one bedroom. The use of all other rooms is charged the same rate: AWG 44.75. Different rules apply for transient guests of timeshare resorts.

The rate of the BBV for guest housing and hotels is AWG 5.37 per overnight stay per occupied room, regardless of the number of tourists that are actually staying in the accommodation.

Similar to the tourist levy no BBV is due when someone is registered at the Civil Registry of Aruba.

Rental of Motor Vehicles A special tax on rental cars and rental motorcycles, hereinafter referred to as

car rental tax (bijzondere belasting op verhuur auto’s en verhuur motorfietsen in Aruban tax law), is levied on the rental of cars and motorcycles.

Rental cars are motor vehicles used for the transportation of people without hiring a driver, which is shown on the license certificate. Rental motorcycles are motor vehicles on two to four wheels that are not provided with a closed body, and which are rented out without a driver as well. In addition, the rental motorcycles can only or partly be driven by a mechanical force present on or in the vehicle. The license holder is liable for the car rental tax. The car rental tax is calculated on the total number of rental cars and rental motorcycles in the fleet on the first day of the period in which the tax due must be paid.

The rate of the car rental tax is AWG 96.75 per rental car or rental motorcycle per quarter. The remuneration or days that the rental car or motorcycle actually has been rented out, are not taken into account. In addition to the fact that in the BBO the rental of a motorized or non-motorized vehicle is taxed, it appears that regarding the rental of cars and motorbikes car rental tax may be due as well.

Conclusion The tax consequences of supplying goods and services on Aruba have been mapped out. This article has shown that certain exemptions in the BBO result in services being charged by another tax or levy, such as the Tourist Tax. Moreover, it has been concluded that double levy or even multiple levies can occur for the same supplied service, as is the case with the rental of cars and motorcycles or the rental of hotel and guest rooms. Regarding the double or multiple levy one wonders if it would not be better to integrate all the previous mentioned levies into the BBO. By doing so the Aruban legislature would surely initiate simplification, transparency, and the reduction of the administrative burden for both entrepreneurs and tax authorities.

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Entrepreneur Aruba 2017

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When a friend, coworker, or business contact changes an email address or phone number, they have to send a note asking everyone to update their address book. Addappt solves that problem.

Apps

It lets contacts update their own addresses on your device. It also offers other nifty address book management features.

APP: iOS Price: Free

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Entrepreneur Aruba 2018

3 tips for Distribution Text: Brechtje Huiskes | VanEps Kunneman VanDoorne

Most products are not directly sold by the manufacturer.

The manufacturer can make use of a distributor to sell his goods.

A distribution agreement deals with the distribution of the products and contains the rights and responsibilities of the parties involved.

This agreement is usually made between a manufacturer (sometimes a vendor) and a distributor.

Distribution agreements often involve parties in different countries.

Even more so in Aruba, since many products have to be imported from abroad. This article will point out three important parts of a distribution agreement and discuss what to pay attention to.

General When entering into a contract for distribution or otherwise it is always important to check if the written contract contains all the arrangements that the parties agreed upon.

In many countries, including Aruba, agreements do not have to be in writing but can be made verbally.

However, when you arrive at a moment that you and your contracting party disagree about the terms of the contract, it is much easier to prove a certain arrangement if it has been written down. Particular sections to pay attention to in a distribution agreement are the duration of the contract, the terms and conditions of the supply of the product by the manufacturer, the terms and conditions of the distribution by the distributor, the distributor’s payment obligations to the manufacturer, and the circumstances under which either party can terminate the distribution agreement. A distribution agreement may of course include many other provisions depending on the product sold and on the preference of the parties. There are three parts that deserve your particular attention.

Exclusivity A distribution agreement should specify the territory where the distributor can sell the product in accordance with the distribution agreement. The territory can be a region or a country or multiple countries depending on what the parties have agreed upon.

Once the parties have identified the territory, they should agree whether the distribution agreement is exclusive or non-exclusive. Under an exclusive distribution agreement the manufacturer is not allowed to enter into a distribution agreement for the same territory with another party.

This means that in principle the 16

distributor is the only one who has the right to sell the product in that territory. Often it will be advantageous for the distributor to have an exclusive distribution agreement but for the manufacturer less so.

Tip 1 Check carefully whether the draft distribution agreement is exclusive or non-exclusive and to which territories it applies to assess which consequences this has for your business.

Trademarks Even if a distribution agreement is exclusive, it is still possible that a third party (let’s call them party B), who obtained the product from someone else, sells the product in the territory without permission of the manufacturer. This is called parallel import. Party B, however, will not have the same rights to market the product through use of the trademarks and other intellectual property rights of the manufacturer. It is therefore very important to make clear arrangements about the rights of the distributor to market the product and to use intellectual property rights (for example trademarks and tradenames) of the manufacturer.

Tip 2 Make sure that an exclusive distributor has the right to register or use the trademarks connected to the product in his territory.

Jurisdiction and governing Law Since distribution agreements often have an international character, it is important to check the clause on

Entrepreneur Aruba 2018

Agreements

jurisdiction and governing law.

A clause on jurisdiction is also called a ‘forum’ clause (forum means place in Latin). This clause is usually situated near the end of the agreement.

The forum clause states which courts will have the right to settle disputes under the distribution agreement and it can also be exclusive.

In that case only the courts indicated in the forum clause can hear a dispute on the distribution agreement.

If the forum clause states that the courts in Aruba have exclusive jurisdiction, a court in another country is in principle unauthorized to hear the case.

It is also important to check which law governs the distribution agreement. This clause is referred to as the ‘governing law clause’ or ‘choice of law clause’. And just like the forum clause, it is usually situated near the end of the agreement. The chosen law will govern the interpretation and enforcement of the terms of the distribution agreement. Since the laws of different countries can be very divergent, the governing law can have an impact on the outcome of a dispute about the interpretation or enforcement of the distribution agreement. It is important to note that the governing law and the chosen forum do not need to correspond.

