Entrepreneur Aruba Q2 2018

ENTRE PRENEUR ARUBA Q2 2018

Qredits

A Colombian Adventure

Export Incentives in the Dutch Caribbean

Tackling illegal Business Operations

Dog Hotel Aruba Demanding Animals

12 Questions

Six Rules for a

Chamber of Commerce

Matching

before you start a Business

Facts and Figures Q1 2018

Demand Letter

eternal Demand

Aruba’s

growing Demand

Business Magazine Aruba in Collaboration with the Aruba Chamber of Commerce | Q2 / 2018

ARUBA

Entrepreneur Aruba Q2 2018 4 A Colombian Adventure Qredits Fuels Marketing & Supply Aruba N.V. (FMSA)

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8 Fuels Maketing and Supply Aruba 10 Aruba’s Growing Demand Tax Reporting & Compliance

Dog Hotel Aruba Demand Animals

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12 Column Restless Legs 13 Apps You’re not stuck shufflin anymore 14 Dog hotel Aruba: Demand Animals

e-Commerce and

changing behavior

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30

24 Start your...

International Business 26 Six Rules to write an effective Demand Letter 28 12 Questions Before You Start a Business 30 Match and Demand Eternal Demand 31 Column A Lesson in Demands 31 Books

Sue-Ellen Farro-de Freitas Sous

Next Generation Demand Management

17 Chamber of Commerce

44 Tackling illegal

20 e-Commerce and the Eternal Demand

JUL - AUG - SEP - OCT

16 Profile

Facts and Figures Q1 2018

Match and Demand

22 Events

changing consumer behavior

Business operations 46 Next theme Development

Entrepreneur Aruba 2017

Content

Preface

On Demand Nowadays, we are used to get our supplies on demand.

Whether we desire a nice meal, groceries, a movie, music or haute couture, we may find it delivered instantly and at our doorstep.

In order to deliver on demand, you’ll have to be familiar with the community you do business with. Governments, for example, are supposed to know and satisfy the demands of their people, including the ones of the entrepreneurs that are supporting the economy. Hence, it would be reasonable to expect governments to deliver on demand as well.

As for entrepreneurs, they meet the market demand by taking risks. Business owners either successfully deliver what consumers want and are consequently rewarded or fail to deliver what the market wants and pay the price for misjudgment with personal losses.

Governmental demands on the other hand are being paid for by taxpayers. This money is often used to cover up wasteful miscalculations of politicians or bureaucrats and their favorite interest groups. Perhaps that is the reason why delivering on demand remains utopic as far as governments are concerned; no self-sacrifice and no accountability.

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Qredits

A Colombian Adventure

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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 Atla Ruhe-Simou Anika Stevens Marnix Stoorvogel

An effective Demand Letter Six Ruls

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Realisation Conté Distribution Fast Delivery Services N.V. Photography Conté \ CoCA 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 Q1 2018 Aruba Chamber of Commerce

Entrepreneur Bonaire 2018

COLOMBIAN ADVENTURE:

MAKING DREAMS COME TRUE Text: James Lokas | Picture: James Lokas

The Limited Liability Company Colombian Adventure saw the light of day on Aruba in 2016 with Lina Rios at its head. The company’s headquarters lies in Pereira, Colombia. Colombian Adventure is a tour operator that creates tailor-made tours and events for tourists with a very wide range of interests (culture, sports, ecology, ruralism, and holistic health) who want to visit beautiful Colombia. Proud of her Colombian heritage Lina wanted to introduce people to the diversity and beauty of Colombia, making every trip a once in a lifetime experience.

Exploring a new Business Adventure Back in 2013, driven by their decades-long experience in the tourism industry and their passion for tourists and travelling, Lina and her two brothers decided that they wanted to show people a different side of Colombia with a focus on preserving the planet and showing Colombia in its true nature. They didn’t want to just send tourists out on a pre-packaged tour, since this had already been done before.

In keeping with the trend of creating authentic and ecology-friendly experiences, they offer (potential) tourists individualized tours with the prospect of creating highly personal and memorable experiences while providing them with knowledge on the values and traditions 4

of the people they meet on this adventure.

They work closely with their clients to create a travel adventure that combines the clients’ interests with what Colombia has to offer. For instance, Colombia’s biodiversity accounts for 20% of the world’s bird species. This draws in large groups of birdwatchers as well as people interested in a pure and authentic travelling experience. Their certification in Standard Sustainable Tourism helps them manage the additional footprint and guarantees their tours are environmentally responsible. It was the right time and the right place for their venture; the business took off.

Lina is currently manning the Aruban Colombian Adventure branch alone, though she recently got a part-timer to assist her with the finances and accounting aspect.

A welcome help when looking at their exceptional growth. In 2016 some 100 clients made use of their services, but in 2017 their clients’ base grew to about 500 people, and for 2018 between 700 to 800 people have either already made use of the personalized tours, or will be going on an adventure of a lifetime later this year. The

Entrepreneur Bonaire 2018

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Entrepreneur Aruba 2018

He told me he believed in my business and that he believed in me projection for next year is even higher, thus showing the growing demand for their unique offer. For Lina it has been a dream come true and many years in the making. She prides herself on being the only specialized Colombian tour operator on Aruba and the Caribbean.

Overcoming Challenges Starting or even expanding a business always comes with its own challenges.

One of the challenges this particular business faces on a regular basis is to set themselves apart as tour operators. They don’t book flights, but assist with making the trip an authentic experience. Another challenge is getting their name known.

The use of traditional media sources, such as radio and the age-old form of networking makes a world of difference, but with a team of one, the possibilities are limited. To overcome these challenges they rely on their vast experience and use their previous clients as references. Clients are happy to spread the word.

Maintaining quality when creating such custom-made travel tours for each individual or group might also be a challenge on its own. Currently, she’s working on a program for the anniversary trip for Grupo di Betico, a group of about 50 people, for later this year. Earlier this year Colombian Adventure was involved in organizing

the agreements between ATIA and the Chamber of Commerce of Pereira. Intermediating between the parties and making the necessary approaches between the business guilds culminated in the signing of this important agreement.

Qredits helps everyone with a good Plan After years of talking to banks and trying to get loans that she inexplicably didn’t receive, her son saw an advertisement for a new microcredits company on Aruba. ‘My son told me to try it, because you already have a no’. Armed with the plans for her enterprise, she made her way to Qredits. All her fears and nerves were unwarranted the moment she was warmly welcomed into the office.

‘Geraldine [Bardouille, business advisor Qredits] guided me through everything.’ Lina got help with the e-learning and the application. This was essential as Lina wanted to make sure nothing got lost in translation.

From then on it went very quickly, ‘the period from sending in the documents to The Netherlands and getting the approval took less than one month!’

Initially Lina could not believe she had gotten the approval, ‘25 years of living on Aruba and this is the first time a loan got approved’.

Lina is grateful to Qredits for not only assisting her in the application process but also for the continuous aftercare 6

they offer: business coaches, the e-learning platform, and trainings, which she makes full use of. ‘Of course’, she says, ‘I want to learn and do well’. During her final meeting with the director of Qredits she got another heartwarming message that was nearly equally empowering and encouraging as the loan itself, ‘he told me he believed in my business and that he believed in me.’ Following her experiences with Qredits she encourages everyone to go there. She was even able to share that a friend of hers recently got her loan through Qredits approved as well.

What the Future holds With the micro-financing from Qredits, Lina can now move her office from inside her house to a building next to it and take on more staff such as a marketing specialist. She has grand ideas for the new office, ‘it is inspired

by Filandia. As soon as you walk in, it will feel as if you’re in Colombia’, meaning it will be colorful, quaint, and warm. Ever the businessperson, she is looking past the office and thinking about further expansion with branches in Curacao, Suriname, Saint Martin, and beyond. She leaves with these finals words of advice, ‘never leave the dream and don’t be afraid’. It certainly worked out for Lina.

