Entrepreneur (3) Business Magazine Aruba 2017

ENTRE PRENEUR DOW Aruba

Dienst Openbare Werken

Freezone; a World of economic Opportunities

Infrastructure as a Challenge

The Harbor of Aruba Booming and Developing

Infrastructure

Bringing back

Chamber of Commerce

Investing

of an Aruban Company

Facts and Figures Q2 2017

the good Life in the Future

Personal Energy

Business Magazine Aruba in Collaboration with the Chamber of Commerce Aruba | Q3 / 2017

Aruba

Entrepreneur Aruba 2017

Entrepreneur Aruba 2017

Content

Preface

Infrastructure

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Infrastructure basically entails all necessary amenities in the field of transportation and communication that enable trade, economic growth, and development. This includes roads, the airport, the harbor and telecommunication. In fact those constructions help us to connect two or more geographic points with one another.

The form, composition and the way things are organized can also be associated with infrastructure. In a beehive, for example, every bee has its own task. Bees either maintain the hive, look for honey or protect the beehive.

In order to keep on producing honey together and allow the process to go smoothly, bees make use of approach lanes and highways which they successfully maintain.

Just as in the beehive, a good functioning and wellimplemented infrastructure will ensure that all different departments within a company are seamlessly connected.

Moreover, it will bring the business the necessary peace and quiet which will enable you to focus on the mission and vision even better.

DOW Aruba

Dienst Openbare Werken

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Marnix Stoorvogel Colophon Publisher Conté | Marnix Stoorvogel Authors Subroto Bagchi Patricia Bergwijn Garrick de Cuba Edward Erasmus Jeannitza Felix Brechtje Huiskes Paul Janssen Jeanise Job Janine Kandel Tom Kok Sonja Velthuizen

Bringing back the good Life Qredits Aruba

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Translation: Artie de Vries Final editing: Write | Patricia Bergwijn Realisation Conté Distribution Fast Delivery Services N.V. Photography Conté \ ACOC \ 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 Q2 2017 Chamber of Commerce Aruba

Entrepreneur Aruba 2017

Content Free Zone; a World of

economic Opportunities

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6 DOW A Traffic-Jam-free Island 10 Infrastructure of an Aruban Company 12 Freezone; a World of economic Opportunities

The Harbor of Aruba

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14 Keep a Startup Mindset for the long Haul 16 IT-Infrastructure as Tax Function Blueprint 19 Column Life is not a Map

Infrastructure as a Challenge

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20 Qredits Bringing back the good Life 22 The Harbor of Aruba Booming and Developing 24 Infrastructure

Building your Company’s Infrastructure

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as a Challenge

27 Apps Budget & Money Manager 28 Profile Kawish Misier 29 Chamber of Commerce Aruba Facts and Figures Q2 2017 30 World Risk Report 2016: Inadequate Infrastructure 34 Chamber of Commerce Aruba Events SEP - NOV ‘17 37 Your personal Information up to Date 38 Investing in the Future A new Registration System 40 Building your Company’s Infrastructure 42 Personal Energy Get it and keep it

Entrepreneur Aruba 2017

Dienst Openbare Werken Public Work Department

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DOW

Entrepreneur Aruba 2017

A Traffic-Jam-free Island Text: Paul Janssen | Picture: Conté - DOW

The Green Corridor and the Watty Vos Boulevard are the two biggest infrastructural challenges of the last fifty years on Aruba. For Marlon Croes, general manager of the Dienst Openbare Werken (the Public Works Department, DOW), it is clear; their construction will continue to affect him in the years to come.

Both projects will contribute to a huge improvement of the traffic situation in and around Oranjestad.

‘

Aruba is a small island’, Marlon Croes says when he starts to explain the importance of the construction of the Green Corridor and the Watty Vos Boulevard. ‘As a result, major problems with traffic jams occur on a daily basis. And a traffic jam is not productive. Spending half an hour a day in a traffic jam will negatively contribute to the Gross National Product. The Green Corridor and Watty Vos Boulevard will streamline traffic and shorten travel time. It’s an investment, but it will also make

a huge contribution to the island’s productivity.’

According to the CEO of DOW, the core of the traffic problems lies in the excessive car ownership and car use on the island. The 110,000 inhabitants of the island own 77,000 cars in total.

That is more than 700 cars per 1000 inhabitants. This number is extremely high in comparison with, for example, the hectic city of New York with 525 cars per 1,000 inhabitants. Even the Netherlands have a lower car density.

When Croes started as General Manager on March 1, 2014, he took up the challenge and decided to solve the problems.

Electrical engineer His previous duties at DOW prepared him for this task. His history with this department, which falls under the Ministry of Infrastructure, dates back to 1989. After his study in the Netherlands, he returned to Aruba and started to work for the department.

It was his intention to stay longer and gain more experience, but because of personal reasons he had to return.

The fact that he was hired by DOW as a project employee was partly due to a substantial changeover and retraining he had undertaken in the Netherlands.

Croes had a passion for electrical 7

engineering but when he completed the MTS in the early 1980s, the government announced that there was no need for higher skilled electricians in Aruba. Croes looking for ways to further his studies, learned that there was a need for traffic experts on the Island. ‘I had no idea what it meant and I eventually went to the Netherlands as a blank slate.’

There he underwent not only a thorough retraining but also a mentality change. ‘In electrical engineering, the rule of thumb is: to measure is to know. In traffic engineering, business, communication, psychology, law, and the environment this rule is just as important as in engineering. At first, I found it very difficult to adjust my way of thinking.’

Pushing boundaries Nowadays, he finds it ‘fascinating’ to shift boundaries and bring the infrastructure to a higher level.

Fortunately, his former superiors at DOW gave him free rein to get to know the service and to present his ideas.

His unconventional vision impressed them. Shortly after his entrance into the department, for example, he solved a major bottleneck at the roundabout at the Cas di Cultura in Oranjestad.

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When I started at DOW almost thirty years ago, we could close a road without anyone making a fuss about it ‘The Aruban community was focused on traffic lights and the traffic on the roundabout was regulated by the priority rule to give way to the right, which resulted in traffic jams.’ Croes came up with the solution to remove the traffic lights and give priority to traffic on the roundabout. It took him a few months to convince his executives, but in the end they decided in his favor. It was the beginning of the construction of several roundabouts to make dangerous crossings safer.

‘The island is now full of roundabouts, but it’s working well,’ Croes says.

And he has the numbers on his side.

In the past, Aruba recorded about twenty-five traffic victims a year. This year, only two fatal accidents have been noted. That is why the Watty Vos Boulevard, which leads around the center of Oranjestad and joins the Green Corridor, has several roundabouts.

Final Solution For Croes, the Green Corridor, the expansion, renovation, and construction of the new main road between Reina Beatrix and San Nicolas airport, and the Watty Vos Boulevard, the new four-way road around Oranjestad, connecting the Sabana Blanco and Punta Brabo intersections, are the final solution to the traffic problems in Oranjestad.

‘Research has shown that sixty five percent of the traffic in Playa is in transit. When the Boulevard and the

Green Corridor are ready, the traffic will be redirected and the problem solved’, Croes substantiates his statement.

But we have to be patient. The Green Corridor needs to be in working order in November 2017 and the completion of the Watty Vos Boulevard is scheduled for August 2019.

Responsible for the construction and subsequent maintenance of the Green Corridor and the Watty Vos Boulevard are, respectively, the companies Grupo Odinsa and Mota-Engil. They provided the best prospects when they signed up for the so-called Private Public Partnership (PPP). It is a good construction, according to Croes.

The private companies are responsible for building and maintenance for the duration of the maintenance contracts of eighteen and twenty years.

The government only pays an accessibility fee.

Future challenges However, DOW also has some concerns during the construction phase. That is why Croes calls the construction of both roads the largest infrastructure projects of the last fifty years. ‘When I started at DOW almost thirty years ago, we could close a road without anyone making a fuss about it,’ explains Croes. ‘Nowadays, the community with all its social media is a lot more critical and we need to explain what we do and why.’

For Croes it is a positive challenge that his work, besides the technical 8

aspects, presently also includes strong social skills. ‘That keeps us sharp.’

So much so that transparency, better communication, and offering the best service will be the spearheads of his policy for the coming years. ‘By 2020, DOW must have made a cultural change,’ he states. At the same time, he wants to transform the often too expensive corrective maintenance culture into a preventive one.

And there is more to keep him busy in the future. The road network might be finished for the next thirty years after the two megaprojects are completed, but there are still other major challenges.

The water supply for example.

There are three water treatment plants on the island and Croes is ‘not happy’ with the plants, to say the least. ‘On the plant at Bubali we use Afl.1.2 million for electricity per plant a year and Afl. 1.6 million for burning sludge.

That needs to change.’ Therefore, he wants to turn the expensive water treatment plants into sustainable and environmentally friendly ‘power plants’.

‘We are currently investigating how we can improve the plants.

The preparation of the call for tenders will take place in 2018 and the public tender is scheduled for 2019.

People are enthusiastic about the plans. That’s why I keep doing this work with so much pleasure.

We have a good team and together we can achieve a lot and make the island a better place.’

Verified business accounts WhatsApp is exploring ways for you to communicate with the businesses that matter to you.

Some business accounts have been verified by WhatsApp. If you see a green badge next to a contact’s name, it means that WhatsApp has confirmed that the phone number of this contact belongs to a business account.

WhatsApp will also let you know when you start talking to a business via yellow messages inside a chat. There is no way to delete these messages from the chat.

If you already have a business’s phone number saved in your address book, the name you will see is the name you have saved in your address book.

Apps

If you don’t have a business’s phone number saved in your address book, the name you will see is the name the business has chosen for themselves.

If you’d like to stop a business from contacting you, you can block them.

Note: WhatsApp business verification is currently limited to a small number of businesses participating in a pilot program.