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You can choose the law of Aruba to govern the agreement and the courts of Germany to have jurisdiction.

Take into account that a legal procedure will take longer if the designated court is not familiar with the governing law.

Tip 3 If your contracting party wants to choose foreign law to govern the distribution agreement or grant a foreign court exclusive jurisdiction, check with a local expert which consequences this might have for your rights and obligations and the enforcement of the distribution agreement.

Entrepreneur Aruba 2018 2017

Creating wearable Art Text: James Lokas | Picture: Frode Schlichting

2018

Entrepreneur Aruba 2018

We’re trying to turn people into art collectors TE GEKKK…! (‘too crazy’ or ‘awesome’ in Dutch) is an up-andcoming wearable urban art brand, designed by local artists and sold through Aruba’s first online store.

It’s a sole proprietorship family business run by contemporary artist, Nelson Gonzáles and established actress, Tuesday Irwin. Inspired by different applied forms of art, artistic experiences and the ideas of their four children, the couple has set out to create the first Aruban colorful and playful art wearing collection.

The Brand Originally targeted at young adults, their wearable urban art brand mainly attracts the generations that are already on the labor market.

TE GEKKK…!’s Whata Creizy Locura campaign profiles itself in the market with an inclusive key slogan: “Dit past gewoon bij iedereen” (“This just goes with everyone” in Dutch).

What they’re offering is not just functional fashion; they are inviting their customers to make a statement through their clothes. This is what sets TE GEKKK…! apart from other fashion brands.

Though TE GEKKK…! only saw the light of day last December when the application process and product realization came through, Nelson, a Maracaibo-born, and Tuesday, an Aruban born and bred, are not new to the business scene.

They initially started with their own Art Rap Foundation, which was a stepping-stone to exhibit in Aruba and around the world, along with 19

their creative thinking laboratory PLAN B. Starting with a foundation of independent artists was a strategic move borne out of the idea that it would be easier to receive funds through this structure.

The Products PLAN B Creative Lab offers services to third parties within the local and international creative industry.

They are ready to produce creative projects aimed at solving various issues in different fields and promoting art. The products aren’t always tangible and can be more abstract: they are ideas, workshops, and creative solutions, a means to think and act outside the box.

In creating this space they are inviting locals to break away from perceived restrictions. One of the results of PLAN B is the local brand TE GEKKK…!.

TE GEKKK…!’s aspirations are to translate the creative capacities that PLAN B has into reachable, tangible (and sellable!) products. PLAN B’s sustainable presence as a creative laboratory largely depends on TE GEKKK…!’s success. It’s a circular system to give art and local artists a place and voice on the island as professionals.

“TE GEKKK…! is unique”, Nelson explains, “We’re trying to turn people into art collectors. Every item is unique, nothing is mass-produced”.

Nelson and Tuesday take the socio-economic status of the median Aruban into consideration because not everyone can afford expensive art pieces.

Entrepreneur Aruba 2018

TE GEKKK…! offers people the opportunity to own unique local art pieces without breaking the budget.

Besides clothing they also sell accessories such as duffle bags, ties, and the distinctive Magic Box bag.

TE GEKKK…! is not only wearable art; it is durable art. The materials used have been carefully handpicked from Colombia, assembled in Venezuela and sold in their online store on Aruba.

When asked whether they have felt any effects of the new embargo that may impact their delivery, they assure that this isn’t the case. All merchandise is still deliverable, though it may take a little longer before it reaches Aruba.

Plans and Challenges “The brand TE GEKKK…! starts with clothes because it’s accessible and approachable”, Nelson states.

The idea is to expand their art products in the future, go beyond what people wear and stimulate them to use art at home; interior design, ornaments, and furniture, such as chairs, tables, and lamps are in the pipeline. Growth seems to be the goal for now, but in order to do so they will

need to solve some start-up problems like positioning themselves as Aruba’s first online store. Their main challenge as an online store is how to turn all those views, clicks, likes, comments, and shares into paying customers.

Since online shopping is a rather new concept to Aruba, people don’t always feel comfortable paying for something on the web. Another challenge they face is showing that TE GEKKK…! is a local brand, created by Arubans for Arubans, and not a foreign brand trying to break into the Aruban market.

Social Responsibility Both fit the profile of social entrepreneurs. Tuesday and Nelson approach their projects from a social standpoint and believe that art can be a solution for our modern day problems. “We believe that art helps with everything”, Tuesday says, “it makes people think more creatively.

It de-stresses. Art Rap is also there to get kids involved.” They provide at-risk children with the opportunity to do something else besides wandering the streets and learning things they may not be old enough to understand yet.

20

Through these art projects the couple actually invests in a new generation of artists.

Thanks to Qredits A prominent building stone for the launch of TE GEKKK…! has been the thorough process and guidance provided by Qredits’ business consultants Oliver and Geraldine. According to both artists, microfinancier Qredits not only assisted in strengthening and solidifying the business plan but also in creating the business profile for the Aruban context. “They keep giving you advice the whole time”, Tuesday elaborates, and “they will ask you why you are doing something because they are concerned about an idea you might have. Qredits doesn’t provide the answers but encourages you to think and look at what potential issues may come up based on decisions in your business plan”.

When asked if they have any advice for other entrepreneurs or starters they have a clear message, “if you have a good business idea, go to Qredits”.

Entrepreneur Aruba 2018

DELIVERY Do you ship items or send documents regularly for your business? If so, how thoroughly have you researched your delivery service options?

Many businesses simply use the major, well-known parcel delivery services and call it done. However, doing so may be costing them a bundle. Depending on your delivery needs, you may want to consider other options for at least some of your packages.

How do you determine which delivery service will best meet your needs?

Here are ten things to consider when evaluating a courier or delivery service for your business: Delivery Service Type You will want to choose the delivery service that is best equipped to economically meet your shipping needs.

This will depend largely on the size and number of your packages, and how far you are sending them. For example, if you are shipping large volumes of material over long distances, a regional or national freight carrier is your best bet.

