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The Government’s Stimulus Package
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Message from the Editor/ Credits Your Money Out & Around Business Lounge:
The Government’s Stimulus Package
An Entrepreneur’s Life: The Business of Philanthropy
Street Smart Damion Shopkeeper
Damion says his business is what wakes him up in the morning.
An Entrepreneur’s Life By Cherryl Hanson Simpson
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Season’s Greetings, Readers…
Credits Publisher eZines Limited Managing Director Tyrone Wilson Your Money Reporters Andre Black Latoya Hutchinson
The team here at Your Money would like to wish you, our faithful readers a Merry Christmas and a Blessed 2009! From our first issue in October, you all have been giving your support, lending ideas and sending your feedbacks from your various locations across the globe. Indeed, you have been our inspiration and the driving force behind our success. And for this, we are truly grateful. For the New Year, our promise is that Your Money eZine will be even better. We will continue to provide you with timely and accurate information and will be rolling out more interesting themes and issues – sure to grab the attention of all! Tomorrow is Christmas day and we hope that you will spend it with your cherished loved ones, sharing fond memories and words of cheer. Enjoy & See you next week! Tyrone Wilson
Managing Director
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Your Money Out & Around 1: Scotia Bank Volunteers Susan Lambert and Rory Rowe having a laugh at Shaggy’s annual charity tour, held at the Bustamante Hospital for Children. 2: Digicel’s Public Relations Executive Tamiann Young and Freelance Photographer Clarence Williams put the regular work duties aside to discuss matters arising in the country. 3: At left: Debbie Clue, Manager Corporate Social Responsibilities and Government Affairs, and Kathleen Cooper-Brown was amazed by the performances of Shaggy and others at his annual charity tour, held at the Bustamante Hospital for Children. 4: Felicia Harvey, Representative from Jahmento FTTF engaged in a tight conversation with Andre Thomas, Human Relations Officer at the Bustamante Hospital for Children. by: Billy James
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The Government’s Stimulus Package by Latoya Hutchinson
Amidst growing fears over the effects of the global economic crisis on our own economy, the Jamaican government last week presented the nation with an economic stimulus package. As outlined by Prime Minister Golding, this package includes tax cuts and at least $500 million and $4.5 million in loans for the tourism and small business sectors respectively. The manufacturing is also to benefit from a US$ 300 loan facility and the abolishment of taxes on dividends as of January 1st. In light of this plan, this week the Business Lounge asks the question: Are you Satisfied with Jamaica’s Economic Stimulus Package? Doneta Williams, 38; Agent, Anixter Jamaica Limited. Although, fairly satisfied with the initiative by the government to protect the finances of the country, Williams still wishes for more to be done for persons at the lower end of the social ladder.
“Generally, we know that with such a package, the persons benefiting are not necessarily the ones in dire need. So, for instance, some sort of food subsidy could also have been put in place for the poorer and more vulnerable sect,” she explains. Williams also made reference to the recent move by the Bank of Jamaica to increase interest rates, as a factor that has taken away from the effectiveness of the recently proposed stimulus package. “That move shouldn’t have been made at this time, so I wish the Prime Minister in his address had introduce a better strategy or way of intervening and avoiding the further slippage of the Jamaican dollar. It’s this move that has merchants fretting the public with high prices on goods. That’s just one area that also could have been touched on in the package,” she says. Sophia Lawrence, 28. “I was truly impressed with the plans all in all,” says Lawrence, a housewife. “ It’s comprehensive and focuses on all the crucial industries. All that was possible was done, in that, anything that wasn’t addressed sufficiently or presented with a forthright solution, they are such that further restructuring and planning needs 5
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to be done before they can be dealt with.” “The tourism sector has gotten its needed bailout, saving one of the country’s major foreign exchange earners. Plus the benefits the manufacturing sector is to derived from the package; this ensures that less persons will be losing their jobs and that was one of my main concerns,” Lawrence adds. Another aspect of the package that she praises is the intent to suspend or reduce mortgage payments for the unemployed. “It (stimulus package) gives the Jamaican people some level of assurance going into what is to be a hard New Year.” Anthony Moulton, 35; Owner, Trendz Clothing Store. As a small business owner, Moulton expressed his contentment with the administration’s plans to make $4.5 million in loans available to the sector.
“That was a definite winner with me where the plans and initiatives were concerned. In the past, whatever the economic conditions, much thought wasn’t given to us. However, I speak for all small business persons when I say that this fund is greatly appreciated, especially at this time,” he says. Commenting on the government’s plan to waive custom duties on all barrels and packages with personal goods valuing up to US$3000, Moulton had this to say, “the deadline should be extended, since we’ve just been informed about it.” Currently, this relief only applies to those containers cleared or shipped in the island by December 31st.