Entrepreneur Aruba 2018

Entrepreneur Aruba 2018

FUELS MARKETING & SUPPLY A Text: Mandy Leijenaar | Rifineria di Aruba NV

Fuels Marketing & Supply Aruba NV (FMSA) is a local incorporated company engaged in the import, storage, marketing, and distribution of petroleum products to a variety of consumers in Aruba. Refineria di Aruba NV (RdA) is the owner of FMSA and gives it management support. Fuels Marketing and Supply Aruba NV is wholly owned by Refineria di Aruba NV since October 1st, 2016. It currently has a total of 38 employees and shares the same core values as its parent company RdA. FMSA’s business activities encompass: 1 The lease of 5 FMSA owned Gasoline & Diesel stations 2 Supply Agreements with all 14 Gasoline & Diesel stations 3 Service & lease agreement with Aruba Airport Authorities 4 Supply agreements with Airline companies 5 Projects for innovation and other business developments 6 Supply of Fuel Oil to the local utility company WEB Aruba NV 7 Supply of Diesel Bunker to vessels FMSA Products In order to guarantee the supply of petroleum products, FMSA signed a non-exclusive agreement with Novum Energy and CITGO Petroleum Corporation for clean fuels. Trading Corporation for High Sulfur Fuel Oil (HSFO) predominantly delivers products from the Gulf of Mexico, where most refineries are located.

FMSA markets and distributes a variety of petroleum products, such as: • High Octane Gasoline and Ultra Low Sulfur Diesel • Jet-Fuel and Aviation Gasoline • Fuel Oil for the local Utility company WEB Aruba NV The Market Its primary market are the gasoline and diesel dealer stations, industrial,

commercial, transportation, and construction companies.

Through its marine activities, FMSA also provides diesel fuel to leisure and other seagoing vessels at the ports of Oranjestad, Barcadera and San Nicolas. FMSA also signed a terminal service agreement with CITGO Aruba for the allocation of several storage tanks with a combined capacity of 1.5m barrels, facilities for the heating and pumping of fuel oil to WEB Aruba NV, loading rack operations for the distribution of gasoline, ULSD and jet fuel.

Equipment FMSA has a variety of state-of-theart delivery trucks with the following statistics: 1 Jet-Fuel Tank Trailers of 10,000 Gallon Capacity – Singl Compartment 2 Gasoline & Diesel distribution: a Two 10,000 Gallon Trucks – Each Five Compartments b One 8,500 Gallon Truck - Four Compartments c One 8,000 Gallon Truck – Four Compartments d One 6,000 Gallon Truck – Four Compartments 3 Fuel Oil is transferred through a pipeline to WEB Aruba NV

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Entrepreneur Aruba 2018

ARUBA N.V. (FMSA)

Fueling the Community We are responsible citizens for our community by taking ownership in our commitments to make a difference to Aruba and beyond our borders.

We strive to give back to our community and have established an extensive system and policy for community support. For more information, please send FMSA a request to request@rda.aw.

The Future Alternative fuel sources are becoming more popular and the market engages in more energy efficient vehicles. While this may be a challenge in fact with regards to FMSA’s future business, we embrace this development and are closely researching all potential opportunities to ensure FMSA’s continuation in this new era.

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Fuels Marketing and Supply Aruba NV is wholly owned by Refineria di Aruba NV since October 1st, 2016. It currently has a total of 38 management, staff and personnel employees and shares the same core values as its parent company RdA.

Entrepreneur Aruba 2018

ARUBA’S GROWING DEMAND FOR TAX REPORTING & TAX COMPLIANCE Text: Jeannitza Felix | Meijburg & Co Caribbean

A Closer Look on Tax Reporting & Tax Compliance In an attempt to increase overall compliance with tax laws and regulations, governments worldwide are implementing more stringent antiavoidance measures and regulations.

Furthermore, through these measures and regulations more requirements are being placed on entrepreneurs and businesses in order to improve transparency. This development in the tax practice worldwide has accelerated in recent years and is still

increasing the demand for overall tax reporting and tax compliance. For instance, in Aruba the government has introduced the ‘National Ordinance for international Tax Assistance’ (in Dutch: ‘Landsverordening internationale bijstandsverlening belastingen’), in which it has committed itself towards foreign countries and the OECD to exchange information concerning taxpayers that is (or might be) of relevance for one or more of those countries. Furthermore, Aruba publically declared its political 10

commitment to implement the common reporting standards (CRS) and should be undertaking the first exchanges by 2018. Additionally, Aruba has embedded transfer pricing reporting obligations in its national corporate income tax law.

As a result of these developments, companies are actually becoming increasingly busy with tax reporting and tax compliance also in small jurisdictions such as Aruba.

Entrepreneur Aruba Aruba 2017 2018 Entrepreneur

Tax reporting and tax compliance is becoming increasingly important worldwide The Effects of the Growing Demand for Tax Reporting and Compliance Nowadays, compliance with everchanging tax laws and regulations should be on the top of every company’s priority list. The increasingly stringent measures imposed by tax authorities with regard to tax reporting and tax compliance such as the introduction of CRS and documentation requirements, amplifies the demand for tax reporting and tax compliance. This in turn results in a demand for well-functioning taxcontrol frameworks and modern-day reporting tools that is growing day by day. The ultimate objective of the tax control framework would be for companies to be in compliance with tax laws and reporting requirements as well as being in control of their inherent risks. Additionally, it could help manage and mitigate risks that exceed a company’s risk appetite.

As a result of the growing demand for tax reporting and tax compliance, companies are also increasingly inclined to invest in the right technologies in order to make their tax reporting and tax compliance process more efficient and transparent. These technologies can subsequently also be used to assess a company’s overall approach to tax and to determine whether or not all tax compliance obligations are met.

Furthermore, the growing demand for

tax reporting and tax compliance also resulted in an increasing role of tax accounting, since stakeholders such as tax authorities nowadays require greater transparency and insight into companies’ tax positions. As a result of this, tax accounting can currently be regarded as one of the indispensable components of an audit.

The shift from basic spreadsheet tools to modern-day reporting tools In the past most companies used to rely on basic spreadsheet tools in order to collect, store, and analyze data. These spreadsheets provided only little transparency implying enlarged exposure to non-compliance risks. With time the availability of tax technology has increased, enabling companies to be more compliant with tax reporting and tax compliance obligations. More and more companies are currently investing in software that analyzes and extracts data needed to meet the tax requirements at hand at a set moment in time. By virtue of the available tax technology and data management and analytics, more transparency can be generated within the data of companies resulting in more efficiency with regard to the collection of data for tax accounting and reporting purposes.

Additionally, companies have shifted the way they ‘do tax’ as a result of the growing demand for tax reporting and 11

tax compliance. With the introduction of the tax operating model, companies (and their tax departments) have developed new strategies to organize the tax department’s activities, people, processes, and infrastructure in order to be in compliance with tax laws and regulations while achieving the company’s strategic aims. The tax operating model should be effective, efficient and transparent in order to meet the growing demand for tax reporting and tax compliance and therefore to be successful.

Conclusion Tax reporting and tax compliance is becoming increasingly important worldwide. Furthermore, governments worldwide are mandatorily promoting transparency. Also smaller jurisdictions such as Aruba are implementing laws and regulations that promote transparency and overall compliance with tax laws and regulations.

This growing demand for tax reporting and tax compliance has resulted in an increased demand for wellfunctioning tax-control frameworks, modern-day reporting tools as well as tax accounting and innovative tax operating models. All these tools are built to help manage and mitigate risks that exceed a company’s risk appetite and meet the growing demand for tax reporting and tax compliance.

Entrepreneur Aruba 2018

COLUMN

TEAM SPORT

RESTLESS LEGS Text: Rianne van Rijswijk

A

Tekening: Joes Wanders

s a physiotherapist I see many with different disorders. Of course I have a preference. Not for a disorder as such, but I do have a preference for a certain type of patient .Patients I enjoy working with are sportsters. Sporting is really important for filling up my day, for my mental well -being and physical reward. I can imagine, but fortunately I do not speak from experience, how annoying it is when one cannot do a sport because of an injury or a persistent complaint.