For same-day delivery of small packages and documents within your local area, a local courier or messenger service is almost always the most efficient and economical choice. Do you send multiple types of shipments, and/or also require warehousing? You may be lucky enough to find an integrated transportation company in your area that can handle all of your delivery needs. This will simplify your billing and make it easier to train employees in your shipping procedures.

Insurance If you are considering a local company, make sure they are licensed to do business in your area. Also, find out if they are bonded and insured.

Speed of delivery For many businesses, fast delivery is critical. Even if timing is not usually a

big concern for you, you never know when you might need to rush an order. What rush options does the company you are considering offer?

Overnight? Same day?

If it is a local service, do they offer a two- to three-hour emergency delivery option? Choosing a company that offers multiple delivery options could save your reputation at some point.

Reliability Each time you promise delivery, you are putting your company’s reputation on the line. You need a courier service that won’t let you down. Be sure to ask your package delivery service if they offer proof of delivery, and look for a company that offers package tracking via the Internet. Also, check out online review sites and national or international ratings, like the Better Business Bureau rating for companies in Canada, United States, and Mexico.

Professional Appearance Like it or not, the appearance of your courier company’s trucks and drivers reflects on your business, especially if you never meet your customers in person yourself. Choose a company whose trucks are clean and whose drivers maintain a neat appearance.

Security Ask your carrier about their security policy. Are packages ever left unattended? Are their vehicles and drivers well-identified?

Special Needs Do they handle oversize packages?

Are they equipped to handle special 21

needs such as delivering perishable or hazardous goods? Do they offer help loading or unloading? Find out in advance before you are in a time crunch.

Price The advertised price is not always the final price. There may be hidden costs that can raise the price of delivery considerably. Always ask for the final price before you commit.

Ease of doing Business Can you order easily online? What is their invoicing procedure? You want to choose a company that makes your life easier, not more difficult.

The Customer Experience Last but certainly not least, is the company you are considering friendly and pleasant to do business with? You may be interacting with these people on a daily basis, so why not choose people who make you glad to work with them?

It’s important to realize that there may not be a single delivery service that will suit all your needs ideally, all the time. You may discover that you’re best off using multiple companies for your different shipping needs. Even so, evaluating each of them with the above criteria can help you make the best shipping decisions possible for your business. Over time, this is sure to save you time and money, and deliver the best package possible: peace of mind!

Entrepreneur Aruba 2018

Omar Felipe Tromp Mission To provide clients with the best service possible and hence making their experience such a pleasant one that they will want to come back.

History Omar Tromp was born in Barranquilla, Colombia and was raised in Aruba.

At the age of 22 he moved to the Netherlands to study physical therapy at the HAN in Nijmegen. He always had an affinity for healthcare and the hands on approach of physical therapy felt right.

Some years after his return to Aruba in 2000 he opened his own clinic.

He expanded his skills and has made Dry Needling part of his treatment options with great results for his patients.

Omar Felipe Tromp Board Member Aruba Chamber of Commerce & Industry.

Name: Omar Felipe Tromp Company: FysioFit NV and Felipe Construction NV Function: Physical therapist and director Date of birth and place: 1972, Colombia Goal: To serve and be of service to people (in need), to find purpose in life, to give people a sense of purpose, and to live a happy life.

Passion: First his family and then his businesses.

Books: The four Agreements by Don Miguel Ruiz, books on leadership and self-knowledge Movie: Movies with a message. If you know what you are looking for, you will be able to find those messages, when you least expect it.

Music: Depends on the mood, but Latin music is being favored.

In 2004 he began working with his late father in the business of construction and maintenance. It was a new challenge, as this business was new to him.

After many mistakes and lessons learned, he became interested in improving his business and leadership skills, which is a never ending process that requires self-improvement and self-knowledge. Nowadays, he works as a physical therapist and director at his clinic in Ponton and as director at the construction business at Balashi.

Keeping a good schedule is imperative to be able to execute both jobs successfully.

Omar is the proud father of two sons and finding a balance between his two businesses, his family life, and keeping an active lifestyle is not easy.

Being flexible is therefore key.

Future: Future plans involve improving the services of both businesses, looking into other business opportunities in 2018, and persisting on the path of self-improvement.

Entrepreneur Aruba 2018

Q42017

Facts and Figures of the Fourth Quarter Text: Aruba Chamber of Commerce

The last quarter of 2017 brought a positive development in regard to the registrations of new entities and the number of terminated businesses remained similar to the total of the fourth quarter of the previous year. The Aruba Chamber of Commerce and Industry (ACOC) has collected the information of registrations during Q4 2017, including the results of the research to point out the most frequent circumstances that lead to the termination of a business.

Registrations A total of 330 new businesses have been registered during Q4 2017. All of these registrations are onshore entities. During 2017 only two offshore companies were registered at the Chamber. The fourth quarter of 2017 recorded 84 more new registrations compared to Q4 2016.

The month November was the month during which the most registrations were documented for Q4 2017.

We can see a fluctuation in registrations throughout the year and the Chamber will keep on monitoring this development during the first quarter of 2018.

Surveys conducted by the Central Bank of Aruba indicate that the purchasing power seems to have weakened and the number of investments are limited.

Nevertheless, the total of registrations in 2017 increased compared to 2016 and there were fewer cancellations recorded. Moreover, Aruba still has tourism as its main economic pillar. The developments regarding the refinery, however, have yet to level up in order to contribute significantly to the economy of Aruba.