Entrepreneur Aruba 2017

Infrastructure of an Aruban Company Text: Brechtje Huiskes | VanEps Kunneman VanDoorne

Infrastructure landscapes our world. We are all familiar with constructions such as buildings, roads and the power and communication networks, we see them every day.

The infrastructure of a company, on the other hand, is a less visible ‘landscape’.

It concerns the basic organizational structure needed to run an effective operation.

Therefore, it consists of many elements like people, procedures and policies. This article aims to offer a quick peek into the infrastructure of an Aruban company.

More specifically, we will look at ways to structure the management and supervision of an Aruban company effectively.

Legal Forms Before we look at the internal workings of an Aruban company, it is important to note that Aruban companies can be structured in different ways. The most common legal forms to structure an Aruban company are: 1. the limited liability company (vennootschap met beperkte aansprakelijkheid or VBA) 2. the public limited liability company (naamloze vennootschap or NV) 3. the Aruba exempt company (Aruba exempt company or AVV) (originally created for off shore purposes)

Management and Supervision In order to run a company effectively, it is crucial to distinguish between management and supervision.

Managing a company consists mainly of determining the direction and taking care of the daily tasks and obligations of the company, like hiring personnel, paying bills and the undertaking of business activities.

Supervising a company means checking whether the management is functioning well and offering advice when necessary. Logically, in startups and smaller companies there is less need for formal supervision. In a healthy company, however, there is always some sort of check on the management, especially to prevent problems.

One-tier or two-tier board Part of choosing a legal form is to consider how to structure the management and supervision. Each legal entity has a set of different options. A VBA, for example, can choose for a one-tier or two-tier board model. The one-tier board model consists of a managing board in which some directors have a management function and other directors have a supervisory function. The two-tier board model consists of two boards: a board of managing directors who manage the company and a board of supervisory directors who supervise and counsel the managing board. The VBA cannot adopt a one-tier and a two-tier board model at the same time.

A one-tier board is impossible for NV’s and AVV’s. Both legal forms only allow a managing board with managing directors. Although these entities are 10

entitled to a supervisory board, to add supervisory directors to the managing board within a VBA is not an option.

However, the informal distribution of managing and supervising tasks won’t be a problem of course.

Foundation of the company: the Articles The document that provides the foundation for the functionality of the company and its operations is called “the Articles of Incorporation” or “the Articles of Association”, in short “the Articles” (statuten). The choice for either a one-tier board or a two-tier board must be included in the articles of the VBA. If the NV’s and AVV’s wish to install a supervisory board, they also need to record that in the articles.

The articles can be amended on a later date.

Management An Aruban company is managed by one or more managing directors.

At the incorporation of the company the managing directors are appointed for the first time in the articles. These managing directors can be natural persons or legal entities. With regard to legal entities it is important to note that AVV’s require a legal entity to meet some extra demands before it can act as a managing director and for VBA’s additional conditions can apply in some cases as well.

After the incorporation, the shareholders of the company are authorized to appoint and dismiss managing directors in the general meeting of shareholders, unless the articles provide differently. A VBA, for example, can chose to descirbe in the articles that another entity than the

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shareholders can appoint and dismiss managing directors.

All managing directors on their turn are authorized to represent an Aruban company by themselves, unless the articles state differently. For example, the articles can provide that for some actions either the signature of at least two managing directors is required or the written approval of the supervisory board. If these kind of arrangements or restrictions are properly registered at the Chamber of Commerce, they can be invoked against third parties.

One of the board of managing directors’ most important legal obligations is to make the annual accounts and publish the annual report.

Supervision Supervisory directors have the right to receive all information necessary to perform their supervisory tasks.

The benefit of a one-tier board is that supervisory directors in the one-tier board will receive such information faster, because they are members of the same board. This also means that they can act the moment they see that the company is heading in the wrong direction.

The supervisory directors in a one-tier board are also expected to perform the supervision quicker, because they are equally responsible and liable for the actions of their fellow one-tier board members. It remains to be seen if this is truly the case. Because of the close proximity and direct connections between the managing and supervisory board directors, it might be harder to criticize decisions.

Moreover, the liability of managing directors for their mismanagement of the company towards third parties in a two-tier board model often leads to the liability of the supervisory directors as well. Therefore, supervisory directors in a two-tier board model have the same incentive to provide good supervision.

Legal Representative

Besides having one or more managing directors, the AVV and VBA (in some cases) must be represented by a legal representative (wettelijke vertegenwoordiger).

This legal representative is not a managing director, but he is authorized to represent the Aruban company to a large extent. For example, he has the authority to report, to register and file at the commercial register of the Chamber of Commerce, to submit tax returns, to request a business license and maintain contacts with Aruban authorities. The legal representative must be an Aruban trust office.

Licenses

To be permitted to operate an Aruban company it is necessary to obtain the necessary business and directors’ licenses from the Department of Economic Affairs.

More Information

For more information regarding the incorporation a nd functioning of Aruban companies, check our online Guide to Doing Business in Aruba (http://www.doingbusinessdutchcaribbean.com/aruba).

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Entrepreneur Aruba 2017

Free Zone; a World of economic Opportunities Text: Edward Erasmus | Freezone Aruba

Technology, innovation and the globally changing and highly competitive entrepreneurial landscape offer great international business opportunities.

New ideas and business models are opening doors for commercial activities.

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ruba’s economic policy connects us with many markets.

The tourism industry and its unique position within the Kingdom make the island an interesting location to conduct international business activities. Aruba’s business environment offers many opportunities for startups and established businesses to connect with global markets. The cultural diversity and the proficiency in different languages are considered as great advantages to develop an international and competitive business hub. Your business can play an important role as (cultural) translator, sales representative, market researcher, matchmaker, intermediary, project manager or supplier of services in different fields.

In other words, the opportunities to

develop and expand your business depend solely on your creativity and skills as an entrepreneur.

Free Zone Aruba Aruba’s Free Zone offers an open and flexible business platform.

In combination with fiscal incentives for almost all types of businesses, this zone yields different opportunities for (young) entrepreneurs, startups and established companies to explore and expand their international activities. Aruba’s location and infrastructure create a perfect stepping stone for global markets.

The islands economic policy basically stimulates the development of four top sectors, Green Technology, Maritime and Logistics, Creative Industries and Value-added Tourism. As a result local and international enterprises within these sectors can profit from the benefits of Aruba’s free zone and flourish.

Expanding your business activities can take your business to a higher level.

Activities like storage and transshipment and/or production, for example, can be combined with regional sales and marketing, training, consulting, research and development (R&D). The free zone’s flexible platform will enable your business to grow beyond the traditional local market.

Business Hub Aruba Aruba is a perfect location to organize your business meetings. Your 12

international business partners and/ or clients will have access to all the facilities that have made Aruba a world class tourism destination, such as upscale lodging, dining and other adventurous activities.

Stepping Stone The demand in Latin America for expertise in different fields is increasing.

A growing consumer market and the need for innovative solutions offer new business opportunities.

Your knowhow and networks can turn into business opportunities by partnering up with foreign companies who are looking for commercial allies to facilitate their entrance into the growing Latin American markets.

Showcase Companies that develop creative, innovative and sustainable projects in areas such as housing, renewable energy and waste management can use Aruba as a showcase to sell their knowledge and technology to the region.

For technology-based startups, like app developers, for example, Aruba will proof to be a perfect market to develop and test their products before widespread launching.

Knowledge Hub In recent years, Aruba has made big progress in the field of sustainability.

The world can profit from the island’s

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knowledge and experience.

Seminars and summits organized on Aruba, as well as the UN Centre of Excellence and the Center of Excellence at Aruba’s airport for sustainable airport solutions can count on international interest.

distribution, manufacturing and/or processing of goods should all be taken into consideration. Moreover, the geographic position of Aruba, the safety, stability, fiscal benefits and the connections offer excellent possibilities to access international markets.

Support Services Local professionals may provide training, legal advice, software development, administration, mediation, marketing and personal services to support growing international business endeavors. The multilingualism and cultural knowledge serve as key benefits along with the sound banking system.

Value-added Tourism Aruba is a world class tourist destination and the experience the island gained in providing outstanding hospitality services to our guests throughout the years can be bundled into valuable knowledge that can be exported to the region. Examples include consultancy and international training.

Medical tourism offers innovative business opportunities and can help expand local health care services

Sustainable Infrastructure A great example of the island’s sustainable infrastructure is the logistics, which makes use of excellent sea and air connections. Storage,

• Exemption from the Business License Act (one-stop-shop);

• No minimum investment capital required; • Expanded possibilities to operate in the local market with free zone benefits; • Refund for free zone cargo; • Flexible construction and location possibilities; • 2% tax over all profits generated from free zone activities; • 0% import duties and excises on goods imported and exported though the free zone; • 0% turnover tax over the turnover generated from free zone activities; • Exemption for foreign exchange commissions on foreign currency payments In the next edition, we will further explore the opportunities offered in the fasted growing sector; services.

Five Reasons to Keep a Startup Mindset for the Long Haul Working lean in startup mode should not end when your business has moved to the next stage in its lifecycle. When you think of General Electric, you think of an industry leader known for its size and longevity, not a startup. Despite holding the spot of the 13th largest company in the world, the Company has embraced a concept known as a “lean” approach.

T

Text: Entrepreneur.com

he lean approach, according to its founder, Eric Ries, is focused on when to change direction, and when to persevere and grow a business with maximum acceleration.

Startup businesses are often led with this lean approach to produce a top-quality product or service delivered at minimal cost and great client experiences.

As a company navigates through the business lifecycle and evolves from a small startup to a more established organization, it often takes on a new identity and structure. The leadership team changes, new layers of management are introduced and processes become well-defined and more structured. What was once simply

a good idea has grown into a business with a purpose, a mission and the ability to meet a market demand.