Some sports demand that one’s body is in an excellent condition, others demand more power and explosiveness.

It goes for both efforts that one has to take a break at a certain moment (roughly 24 hours after cardio- and 48 hours after power training).

However there is a disorder, a syndrome which demands motion from the body when it is at rest. The ‘restless legs syndrome’ ( syndrome of restless legs). The complaints the patients describe are for example an itching or burning sensation in the feet and legs, an enormous urge to move and sometimes also contractions of the muscles at rest or in one’s sleep (it may also occur in the hands and arms).

The symptoms particularly occur in the evening or at night, so when one is at rest. This is a neurological disorder so the cause lies with one’s nerves. Nerves control muscles and with this disorder something goes wrong with the

functioning of those nerve cells which send signals to the muscles and make movement possible. At the time when the body should be at rest, it demands motion.

Notwithstanding the fact that you have had sufficient exercise that day.

This goes to show that the body also has a mechanism which looks like the effect of ‘supply and demand’ in the market place. If the supply is greater than the demand, the producers end up with a surplus, which they can only sell if they dare ask a lower price. In that case there is a downward pressure on the price. When the demand is greater than the supply, the consumers will still keep on asking for the product until the complete production has been sold.

If they really still want the product, then they will have to be willing to pay a higher price, which causes an upward pressure on the price. Restless legs, one may see it as a distorted demand, may cause an upward pressure on one’s body. As unpleasant as it may be, beside nutrition and sticking to a certain rhythm, the advice usually given is ………….the answer is quite obvious: Keep on moving.

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Entrepreneur Aruba 2018

Apps

You’re not stuck shuffling anymore SPOTIFY LAUNCHES A REDESIGNED APP WITH ON-DEMAND PLAYLISTS FOR FREE USERS Text: heverge.com

At an event in New York City today, Spotify revealed a redesigned app experience for its 90 million free customers.

It’s the first major change to Spotify’s free tier since 2014, and visually it looks a lot like what The Verge reported earlier this month. Free listeners will now get on-demand access to 15 “select” playlists; you can play any song you want inside those playlists and are no longer stuck in a world of shuffled playback. You’ll have to deal with shuffle beyond those 15 playlists, but this is still a significant improvement over how things have been until now.

T

hose aren’t playlists you make yourself, however.

The 15 full-control playlists are generated

by Spotify based on your listening habits and are constantly updated — most of them daily. They include a total of 750 songs. Discover Weekly, Release Radar, and Daily Mix playlists are included, so it’ll be nice to have more flexibility with those.

Spotify says users have created over 2 billion playlists. The updated app will help assist users with this “playlisting” process by suggesting songs that are similar to those they’ve already added right below the search bar.

Also, Spotify will now ask free customers to choose their favorite artists as soon as they get started with the app, allowing the service to immediately provide personalized playlists tuned to their tastes. The new Spotify also has a “data saver” mode that’s meant to make life easier for people on capped data usage plans.

Spotify says it’s currently in the process of rolling out the redesigned app experience to everyone.

At the start of today’s event, Spotify’s chief R&D officer Gustav Söderström touted the three tentpoles that have brought Spotify success: ubiquity (availability across popular devices), personalization (Discover Weekly, etc.), and freemium.

“Spotify is both the radio station and the record store,” he said. The freemium aspect is particular important; Spotify has over 90 million free users.

It’s where 60 percent of paid users start out. The company’s goal is to keep free users satisfied and not have them feeling like second-class listeners.

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But the company is aware that in recent years, it has prioritized monthly subscribers over free listeners. “Over the last several years, we’ve made Spotify’s premium mobile experience top notch,” Söderström said. “The mobile free tier has stayed exactly the same since 2014,” he said, adding that “discovering music in shuffle mode is a tricky proposition.” But that’s changing with this revamped experience.

Spotify will now recommend similar sounding songs right underneath search to make “playlisting” easier.

One thing Spotify didn’t discuss much today was voice. The company has been testing voice commands inside its mobile app, giving users a route to music that’s faster than thumbing out whatever it is they’re looking for.

Söderström said Spotify is investing in voice, but it didn’t have any news to share today. And in a very small international rollout at the start of 2018, Spotify released a standalone “Stations” app that’s exclusively dedicated to playlists. He didn’t comment on how that factors into the overall strategy.

Nor did executives on stage make any mention of hardware ambitions.

The mysterious in-car player was a no show, but we didn’t expect to see it after Spotify emphasized this would be a software-focused event.

Entrepreneur Aruba 2017 2018

DOG HOTEL With clients ranging from directors of insurance companies to people working in the tourism industry, Dog Hotel Aruba N.V. has become the goto place for locals’ fourlegged friends. It started as a dream of Armando Lugo and his girlfriend Roselyne Figaroa back in the summer of 2016, and has gone further and faster than either one of them could have ever imagined.

A five Star Concept is born Personal financing was the base of the initial set-up of the business that is now a concept synonymous with highend dog care and facilities. Looking at their Instagram, it is clear that the dogs are treated like stars and that a client needs to look very hard nowadays to find their own dog among the large pack.

With their small start capital they purchased the first couple of dog kennels in September of 2016 and created a Facebook page. Before they were even fully operational, people were already messaging them, hoping to place their dog at the hotel over the Christmas and New Year period.

December was fully booked before they even opened. This was just the first sign that they had found a hole in the market – in less than a year’s time they would find out exactly how high a demand there was for a home away from home for beloved pets.

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Entrepreneur Aruba 2018

ARUBA: DEMANDING ANIMALS The three Prongs – Demand Driven It’s a demand-driven endeavor – with highs and lows. After the initial boom in December, they encountered a bit of a slump with sometimes only two dogs staying at the Hotel and a steady 25 by June. But then this all changed.

After listening closely to the needs of their clients, they added services such as a day care for dogs to their initial business model. The idea came forth after a satisfied hotel customer asked about the possibility of bringing their dog during the day while they were at work. This move and the exposure in a local newspaper led to more and more people making use of the dog hotel services.

By keeping the business agile and flexible, Armando and Roselyne have been able to take their business model to the next level. From day care services to adding a refurbished 40-ft container hotel with air-conditioning that holds a maximum of twenty dogs on any given day. While they are expanding their business and the services they offer, they always keep their customers in mind and their prices friendly. They offer different day care packages, depending on the need of the client and, for an additional fee, sometimes even arrange for a pick-up service if time allows it. Besides the hotel and day care, which are the main sources of income, Armando also offers dog training sessions at favorable hours for his clients.

The couple draws their inspiration from North American dog hotels. They want to bring high quality at a reasonable price for both locals and tourists and they make sure that none of the additions to the business model puts their high quality on the line.

‘We want to create a hotel for dogs where even people would want to stay’, they explain To ensure that they maintain their high service quality, keep the dogs safe, and their customers happy, new potential clients get a tour around the dog hotel and will have to leave their dog for a test day before he is being accepted. The hotel owners have to see that the dog is not aggressive towards humans or other dogs and that they don’t bark excessively as to be a nuisance to their neighbors.

A five-Year Plan, completed in two Years Few new businesses break even in their first year; even fewer survive the first three years of existence. Armando and Roselyne’s story has been one of choices well made, continuous growth and change and, well, business stability. Their five-year plan has been achieved in less than two years. What does the future hold for a business where success came – seemingly –easily? In August they will add a reception area because of the long lines that queue up every morning. A fourth field will be added, increasing their current maximum capacity of fifty dogs in day care, and they will be installing a pool. All new plans they had to come up with after achieving their initial goals.

Instead of expanding to other locations, their current growth plans is to add more services to keep up with the high demand. Together with a team of two full-time employees, a second dog trainer who will also be manning the reception once that is up and running and, lastly a part-time accountant who’s responsible for the books, they strive to further enhance the customer experience.

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Additional markets are also opening up. The owners are talking with several hotels regarding potential collaborations. There are tourists coming to Aruba who want to bring their dogs, but most hotels don’t allow for them. That’s where the Dog Hotel Aruba comes in. Tourists have already directly contacted the Dog Hotel to make reservations for when they come to visit Aruba. It is another idea that was not in their original five-year plan.