Entity Types Regarding the total of new businesses per type of legal entities throughout Q4 of 2017, we can state that the most significant entity types are represented by 155 Sole Proprietorships, 38 Incorporations (Inc.), and 128 Limited Liability Companies (LLC.). All these categories surpassed

Development of total Registrations of Q1 up to Q4 of 2016 compared to the same Period in 2017 140

134 100

100 80

131

116

119

100

92

110

129 102

110 106

123

118

127 106

103 102

95

91

97

93

75

62

60 40 20 0 Jan

Feb

2016

Mar

2017

Apr

May

Jun

Jul

23

Aug

Sep

Oct

Nov

Dec

Entrepreneur Aruba 2018

the numbers registered during same period in 2016. Looking at the whole year, 2017 recorded a total of 1350 registrations, which is 159 more compared to 2016. The upward trend in registrations during Q4 2017 is a turnaround from the fourth quarter in 2016, when the monthly registrations showed a decline.

Sole Proprietorship remains the most popular legal form throughout Q4 of 2017 as well.

VBA registrations grew significantly with 41 more registrations and the type Sole Proprietorship has 26 fewer registrations compared to the third quarter of 2017.

Business Sectors and Districts During the fourth quarter of 2017 the development of the business sectors remained consistent with the figures of Q3 2017.

Retail stores, Services, and the Hotel & Catering industry persisted in being the principal sectors for new business endeavors. Businesses related to real estate proved to be a bit more

Total Registrations compared with total Cancellations per Q4 of 2012 - 2017 360

344

350

328

324

250

330

326

266

248

255

246

200

198

194

Q4 2016

Q4 2017

150 100 50 0 Q4 2012

Q4 2013

Q4 2014

Total Registrations

Q4 2015

Total Cancellations

Analysis per Sector per District during Q4 2017

Oranjestad

Retail stores Services in general

San Nicolas

32

2

15

2

13

28

Hotel and Catering industry

18

4

18

Construction

10

3

6

Real estate

11

1

10

4

1

4

Vehicle Rentals and tours

popular compared to companies in the construction sector. During the third quarter of 2017 both of these sectors were pretty close in numbers.

Commercial development in San Nicolas is very limited. There is no significant growth of new businesses and the fact that the refinery is not in operation (yet) might exert influence on the current situation. The refinery is considered to be an incentive that will

Noord

trigger the establishment of businesses in San Nicolas. However, the number of businesses show that San Nicolas remains unattractive and more creative and innovative incentives are required in order to make it flourish.

Oranjestad had a total of 143 new registrations and Noord followed with 81 new registered entities during Q4 2017. San Nicolas counted for 18 new 24

registrations and this number is much lower compared to other districts, like Savaneta with 32, Santa Cruz with 29, and Paradera with 27 new business registrations.

Cancellations A comparison of the last fourth quarters shows that Q4 2017 compensated the dip in registrations during the fourth quarter of 2016.

Entrepreneur Aruba 2018

Registration based on Type of Business onshore per Q4 of 2012 - 2017 Q4 2012

Q4 2013

Q4 2016

Q4 2017

185

185

143

174

126

155

51

51

99

113

83

97

79

68

63

30

38

AVV

0

1

0

0

0

0

VOF

1

9

7

3

2

5

Other

6

3

8

4

5

4

Sole proprietor VBA (LLC)

NV (INC.)

Q4 2014

Q4 2015

128

Registered Cancellations based on Type per Q4 of 2012 - 2017 Q4 2012

Q4 2013

Q4 2016

Q4 2017

222

188

179

161

133

139

1

2

1

4

11

21

20

33

20

26

24

1

1

5

3

3

4

VOF

11

5

4

8

5

3

Other

5

2

2

4

2

1

Sole proprietor VBA (LLC)

NV (INC.) AVV

Although the number of registrations did not reach the level of Q4 2015, the strong recovery in 2017 promises a positive outcome for the next fourth quarter. Another positive development is the persistent drop of cancellations during the fourth quarters from 2012 onwards. However, it seems to be reaching a plateau, because the number of cancellations of Q4 2016 and 2017 don’t diverge much.

Q4 2014

Q4 2015

Regarding this plateauing decrease of cancellations, we have to keep into consideration the entities that didn’t cancel their registration at the Chamber. Since this is not an automatic process, there are discrepancies in the actual figures.

Looking at the cancellation numbers per entity type, there isn’t much difference between Q4 2017 and Q4 25

3

2016. Except for the VBA entities, which show a peak in the fourth quarter of 2016.

Reasons for Cancellation In regard to the economic development of Aruba it is important to understand why companies cease to exist. The Chamber collected data from the entities that have reported their cancellation and inquired about

Entrepreneur Aruba 2018

Main Reasons to cancel the Registration of an Entity during 2017

1,09%

Time management 1,09%

1,58%

Found steady job or studying 1,58% 2,18%

Other 2,18%

3,16%

No valid permits or contract 3,16% Health issues 5,58%

5,58%

Competition 9,34%

9,34%

Lack of financing for business 13,35%

13,35% 15,78%

High costs of doing business 15,78% Change of legal registered enetity 17,72%

17,72% 30,22% 0,00%

5,00%

10.00%

15,00%

20,00%

their motivation behind the decision to terminate their business.The results of this research showed that there are some interesting motives for cancelling a business. Thirty percent of the companies indicated that their annulment was due to lack of commercial activities. According to them the sales were not sufficient and the general public was not interested enough in their business. The second most common reason for cancelling, supported by almost eighteen percent of the respondents, does not per se mean the termination of the business.

This group just changed their type of entity. In order to change from one entity to another, the previous entity needs to be terminated before a new

25,00%

30,00%

No commercial activities anymore 30,22%

35,00%

one can be created. Depending on the success of their business many entrepreneurs reach a point where they might consider a different type of legal form that is more beneficial to them and their business.

The Chamber continuously provides information and tries to make starting entrepreneurs aware of the possibilities and consequences regarding whichever type of entity they favor.

It is not a simple decision and the choice has to be thought through.

Further down the list of motives to cancel their registration almost sixteen percent of the respondents indicate that the high costs of doing business is the reason why they closed their business.

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This motivation is immediately followed by lack of financing with thirteen percent. The commerce of Aruba is going through a phase in which innovation and creativity are key to the survival of businesses.