Often, through this evolution, the company takes on a more “mature” operational approach to align with the structure and organization that is driving the growth and success of the business. All too often, this evolution also causes the organization to shed the startup mindset -- being lean, taking risks and thinking creatively.

Even a company as large as GE recognizes the benefits to this approach, and in 2014 they realized that thinking like an entrepreneur can lead to cultural, customer and corporate victories. Embracing a lean approach can help businesses regardless of stage or size.

Here are five reasons why thinking like a startup through the lifecycle of your 14

business can have a positive impact on your organization: Focus on the how Evolving from the startup stage is a result of being able to successfully capitalize on a great idea and execute that concept well. Exploring new applications for your product or service, while attractive, can also be extremely detrimental. Focusing on the core of what got you to your successful market position, while continuing to strategically innovate, is critical to remaining there and not distracting your team and clients with chasing any opportunity that comes along.

Grow smart When demands for your product and/ or service are ramping up, it is important to be strategic about where to invest in resources. Hiring more people to meet

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a need today might not be the best investment for tomorrow. Roles evolve, needs change and demand fluctuates.

Startups invest in team members that are adaptable and can jump in to help wherever needed. This approach is helpful to keep in mind as businesses grow, roles evolve and adjust to meet the needs of the organization and its services. You want to continue to hire motivated people who are passionate about what you are doing, and you will need specialists in certain areas.

Be consistent The “lean” startup mindset should be consistent across the leadership team, not just the CEO and/or president.

When executives are not coordinating their outlook and approach, teams can get frustrated quickly. A clear, consistent vision and leadership approach is critical to the success of the business and ensuring the culture remains intact.

When a leadership team is on the same

page on how the company is growing, where investments are valuable and the path for the future, there is a clear strategy and path for the business.

Walk the Walk Don’t let the “startup” mentality simply be a way of thinking. If there is a commitment to working lean and staying hungry like a startup does, this needs to come through the culture and actions of the business. A strong work ethic, commitment to client satisfaction and the ability to stop and take the time to celebrate milestones and key accomplishments is critical to supporting the startup culture.

Our company’s milestones may have changed - from the first client to the 100th - but each is a victory, and if we lose sight of the value that our client partners bring, the business will suffer.

As the business grows and there is more confidence and trust in the team,

it is critical that the attention to details and execution is flawless. So keep on giving that white glove treatment as if it were the first client to use your product or service.

Improve and evolve Take a regular check-in on how you’re doing: Are you being too frugal, not taking enough risks or investing strong enough in your people or processes?

Are you resisting new ideas or changes that will help the company scale?

Understand where the holes in your organization are and develop strategies to address these gaps, for the short and the long-term.

Working lean in startup mode should not end when your business has moved to the next stage in its lifecycle.

Remaining focused on the client and delivering quality products or services has countless benefits, including strengthening the culture and commitment of the team.

Entrepreneur Aruba 2017

IT-infrastructure as tax function blueprint

The year 2017 has proven to be a milestone for all things digital. The Digital Global Overview reports that in 2017 a momentous milestone was reached, as more than half of the world’s population now uses the internet.

The digitalization and the use of internet have transformed the way we used to conduct business.

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n the Tax Assurance field the use of internet and a well-designed, well-implemented and wellfunctioning IT-infrastructure is key to enterprises. It helps them to become aware of their performance and it enables them to make decisions based on the information available. Furthermore, the digitalization has changed the business environment and it is still evolving as the digital connectivity increases. As a result organizations are experiencing an increased acceleration in

innovations and digital transformations.

Business models are evolving even more rapidly and so are corporate governance laws and tax regulations due to exponential technological developments. Because the business tax environment is more depended on data and technology, tax transparency is becoming a hot item. In response enterprises and governments have to develop digital environments to accommodate tax data exchange.

The digitalization increases the importance of data and automated controls, especially the security of data and IT. Enterprises and governments are confronted with discussions and decision-making concerning IT-competences and data science. The pressure to provide stakeholders with timely and accurate information is growing. Management teams are becoming aware that stakeholders nowadays feel the need for non-financial information about tax reporting, supervisory frameworks, tax governance, tax compliance and tax sustainability. Since Tax Assurance concerns everything related to the process of taxes in a company, 16

this field has claimed a prominent role in the boardroom. It includes how taxes end up in the financial statements (Tax Accounting), Tax Risk Management, internal control, corporate governance, tax policy, the relation with tax authorities and the ethical sides of taxation. Enterprises are experiencing an expanding demand for data analytics and nonfinancial reporting, therefore tools for real-time collaboration, workflow automation, document management and automated internal controls are being considered and implemented.

Enterprises are seeking IT-systems that enable real time data-analysis and detailed transaction data, and are aligned with tax requirements.

Technological developments allow enterprises to rapidly and easily identify and correct data entry problems such as correctly calculated tax on invoices or at point of sale. It should also be mentioned that well-implemented IT-systems enable tax data analytics and improve tax compliance, tax controversy resolution, Tax Accounting and overall Tax Assurance.

Furthermore, to support the tax

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Tax-Aligned

Text: Jeanise Job | Meijburg & Co Caribbean

In our in ever-evolving digital world a well-implemented and well-functioning IT-infrastructure is essential compliance as well as tax planning and tax performance responsibilities, the company’s management should have effective communication, information-sharing and measurement processes across all functional areas. Both, information-sharing and communication, are becoming more important. Therefore enterprises should have an IT-infrastructure that allow relevant team members timely access to the data and information.

So they can do their job and make well-considered decisions. Through tax data analytics a well-implemented and an effective, efficient and transparent functioning IT-infrastructure can add value to the entire enterprise.

IT-infrastructure In our in ever-evolving digital world a well-implemented and well-functioning IT-infrastructure is essential, because it provides for an effective data management and data analytics. It offers the management transparency regarding the enterprise’s businessplanning data and a rapid collection of source data for tax accounting and tax reporting purposes. Furthermore, the right IT-infrastructure allows effective and efficient analyses and high level reviews of the data collected.

The impact of record storage requirements of the tax authorities should not be underestimated, since these create a set of risks for the enterprise’s management, for example, a notice of inadequate recording and lack of evidence to support tax filing.

These risks increase when enterprises have implemented an ERP-system that doesn’t provide automatic extraction of data in a format consistent with local tax record requirements. Management teams should seek and implement a well-structured, centralized tax data management which allows the use of common data residing in a central repository or user interface.

The implemented IT-infrastructure should also allow the aggregation of information from different sources into a meaningful management report on dashboards. While doing so, the data used for taxation purposes can be continuously monitored and managed.

This will provide the necessary stability and reduce the risks that are often associated with interconnected spreadsheets.

Due to the digitalization tax authorities are increasingly using data analytics for tax enforcement and therefore enterprises that lack their own tax data analytics are at a significant disadvantage. Besides compliance, tax data analytics can be used to gain valuable insights into the overall tax performance and the overall performance of other taxrelated activities of the enterprise.

Well-functioning IT-systems allow for thorough tax analytics such as the identification of patterns, the uncovering of abnormalities and the creation of value. Moreover the ITsystems provide for tax benchmarking and trend analysis. This enables the management to gain deeper insights 17

into tax processes and profiles, using data tools to access and analyze numerous types of tax data. It makes the management of the master tax data and automation of the manual integration between systems easier. The relevance of technology as the foundation for finance and tax decisions is inevitable since it is required to capture, store and maintain the integrity of the available data. Yet another reason to obtain a solid working and well-implemented IT-infrastructure that supports stable processes and policies, thereby allowing consistent, efficient and effective use of the available data, including tax data.

Tax-alignment of the IT-infrastructure To tax-align source data from the ERP systems and other business software these systems must be configured.

The source data can be tax-sensitized while managing the master tax data and automating manual integration between the systems. In order to assemble effective tax data enterprises should develop and implement tools for the timely collection, consolidation and validation of tax data in an automated and controlled fashion.

Tax data analytics provide enterprises with the ability to make well-informed decisions which are based on reliable data. Data, which in its turn provide accurate insight. The days that managements based their decisions on incomplete information, using financial and tax perception and experience to fill in the gaps are over.

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Tax data analytics through taxalignment of the IT-infrastructure is a key component in achieving good tax governance and the realization of the overall strategy of enterprises.

It enables effective and efficient management of taxes throughout all of the processes within the company.

A well tax-aligned IT-infrastructure provides for exceptional tax data analytics and therefore for limit the risks of non-compliance and lack of transparency for stakeholders.

Furthermore, tax data analytics which are to be implemented within the monitoring and testing processes will result in real-time confidence in the state of affairs of the company, the compliance status and the quality and assurance of the available data.

A tax-aligned IT-infrastructure provide managements with the ability for proactive strategic decision-making.

Enabling processes by including efficiency through technology

management teams are able to address emerging tax requirements and add strategic value to the business.

To achieve the full strategic value tax-aligned IT-infrastructure and tax data analytics should be designed to be embedded into an IT-system which caters to every tax data requirement.

IT-infrastructures should therefore involve reporting, data extraction requirements, a detailed analysis, and a clear definition of business tax requirements. It should also include a tax record retention to make sure that the enterprise has reconciled all transactional data. This data has to be readily available to support audits, since the management should not spent a lot of time searching for and reconciling tax data in case this data is requested by tax authorities or other stakeholders.

The implemented IT-system should enable management teams to monitor all tax-relevant amendments to the 18

ERP-system, because these changes could have an impact on the tax, the tax data and thus the tax data analytics outcome as well.

Conclusion Since a well-implemented tax-aligned IT-infrastructure provides effective, efficient and transparent strategic decision-making, it adds value to the enterprise. Tax-aligned IT-systems enable managements to focus the available resources on the critical and relevant tasks, while the proper tax documentation is managed efficiently and effectively to support easy access and analysis.

Furthermore, it provide for tax processes to be documented with appropriate controls.

And last but not least by doing so enterprises will be able to communicate about and implement tax risk management that is based on accurate tax data.

