October 2012PRIVATE AND PUBLIC SECTORINITIATIVES FOR THE Dr Hugues SERAPHIN PhD PGCE MADEVELOPMENT OFENTREPRENEURSHIP IN HAITI: Lecturer in Event Management and MarketingTHE TOURISM INDUSTRY, (The University of Winchester)SHOULD NOT IT BE THE Associate researcherPRIORITY? CREDDI-LEAD 2438 Guyane Hugues.email@example.com
CONTENTS PRIVATE AND PUBLIC SECTOR INITIATIVES FOR THE DEVELOPMENT OF ENTREPRENEURSHIP IN HAITI: THE TOURISM INDUSTRY, SHOULD NOT IT BE THE PRIORITY?1 – INTRODUCTION2 – ENTREPRENEURSHIP IN HAITI3 - ENTREPRENEURSHIP IN THE TOURISM SECTOR: THE WAYFORWARD FOR HAITI?4 - CONCLUSION
INTRODUCTIONBefore January 2010 earthquake, Haiti was:One of the poorest countries in the worldUnsafe destination due to its political instability(Thomson, 2004; Higate & Henry, 2009)Difficult to:Build sustainable economic developmentAttract FDI(Barreau, 2012) Entrepreneurship Entrepreneurship plays a crucial role in E.g. of public sector initiative social mobility (Casson, E.g. of private sector initiatives 1991) and has the ability to save the economy of a country(Louart, 1980)
ENTREPRENEURSHIP IN HAITI Environmental overview of Haiti Literature review MEMA project (public sector) Digicel Award (Private sector)
ENVIRONMENTAL OVERVIEW OF HAITIHaiti was once the richest French colony. Haiti was evencalled the ‘Pearl of the Antilles’ (Séraphin, 2011) Fragile state: Lack of political will/capacity to provide: Basic functions needed for poverty reduction and development Safeguard human rights of the population Public services Vulnerable state: Public policies Economy Shaped by external forces (Moita, Gautier, 2010)
LITERATURE REVIEWLiterature supporting the factHaitians are not entrepreneursEntrepreneurs have to be:Innovative (Schumpeter, 1934) Able to adapt to the market and manage risks (Cantillon, 1758)Take action in the face of unknown future events(Knight,1921;Drucker, 1985))Haitians are not entrepreneurs based on the fact they do notcreate or innovate. Their strategies are individual and shortterm. Moreover, their business are not operating with a strategybut as a need to survival (Van der Sterren, 2008).
LITERATURE REVIEWLiterature supporting the factHaitians are entrepreneursIn order to be considered as an entrepreneur, it is important to:Think entrepreneurially (Sahlman, 1999)Be driven by opportunities without regard to the resources controlled (Timmons, Spinelli, 2008)Many Haitians are self-employed have the venture (products,service, sales, ideas, etc.) but do not have access to the financialservices (Van der Sterren, 2008), therefore rely of informal sources offinance to start their business (Bygrave, 2003).The Haitians are promoters (as opposed to ‘trustee’ as they aredriven only by their perception of the opportunities that exist in theirenvironment. This strategic orientation requires being creative andinnovative (Sahlman, 1999). The Haitians are therefore entrepreneurs.
OPPORTUNITIES MEMA (Mon Entreprise Mon Avenir) projectFunded by the Clinton Bush Haiti FundTurn Haitians’ ventures into profitablebusinessesTo be short-listed, the projects must be:SustainableInnovativeinclusive http://memahaiti.org/qparticiper.php
OPPORTUNITIES The Digicel Entrepreneur of the Year programmeBuild new economic foundations for HaitiRewarding and cultivating the new business leaders of HaitiTo be short-listed, the projects must:Show a clear strategic directionBe innovativeHave a positive impact on the local community
MEMA / DIGICELBoth projects are supposed to be inclusiveHOWEVERApplication requires a ‘Business plan’50% of the population in Haiti is illiterate65% of the population in Haiti lives below the threshold of poverty(Roc, 2008)In South Africa, Kristen and Rogerson (2002), noticed a limitedinvolvement of the locals in entrepreneurship programmes becauseof the limited education of most of the localsThere is no financial product (Micro Finance Institutions) orientatedtowards micro and small-scale enterprises in Haiti. The MFI delivercredit to micro and small enterprises and contributes to povertyreduction by providing poor people access to financial services(Van der Sterren, 2008). Limited personal and family savings and anabsence of financial innovation severely limit the growth prospectsof promising start-ups in developing countries (Lingelbach, 2005)
ENTREPRENEURSHIP IN THETOURISM SECTOR: THE WAY 6 reasons why the tourismFORWARD FOR HAITI? sector should be the priority of the government in terms of implementation of entrepreneurship programmes
WHY THE TOURISM SECTOR1. Principle 7 of the Port-au-Prince declaration, 2011: Development of MSTEs2. In the world the tourism industry is made up of mostly small and medium enterprises run by people inexperienced in business(Cooper, Hall, 2008) and their innovativeness is limited (Hjalager, 2009)3. Haiti is almost virgin and full of opportunities for investment in general and tourism related activates in particular (Chauvet, 2010)4. MSE can increase the participation of the poor in the tourism industry (Manyara, Jones, 2005)5. When enterprises are owned by locals, there is a high likelihood of purchase of local supplies (Shah, 2000).6. Entrepreneurial development by local residents occur spontaneously in response to growth in tourist demand (Butler, 1980)
CONCLUSIONInnovation is a contextual concept. Moreover,entrepreneurship in developing countries is distinctive fromthat practiced in developed countries (Lingelbach, et al. 2005)The tourism sector and entrepreneurship seem to be highlycompatibleIt is also very important that the Haitian government rethinksits financial system. The lack of funding has constrainingimpacts on the development of social enterprises (Karatas-Ozkan &Manville, 2011).
PRIVATE AND PUBLIC SECTOR October 2012INITIATIVES FOR THEDEVELOPMENT OFENTREPRENEURSHIP IN HAITI:THE TOURISMINDUSTRY, SHOULD NOT IT BE Dr Hugues SERAPHINTHE PRIORITY? PhD PGCE MA Lecturer in Event Management and Marketing (The University of Winchester)THANK YOU FOR YOUR ATTENTION! Associate researcherANY QUESTION? CREDDI-LEAD 2438 Guyane Hugues.firstname.lastname@example.org