Due to technological developments and consumer behavior, it is not easy to operate a business the way it has been done for decades.

The Chamber intends to keep this research on cancellations ongoing in order to monitor developments and collect data. The collected information will be used by the Chamber to develop workshops and other tools with the intention to stimulate and support the commerce and economy of Aruba.

ContĂŠ hooks on your Target Audience Publishing and Adver tising Thunnus albacares

Entrepreneur Aruba 2018

The Art of Personal Branding

Date: March 14, 21, & 28, 2018 - Place: ATIA Conference Room “Employees need to think of themselves as an “embedded entrepreneur”.

Firm entrepreneurs have a different mindset. They come up with new solutions to company problems and new ideas to fuel future growth. They understand what makes them unique and they use that insight to navigate their company and their career on the way to a profitable, fulfilling and successful future. Employees need to shift their mindset to understand this correctly and to develop a sustainable different brand for themselves. That means they must change the way they think about employment.

Text: Aruba Chamber of Commerce

This workshop will help your organization: - Construct a personal brand identity; - Promote your brand in the workplace; - Build a consistent reputation or image; - Create an atmosphere of understanding, clear communication and mutual respect; - Reduce workplace conflicts and work more effectively together; - Indicate existing talent and identify high potentials.

Mar 2018

Workshop: Agility and Innovation

Date: 1 & 2 March 2018 - Place: University of Aruba Accelerate the agility and innovation of your business.

Our research and more than thirty years of experience in implementing change in organizations has shown us that there are four dimensions and eight factors that determine if an organization can thrive in turbulent times.

The dimensions are: anticipation, innovation, cooperation, and direction. This workshop will give you a head start.

It will help you to understand where and when the business might need an extra push, and how other businesses are accelerating their development.

For more information please contact the Center for Lifelong Learning of the University of Aruba. Tel.: (297) 526 2258 / 526 2259, email: cll@ua.aw.

Business Kick-off; let’s talk business

Training: Labor Law In Aruba

FAS - Financial Administration for Starters part 2 - COURSE

Date: March 5, 12, 19, 26 and April 2, 9, 2018.

Place: La Cabana Beach Resort, Board Room Labor law in Aruba is the most practical and comprehensive training course of all. The training will feature the latest changes in “The Program Labor Law in Practice” as well as interactive group participation exercises and discussions.

Participants who complete the training will receive a Certificate of Accomplishment.

This course will run between March and April 2018 in six three-hour training sessions.

Date: 27 March 2018 - Place: Aruba Chamber of Commerce This event is especially for entrepreneurs who just started their own business. Starters will be given information and consultation on different subjects, such as procedures and proper administration. Moreover, they will be getting tips from other (successful) entrepreneurs, organizations and professionals. The kick-off will take place on March 27th, 2018 from 6:00 to 9:00 pm

Apr 2018 Date: March 4, 11, 18 & 25, 2018 Place: Aruba Chamber of Commerce The objective of this course and its content is to give participants who already have a basic knowledge of financial administration, insight into more profound aspects of bookkeeping and strengthen their knowledge of subjects, such as: journal entries, interest costs, depreciations, provisions, reserves, advanced payments, clients’ deposits, BBO/BAZV taxes, and more.

Participants will also receive information about the closing of the fiscal year.

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Entrepreneur Aruba 2018

Aruba Chamber Art Exhibition 2018

may 2018

Date: April 2018 - Place: Aruba Chamber of Commerce Art is an important aspect of our culture. It is a way to express ourselves, communicate and it stimulates citizens to become creative, innovative and imaginative.

The Aruba Chamber of Commerce (ACOC) yearly organizes an exhibition of paintings regarding Aruban art and culture.

Last year ACOC launched the first part of paintings of the students of Foundation Mira. These artworks were mainly painted by children who started to paint at a relatively young age.

The second part of the exhibition will host the other group of students and showcase their paintings. The young painters and their parents will also be present on the opening night of the exhibition as the Chamber’s special guests. They will be accompanied by the director of Foundation Mira, Mrs. Jean Vieira, who is a professional art teacher with many years of experience in creative and therapeutic art for all ages.

The second part of this exhibition will run in April 2018 at the Aruba Chamber of Commerce and will be exhibited in the reception area for six months.

The exact date will follow soon!

16TH AHATA Recycling Art Competition / Exposition

Date: 8-11 May 2018 Place: UNOCA, Stadionweg 21, Aruba Free entrance The Aruba Hotel & Tourism Association annually organizes an awareness campaign for adults and kids promoting the re-use of old articles to create art. The last day for registration will be on April 14.

For more information please contact the Aruba Hotel & Tourism Association.

Tel: (297) 582-2607, Fax: (297) 582-4202, Email: vanessa@ahata.com

Business in aruba

Aruba is known as a safe and stable tourist destination. The island is visited by thousands every year, many of whom return. Tourist activities are mainly concentrated on the west coast. The spin off effect of the tourist industry is clearly visible in the high quality of life and the overall business industry of Aruba.

Other main economic activities include wholesale and retail trade, construction, real estate and banking at the east of the island. Aruba is striving for diversification of its economy, opening doors to new innovative businesses.

Professional business services, sustainable agriculture, renewable energy and technology are a few of the actual focus areas.

Address J.E. Irausquin Boulevard 10 P.O. Box 140, Oranjestad Aruba Dutch Caribbean Business Hours Monday through Friday General 8.00 a.m. to 4.30 p.m. AST Cashier 8.00 a.m. to 4.15 p.m. AST

Contact Information Phone: +297 582 1566 Fax: +297 583 3962 info@arubachamber.com www.arubachamber.com

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Bank Accounts Aruba Bank: 1123546 Banco di Caribe: 81477101 CMB: 61179906 RBC: 7700000090061769

Entrepreneur Aruba 2017

Text: Aruba Chamber of Commerce Aruba

What’s in a Trade Name?

Points to take into Consideration Aruba has no legislation regarding trade names.