Column

Life is not a map Text: Paul Janssen

Books I wish human life always consisted of a series of roundabouts and not the combination of sometimes lifethreatening crossroads on which choices have to be made.

At such a crossroads, I always feel like Alice in Wonderland when she doubtfully asks the strange Cheshire Cat for directions: ‘Would you tell me, please, which way I should go from here?’

‘That depends a good deal on where you want to get to.’

‘I do not much care where.’

‘Then it does not matter much where you go, does it?’

Many people live according to the designations of the Cheshire Cat. But what if you really want to get somewhere, what if you already have found your destiny?

Once I travelled with a colleague. We drove from village to village to find our destination. In those days we didn’t have a navigation system to support us. So my colleague read the map. I followed his instructions blindly, and had no idea where to go. At one point, we arrived at a crossroads.

My colleague silenced.

‘Which direction should I go?’ I asked.

‘I don’t know.’

‘You read the map. Just tell me.’

‘I don’t know.’

‘Point me the way’, I shouted, a bit annoyed.

‘Okay, turn right.’

A quarter of an hour later we got stuck in a dead-end ‘mud pool’.

Why did I rely on the map instead of trusting my knowledge about the angle of the sun and my inner compass? I asked myself.

We like to map everything and structure our life from the cradle to the grave. Alice had nothing planned, but embarked on a miraculous adventure, and finally found her track because she listened to her heart.

What if we would try to discover our Alice within without caring about maps, structures and prejudices and just follow our heart, our intuition?

Dorothy from The Wizard of Oz was a little bit like Alice.

At a certain moment, she did not know where to go and was prone to give up. Until she listened to her heart and followed her own Yellow Brick Road. That’s when she found her way and herself without a map!

The Works: Anatomy of a City Why we do what we do in life and business The Anatomy of a City is a fascinating guided tour of the ways things work in a modern city.

Have you ever wondered how the water in your faucet gets there? Where your garbage goes? What the pipes under city streets do? How bananas from Ecuador get to your local market? Why radiators in apartment buildings clang? Using New York City as its point of reference, The Works takes readers down manholes and behind the scenes to explain exactly how an urban infrastructure operates. Deftly weaving text and graphics, author Kate Ascher explores the systems that manage water, traffic, sewage and garbage, subways, electricity, mail, and much more. Full of fascinating facts and anecdotes, The Works gives readers a unique glimpse at what lies behind and beneath urban life in the twenty-first century.

Did You Know?

Infra- means “below;” so the infrastructure is the “underlying structure” of a country and its economy.

Fixed installations that are needed in order to function.

These include roads, bridges, dams, the water and sewer systems, railways and subways, airports, and harbors, which are generally government-built and publicly owned. Some people also talk about things like the intellectual infrastructure or the infrastructure of science research, but the meaning of such notions can be extremely vague.

Entrepreneur Aruba 2017

Bringing back the good Life Text: Patricia Bergwijn | Picture: Vermeulen

“Sembra un simiña pa bo por cosecha mañan” is an old saying in Papiamento which means if you sow, you will reap. Jareth and Tristan Vermeulen took this quite literally when they went to the brand new office of the microfinance foundation Qredits on Aruba to ask for a loan for their farm Cunucu (farmland in Papiamento) 297. And after they filled in the necessary forms, handed over their business plan, and accepted a bit of guidance, it was a done deal. Within a month they could start sowing Back to the Future The two Vermeulen brothers simply love to farm.

From early childhood on they would take care of their own little farm they kept in their backyard at home with horses, pigs, geese and sheep and gleefully pass time with sowing vegetables and fruits.

Or they would visit the horse breeding ranch of a relative and wander around in the area looking for wild fruits, discovering and enjoying the 18.5 acres of land and cunucu life.

But as they grew up and went to study in Holland the ranch and cunucu life slowly became a distant memory.

After his study Industrial Engineering and Management, the current managing director of Cunucu297, Jareth Vermeulen signed up for the navy and enlisted in the Marine Corps.

Jareth and Tristan Vermeulen | Cunucu297

2020

Entrepreneur Aruba 2017

Sembra un simiña pa bo por cosecha mañan

The five years younger Tristan Vermeulen started his study Sport and Physical Education. But their passion for farming and the cunucu life was not completely forgotten. As soon as his brother returned to Aruba they visited the cunucu of their relative together and came up with a plan. Years of neglect had transformed the land into mondi (bush country) and the brothers wanted to restore its former grandeur.

‘It was our dream to bring back the cunucu life, to have our own farm, to grow and sell fruits and vegetables, and to have our own cattle’, Jareth Vermeulen explains. ‘We want to revive and reintroduce the standard and values of the cunucu life into the Aruban society; the idea of “Sembra un simiña pa bo por cosecha mañan”’, adds his brother. According to them living the cunucu life makes you belief in your future and it offers you a healthy life.

Start-up Capital Although their mother bought the property two years ago and they started to clean up parts of the land, they needed money to really make

their plan work. Jareth Vermeulen read about Qredits in the newspaper, did some research and asked around.

For the brothers the micro financier definitely seemed to be the solution.

With the start-up capital they could hire people who could work on the land, build the fences for the chicken coop and the goats, buy material to build the little eco lodges they want to rent out and work their way to the grand opening. They made an appointment with Oliver Vieira, the business adviser of Qredits on Aruba and explained their ideas and plans.

‘Oliver has been great. He didn’t only help us to fine-tune the business plan but he also gave us some new ideas’, Jareth Vermeulen tells enthusiastically.

Qredits granted them a loan.

On a Mission Besides selling and promoting ecological home grown vegetables, fruits, eggs, goats and potting soil the brothers are also on a mission.

They want to bring back the good and healthy life, because that’s what the cunucu life is for them. Which means they are also offering landscaping services to clients who don’t have the time to cultivate their garden or cunucu themselves. It means that Cunucu297 rent out plots of land to people who would like to grow their own food but don’t have the farmland to do so. For the ones who do like the country life but are not really into farming they are building the eco lodges. Because bringing back the good life is about more than just farming. In the little retreats families can enjoy the beauty, 21

calm and peacefulness of the country, appreciate nature and have some quality time together. Last but not least part of their mission and vision is to reunite other cunukeros (owners of a cunucu) as well. ‘Aruba imports everything, which makes fruit and vegetables, food, very expensive.

Lots of people can’t afford to buy healthy food or live a healthy lifestyle.

We want to change that together with the other cunukeros by producing and promoting our own home grown products.’ Jareth Vermeulen, the managing director of Cunucu297 knows what he is talking about because he is working as a project coordinator at one of Aruba’s food banks. ‘In order to make a healthy lifestyle affordable for everybody the cunukeros on the island need to unite.

Together we can beat the import market and make Aruba eat its own ecological home grown healthy fruit and vegetables’, his brother adds.

Their ambition is high. Within five years and together with the other cunukeros the brothers want to own ten percent of the food market. Ten years from now they strive to have all of the 18.5 acres of their land in production working in close cooperation with a whole new generation of cunukeros.

And maybe in about twenty years they will be able to start cunucus somewhere else. But for now their team of three employers and the brothers themselves are working hard to have part of their cunucu, the chicken coop, the eco lodges and the fences for the goats ready for the grand opening in December 2017.

Entrepreneur Aruba 2017

Text: Patricia Bergwijn | Picture: PoA

booming Businesses and fast developing Industries The main goal of both the Aruba Ports Authority (APA) and the Port of Amsterdam International (PoAI) when they signed a partnership agreement in July 2016 was to grow, develop and transform the harbor of Aruba into booming businesses and facilitate fast developing industries. More than a year later both parties are well on their way constructing and designing a vibrant Port City laid out in the Masterplan Port City Oranjestad.

A happy break-up In order to make room for growth and development first of all the cruise and cargo port in Oranjestad needed to be separated.

This process started in 1994 and was completed in 2016 when Aruba’s new Multi-Cargo Sea Terminal in Barcadera took over the cargo handling.

The establishment of the new container port was a crucial step in paving the way for the desired growth of the cruise harbor and the economic development of the urban area at the waterfront. Because now the former cargo terrain could be commercialized, redeveloped and become a new integrated part of the city Oranjestad.

Moreover the almost fifty acres of available land would give the growing cruise industry the necessary means to expand and professionalize even more. And last but not least it would offer the opportunity to extend marina capacity to anchor and repair yachts

in the harbor of Aruba. In short, this is exactly what the new urban development plan aims for, according to the appointed chief commercial officer (CCO), Lex de Ridder, and it is also the reason why the Port of Amsterdam (PoA) was chosen to assist Aruba. The PoA already did something similar when they developed the IJ and harbor area of Amsterdam in Holland.

The creation of Port City According to the masterplan Aruba’s harbor area is bound to become a vibrant, economically flourishing and diversified port city within ten to fifteen years. To succeed parties like APA, PoA, Aruba Tourism Authority (ATA), the Directorate of Shipping Aruba (DSA) and other private and public stakeholders will need to work together in close cooperation.

Creating and running a Port City is quite an undertaking in which each party involved needs to know its role, its tasks and responsibilities and act accordingly, the CCO explains. In organizational terms it means that private and public functions will have to be separated in order to capitalize on market opportunities and improve the harbor’s earning capacity. It demands an integrated approach to prevent fragmentation, ensure efficiency, simplify decision-making and establish a point of single contact.

To reach those goals the development

of the harbor area is carefully planned.

Step by step an urbanist and landscaper are designing the spatial plan of Port City following the choices and decisions made in the multiple stakeholder meetings. One of those decisions for example concerns the expansion of the cruise harbor.

To secure growth, improve the cruise port and accommodate the increasing number of cruise tourists in the future Port City will offer cruise companies a dedicated third quay surrounded with a high quality of public space.