We want to create a hotel for dogs where even people would want to stay’ Unique selling Points What sets them apart from the other dog hotels on the island are the multiple fields where the dogs may stay all day, the test day to guarantee the safety of current clients’ dogs, the high level of quality, and the fact that they are always looking at how to improve and take their customers’ feedback to heart. The human touch and close contact with their customers is what keeps them coming back.

‘There is always place for our loyal clients’, Armando says. Though Armando and Roselyne are busy with their enterprise 24/7, Armando smiles when he’s asked if it ever feels like work, ‘No, not at all. Do what you love and you never have to work’.

Entrepreneur Aruba 2018

Sue-Ellen Farro-de Freitas Sousa

Mission Sue-Ellen’s mission is to guide her team and bring out the best by stimulating optimism and creativity, and to reinforce the organizational core values together.

History Sue-Ellen was raised in Bonaire. At the age of seventeen she moved to the Netherlands to study International Tourism Management & Consultancy in Breda. After her graduation in 2006, she instantly started to work at the Citigroup Corporate and Investment Bank in Breda. In 2008 Sue-Ellen moved to Aruba. She is married and has a son and a daughter. In June 2010 she started to work at the Aruba Chamber as a project assistant. Shortly after that she moved to the Business Info and Support (BIS) department. She functioned for almost five years as Business Info & Support Coordinator. Her career path at the Chamber moved up to the next level in 2016 when she became the Junior Head of the same department.

The BIS department aims at building and maintaining positive relationships with the business community as well as informing and supporting existing and potential entrepreneurs in various ways.

Sue-Ellen Farro Head of Business Information & Support Aruba CoC & Industry.

Name: Sue-Ellen Farro-de Freitas Sousa Company: Aruba Chamber of Commerce & Industry Function: Jr. Head of Business Information & Support Date of birth and place: August 18, 1983, Curacao Goal: Personal: to enjoy life, be grateful and happy, be an example and dedicated to her children and keep working on self-development.

Professional: provide high level customer service and keep innovating and improving procedures to facilitate the process of doing business Passion: her family, fitness, fashion, house & garden styling Books: ooks on motivation and self-development, articles on all kinds of topic Movie: romantic, drama: Pretty Woman, Selena. Series: Sex and the City Music: music lover! All kinds of music; frequently listens to Latin Pop, Bachata, Salsa, several Brazilian genres and workout energy boosting songs.

Sue-Ellen is now living in Aruba for over ten years and calls the wonderful island her home forever. She tries to keep a good work-life balance in order to obtain both job satisfaction and quality time with her family. Besides that, she loves to stay active while keeping a healthy lifestyle, travel, and celebrate life whenever possible. The busy life routine sure is challenging, but not impossible.

Future As the Aruba Chamber keeps improving and innovating its services, she hopes to keep on working on creating relevant and dynamic business services and events to encourage businesses together with her team. By trying to create liaison networks between the Chamber, government departments, and other relevant stakeholders, she wishes to achieve a quick and effective collaboration. Furthermore, she aims at helping others to achieve their goals and improving herself continously.

Entrepreneur Aruba 2018

Q12018

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

January 2018 delivered more registrations, which would have given indication that the first quarter of 2018 would be better than its predecessors. February and March 2018, however, did not follow this trend and were unable to meet the figures that 2017 provided during Q1.

pillar has seen positive figures, which would sustain any further economic downturn. Many large investments have slowed down, but are still ongoing. During Q1 2018 the total registrations recorded summed up to 345, which counts for 36 fewer registrations compared to Q1 of 2017.

There were also fewer cancellations compared to same period of the previous year.

The Aruba Chamber of Commerce and Industry (ACOC) collected and analyzed the information regarding the registrations during Q1 of 2018. Through the information of registrations and cancellations the ACOC attempts to give an indication on how the economy has developed. In regard to the demand side, the CBA indicated that regardless of a positive development, consumers remained cautious and negative. The situation is very likely influenced by the delay in the refurbishment of the refinery and by measures to reduce the financial deficit to be implicated by the Government of Aruba. Tourism as its main economic

Registrations As indicated there were a total of 345 onshore new businesses registered during Q1 of 2018. Since May 2017 there has not been any new offshore registration recorded.

Q1 of 2018 started very promising but ended with fewer registration compared to Q1 of 2017. The numbers of the last two months can be matched with 2016 which means that the desire to start a business has not continued to rise the last couple of years.

This development will be interesting to follow in order to see if there is a pattern of registrations that correlates with the other factors affecting the economy. Q1 of 2017 had the highest total of registrations over 2017 and in order to maintain a good result for 2018, business endeavors need to be stimulated and incentives to start a business need to be created.

Development of total Registrations during Q1 of 2016, 2017 and 2018 143

140

134 100

100 80

116

131 100 92

102

Sole proprietorship plays a key role in the economy of Aruba and during Q1 there were 202 new registrations, which accounts for 11% more than Q1 of 2017. VBA (LLC) has 102 registrations, NV (Inc.) has 37, VOF and other types have two registrations each during Q1 of 2018. Only the sole proprietorship type has continued to grow in number of registrations during the last years. VBA decreased with 19.7% and NV with 28.8%. The entity types VBA, NV, and Sole Proprietorship form collectively the majority (98.8%) and remain key entities that shape up the commercial gears of Aruba.

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60 40 20 0 Jan

2016

Feb

2017

2018

Mar

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Entrepreneur Aruba 2018

Total Registrations compared with total Cancellations per Q1 of 2012 - 2018

From the analysis per sector, we can conclude that ‘services in general’ are the leading sector to start a business. Most entities of this nature are located in Oranjestad and Noord.

These two areas are also the most popular for establishing a location for a business. Noord is closely followed

by Santa Cruz and Paradera. Hereby showing that due to the nature of Aruba’s free market enterprise and limited restrictions, it is possible to establish your business where you consider it to be most beneficial for you. San Nicolas falls in the last slot and it remains an enigma whether the refinery will open or not.

350 250

324

266

270

345

323

315

381

299

267

247 225

200

198

194 171

150 100 50 0 Q1 2012

Q1 2013

Q1 2014

Total Registrations

Q4 2015

Q4 2016

Q1 2017

Q1 2018

Total Cancellations

Analysis per Sector per District during Q1 2018

Oranjestad Noord Santa Cruz Paradera Saventa San Nicolas

Services in general

26

17

6

3

7

1

Retail stores

Hospitality, F&B (horeca)

Construction

Real estate, Rent

16

16

3

6

5

1

21

11

5

4

1

5

9

9

1

1

3

4

16

10

4

5

5

1

Vehicle Rentals and tours

4

6

1

2

5

3

Personal care services

3

6

1

1

1

0

31

19

17

16

14

10

Other

A look at the total registration of Oranjestad shows that there were 126 new registrations located in this area.

Noord follows with 94 registrations of new companies for Q1 of 2018.

Santa Cruz and Paradera have each 38, Savaneta has 37, and San Nicolas

has 25 new registered companies. The density to have a business established remains in the area of Oranjestad and Noord. Nevertheless other districts have slowly increased in numbers.

18

Registrations during Q1 have fluctuated since 2012 and reached a peak during Q1 of 2017.

Developments influenced by the decisions of a new government, the restoration of the refinery, dependence of the hotel sector, private investments

Entrepreneur Aruba 2018

Registration based on Type of Business onshore per Q1 of 2012 - 2018 Q1 2012

Q1 2013

152

210

189

171

154

182

202

22

31

58

71

63

127

102

79

61

67

48

45

52

37

AVV

1

1

3

0

1

1

0

VOF

1

5

2

6

3

5

2

Other

6

7

3

3

1

13

2

Sole proprietor VBA (LLC)

NV (INC.)