There is one in the pipeline, designed after meetings held in 1991-1992, but the legislation itself has not yet been discussed or approved by the Parliament of Aruba.

Nevertheless, the Chamber of Commerce and Industry of Aruba has to take into consideration the requirements to conceive a trade name before the company can be registered. Trade names can have local or even international implications that could affect your business. It is important to consider the implications of a trade name and to think it through because changing the name of a business can bring about unnecessary costs.

Furthermore, you do not want to infringe other people’s rights.

Entrepreneur Aruba 2018

Your Trade Name Your trade name defines the identity of your business. A company might choose or might be forced to use a trade name other than the name under which the business has been registered as a legal entity. In order to conduct the company’s operations a trade name can be practical. It can help customers to identify the business better or generate sales as a brand.

Depending on the business the trade name for your entity needs to have certain characteristics. Some of these characteristics are important regardless of your business intentions.

It may not mislead the public and yet it has to be unique. A trade name should not resemble or be identical to another (well) known or registered brand or trade mark. This would have legal consequences due to infringement of exclusive rights belonging to the original mark.

It is important to be protected and to avoid creating problems by choosing a wrong trade name.

A clear distinction has to be made between trade name, trademark, and service mark. A trade name indicates the entity doing business while a trademark or service mark distinguishes the source of goods or service of an individual or an enterprise from those of others. Words, logos, slogans, mottos, names, letters, numbers, symbols, emblems, shapes, designs, packaging features, color combinations, animations, figurative elements, combinations of those signs, and sounds can all be used as trademarks or service marks.

Registration of your Trade Name The Bureau of Intellectual Property of Aruba (BIE) is the official entity responsible for the registration of trademarks and service marks in Aruba since November 1987.

Previous to their establishment, all registrations for protection of any

type of mark in Aruba were registered by the Bureau of Intellectual Property of the Netherlands Antilles in Curacao.

In order to protect your business and investment you might want to register your trade name at the BIE. A trade name can be registered in the same way as you register a trade mark.

Keep in mind that you will have to pay for this process. The price for submission at the BIE is AWG 275.

If you need an immediate registration, there is a fast process for submitting which costs AWG 350. A standard submission takes about a month while the fast process makes it happen within five working days. Once the admittance of your trade name is approved and completed, it can be registered and this will cost AWG 275.

The registration of a trade name is valid for ten years. For an extension of the registration period or renewal of the registration you will need to pay AWG 550. It is important to know that a trade name is protected only locally and has no international power.

Every request to start a business is investigated by the Chamber, hence the trade name as well.

This routine check includes a search within the registry of the Chamber and consulting with external sources both locally and internationally.

A few Pointers Make sure you contact the Chamber or BIE to find out whether a trade name is already in use or is being processed. Keep in mind that there are costs involved whenever you consult the BIE. To be save, it is advised to have at least three other options for a trade name which you can use when you are starting your business.

By doing so you’ll save yourself trips to register your business. A trade name may not be the same or similar to an existing one, uniqueness is a key element. Furthermore, the name 31

Every request to start a business is investigated by the Chamber, hence the trade name as well should be clear and relatable to the purpose of the business. It may not create any confusion about other local or renowned international companies.

In case the company is a franchise entity, the name must be supported by the approval of the franchise through a contract indicating how the trade name will be used. The length (number of characters) of the trade name is also important, because it defines the complexity of the trade name.

If you want more information on trade names, feel free to contact the Chamber of Commerce or call the BIE at 583-1200 or send an email to opi@aruba.gov.aw.

Entrepreneur Aruba 2018

Securing a steady supply of inspiration to your people The ultimate supply challenge Text: Tom Kok | Coolgroup

32

S

upply mostly is about supplying material goods. I want to take you on a journey to a totally different supply dimension: how to steadily supply inspiration to your people.

Inspiration gives energy. On the work floor there is often a lack of energy.

People that come to work too tired are likely to make mistakes and cause conflicts.

People that are too tired to show up at work and people with a burnout can damage the organization considerably.

A lot has been said and written about how to inspire people. There are many effective ways to inspire and energize your personnel.

Like spending time with them, giving them attention, appreciating them, giving them trust, involving them, giving them room to develop et cetera. The big challenge in terms of supply is how to guarantee a steady stream of inspiration and energy to your people.

Entrepreneur Aruba 2018

Let’s start with an example from the oil industry. Imagine an oil pipeline of many kilometers. How do you keep the oil streaming in that pipe? A strong pump at the beginning is a good start. But however strong that pump, depending on the circumstances and the kind of oil, the oil will stop flowing at some point. You will need many good pumps to keep the oil flowing till the end of the pipeline.

This also applies to inspiration and energy.

How can you install enough inspiration and energy ‘pumps’ that will keep your people inspired and energetic throughout the year?

Here are four suggestions.

One Organize a teambuilding meeting at which you take one hour to make your people inspire each other every three months.

There are many work forms to make that hour a lasting experience.

Two Provide personal inspiration coaches to your people.

33

Not general, but specialized coaches that focus on inspiration and energy. They can offer you an underlying network of inspiration sessions for people individually. That will keep the energy running.

Three Make a list of good books about personal inspiration and energy. Let your people make a free choice from that list every three months as a present from you to them.

Four Challenge your people to make a list of changes in the workplace and work processes that would give them energy.

Take it on you to execute the number one of the list every three months. This way there will be a steady flow of improvements that will energize your organization.

If you are the manager or leader: make yourself a constant supply of inspiration and energy. Be inspiration, be energy.

It takes a candle no effort to light another candle.

Entrepreneur Aruba 2018

GROWTH STRATEGIES

How to Find and Work With Suppliers Text: Entrepreneur.com

Suppliers are essential to almost every business. Without raw materials to make what you sell or manufacturers to provide what you resell, you will have a tough time growing.

There are also many supplies and services your business consumes as part of general overhead, from paper clips to internet access.

Suppliers and vendors - these terms are used interchangeably here can do much more than merely supply you with the materials and services you need to do business.