Sustainable Prosperity for All The brand new Port City won’t stand on itself but must become an integrated part of Oranjestad and the island as a whole. Allowing the whole of Aruba to benefit from its economic boost Port City will harbor a diversity of businesses and services, different kind of hotels, and there are plans to build affordable houses for the locals. By doing so the port will attract investors and stimulate commercial activities, which will make the plan feasible and sustainable. CCO, Lex de Ridder stresses the importance of a good mix of harbor activities. ‘If you want a flourishing port and vibrant harbor areas you need to diversify and make it sustainable. The days a port could mainly concentrate on fossil fuels like oil are over. Although oil is still very important for Aruba, alternative energy sources are bound to take

Entrepreneur Aruba 2017

over on the long run. A prosperous harbor generates income from multiple activities which are beneficial for thewhole island.� Regarding sustainability, the use of alternative resources and generating income de Ridder thinks that the port could

also play a leading role in solving the problem of waste management on the Caribbean islands. ‘The entire Caribbean region is struggling with their (open) storage of garbage that needs to be taken care of. Aruba Port Authority could use its facilities and business network, for example to initiate a waste management cooperation between the islands and international partners and collect and ship off waste.’ According to the chief commercial officer it can become very interesting to look at new solutions for waste in the era of circular economy, especially in cooperation with the other islands. But just like the creation of Port City the key to success of such an initiative will be working together.

Lex de Ridder, born and raised in Harlingen, became interested in the port industry when Amsterdam decided to redevelop the eastern part of its harbor area. He got involved as a resident, and being an economist and specialist in logistical concepts at the time, he was intrigued. The idea that attracted him the most was that harbor projects and developments are very hands-on and have a direct impact on the long-term economy. According to de Ridder, it was exactly what he was looking for. The fact that working for the Port of Amsterdam, which he has been doing for over fifteen years, meant being able to act on a broadly orientated and international playing field made it even more interesting.

He was thrilled when the ministry and his employer asked him to go to the Dutch Caribbean to help the islands improve their harbors. It not only gave him the opportunity to work in a multicultural environment, but it was also a chance to add value and make a difference by creating harbors that will benefit future generations.

Infrastructure as Entrepreneur Aruba 2017

Infrastructure is an important pillar of a community’s social and economic well-being.

It supports the efficient transport of people and goods, delivers essential utilities, and provides accommodation for education and health.

U

rbanization, aging infrastructure, changing technology and the push toward clean energy are driving the need for new infrastructure. This need provide many opportunities for both public and the private sectors, as governments and private sector organizations try to meet customer requirements, grow businesses and economies.

These opportunities also bring uncertainty, inefficiency and the risk of 24

failure. This article elaborates on key issues affecting infrastructure, trends, the PPP model and considerations to effectively manage projects regarding infrastructure.

Key issues Given the complexity of infrastructure projects, organizations struggle to effectively deliver their agreed-upon plans and strategies. Stakeholders demand improved performance and reduced risk. To successfully deliver infrastructure, organizations need to focus on challenges like revenue

a Challenge Entrepreneur Aruba 2017

Text: Garrick de Cuba | EY Dutch Caribbean

growth, improved performance, better cost management or increased competitive advantage. For the future success of infrastructural projects it is important to dedicate effort in setting the right approach from the beginning (EY, 2015).

To determine whether a project benefits the business, organizations should conduct market analysis and assess planned return on investment.

Infrastructure involves long term capital investments. As a result, robust management of capital is crucial. Time, cost and quality of the infrastructural projects need to be balanced with the availability of capital.

Whether it’s the pressure on public debt or the return on investment, stakeholders involved in infrastructure projects have rising expectations about the speed at which projects should generate benefits. In delivering these projects, organizations often face a number of key challenges, such as identifying the right suppliers who will produce within the expected time frame according the desired level of quality and budget, implementing sound program management processes, and securing the best talent and resources.

Trends Infrastructure involves long term capital investments that are essential to the economic development and prosperity of a country. Expanding urbanization require governments to build infrastructure to address population growth and deliver better services to the community (Miller, 2013).

Governments around the world are increasingly turning to public private partnership (PPP) and public concession models to help build and finance infrastructure initiatives (EY Accountants LLP, 2017).

Rising debt and falling revenues in the public sector are creating an environment of fiscal discipline.

Organizations are seeking innovative funding models and public–private partnerships to finance infrastructure projects that will maximize return on investment and realize benefits faster.

As cities continue to grow, the government and the private sector must effectively plan and attract sustained investment in highways, ports, airports, water, power, energy, telecommunications, and other types of infrastructure, in order to obtain the economic benefits of urbanization.

PPP models Through PPP programs, the skills and assets of the public and private sector are shared in delivering a service or facility for the use of the general public.

During the last decade the focus on financial management and the cost efficiency of government procurement became more and more important (EY, 2015).

In markets with well-established PPP programs, governments have accepted and promoted the use of PPP models.

In markets whose PPP programs are in their infancy (such as in Aruba), governments accepted\and incorporated the principles and processes from the latest global practices.

25

Service concession The rights and obligations of governments procuring the services are set out in service concession agreements. The terms and conditions of these agreements can be complex depending upon the nature of the arrangement. The most common forms of service concession arrangements are the build-operatetransfer arrangement, the rehabilitateoperate-transfer arrangement, and the operate-only arrangement (Ernst & Young LLP, 2017).

The build-operate-transfer arrangement is used when a private sector company takes responsibility for funding and building infrastructure assets such as roads, hospitals, power stations and schools, in consideration of a long term contract from the government giving the company the right to charge for services to the public using that infrastructure.

The rehabilitate-operate-transfer arrangement is used when the private sector company improves an existing infrastructure and continues to maintain and operate the infrastructure for a contracted period.

The operate-only arrangement is used when a private sector company becomes responsible for the operational management and maintenance of an infrastructure that is used to provide services to the public.

Considerations Thriving PPP markets are those where the government sustains and advances projects through incentives, such as access to skilled resources, government oversight and subsidies.

As long as the assessment is rigorous, providing incentives for PPPs can strengthen the pipeline. Incentives

Entrepreneur Aruba 2017

can also inject greater rigor into procurement practices.

As governments grow more confident in their preferred risk exposure and procurement practices, the need to reinvent the wheel for each transaction lessens. Standardization generates more efficient procurement. This standardization is particularly evident in the adoption of risk allocation matrices templates, standard form contracts, and supporting documentation, including technical specifications and performance rules.

The appraisal of the PPP forecast model’s value for money in comparison with more traditional procurement approaches remain a matter of much debate. The usefulness of quantitative assessment has come under attack.

There is a growing consensus that developing a robust approach to quantitative assessment is highly

problematic. The opportunity costs for governments and the broader impact on the economy are too often overlooked. Not only do contributions of the government to projects affect net debt, but funds allocated to projects are no longer available to meet other public demands.

Retrospective scrutiny is an important means of monitoring continued performance, value for money assessment, and ensuring transparency. Project specific evaluations can include metrics related to financial performance, contractual requirements and timely reporting.

Conclusion Infrastructure is a top priority for governments. Changing urbanization requires the development of new infrastructure or the expansion of existing infrastructure. Governments tend more and more towards

26

development of the infrastructure projects in cooperation with the private sector. The PPP model is a vehicle that helps governments meet the increased demand for infrastructure, while managing the fiscal constraints.

Governments will benefit by learning from developed PPP markets, how to better manage risks, and successfully complete these infrastructure projects.

References • Ernst & Young LLP. (2017).

International GAAP 2017. West Sussex, UK: John Wiley & Sons Ltd. • EY. (2015). Infrastructure builds. EY. • EY. (2015). Public-private partnerships and global infrastructure challenge. EY. • EY Accountants LLP. (2017). EY Handboek jaarrekening 2017. Rotterdam: • EY Accountants LLP. Miller, J. D. (2013).

Infrastructure 2013: Global Priorities, Global Insights. Washington,: Urban Land Institute and Ernst & Young.

Entrepreneur Aruba 2017

Apps

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You can add new transactions while drinking your coffee or taking a taxi. It’s very simple and all your data will be synchronized immediately in the Cloud.

• Synchronization with http://web.mobillsapp.com • Widgets for advice and even faster registration of expenses • Filter by category, payment method or date • Expenses with geo location • Monthly balance by category • Email notifications after expiration date • Integrated credit card management • Use files and pictures as attachments for expenses and revenue • Manage and apply categories if the standards do not work for you

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It is not required to link your bank account because we want to protect your privacy.

Visit: http://mobillsapp.com

• Quickly and easily note all your daily expenses • Interactive statistics that analyze your expenses quickly • Create budgets and set financial goals to achieve

Entrepreneur Aruba 2017

Kawish Misier Mission To stimulate and develop Aruba’s business sector and economy and represent the future generation of our island. The Aruba Chamber of Commerce enables him to act on this notion by being a representative of the young entrepreneurs of Aruba. That way he can share his knowledge and execute his ideas.

History Kawish Misier is born in the Netherlands and raised on Aruba. From an early age, he was interested in becoming an entrepreneur.

Throughout the years, he saw a good market opportunity and venture out into the entrepreneur’s world in 2009, when he decided to start his own business “Eco Power Cleaning”. Afterwards, he was engaged in many other business projects in the area of real estate, transportation and marketing. More recently, in January 2017, he was elected to become an official board member of the Aruba Chamber of Commerce. He takes part in the commissions: tourism and transport, e-commerce, ROPV, and young entrepreneurs.

In July 2017, Kawish Misier was unanimously elected as the Vice-President of the Aruba Chamber of Commerce. As he always wanted to contribute his ideas and knowledge as best as he could to the business environment of Aruba, he is happy, that he finally has a platform to do so.

Kawish Baidjnath Misier, vice President of the Chamber of Commerce Aruba.

Name: Kawish Misier Company: Aruba Chamber of Commerce Function: Vice-President Date of birth and place: June, 1990, Rotterdam, Netherlands Goal: To help improve the business environment of Aruba Passion: reading, sports, sustainable development, innovation and hanging out with friends.