Q1 2014

Q1 2015

Q1 2016

Q1 2017

Q1 2018

Registered Cancellations based on Type per Q1 of 2012 - 2018 Q1 2012

Q1 2013

147

133

151

120

126

138

23

26

22

23

33

35

42

30

31

40

3

26

8

AVV

1

0

2

5

8

8

7

VOF

5

2

6

6

4

3

6

Other

6

1

2

2

1

1

1

Sole proprietor VBA (LLC)

NV (INC.)

and consumer confidence contribute to the figures seen during Q1 2018.

Tourism was the most important driver for economic activity, as hotel revenue and tourism receipts grew during Q1 together with increments in private investments as indicated by the CBA. The number of cancellations recorded during Q1 2018 has also settled. We see that fewer cancellations have been registered and this could indicate that existing companies were able to

Q1 2014

Q1 2015

Q1 2016

stay afloat or that inactive companies have not been reported as such at the Chamber. The Chamber is aware of the situation that entities are not reported, with the consequence that the cancellations are not accurate.

By law, as mentioned in the ‘Trade Register Regulation’ article 13, all changes need to be mentioned and the cancellation of a business is no exception. A cancellation would indicate a status change of a 19

Q1 2017

Q1 2018 134 15

business and this information must also be updated in the registry at the Chamber.

Entrepreneur Aruba 2018

The threat which might be the opportunity that traditional commerce in Aruba needs.

Text: Aruba Chamber of Commerce Aruba

e-Commerce and the changing

B

usiness in Aruba is facing many challenges.

That has always been a characteristic of running a business. It is visible that the Main Street has lost its spirit. Aruba has developed into a social media environment and the trend shows that everything takes place online. Businesses cannot ignore this and need to tag along in order to succeed or stay alive. Managing an online business in Aruba, however, faces limitations due to inadequate payment methods. The local consumer on the other hand does not stress about this obstacle and will not hesitate to browse the internet for better and cheaper items online. A visit to the store is becoming a thing from the past. Businesses have to move with the time or they will stay behind and cease to exist. Innovation is key.

Stimulate e-commerce to help cover all the bases Consumers of today and traditional commerce are becoming more alienated from each other. As in

traditional commerce the face-to-face contact is a way for the salesperson to measure loyalty. Retaining the consumer has become a difficult task, since consumers like to have as little commitment requirements as possible. More and more businesses worldwide now rely on e-commerce to scale their companies, decrease costs, and increase convenience for their customers. Through e-commerce you can reach a broader spectrum of potential clients and you can be accessible at a time which is at their convenience. Your business becomes more accessible with e-commerce and this by a touch of a finger on a mobile device.

Move forward with the digital times A closer look to the e-commerce sales of US retailers shows that Amazon Inc. dominates the list of the top fifty companies followed by Apple Inc., Wal-Mart Stores Inc., and Macy’s Inc. Macy’s has been closing down several stores since this was announced in August 2016. The decision made was to stop the hemorrhage of negative 20

returns in sales since Q1 of 2015.

Macy’s finally recorded a turnaround towards a sales growth during Q4 of 2017. The largest US retail store has finally redeemed itself after having to close about 100 stores during 2017 due to underperformance of certain stores at malls where the shopper reach out has not been as desired.

The described situations give a clear example of how traditional commerce is steered into implementing e-commerce. For Aruba this would not be any different. Businesses must embrace the paradigm shift in consumer behavior. This characteristic correlates with the behavior of the Millennials. For the Millennials it is important to obtain their particular request through the internet and with minimal effort. Businesses must include the possibility to complement their business model as such: interaction at the storefront and allowing the customer to have the option to shop conveniently at home.

g consumer behavior All the benefits at the reach of your fingertips The main benefits of e-commerce include labor cost effectiveness, growth through online business, and new channels.

Labor cost effective Expanding to e-commerce does not imply that your staff needs to expand too. You need more equipment and someone to manage your new technology, but most of the improvements to your business come through automated developments.

Growth through online business Your business is not limited to the given square meters of your retail store but through a website you can say you can display so much more. Customers can learn from your company and products with ease.

New channels Through e-commerce you can build other distribution channels for existing items. You give the customer the

option to purchase an item from home.

This means your market can even cross borders and you can take your business to the worldwide market.

With the social media in your arsenal, the possibilities are infinite. A research conducted in the US showed that Facebook has been an important tool for online purchases.

Seller beware!

Participating in e-commerce does have its requirements. The internet for example is an integral part of the success of e-commerce. The framework needs to be there in order to maintain the traffic flowing to your digital storefront. Another known risk to e-commerce is that the customer does not see the product until after it has been delivered. A clear and good transaction agreement for the online shopper is important. The reputation of your business is closely linked to your level of service and delivery. The security of your customers’ information is also important and cannot be taken for granted.

21

PARTICIPATING IN E-COMMERCE DOES HAVE ITS REQUIREMENTS. THE INTERNET FOR EXAMPLE IS AN INTEGRAL PART FOR THE SUCCESS OF E-COMMERCE.

Entrepreneur Aruba 2018

WOMEN IN LEADERSHIP CONFERENCE

August 24, 2018 Aruba Trade & Industry Association ‘Women in Leadership’ is an initiative of the Aruba Trade and Industry Association, ATIA. The organization was called to life to spearhead thoughts and actions to have more women assume leadership positions in Aruba and elsewhere.

Text: Aruba Chamber of Commerce

JUL 2018

GOOD4THENEIGHBORHOOD – BUILDING ENTREPRENEURS 2 July 9, 2018

The purpose is to give students from all socio-economic backgrounds and neighborhoods an opportunity to start their own business by learning basic business skills which they internalize and use all their lives. They will receive classes from specialists in our community during a three week program at the Aruba Bank G4N headquarters starting July 9, 2018. For more information mail g4n@arubabank.com or call 527-7728

The exploration of women in various leadership positions was a topic hardly discussed on the island, until the first conference held on June 30th, 2011. The response exceeded all expectations, indicating a clear thirst of women in Aruba to also take on leadership roles, whether in the board room, the political field or as entrepreneurs. The previous conferences focused on inspiration, taking action, breaking the glass ceiling and building female role models. This year’s conference will take place on August 24, 2018 at the Aruba Marriott Resort and Stellaris Casino and is titled ‘Women in Innovation’.

For registration or more information, please call ATIA at 582-7593 or email at info@atiaruba.org.

SEP 2018 THE ANATOMY OF LEADERSHIP

September 11, 13, 18, 20 and 25, 2018 Aruba Trade & Industry Association Lecturer: Michele Brooks – PJ Consulting Group, VBA This is a leadership training for the 21st century leader.

This training is designed to use biological and anatomical teaching on various parts of the body (albeit brief), and apply those principles to the innate meanings that each body part adds to one’s make up and the characteristically driven structure of being and/or becoming a true leader. This training has incorporated cutting edge principles of leadership. This is a five days, 2.5 hour training that will be given by Michele Brooks at the ATIA Conference Room.

For registration or more information, please call ATIA at 582-7593 or email at info@atiaruba.org.

AUG 2018

FAS - FINANCIAL ADMINISTRATION FOR STARTERS PART 3 - COURSE

August 28, September 4, 11, 18 & 25, 2018 Aruba Chamber of Commerce The objective of this course and its content is to give participants an analytical perspective on the profit and loss statement and the balance sheet. This course is intended for participants who already have a basic knowledge of financial administration.

Course dates: August 28, September 4, 11, 18 & 25, 2018.

For more information on the course please contact the Aruba Chamber of Commerce at businessinfo@arubachamber.com or at +297 5821566 ext. 27/30/35/42.

BUSINESS KICK-OFF; LET’S TALK BUSINESS September 26, 2018 Aruba Chamber of Commerce This event is especially for entrepreneurs who just started their own business.

22

Entrepreneur Aruba 2018

Information and consultation on different subjects will be given, especially for starters, such as procedures, proper administration, tips from other (successful) entrepreneurs, organizations, and professionals. This will take place on September 26th, 2018 from 6:00 – 9:00 pm.

For more information on the course please contact the Aruba Chamber of Commerce at businessinfo@ arubachamber.com or at +297 5821566 ext. 27/30/35/42.