They can also be important sources of information, helping you evaluate the potential of new products, track competitors’ actions and identify promising opportunities. Vendors can turn into partners, helping you cut costs, improve product designs and even fund new marketing efforts. If you don’t make selecting good suppliers and vendors a part of your growth plan, you’re likely to regret it.

Evaluating your Suppliers and Vendors Suppliers can be divided into four general categories. They are: Manufacturers Most retailers buy through company salespeople or independent representatives who handle the wares

Whether you’re looking for raw materials for manufacturing or finished products to resell, this guide will help you find and forge great relationships with suppliers.

of several different companies.

Prices from these sources are usually lowest unless the retailer’s location makes shipping freight costly.

Distributors Also known as wholesalers, brokers or jobbers, distributors buy in quantity from several manufacturers and warehouse the goods for sale to retailers. Although their prices are higher than a manufacturer’s, they can supply retailers with small orders from a variety of manufacturers.

(Some manufacturers refuse to fill small orders.) A lower freight bill and quick delivery time from a nearby distributor often compensates for the higher per-item cost.

Independent Craftspeople Exclusive distribution of unique creations is frequently offered by independent craftspeople who sell through reps or at trade shows.

Import Sources Many retailers buy foreign goods from a domestic importer, who operates much like a domestic wholesaler.

Or, depending on your familiarity with overseas sources, you may want to travel abroad to buy goods.

34

What makes a good Supplier?

A lot of growing companies focus on one trait of their suppliers: price.

And price certainly is important when you are selecting suppliers to accompany you as you grow your business. But there’s more to a supplier than an invoice and there’s more to the cost of doing business with a supplier than the sum on a purchase order. Remember that suppliers are in business to make money. If you go to the mat with them on every bill, ask them to shave prices on everything they sell to you, or fail to pay your bills promptly, don’t be surprised when they stop calling.

After price, reliability is probably the key factor to look for in suppliers.

Good suppliers will ship the right number of items, as promised, and on time, so that they arrive in good shape. Sometimes you can get the best reliability from a large supplier.

These companies have the resources to devote to backup systems and sources so that, if something goes wrong, they can still live up to their responsibilities to you.

However, don’t neglect small suppliers.

If you’re a large customer of a small company, you’ll get more attention and possibly better service and reliability than if you are a small customer of

a large supplier. You should also consider splitting your orders among two smaller firms. This can provide you with a backup as well as a high profile.

Stability is another key indicator.

You’ll want to sign up with vendors who have been in business a long time and have done so without changing businesses every few years.

A company that has long-tenured senior executives is another good sign, and a solid reputation with other customers is a promising indicator that a company is stable. When it comes to your own experience, look for telltale signs of vendor trouble, such as shipments that arrive earlier than you requested them. It can be a sign of a vendor that is short on orders and needs to accelerate cash receipts.

Don’t forget the location. Merchandise ordered from a distant supplier can take a long time to get to you and generate added freight charges quickly. Find out how long a shipment will take to arrive at your loading dock.

If you are likely to need something fast, a distant supplier could present a real problem. Also, determine supplier freight policies before you order.

If you order a certain quantity, for instance, you might get free shipping or it might be possible to

combine two or more orders into one and save on freight. Even better, find a comparable supplier closer to home to preserve cost savings and ordering flexibility.

Finally, there’s a grab bag of traits that could generally be termed competency. You’ll want suppliers who can offer the latest, most advanced products and services.

They’ll need to have well-trained employees to sell and service their goods. They should be able to offer you a variety of attractive financial terms on purchases. And they should have a realistic attitude toward you, their customer, so that they’re willing to work with you to grow both your and their business.

Changing your Supplier Relationships You may not need to find new suppliers to get a new deal. You can usually get discounts, obtain improved service and receive other features you need by making a request of your current suppliers. Although it might not be as simple as merely asking. Here are some of the options and negotiating strategies for turning mediocre suppliers into top-shelf ones.

Getting Discounts If you walk into a department store 35

and If you purchase a pair of shoes, you’ll pay the same price any other shopper would. But businessto-business commerce is more complicated. Businesses that sell to other businesses commonly have a whole range of quoted charges, offering discounts of 50 percent or more depending on the quantity purchased, the terms, the length of the relationship, and other considerations. You may be able to comfortably conform to some of these requirements, qualifying you for a lower price. To find out, ask about discounts and what is necessary to earn them.

You may be able to get anything from an interest-free loan in the form of trade credit to a substantial discount for paying early.

Improving Service It is the rare businessperson who knows exactly what is happening in all parts of his company at all times or what is going on with all his customers. You probably don’t, and you shouldn’t assume your suppliers do, either. If you have a service-related problem with a supplier, bring it to someone’s attention.

If you don’t get satisfaction, move up the chain of command until you get what you want or are as high in management as you can get.

Odds are, someone will be concerned and possess enough authority to remedy the situation.

A better Relationship Not every customer wants to buddy up to suppliers, so the fact that your suppliers aren’t offering to work closely with you to improve quality, reduce defects and cut costs doesn’t necessarily mean they don’t want to.

They may be under the impression that you are the reluctant one.

So if you want a tighter working relationship with suppliers, let them know. You may also drop a hint that those who don’t want to work with you may see some of their orders being diverted to those who are more agreeable. Either way, you’ll know whether it’s your supplier’s reluctance, or their perception of your reluctance that’s getting in the way.

Making a Change Having fewer vendors is usually better than having many vendors.

Reducing the number of vendors you deal with cuts the administrative costs of working with many.

Closer relationships with fewer vendors allow you to work together to control costs. Getting rid of troublesome vendors can quickly increase the efficiency of your

purchasing and administrative staffs.

So how do you decide when to change vendors?

Here are keys areas to consider: Unreliability When a vendor’s shipments start arriving consistently late, incomplete, damaged or otherwise incorrectly, it’s time to consider looking for a new one. Every company has problems from time to time. So check into the matter before dumping your vendor.