Books: Articles on different topics Movie: No specific favorite, however, the genre is usually action, adventure or comedyy Music: All kinds of music, but rap has always intrigued him, because of its in many cases poetic and improvising nature.

Future One of his future ambitions is to become President of the Aruba Chamber of Commerce. Sharing the organization’s vision to become the Caribbean’s number one Chamber of Commerce, future projects include the implementation of ICTinfrastructure, which will allow customers to submit and track information about new companies. Other goals involve the reduction of red tape to start new businesses and to offer more incentives and education to aspiring entrepreneurs.

Stimulating the rise of entrepreneurs will benefit Aruba according to Misier, because the more entrepreneurs, the more competition, and this will result in the creation of better and cheaper products and services to the community.

Besides his duties as a board member of the Chamber of Commerce, he intends to develop his career as an entrepreneur by using Aruba as a hub for his international business.

Entrepreneur Aruba 2017

Q22017

Facts and Figures of the Second Quarter Text: Sonja Velthuizen

The Aruba Chamber of Commerce and Industry (ACOC) has compiled and analyzed the data of the second quarter of 2017, and the collected figures show an interesting pattern. Given the fact that we are heading for the second half of 2017, the prospects are fairly decent. Registrations and cancellations in the registry at the ACOC provide some insight into the commercial developments and economic growth of Aruba.

is based in Oranjestad and Noord. Being the capital of the island, Oranjestad remains the preferred location to establish a business. Construction (17), Real Estate (13) and Marketing/consultancy/HR services (12) proof to be the main sectors for this district during the second quarter of 2017. With fifteen new companies in Q2, the marketing/ consultancy/HR services branch have been the absolute favorite for district Noord. Other sectors in Noord that stand out are Restaurants/cafes/take outs (9), Construction (6) and Real estate (6). San Nicolas has been included in the analysis in order to monitor and measure the impact that the refinery has on the startup of businesses in this district.

Registrations During the second quarter of 2017 the Chamber registered a total of 312 new businesses and organizations. In comparison with the 381 in Q1, it meant a decrease of 69 registrations. As we can see in the table, registrations during the first half of 2016 show a moderate increase, and although 2017 starts strong, the number of registrations diminishes in Q2. Q1’s strong beginning did not persist. However, the total of the registrations of the first half of 2017 (693), with 83 more new businesses, is still higher compared to the number of registrations during the first half of 2016 (610).

If we only look at the second quarter of both years we can determine that the year 2016 has had a better second quarter. This phenomenon, the decreasing registrations in Q2 in 2017, needs to be monitored in order to see how this will develop during the rest of the year. Since the year 2016 did not end with a high number of registrations, we hope to see a positive twist in the second half of 2017.

Development of total registrations during the first half of 2016 compared to the first half of 2017 140

134 116

100

119

129 110 102

100

100 92

80 60

131

95

75

40 20

Sector developments Exploring the reasons why the registrations of the second quarter show a moderate decrease compared to the first quarter of 2017, it is important to know which sectors have been most appealing to invest in and start up new businesses. To get a better understanding we separate Aruba into three main districts. Most local commerce

0 Jan

Feb

2016

29

Mar

2017

Apr

May

Jun

Entrepreneur Aruba 2017

If we compare the second and first quarter, we see that there is a two to ten increase of companies in the Construction sector, and the number of Restaurants/cafes/take outs has doubled in Q2. But even though these sectors show signs of growth, San Nicolas remains a slow developing district on the island. The boost to new commercial activities that the refinery was supposed to provide in San Nicolas has yet to unfold.

A development worth mentioning, is that during Q2 a new hotel and two supermarkets have been registered. The ACOC is always very careful with these type of businesses since the market is considered saturated and they often disrupt the commercial ecosystem of the island. In regard to these matters ACOC provides advice to the Government and attempts to maintain a healthy economy based on a ROP (Spatial Development Plan).

This plan for development and allocation

Total registrations compared with total cancellations per Q2 of 2012 - 2017

600 500

381

400

358

300

343 294

288

200

312

211

202

157

100

147

151

157

Q2 2015

Q2 2016

Q2 2017

0 Q2 2012

Q2 2013

Q2 2014

Total Registrations

Total Cancellations

Analysis per Sector per District

Oranjestad

San Nicolas

Noord

10

6

Restaurants / cafes / takeouts/ snack trucks

17

Marketing / consultancy / HR services

12

2

15

Construction

13

1

6

Real estate

10

6

9

4

1

5

4

2

2

Beauty salons / barbershops

Vehicle rentals and tours

of properties on Aruba aims to ensure a structured and manageable infrastructure.

An analysis of the second quarters of the last six years show that the Q2 of 2017 is following a declining curve.

Taken into account that this year’s Q2 is the only quarter which scores a lower number of registrations than the preceding Q1, makes it an interesting development. All the previous years

have shown a higher Q2 compared to the Q1 of that same year.

This remarkable result requires further investigation into the reasons why there are fewer businesses registered during 2017’s second quarter.

Sole proprietorship is the legal form which recorded the most registrations during Q2. Besides its popularity, it is also the only legal form which is growing in comparison with the 30

second quarter of 2016. Legal entities like VBA or NV are obviously decreasing compared to Q2 2016.

In short and with a few positive side notes, 2017’s Q2 does not meet the expectations created by means of the figures presented during Q1-2017.

If we look at the trend in cancellations, we see that there are consequently fewer cancellations in Q2 than in the first quarter of each year. Compared to

Entrepreneur Aruba 2017

Registration based on type of business onshore for Q2 of 2012 - 2017 Q2 2012

Q2 2013

159

219

27 92

Sole proprietor VBA (LLC)

NV (INC.)

AVV

1

Q2 2014

Q2 2015

Q2 2016

Q2 2017

147

209

176

181

45

76

101

107

75

61

67

50

35

3

1

0

0

1

82

VOF

3

11

4

3

6

3

Other

2

4

3

1

3

9

Registered cancellations at ACOC based on type Q2 2012

Q2 2013

Q2 2016

Q2 2017

151

150

112

92

101

112

0

1

3

2

1

17

23

22

25

31

22

27

30

16

23

16

13

VOF

3

4

1

4

2

2

Other

4

3

3

1

0

3

Sole proprietor VBA (LLC)

NV (INC.) AVV

the first quarter of 2017 there were 54 fewer cancellations in Q2. The number of cancellations, however, is not completely reliable, since the ACOC does not have them all. It can happen, for example, that although a business has been closed, its registration continues because it has not yet been cancelled at the ACOC. Not cancelling a registration can therefore become a burden for both the business owner and the ACOC, and in a certain way

Q2 2014

Q2 2015

the whole island as well, because the ACOC will not have the correct information in its registry and the business owner is obliged to pay for the registered business as long as it is not cancelled. To gain more insight into the decrease of registrations, the ACOC also looks at the reasons why companies cancelled their registration.

Business owners are requested to provide a motive for the discontinuing of their company. The main reasons for 31

5

termination of a business during Q2201, the research has come up with so far are: There are no commercial activities, 36% of the respondents; the costs of doing business are too high, 16%; lack of financing, 11%; and competition, 10%. Some of the businesses (18%) are not really cancelling, but just switching from one legal form to another.

In most cases this switch is to be registered as a VBA.

Entrepreneur Aruba 2017

Hurricane Katrina August 2005

World Risk Report 2016:

Inadequate Infrastructure Pushes Up the Risk of Disaster Text: Janine Kandel | United Nations University

When an extreme environmental hazard strikes, infrastructure can be a deciding factor in whether or not the situation becomes a disaster. Roads, for example, can provide access to quickly supply relief aid to affected c ommunities; but if roads are destroyed, entire regions can be cut off from support.

The World Risk Report 2016, published on 25 August by the UNU Institute for Environment and Human Security (UNU-EHS) and Bündnis Entwicklung Hilft, analyses the role that infrastructure plays in shaping a country’s disaster risk.

The World Risk Index, calculated by the University of Stuttgart, is an integral part of the report as it ranks 171 countries according to their risk of becoming a victim of a disaster as a result of natural hazards such as floods, cyclones, or earthquakes.

“We need to look at both the 32

opportunities and risks of critical infrastructure”, states Dr Matthias Garschagen, Scientific Director of the World Risk Report. “Sufficient and well-built infrastructure, such as high-quality power and transportation networks, can limit the impacts that natural hazards can cause both in terms of loss of life and economic damage. At the same time, the breakdown of nodal points in infrastructure, such as airports or power plants, can also cause impacts that reach far beyond the actual extent of the hazard. The international community must increase investments

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Entrepreneur Aruba 2017

into critical infrastructure before disaster strikes. We currently focus too much on short-term relief after disasters, and pay too little attention to ensuring that resilient infrastructure is in place before hazards occur.”

Proper development and maintenance of critical infrastructure needs to be understood as a core component of disaster risk reduction. Particularly in emerging economies and developing countries, however, infrastructure is frequently of insufficient quality, which contributes to a country’s vulnerability, especially with regards to coping with a disaster situation.

In Africa, for example, there are only 65 kilometers of paved roads per 100,000 inhabitants, compared with 832 kilometers in Europe or 552 kilometers in the Americas.

This means that there are fewer redundancies in transportation routes and, consequently, fewer alternatives if the main road to an affected area becomes impassable.

Critical infrastructure, meaning infrastructure that is of key importance for the functioning of a society at large, is very susceptible to cascading effects. Different sectors of critical infrastructure often depend on each other, and therefore the system as a whole is more susceptible to crises.

The collapse of a power supply, which happened during Hurricane Sandy in 2012, for example, can hinder disaster logistics that heavily depend on information and communication technologies. So even if roads or bridges have not been destroyed, their usability can be diminished if other infrastructure elements are compromised.

