Presentation of the ideas generated from the discussions, the gaps, medium to long term plans, priority areas for 2011.

1. Finance Availability Pillar
Summit Outcome & 2011 Action
Plan

2. Mission
Increase availability of equity & debt
financing options available to Entrepreneurs
(of all stages and sectors) in Barbados in
order to be the #1 Entrepreneurial Hub in the
World by 2020

3. Measures of Success 2011
 Finance Web portal launched online by 1 April 2011
 4 Business Finance workshops offered covering capital
structure and financing alternatives in 2011 (consider
Kauffman Fasttrac program)
 One or more Angel Investor Groups activated:
 Invests in 10 Ventures in 2011
 Professional and other groups help companies
prepare to pitch and refer entrepreneurs to angels
 Possible tax incentives to Angels

4. What does World Class look like?
 World class investors to world class
entrepreneurs
 Understand your business idea ‘domain
knowledge
 Willing to share risk & rewards
 Trust
 Responsive
 No ‘pie in the sky’ valuations

5. What does World Class look like?
Product/Situation Barbados Today World Class Requirement
Micro-enterprise Loans √ √
Active Angel Investors √
Active Venture Capital √
Venture Debt √
“Growth Capital/PE” √
Mezzanine Financing √
Senior Bank Debt √ √
“Frictionless” Foreign
Investment – Central Bank
√
Advisor Ecosystem √

6. Benchmark / Indicators World Class Barbados
There is no “one size fits all” for financing entrepreneurial
ventures at different stages (eg start-up) and sectors (eg
services) – equity is critical to ensure B/S strength
Full range of
Financing vehicles
exist
Limited – micro
and bank loans –
little to no equity
Culture must accept role of outside equity investment in
high-growth entrepreneurial companies – “smaller piece of
bigger pie”
Understood as a
premise for high
growth – more than
just $
Chicken vs. egg?
Is it culture or lack
of availability –
younger group -
latter
Private sector “Ecosystem” that supports company
formation and financing – attorneys, banks, lawyers etc.
“discount” fees in early years and have programs to support
new business development
Long-term view –
grow your future
market leader
pipeline
“One fee fits all”?
No commitment to
ecosystem
Stable government policy – frictionless opportunity for
foreign investment and repatriation (subject to tax rules etc.)
Tax regimes can be
complex but no
FX/CB restrictions
CBOB “sand in the
gears”
Where is Barbados on the Benchmark
Indicators?

7. Situation: Barbados characteristics
Individual traits
 Lack of information available on how to access
funds
 Risk averse – investments are typically long
term & fully guaranteed with limited ‘skin in the
game’
 Reluctance to give up control for equity financing
 Businesses are built not sold – ‘exit strategy is
counter cultural’

8. Situation: Barbados characteristics
System traits
 Banking system is not set up to encourage
entrepreneurs
 Not yet a truly competitive market
 Regulatory environment hinders equity driven
investment
 Protectionist – constraints in free trade
 Investments are typically small scale & ROI
expectations are low

9. Narrowing the gap
1. Educate Barbadians on Financial ‘language’
and types of investment available to raise
capital
2. Lack of government support & policies directed
at promoting the availability of finance
3. Lobby Government for regulatory reform
4. Work with Government & Central Bank to
develop incentives and breaks for
entrepreneurs
5. Relax FOREX controls & implementation of
credit bureau solutions

10. Key Themes
 Fear of Failure – less acceptable than in
other cultures
 Role of angel investment in developing
markets
 Reform to Pension fund regulation
 Foreign Direct Investment - raise profile of
Barbados brand to international
entrepreneurs

11. What Why When Who Status Remarks /Actions
Measures
Create a web portal • Source for
Information &
Education on finance
• Promote key events
April
2011
Establish an Angel
investor network in
Barbados
• Act as a source of
capital for start ups
Jan
2011
Explore establishing a
dedicated Venture
Capital enterprise
growth fund
• Raise new sources of
capital
Nov
2011
2011 Action Plan – Top 3 priorities

12. Reconfirm Mission
Increase availability of equity & debt financing
options available to Entrepreneurs (of all
stages and sectors) in Barbados in order to
be the #1 Entrepreneurial Hub in the World
by 2020