Vendors can experience temporary difficulties as a result of implementing a new product line, shipping procedure or training program. If you stick with a vendor through a rugged interval, you may be glad you did. They might be more willing to see you through a future cash flow crunch.

Lack of Cost Competitiveness Sometimes vendors fail to change with their industries. When your vendor’s rivals start coming in with bids for comparable goods that are lower than your existing supplier’s, you need to investigate. Point out the issue to your existing supplier and ask for an explanation. If you don’t like what you hear, it may be time to consider taking some of those offers from competing suppliers.

36

Insularity Some suppliers will let you visit their plants, talk to their workers, quiz their managers, obtain and interview references, and even examine their financial statements.

These are the kinds of suppliers you should seek out. The more you know about your suppliers, the better you can evaluate whether you should continue to do business with them.

If they shut you out, perhaps you should cut them off.

Extra-sale Costs The number at the bottom of the invoice is only the beginning of the cost of dealing with suppliers.

You have to lay out money beforehand to draw up specifications, issue request for proposals, evaluate them, check references, and otherwise qualify your suppliers. You have to place the order, negotiate the terms, inspect the goods when they arrive, and deal with any shortages, damage or other errors. Finally, you may have to train workers to use the newly arrived goods or purchase more equipment and material to make use of them. While some of these costs are inevitable, some are traceable to individual suppliers. If too many costs are being tacked onto the sale prices, check out some other suppliers.

Column

Viscious circle Text: Paul Janssen

I have been self-employed for years now. Too stubborn to work for a boss, too much attached to my freedom, or both. It doesn’t really matter and both might be true.

The financial insecurity that’s part of the job I’ve taken for granted. Although I have to admit the moment my first child was born, I thought about giving up my independence and become an employee.

The reason is simple: I wanted to be able to offer my children the best possible childhood, the best possible food both physically and mentally, and the best possible education. So they on their turn would be able to follow their heart and have a brilliant future. Given the fact that a professional practice is both sensitive to seasons and economic cutbacks, it isn’t always puppy dogs and rainbows. At times it can be difficult.

My desire to be free ultimately kept me on the course of independence. It was the priceless freedom to bring the children to school or clubs, to be there for them if necessary, to be able to go out with them during their holidays without first having to ask an employer for permission…

But with six children, ay, it was not always easy to be self-employed. And secretly I lived for the moment they all left the parental home. No empty nest syndrome for me. The prospect of a significant reduction in the need for (financial) care was enough reason for me to never think about missing the kids.

In fact, missing them was (and is) out of the question.

Because even though they are all standing on their own two feet, almost every day at least one of the children drops by to have dinner at home. Don’t get me wrong, they all have perfectly good reasons to come over.

My daughter, for example, has two children of her own now, my grandchildren. And she cares for them, but she also needs her rest now and then. Hence, she eats at her parents place to relax. Of course I can’t refuse.

After all, I want my grandchildren to have the best possible childhood, unlimited access to the best possible food both physically and mentally, and the best possible education…

I guess for the coming years I’m screwed again.

Books

Lemons and Lemonade: A Book about Supply and Demand This book provides a small business scenario using a lemonade stand. Topics discussed include capital, gross profit, net profit, marketing, supply and demand, monopoly, and competition.

Did You Know?

Supply Definition The total amount of a product (good or service) available for purchase at any specified price.

Supply is determined by: (1) Price: producers will try to obtain the highest possible price whereas the buyers will try to pay the lowest possible price both settling at the equilibrium price where supply equals demand. (2) Cost of inputs: the lower the input price the higher the profit at a price level and more product will be offered at that price. (3) Price of other goods: lower prices of competing goods will reduce the price and the supplier may switch to more profitable products thus reducing the supply.

ENTRE PRENEUR ARUBA 2018

ENTRE PRENEUR BOnaire 2018

Business Magazine Bonaire

ENTRE PRENEUR curacao 2018

Business Magazine Curacao

CO

MI

NG

SO

ON

Text: Marnix Stoorvogel

Rising Entrepreneurs The Entrepreneur is Aruba’s and Bonaire’s one and only business magazine and soon Curacao’s Entrepreneur will be joining the family as well. This quarterly issued free of charge booklet is full of interesting and up-to-date topics about the development and economics of our own corporate Dutch Caribbean.

The magazine offers information about companies and training courses.

It brings you the latest innovations on the business market.

It investigates and reveals the secrets of success of flourishing companies and illuminates the dos and don’ts in the business world.

Imagine everything you always wanted to know about how to make your business even more successful and the interesting interviews, tips, columns and other business related issues will show you the way. Moreover, the tailor-made for each and every island online and hardcopy magazines are completely tuned in on the business framework of the several islands.

That’s how the Entrepreneur is able to give starters, business owners, companies and investors insight into the corporate world of the Dutch Caribbean. Because the business magazines feature all kinds of enterprises, corporate legislation and quarterly facts and figures, among other things, one really gets to know the ins and outs of doing business on the islands and how to meet possible challenges.

Besides this unique opportunity to share experiences, inform and learn from each other, the Entrepreneur strengthens the economic bonds and encourages cooperation and partnerships within and beyond our islands’ borders.

In other words: Get the latest edition, make sure you are up to date, see how others managed their success and improve your business even more!

ARUBA Q2 2018

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Aruba Chamber of Commerce and Industry

Qredits Interview with an Applicant

Disclaimer: This Magazine is copyrighted This means that any content and/or appearance of the magazine Entrepreneur Aruba may not be reproduced or made public without the prior and written consent of the publisher.

All information, insights or opinions as stated in the magazine Entrepreneur Aruba are that of the interviewees or the author of the article and do not necessarily represent the vision and/ or opinion of the editor, publisher or the magazine itself.

Therefore the magazine Entrepreneur Aruba and its crew cannot be held responsible for possible errors, incorrect postings, views, and/or insights outlined in this magazine.

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