This year’s World Risk Index has been updated with a special focus on fresh data available in the subcategories of “public infrastructure” and “environmental status/ecosystem

protection”. A major component of each country’s World Risk Index score is its exposure to natural hazards, referring to the percentage of population living within the reach of potential hazards such as floods, storms, earthquakes, tsunamis, droughts, and sea-level rise.

Exposure, however, is not the only part of the World Risk Index. The index also analyses a country’s vulnerability, which is the country’s predisposition to suffer harm when hit by a natural hazard.

Vulnerability is the aggregate of three components of susceptibility (or fragility) within the system as well as the short-term coping and longterm adaptive capacities to deal with hazards. Of the top 15 countries with the highest vulnerability in this year’s index, 13 are located in Africa (the exceptions being Haiti and Afghanistan). These countries face a high damage potential when hit by a natural hazard due to, for example, inadequate health care provision, sanitation, and secure habitation.

A country’s specific risk is determined by multiplying its exposure by its vulnerability. Risk is at its highest where a high level of exposure to natural hazards coincides with very vulnerable societies. On the other hand, low societal susceptibility and a high capacity to deal with hazard exposure can, to an extent, mitigate and limit the disaster risk, even in exposed countries.

The Netherlands, for example, is a country with a very high hazards exposure (rank 12), meaning that almost one third of its population is exposed to floods, storms, sea-level rise, or other hazards. At the same time, it is among the countries with the lowest vulnerability (rank 162 out of 171), due to its very low susceptibility and very high short-term coping and 33

long-term adaptive capacities.

In terms of the overall risk, the Netherlands therefore ranks 49, despite its much higher exposure ranking.

In contrast, Bangladesh has a similar exposure level (rank 10) but ranks near the top (5) on the overall risk index. This is because the high hazard exposure in Bangladesh is coupled with a high vulnerability, composed of high susceptibility (rank 45) and a severe lack of both short-term coping capacity (rank 21) and long-term adaptive capacity (rank 28).

The 2016 World Risk Index ranks the Pacific island states of Vanuatu and Tonga as 1 and 2, respectively, meaning that they have the highest levels of risk. Global hotspot regions, meanwhile, are in Oceania, Southeast Asia, Central America, and the Southern Sahel.

The World Bank estimates that up to an additional US$1.5 trillion annually will be necessary through 2020 to help low- and medium-income countries establish adequate levels of infrastructure. The greatest needs are investments in electricity, water, and transport infrastructure.

“Remote areas are in particular need of targeted infrastructure investments”, says Dr. Garschagen.

“They often are poorly connected by roads or alternative transportation options, and at the same time are affected by high levels of poverty and poor access to markets and social services.

Precisely these remote areas are given too little attention on the political agenda of regional and national governments; by improving both the material and institutional factors in remote areas, their long-term adaptive capacity towards natural hazards could be increased significantly.”

tr 2017 Ecavleenn da Text: Chamber of Commerce Aruba

SEP 2017

OCT 2017

FAs - Financial Administration for Starters part 3 - COURSE

Aruba Art Fair

This course is especially designed for starting and/or experienced entrepreneurs who would like to have a better understanding of the financial aspects of their company.

After a brief introduction and insight into what financial bookkeeping is exactly and why it is of such great importance, the course addresses elements such as the relationship between business economics and financial bookkeeping, the inventory, the balance sheet and the profit and loss account. Furthermore aspects such as budgeting, other bookkeeping terms and the accounting cycle will be dealt with during this course.

Course dates: August 29 – October 3, 2017.

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

The three day art fair will take place in San Nicolas. Local and international artist will perform live art and display their artworks. The Aruba Art fair will include different elements such as a Culinary Art Competition, Building do-overs (Visual Art), Art TV Program, Art Magazine, School Art Contest, and Sculpture Making.

The Aruba Art Fair will take place on October 13 – 15, 2017.

Please visit http://arubaartfair.com/ for more information.

Decisision making – Workshop

11 October 2017 Aruba Chamber of Commerce We make decisions every day. Most of them are trivial; we don’t even think about them, we just decide. Some other decisions, on the other hand, are very important and require a lot of thought before they can be made and the best option is not always clear. This workshop will give you the tools to think about pros and cons. It will help you to get a better insight into how to make the right decisions. For more information about the event please contact the Chamber of Commerce.

The Billionaire Tour by Brad Sugars

14 September 2017 Hyatt Regency Aruba Resort & Casino In just one night Brad Sugars is going to change the way you think about money, wealth, business and property forever. His own success and the success of literally hundreds of thousands of business owners, property investors and complete novices following his system is proof enough that anyone can learn how to become rich.

For more information mail davemartinus@actioncoach.com or call +297 566.9333

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Entrepreneur Aruba 2017

Caribbean Congress 2017

13-14 October, Caribbean Active Aging Congress 2017, Cas di Cultura, Aruba The Congress addresses three overarching themes involving People, Policy and Practice. The program includes presentations by leading experts and authoritative speakers from North and South America, the Caribbean and Aruba. They will be covering a wide range of topics in the area of active aging. This Congress offers plenty of opportunities for interactive discussions and networking along with hands-on training in a workshop setting. Moreover, participants can watch interesting exhibits and presentations relevant to the topics. www.facebook.com/events/.

Course Independent Entrepreneur SMEs

16 October 2017 – june 2018, Aruba Chamber of Commerce During 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 twenty weeks.

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

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

ATECH Conference 2017

ATECH Conference 2017 is expected to go above and beyond. This third edition promises to bring more international keynote speakers, panelists, hosts, and startups that will compete for a cash prize!

The ATECH event will take place on the 26 – 28 of October, 2017.

Secure your tickets today to the hottest tech conference and witness magic in paradise! Find more information about programming, speakers, and accommodation at: www.atechconference.com

NOV 2017

Aruba Chamber Art Exhibition 2017 November 3, 2017, Aruba Chamber of Commerce Art is an important aspect of our culture. It is a way to express ourselves and communicate and it stimulates citizens to become creative, innovative and imaginative. Regarding Aruban art & culture, a local artist will address his point of view of a topic by his choice and will also tell us about his experiences as a local artist. The exhibition will be launched on 3 November, 2017 and will be showcased in our reception area for one year.

FAs - Financial Administration for Starters part 4 - COURSE This course is especially designed for starting and/or experienced entrepreneurs who would like to have a better understanding of the financial aspects of their company.

After a brief introduction and insight into what financial bookkeeping is exactly and why it is of such great importance, the course addresses elements such as the relationship between business economics and financial bookkeeping, the inventory, the balance sheet and the profit and loss account.

Furthermore aspects such as budgeting, other bookkeeping terms and the accounting cycle will be dealt with during this course. Course dates: October 7 -28, 2017.

Green Aruba

Green Aruba is an annual conference which aims to place Aruba’s energy transition to 100% fossil fuel independence. The conference theme for 2017 is ‘Sustainability in Motion’. Experience and knowledge in the field of sustainable energy will be shared.

Green Aruba has evolved into a practical and valuable platform within the region for the exchange of information and applied knowledge in the field of sustainable energy.

This two day conference will take place on November 16 and 17, 2017 in Aruba. For more information about the conference, visit the Green Aruba Conference website.

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Entrepreneur Aruba 2017

The importance of having your personal information up to date Text: Chamber of Commerce Aruba

In today’s modern world our personal information is a part of our identity, which we value dearly. It is something we keep shielded and do not easily hand over to others. Whenever we are requested to provide this information, it leaves us with a sense of exposure. But we still need to give it to companies such as banks when we want a bank account or a credit card, insurance companies when we want to insure our new home or car, clubs when we want to become a distinguished member, and last but least to the Chamber of Commerce when we want to start a business.

When you register your business at the Chamber of Commerce, you are following legally defined procedures in accordance with the Aruban laws.

Moreover the required information is needed to avoid undesired situations and unnecessary costs, and it will get you benefits.

The law is put in place to maintain order and protect those who abide by it. The regulation of the trade register (“Handelsregisterverordening”) contains articles which explicitly address registration. Article 3, for example, prescribes that any alteration in the registration data needs to be communicated and updated within a week. Violating this clause might result in a penalty due to non-compliance with the law. If the information entered does not correspond with the facts and the actual situation or is intentionally incorrect, the fine for this offense can reach a maximum of AWG

25.000 in accordance with article 20. The Chamber strives to maintain a Trade Register with up to date information about the companies on Aruba.

This information includes names of the owners, addresses, phone numbers and e-mail addresses.

If the registration is incorrect or incomplete it can lead to obstructions, frustrations and eventually a waste of time for business people who would prefer to focus on doing business.

Business owners can be confronted with situations in which they need to have the information in place. Not updating this information could affect you as a business owner or it could be passed on to your loved ones who might inherit accumulated dues as a consequence of negligence or an honest mistake. The way you manage your information will affect you and your beneficiaries either positively or negatively when they have to face tax obligations for example.

To help all local entrepreneurs the Chamber is continuously sharing information to guide and provide insight in commercial developments.

If a new opportunity presents itself and it is of interest to local businesses, the Chamber immediately sends out the necessary information to all the potential and interested parties.

Sharing the contact information available in its registry-database with registered companies, allows local entrepreneurs to grab a new opportunity to further develop their 37

re?

And you a

business. In order to ensure the information reaches the right audience, the Chamber needs to have the right contact information. An updated database of active companies including their contact information, enables the Chamber to structurally match information of upcoming events, courses. market specific seminars and trade missions with entrepreneurs.

The Chamber of Commerce has a strict privacy policy regarding personal information. Without proper consent nothing is disclosed. It is defenitely not the intention to provide unsolicited information. In order to help their businesses grow the Chamber simply believes it’s important for entrepreneurs to be informed.

However non-disclosure is respected if this is desired.

All entrepreneurs are encouraged by the Chamber to call or drop by to verify their contact information.

If they don’t, they might never find out know what great opportunities for their business will come their way in the future.