OCT 2018 WORKSHOP: PROBLEM SOLVING

OCTOBER 15, 2018 – OCTOBER 9, 2018 ARUBA CHAMBER OF COMMERCE Problem-solving is a vital management task. It is the indicated way to get acceptable solutions, answers, and conclusions for all sorts of business situations. A manager could rely on the trial and error method, but will soon discover that this can be very time-consuming and costly.

Experience does not always help either. Participants will receive practical templates, models, charts, matrixes, and diagrams that are universally used in Professional Problem Solving Techniques.

COURSE INDEPENDENT ENTREPRENEUR SMES

OCTOBER 15, 2018 – JUNE 2018 ARUBA CHAMBER OF COMMERCE In this course you will get the opportunity to gain knowledge and skills to start your own business or to improve your current business. Topics such as: marketing, writing a business plan, business administration, taxes, working with Payroll Pro and QuickBooks, and much more will be given by professionals in these fields. It is a very interactive course where participants are guided through their business plan and have the opportunity to obtain financing. The duration of the course is 28 weeks.

For more information on the event please contact the Aruba Chamber of Commerce at bussinessinfo@arubachamber. com or at +297 5821566 ext. 27/30/35/42.

For more information on the course please contact the Aruba Chamber of Commerce at bussinessinfo@ arubachamber.com or at +297 5821566 ext. 27/30/35/42.

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

23

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

Entrepreneur Aruba 2017

Start your International Business

export incentives for companies in the Dutch Caribbean Text: Anika Stevens | Freezone Aruba

There are many opportunities in international markets to expand your market, grow your business and spread risks. Technology and innovation are making country borders fade.

This makes it easier to do international business.

M

any SMEs (small and mediumsized enterprises) are struggling to successfully enter foreign markets. That is why entrepreneurship, trade and investment promotions are very important. Not only to stimulate economic development but also to give them a helping hand to successfully expand. Within the Dutch Kingdom, there is much knowledge and many contacts available to share and to strengthen our economic power and diversity. To promote trade and export, The Netherlands 24

Enterprise Agency (Rijksdienst voor Ondernemend Nederland – RVO) recently made some of their export subsidy instruments available for companies established in the Dutch Caribbean. Companies in Aruba, Curacao and Saint Martin can use these instruments to engage in international business. The Netherlands Enterprise Agency (RVO) is part of The Ministry of Economic Affairs and Climate Policy of The Netherlands. They provide support in The Netherlands to enterprises with sustainable, agricultural, innovative and international business activities.

The agency provides tools, such as: subsidies, help in finding international

Entrepreneur Aruba 2017

For more information about the subsidiary programs you can visit

www.exprodesk.com or www.rvo.nl. business partners, knowledge and compliance with international laws and regulations.

Since January 1, 2018 businesses from Aruba, Curacao and Saint Martin can apply for different services and subsidy programs offered by RVO to promote trade and export.

Programs for companies exploring export opportunities are: Starters International Business (SIB) Starters International Business (SIB) is a program that can help companies move into foreign markets. The SIB consists of vouchers to help businesses spread their risks and help with planning to take businesses abroad. Different types of vouchers are available such as: consultancy to explore opportunities and make a concrete action plan, participate in an outgoing trade delegations or acquisition vouchers to hire a lawyer or tax consultant with export expertise.

It aims at the companies that are in the export oriented phase.

Business Partner Scan The business partner scan is a program that helps connect companies with the right international business partners. It aims at companies that have export plans, know their foreign markets and are looking for business partners.

RVO, embassies and consulates, Netherlands Business Support Offices (NBSO’s) offer a business partner scan with a personal introduction to potential international business partners.

Programs for more mature exporting companies: Partners for International Business (PIB) The partners for international business (PIB) program aims to position exporting companies in (additional) promising foreign markets. The government, private sector and different institutions support companies with a structured approach.

The Kingdom of the Netherlands has an extended network of ambassadors, consultants and Netherlands Business Support Offices (NBSO’s) to successfully execute the PIB program.

Subsidy scheme for demonstration projects, feasibility studies and investment preparation studies (DHI) The DHI (demonstratieprojecten, haalbaarheids- en investeringsvoorbereidingsstudies) scheme supports SMEs with international ambitions that are interested in emerging markets and developing companies to invest or execute a project. It is a tender program where tenders can be 25

submitted during different tender periods. The DHI scheme consist of 3 modules; project demonstrations, feasibilities studies and investment preparation studies.

The programs apply to trade and investment in countries outside the Kingdom of the Netherlands.

They are offered in cooperation with local partners and under the same conditions as those applicable to companies established in The Netherlands.

The Minister of Foreign Affairs of the Netherlands, through The Netherlands Enterprise Agency (RVO), and the Representation of the Netherlands (VNOA), together with the support of Aruba through Exprodesk, assist Aruban companies to increase their international opportunities and expand their businesses.

Exprodesk offers information and assistance to local companies that want to make use of the subsidy programs offered by The Netherlands Enterprise Agency. Exprodesk works together with Free Zone Aruba, Aruba Chamber of Commerce and Industry, ATIA, ARINA and the Department of Economic Affairs.

Entrepreneur Aruba 2018

6 RULES Text: Brechtje Huiskes | VanEps Kunneman VanDoorne

TO WRITE AN EFFECTIVE DEMAND LETTER Sooner or later every business owner will encounter a defaulter: a person that does not pay the invoice sent by your company. In most cases, it is not the best approach to immediately bring such a case before the court. It is better to start with a demand letter. Often payment will follow upon receipt of the demand letter by the debtor and the long and expensive way through court will no longer be necessary.

E

ven if the debt is not settled following the demand letter, the demand letter can still be used as a valuable piece of evidence in court. When you are writing the demand letter you should therefore keep in mind that your public is twofold: the letter is addressed to the debtor but it should also be clear for a judge, in case you need to take the debtor to court after all.

1. Describe the Problem To make sure that both the debtor and the court would understand the situation in which you demand payment, it is advised to include a complete description of the problem in the demand letter. Mention the invoiced amount, the invoice number (if any), and the service or goods for which the payment is due. Also, describe your previous attempts to obtain payment. Mention the calls you made, and the previous letters or emails you sent to remind the debtor to pay the invoice. It is also practical to add copies of the invoice and any related documents to the demand

letter. This prevents the debtor from stalling payment by requesting to receive these documents again. It also helps the judge to have a complete picture of the facts.

confusion for the debtor about the payment term. If the payment due can be paid by a simple one-time payment, you should consider a payment term of five or ten business days.

2. Demand a Solution Be clear that you offer a last opportunity to pay the invoice.

Also, include any interest due or a contractual fine incurred because of the payment default. Be aware that claiming the interest and a contractual fine on top of the invoiced amount can also be used as a bargaining chip.

Read further under rule five. Do not forget to include the payment details such as your account number etc.

4. Include a Notice of Default For the court it will matter if it was clear for the debtor that the demand letter was a notice of default. A notice of default has as a consequence that the debtor is officially in default when he does not perform the payment requested in the demand letter within the term granted. Of course it is important that the payment is already payable under the original agreement for a default to occur pursuant to the notice of default. To be totally secure, include the wording ‘notice of default’ in the subject line or in the body of the

3. Grant a reasonable Term to solve the Problem It is important to give the debtor sufficient opportunity to pay the invoice. The court will verify if the payment term granted is long enough to perform the payment. It is practical to include both the duration of the term and the ultimate day on which the payment should be received by you. This way there cannot exist any 32 26

5. Warn for the Consequences of Nonpayment Part of ensuring that the debtor is aware that this is his last opportunity to fulfill his payment obligation, is to point out the consequences of nonpayment. The consequence of nonpayment within the term granted has

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Girouette, Curaçao Central and elevated house with beautiful view on a very large plot.

to be described in the demand letter.

Here you can use the payment of interest or a fine as a bargaining chip by stating that you will only collect the interest and fine due, if payment does not take place pursuant to the demand letter.