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An Entrepreneur’s Life The Business of Philanthropy
Despite the heavy commercialization of Christmas, many businesses use this holiday to help the less fortunate in the society, ensuring that at least one day of their lives is filled with food and fellowship. But after the Christmas excitement has faded, what part does charity play in the other eleven months of the year? Is it possible for entrepreneurs to incorporate good deeds as an integral part of their business strategy? It could be argued that a charitable focus is in direct contrast to the prevailing concept of the free market economy- one that is built on greed and selfinterest to promote wealth. The reality is that many of the world’s most successful corporations are based on a solid tradition of philanthropy. Wikipedia defines philanthropy as “the act of donating money, goods, time or effort to support a charitable cause, usually over an extended period of time and in regard to a defined objective.” Over the years, entrepreneurs with a charitable focus have greatly helped to improve the world. American steel mogul Andrew Carnegie diverted much of his wealth to fund libraries, schools and universities worldwide. Billionaire investor Warren Buffet gave away most of his immense fortune to the Gates Foundation, founded by Bill Gates, which funds global health and education programmes. Locally, the charitable efforts of philanthropists such as Michael Lee Chin and Ferdinand Mahfood have changes the lives of many ordinary Jamaicans. How can the average entrepreneur incorporate a philanthropic philosophy in business? 1. Follow the 10% Rule “Over the years I have found that many of the richest people in the world began their lives with the habit of tithing.” – Robert Kiyosaki, author The formula of giving back ten per cent of your earnings to charity is called tithing. In the entrepreneurial world, whether tithing is done for religious purposes or not, the benefit is the same. There is a universal law that works to reward those who make a consistent practice of donating to worthwhile causes. I have found that the act of giving without seeking something 6
YOUR MONEY - An Entrepreneur’s Life
Cherryl Hanson Simpson
in return has unleashed good fortune in both my personal and professional life. 2. Create goodwill for your company “There can be little doubt that a certain amount of corporate philanthropy is simply good business and works for the long-term benefit of the investors.” – John Mackey Businesses can profit from establishing foundations which are allowed to focus on altruistic pursuits instead of making profit for the shareholders. In deciding where to give back, it makes good business sense to contribute to those who support you. The Digicel Foundation has created tremendous goodwill for its parent company by helping to develop Jamaican communities, by building and equipping educational and social centres, and supporting local projects. 3. Establish a more profitable society “Is the rich world aware of how four billion of the six billion live? If we were aware, we would want to help out; we’d want to get involved.” – Bill Gates What if more profitable businesses focused on advancing the lives of the least fortunate among us, wouldn’t that help to improve the market place for all of us? What if more entrepreneurs concentrated on developing neighboring communities, providing sustainable solutions for education, fostering job creation, and helping to change the mindset from poverty thinking to prosperity thinking, what kind of society would we create? © 2008 Cherryl Hanson Simpson Cherryl is a financial columnist, consultant and coach. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Send questions and comments to info@financiallyfreenetwork.com. Please add this address to your email address book in order to ensure you receive a response.
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Street Smart
*Damion (27)* Shopkeeper by Billy James
What does it really means to be smart? Being smart doesn’t always apply to the office. If you want to survive in society you have to be street smarts. In this week’s edition we interview Damion, who have overcome adversity and is now selling and buying for a living.
these items that the big companies are providing then who would?”
Question: Which item on your stall has been requested most by customers on a daily basis?
Damion: “The first thing is that I get work and earn a honest bread. I meet different people everyday, sometimes it’s good and sometimes it’s bad. I would change anything right now.
Damion: “That would definitely be the Digicel phone card. Now that it is the Christmas season, people from all over come and ask for it. I would sell at least 10-15 cards per day.”
Question: What are the benefits you get from this job and would you change anything?
Question: On a scale of one to five, how much would you rate your job? And why? Damion: “Well I would say five, because it can pay my bills and it provide food on the table. I love my job.” Question: list five qualities that a vendor must possess when dealing with customers? Damion: “Vendors must always be patient with their customers, they must always smile, and they must have the love for a clean surrounding. Then, at most times the customers should get the benefit of the doubt, and the last thing they must be polite.” Question: What would you do, if you would come across an angry customer? Damion: “I don’t know. But I always get to deal with them, sometimes I just laugh and allow them to talk. If you follow them you might turn back another customer who might be watching at the same time.” Question: Where do you see vending going in the country for the next five years or so? Damion: “If vendors should get the opportunity to sell freely, then the economy would get a boosts as well. Look at how the flex cards are selling fast. We are in many ways helping the economy, if we don’t help sell 7
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Damion says his business is what wakes him up in the morning.
Well I would say five, because it can pay my bills and it provide food on the table. I love my job. w w w. y o u r m o n e y e z i n e . c o m
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