Entrepreneur Aruba 2017

Investing in the future

The Aruba Chamber of Commerce (ACOC) was assigned by the Governor as the official representative body of trade and industry on Aruba in 1930. From the beginning one of its main responsibilities has been to administer and supervise the Trade and Foundation Registry in Aruba. By implementing a new Registration System the Chamber invests in the future.

O

ver the years the ACOC has seen a significant growth of business registrations. In total there are 49.600 registered companies at the Chamber at the moment. And approximately 17.000 are considered to be active companies. The paperwork that comes along with these registrations fills up the archives of the Chamber and therefore the need to digitize all of the information into a registry database was growing. The registry system 38

that is currently used, is called KvKIS (Chamber of Commerce Information System). Besides processing and managing of the registration information, this system also provides for an efficient distribution of abstracts to clients. Not all the paperwork has been replaced but the Chamber is working hard to develop services which in due time will be completely paperless. With regard to this digitization of procedures it is also important to keep in mind the role of applicable legislation. The law must describe the use of a digital signature and electronic documentation as valid

Entrepreneur Aruba 2017

The implementation of a new registration system to help the Chamber step forward Currently there are 49.600 registered companies at the Chamber, of which approx. 17.000 are registered as active companies Text: Sonja Velthuizen | Chamber of Commerce Aruba

and permissible. At the moment this is not the case. However, the Chamber together with other stakeholders such as the Department of Economic Affairs and the Department of Legislations are taking the necessary steps to legalize this matter.

The continuous advancements in technology make it essential for the Chamber to be innovative. In order to provide a perfect service to its clients, the registry system KvKIS has to keep up with the developments.

This includes an improved and aligned service, which enables the client to request and purchase the information with their electronic devices.

Furthermore, the system should allow for a faster registration process.

The new KvKIS that is being developed, will take these critical points into account. The upgraded program is meant to be futureproof. The new features will enable the program to keep up with all the requirements a modern registry system needs to step into the future.

The system, which is currently being designed, creates a whole new spectrum of possibilities. Clients will be able to complete and send forms online for registration, modification and cancellation on the website of the

Chamber. They will be able to digitally provide the corresponding information for processing. Last but not least the purchasing, payment and delivery of products offered at the Chamber will also be done in digital format.

In order to provide an optimal service to the clients the new KvKIS will be beneficial for staff members of the Chamber as well. The services of the digital counter, for example, will enable the staff to control the information entered by clients. The implementation of a CRM (Customer Relationship Management) module will organize and centralize the information of each client, such as emails, letters and personal information. Moreover, since all the collected information is securely digitally archived, staff members will be able to offer a more efficient service.

Meetings with clients regarding information and registration of a legal form, for example, will be more effective because the new system will make the necessary information readily available.

The six possibilities mentioned above are just a few of the main features that the new KvKIS has in store. The Chamber tends to step away from just data entry and move more towards the control of the entered data.

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By means of customer self-help it is possible to create space for improved and aligned services. In this modern digital world, we cannot shy away from the possibilities offered by the digital framework. Especially, when it provides the possibility to become more efficient and go faster.

The design is on track and by 2018 the Chamber will be able to offer its clients the privilege to access information from a totally renewed and modern registry system.

Entrepreneur Aruba 2017

Building Your Company’s Infrastructure Text: Subroto Bagchi

Why it is important to create infrastructure something for others to build on and something to leave behind as a legacy

‘I started out a few years ago. I’ve bootstrapped for all these years. Friends tell me it’s time I invested in a swankier place. I’m torn though between investing in my business and building a façade.

Please advise me.’

T

here are two kinds of people: those who are path-makers and those who are path-dependent.

Entrepreneurs, by the very nature of their vocation, are path-makers. The idea of path-making is driven by a strong sense of legacy.

If we take the idea of path-making and the creation of legacy together, the concept of creating infrastructure emerges; infrastructure for others to build on and something to leave behind. As entrepreneurs, our job is to build infrastructure that others may use and create value out of; eventually this

infrastructure must outlive us.

This is the essence of abiding success.

Now let us contemplate on infrastructure at four different levels.

At the base, is physical infrastructure.

This consists of the spaces we create, the offices, factories, and showrooms we build. These must be built with great care so that they embody the brand of the enterprise. If your company’s brand stands for innovation or collaboration or customer service or whatever, the physical space must bring it alive in its design and expanse.

Above this layer is the digital infrastructure. In today’s world, the enterprise is simultaneously real and virtual. The digital infrastructure consisting of the hardware, the software and the secure connectivity, provides this capability. Given a highquality digital infrastructure, you build a force multiplier and help the operation to be always on.

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But the purpose of the physical and the digital infrastructure is to enable the creation of an intellectual infrastructure. This is all about the systems, processes, methodologies, the how-to; it is also the collaboration between people and of course everything that is the result of human endeavor. It is all things that are copyrightable, trademark-worthy and patentable.

Just because someone has a swanky office and fancy hardware and software does not mean, the enterprise will be able to create intellectual infrastructure on which people may ideate, collaborate and build unusual new value. It requires engaged leadership that is supportive and actively helps people understand how abstract ideas can be made tangible.

Physical infrastructure creates immediate “presence”. If you have a terrace office overlooking the

Entrepreneur Aruba 2017

As entrepreneurs, our job is to build infrastructure that others may use and create value out of... oceanfront, people can’t ignore you. But the difficulty in building just presence is that it becomes a statement of ego and no sooner than you build something fancy, someone with more money simply outdoes you.

Your so-called presence becomes passé. Digital infrastructure gives you the ability to be always on, to be ubiquitous but by itself, it takes you nowhere because it is a fancy railroad sans the train!

The train is the content that rides on the railroad; it gets created by your people every day in the course of their work. This new dimension requires the leader to pay special attention to the intellectual infrastructure - because, this one is all about human beings who cannot be mandated but are inspired to convert ideas into things of value.

It is the intellectual infrastructure of an organization that builds differentiation.

The problem in today’s world, however, is that differentiation itself is becoming an increasingly short-lived

phenomenon. We cannot just focus on differentiation; we need to build memorability. Memorability is created only when an enterprise focusses on building, what I call, the “emotional infrastructure”.

In every phase of building the organization, from its infancy to adulthood, an entrepreneur must see his task as the relentless pursuit of all the four layers and see how each one augments the other, how the four can be blended and delivered as one seamless experience to whoever touches the organization.

Now let me tell you two simple rules that govern the concept of infrastructure.

Rule#1

All forms of infrastructure require that you build it before you can use it.

Think of it this way: you must build a bridge before you can cross it.

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In doing so, one cannot indulge in wishful thinking. For instance, if I want to cross the ocean, I cannot build a bamboo bridge. If the precept of build now to use later is true for physical infrastructure, it is as true for emotional infrastructure! Leaders often lament that their organization is not aligned, inspired; what they overlook is that they are trying to cross a bridge that wasn’t built!

Rule#2

No form of infrastructure has permanence; it isn’t something that you can create once and use forever.

This principle applies in equal measure to the physical, digital, intellectual and the emotional infrastructure of an enterprise and that is why the job of an entrepreneur is never done.

Leaders must budget time and energy to take on the creation of infrastructure but remain as invested to keep it current and ideally, always a little ahead of time.

Entrepreneur Aruba 2017

PERSONAL ENERGY

E Text: Tom Kok | Coolgroup

verything you try to achieve, requires a disproportional amount of energy.

Being homesick costs energy, sorrow takes its toll, managers are the greatest energy absorbers in the world, worrying costs mountains of energy and annoyance wears you out completely. People with a double agenda, an employer who cuts corners, an acquaintance who is lying, a jerk who cuts you off in traffic. Every day and all day long there are situations that require energy or even cause you to lose energy. What are you going to do about that?

KEEPING YOUR ENERGY You keep your energy by developing mental resistance. You must realize that everything you see, hear and experience, is what it is. Nothing more than that. It is up to you what you make of it. The way you relate to what is or what happens, determines how much energy it will cost you. The capacity to keep yourself in balance with what is happening, is mental resilience. So be wise with your energy. Stay focused.

When you do too many things at the same time, you lose a lot of energy.

A mobile phone performing four tasks at the same time, empties its battery in a jiffy. The same goes for a human

being. Focus and preserve your energy.

Working with nice people is also a proven recipe to preserve energy.

Or by working alone, without distractions. And then here is a practical tip: working at the wrong temperature drains energy, whether it is too cold or too warm.

So preserving energy is also achieved by working at the right temperature.

If you want something but do not want to invest much energy into it, try working in a magnetic way. Make yourself attractive to whatever you want and try to attract it to you in that way.

So you can easily do more to preserve and maintain your energy than you think.

GETTING ENERGY Getting energy, just like that? True: the sun rises for nothing. But energy may be had. When you yourself are inspired, you feel the energy flow through your veins. So it is a kind of self generating of energy. Living an inspired life and giving inspiration to others is an ideal way to have your energy flowing.

This also goes for passion.

That which you feel passionately about, does not cost energy. Think of the employer who drags himself home at five-thirty and then works for four hours at a stretch on his hobby without getting tired. Socialize with people who give you energy, kind people. Eat food that gives you energy. Drink two liters of water a

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day. And, very important: sleep. Sleep sufficiently every day. Nothing costs so much energy as lack of sleep. A well known way of getting energy is by lying in the sun for a little while or even just by facing the sun. It will immediately give a boost of energy. A lot of people get energy by taking a time out. From the peace of nature, from the peace of music, from the peace of the sound of the sea. And even from the peace of beautiful thoughts, a good poem or a good book. Desire also gives energy ,short conversations, short meetings, compliments, getting confidence and humor. These are all sources of personal energy.

Finally another comforting thought: when you have used your energy, it is not gone. It has changed into a different form. Ready to be picked up by somebody else. You see, and that is what gives me energy again.

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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.