If the debtor depends on your goods or services, it might also be effective to threaten to break off the business relationship. Further consequences can be to turn over the collection of the invoice to a debt collection office or an attorney or to take the debtor to court with all the extra costs coming for the account of the debtor.

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6. Confirm Receipt If you expect that you might have to use the demand letter in court, make sure that you obtain proof that the demand letter has reached the debtor.

This can be done by sending the letter via registered mail. You can also send a scanned copy of the letter per email and select the options to confirm that the email has been received and read.

This way it becomes hard for the debtor to deny in court that he has not received the demand letter.

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33

12345678 12 QUESTIONS BEFORE YOU START A BUSINESS Text: businesstown.com

Should I Start a Business?

YOU MAY BE ASKING yourself this very question. However, instead of trying to answer this broad question, I suggest instead you ask yourself the following list of 12 more specific questions.

By answering these questions you will more easily and decisively be able to answer the broader question of “Should I Start a Business.”

Furthermore, if you do decide to start a business, answering these questions will give you more confidence and strength in your choice of moving ahead.

“Should I Start a Business?” is not the only question you should be asking yourself.

The human mind likes simple binary choices such as that, an evolution of the basic “fight or flight” (see the right pages) syndrome man faced centuries ago. However, considering only one simple question like that in starting a business could lead you to a decision that you may regret.

It should also be noted that part of the answer to the question: “Should I start a business” depends on your business idea. Small business ideas are not created equal and some of them – Restaurants for example – have a higher likelihood to fail.

Ask Yourself These Questions Instead Instead, I would suggest that you probe deeper by asking yourself additional questions relating to whether or not you should start a business.

Here is a 12-question list: 1 How much cash will I have at risk?

2 How much time will it consume?

3 How much energy will it take?

4 Do I currently have other obligations that will prevent me from giving the business 100 percent?

5 Would there be a much better time for me to start a business other than now?

6 What are my alternatives if I don’t start a business now?

7 What are the chances of success?

8 Am I looking at starting a business from a position of relative strength – feeling good about myself and feeling I am relatively well off – or am I looking at starting a business from a position of relative weakness – recently laid off from a job and being behind on my bills?

9 Can I test-run the business part-time before quitting my job?

10 Should I choose between a higherrisk or lower-risk businesses?

11 Suppose my business provides less income than I expected. How long should I stick with it?

12 If the business doesn’t work out, how easily will I be able to pick 28

myself up and move along to the next endeavor?

You Have to Weigh the Risk vs. Reward For example, maybe you are fortunate enough to currently have an excellent, highly paid corporate job with terrific fringe benefits and good advancement potential. The key question for you might not be, “Am I going to start a business?” Instead, it might be, “Am I going to start a full-time business that will require me to quit my primary job?”

Starting any business involves significant risks. You need to weight the risks and the potential rewards.

Similarly, let’s say you’ve worked for many years and saved a lot of money and are close to retirement. Now you think you want to start a business.

So the key question for you may not be, “Do I want to start a business?”

Instead, it may be, “What Your initial investment will have an impact on which businesses you can start.

But it doesn’t mean that you can’t start a business on a small budget.

Starting any business involves risks.

And for most businesses, significant risks, as the failure rate for new businesses, is high.

89101112 Hard Limits Can Reduce the Fear of Starting a Business Facing risks makes people fearful.

Often, you can reduce the fear and feel better about starting a business if you have limits – firm, hard limits; limits that you write down and put right in your business plan.

Starting a business is a stressful experience. You need to set specific limits to limit your fear of failure and stress.

For example, you may decide your hard limit is that you will not start any business that interferes with your day job.

Or you may decide your limit is to not invest more than $100,000 in your start-up business.

Or you may decide that you will only try a new business for one year, and if you don’t have at least 50 customers and $50,000 in sales after that period,

you will shut it down.

So as you can see, deciding whether you should start a business can be complex and require some exploration and thought.

While having limits is a good way to make your experience less stressful, you should also choose an easy business to start. Especially if it is your first time starting a business.

the days when it looks like the whole show may go south (and almost every business has those days). That’s why, for many people, the best approach is to start small with specific limits.

In fact, you might want to first start a business that you see as just a simple test business, to get your feet wet and build your experience. It will be time well spent, I assure you.

Not Having Specific Limits Can Get You Into Trouble You might be thinking, “Why should I limit how much money or time I put into my business; I want to think big right off the bat and do everything right and as well as I can.”

Plan Ahead Before you start your business, it is absolutely crucial to have a plan.

So, when you start thinking about your business, even in the very early stages, I would encourage you to start creating your business plan. You don’t have to write the whole thing yet! Even just building your business plan outline will help you identify the potential strengths and weaknesses of your future business.

Well, that’s the kind of thinking that can get you into trouble. If you are at all anxious about pouring all of your time and money into a business now, imagine how anxious you will be on

Fight -or- flight Response

Hyphothalamus activates adrenal-cortical system by releasing CRF

activates sympathetic nervous system

impulses activate glands and smooth muscles

activates adrenal medulla

releases norepinephrine

releases epinephrine

bloodstream

pituitary gland secretes hormone ACTH

ACTH arrives at adrenal cortex release of approximately 30 hormones

Neural activity combines with hormones in the bloodstream to constitute fight -or -flight response

29

Entrepreneur Bonaire 2018

MATCH AND DEMAND

ETERNAL DEMAND

W

Text: Tom Kok | Coolgroup

hen trying to match the demand of the customer, the eternal question is: what does the customer want? Since the lead time for supplies of any kind might take a while, wouldn’t it be wonderful if we were able to discover what the eternal demand of that customer actually is?

Scholars of the University of Tilburg in The Netherlands have been conducting a long-term study about happiness. Their research has shown that there is one thing that always gives a feeling of happiness to practically everybody. Now, what is that one thing, this element of eternal demand?

The eternal demand is the chance to develop. Beware this doesn’t mean the development itself, but the chance to develop. Give anybody the perception that your product or your service represents a chance to develop themselves and the resulting feeling

will be happiness. People want to feel that they can develop, that they can progress, and that they have chances and options.

You therefore shouldn’t tell them what your product or service can do or how beautiful it is. Instead, you should emphasize how your service or product will help them grow and develop. This might need some creative thinking on your part, because with some services and products the chance to develop might not surface immediately. But it will definitely be a worthwhile investment in time and energy.

Take insurances for example. They can be presented as a way to cover risks, which is nice, but also dull. So let us rethink that for a moment. Once you are insured against the risks involved, you will not have the need for financial reserves to cover those risks. Which basically means, you are free to use that money to invest in yourself, in your personal development.

Another example might be a book.

30

Of course you can buy a novel for pleasure only and joy it will bring. But a book is also a journey of discovery which will give you the chance to develop your thinking and creativity.

Every book opens up your world and offers alternatives for your present life.

Gardening supplies on the other hand might seem like a whole different story, as everybody can put a plant in a pot and water it. But what if you really would invest in the perfect maintenance of a beautiful plant?

Maintaining plants by giving them excellent care with the proper tools wallows your mind and being in the conviction that you can execute a perfect job. An exemplary plant represents a strong mind. And a strong mind will surely give you new opportunities because people will see and love it.

So try it out.

Rethink how your services and products can address your clients’ chance to develop and you will be surprised.

Books

COLUMN

A LESSON IN DEMANDS Text: Paul Janssen

Recently, my daughter went on a vacation for a few days. She has two very young children (three and one year), so it is quite an undertaking. You really need to have your logistics in order, especially if you also have to run your own company.

Next Generation Demand Management

Her husband has no clue and isn’t very helpful.

Because of his busy job and his youthful masculinity, his understanding of the female spirit and running a household with little children is not very well developed.

Often, that leads to a lot of stress for my daughter, and the holiday adventure was no exception.

After she had packed the car and put the children in their seats, she had to visit me to pick up an extra high chair.

Her face red, she shouted in despair: “Shoot, now I have forgotten my make-up too”.

A practical framework for revenue-boosting supply chain management

Next Generation Demand Management is a guidebook to next generation Demand Management, with an implementation framework that improves revenue forecasts and enhances profitability. This proven approach is structured around the four key catalysts of an efficient planning strategy: people, processes, analytics, and technology.

The discussion covers the changes in behavior, skills, and integrated processes that are required for proper implementation, as well as the descriptive and predictive analytics tools and skills that make the process sustainable.

Corporate culture changes require a shift in leadership focus, and this guide describes the necessary ‘’champion’’ with the authority to drive adoption and stress accountability while focusing on customer excellence. Real world examples with actual data illustrate important concepts alongside case studies highlighting best-in-class as well as startup approaches.

As a good father I tried to calm her by saying: “My dear, that’s no problem, you look wonderful and you don’t need any make-up at all”.

She looked at me in an evil way and threw a fit, pouring out all her anger and frustration. How stupid my male consciousness can be… She is good looking, but she can still be pretty vain, despite her being a busy mother and entrepreneur. Her frustration did not ask for a denial of what she thought she needed. She wanted support and understanding, because she did not get that from her husband.

Of course, I should have let her rage and then tell her husband that he can yield lots of goodwill by going home to pick up her make-up. Ultimately, that’s what she wanted. Unfortunately, I am still male enough to miss the ‘hidden’ demands of the female spirit.

So after she solved the issue to her satisfaction, she didn’t deign to look at me and took off.

Demand Demand in economics is how many goods and services are bought at various prices during a certain period of time. Demand is the consumer’s need or desire to own the product or experience the service. It’s constrained by the willingness and ability of the consumer to pay for the good or service at the price offered.

Demand is the underlying force that drives everything in the economy. Fortunately for economics, people are never satisfied.

Nowadays, before I say anything, first of all I think of the lesson I learned from my daughter: Missing hidden messages in any situation can cost you a lot of sympathy and a lot of money. That’s for sure.

They always want more. This drives economic growth and expansion. Without demand, no business would ever bother producing anything.

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Entrepreneur Aruba 2018

TACKLING ILLEGAL BUSINESS OPERATIONS: A TASKFORCE BROUGHT TO LIVE TO FIGHT CRIME

Text: Aruba Chamber of Commerce Aruba

To have an idea or a dream turned into a business is a significant achievement. It takes planning, patience and courage. A business needs to adhere to certain legal requirements. To assess the compliance and target illegal businesses a taskforce called ‘Afpakteam’ has been formed.

The enforcement of the Afpakteam (Taskforce) Since 1 February 2017 a taskforce has been installed to fight crime and to take goods from persons who are suspected of having obtained them illegally. This team is a collaboration between several authorities under which the OM (Public Ministry), Customs, FIOT (Tax Intelligence and Investigation Team), the Dutch FIOT, KPA (Aruba Police Force), Warda Nos Costa, MOT (Reporting Point Unusual Transactions) and RST (Criminal Investigation Department). The 32

Afpakteam has been very active since then, successfully addressing illegal business operations.

A visit from the Afpakteam/Taskforce is not something a business wants and it can be avoided.

A few things you might want to avoid There might be reasons to pursue doing business illegally but there are plenty of motives why this is not encouraged. Incorrect trends of doing business and misinformation can get you in trouble. Two particular situations where people, knowingly

Entrepreneur Aruba 2018

or not, get involved in a business which could get them in trouble are so-called “stromanschap” (a person acting as a front in order to start a company)” structures and running online businesses on social media.

‘Stromanschap’ is a situation where a person who is not allowed to start a business for whatever legal reason or requirement, acquires another to stand-in and get certain rights otherwise not granted. For example, a foreigner who is unable to get a permit due to the requirement that only locals are allowed to have a director’s license. This situation is known to have caused many shameful and unpleasant situations for the ‘stroman/front man’, who will be the one held accountable for the business and other requirements, such as tax debts. Usually a stroman/front man is promised a payment for helping out, but the risk that comes with it is usually not comparable. Therefore it is not advised to participate in such a structure.

Online businesses are also required to register and obtain the needed permits similar to traditional stores. Due to the accessibility and ease of the social media in combination with lack of understanding perhaps, many of these businesses do not register. This is an illegal activity and unfair competition for compliant businesses. With the implementation of new laws in the works for online business operations, it is recommended to have your business and investment organized according to the law.

By not complying with the legal business requirements, you are risking certain consequences which would put a stop to the way you are doing business and touch your profits.

Consequences of getting caught include: •Forced to close and cease operations; •Fines and fees for not having adequate licenses; •Possibility of lawsuits by victims of fraudulent activities; •Loss of reputation and business partners or customers who will not invest the same level of trust as before.

What are the formalities you need to keep into consideration?

It all depends on the nature of your business but the essence is as follows: Registration at KvK – as decreed by law (stipulated in the Trade Registry Ordinance, art. 4) an established company must be registered at the Chamber of Commerce and pay an annual fee. Failure to comply can result in a fine due to non-compliance.

Being registered has its benefits for the business depending on its level of maturity. The Chamber consults its database to seek opportunities for local entrepreneurs. The companies are continuously informed about events, trade missions and seminars.

Permit documentation of the Department of Economic Affairs and DIMAS – Depending on the type of business, a company is also required to have certain permits. This is stipulated in the Business Licensing Ordinance. As stipulated in article ten, failure to comply could result in detention up to six months or a fine of no less than AWG 2000 as punishment to intentionally make an incorrect or incomplete declaration to obtain a permit. In case you have employees from abroad, you also are 33

required to have the work permits of DIMAS (Department of Integration, Management and Admission of Foreigners). DIMAS imposes a fine on the employer who is guilty of the violation of work permit requirements.

Depending on whether the employer is a legal entity or a natural person, the amount of the fineable event is set. Fines go up to AWG 25,000 per punishable offense per person for a legal person or a maximum of AWG 10,000 for each offence per person for the benefit of a natural person.

Compliance with the Tax Department – It is important that the company meets its tax obligations on time.

Non-compliance will lead to fines and tax recovery measures. By paying taxes you are contributing to Aruba’s economy. Government tax earnings are allocated to pay debts and it’s in the best interest of the general public.

Business insurance – No matter the size, your business is a big investment and you want to have your investment properly covered. Insuring your business gives a little peace of mind because you can guarantee the continuity of your business against risks if any unpleasant situation should occur.

We like to see businesses grow and become successful. Have all your documentation in place and avoid getting involved with the Afpakteam/ Taskforce. Visit the Aruba Chamber of Commerce and Industry, send an email to businessinfo@arubachamber. com or contact the Department of Economic Affairs, Commerce and Industry at deaci@setarnet.aw for more information regarding legal requirements for your particular business inquiry.

Entrepreneur Aruba 2017

ENTRE PRENEUR ARUBA 2018

ENTRE PRENEUR BONAIRE 2018

CO

MI

NG

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.

SO

ON

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!

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Key Figures

CBS 20 June 2018

Description Period Value Inflation Monthly change May-18 0.3% End of period May-18 2.5% Period average May-18 0.5% GDP of Aruba 2011 Afl. 4,626 Mln Airport Commercial Landings Dec YTD 2015 17,546 (+20,93%) Airport Arrivals Foreigners Dec YTD 2014 1,100,334 (+10.7%) Government Tax Revenue Dec YTD 2015 1,201,997 Total population Dec YTD 2017 111,081 Change in population Births Dec YTD 2017 1202 Deaths Dec YTD 2017 707 Immigration Dec YTD 2017 2685 Emigration Dec YTD 2017 2714 Total imports 4th qrt-17 622.5 Mln Total exports 4th qrt-17 42.1 Mln Rooms(hotels) Occupancy rate Dec YTD 2013 77.5% (-1.9%) Average daily rate Dec YTD 2013 US$ 208.20 (+6.7%) Revenue per available room Dec YTD 2013 US$ 98.60 (+7.7%)

ARUBA Q3 2018

NEXT THEME

Aruba Chamber of Commerce and Industry

Qredits Interview with an Applicant

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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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