Last week, I received a call from the officer of the Ministry of Foreign Affairs responsible for CIEX. This was a new acronym to me. I subsequently discovered that the acronym stood for the Council for Investment, Exports, Foreign Exchange and The Diaspora. On further investigation, I learned that also on July 7th 2008, in his Financial Statement and Budgetary Proposals, the Prime Minister of Barbados mandated the establishment of CIEX, charging it with the specific responsibility of coordinating the efforts of Barbados’ principal foreign exchange earning sectors, and of exploring creative new ways to attract investment into Barbados. The CIEX has a tripartite membership structure representing the public sector, profit and non-profit entities. The responsibility for implementing the mandate of the CIEX has been entrusted to the Minister of Foreign Affairs and Foreign Trade. . The following are amongst the major priorities of this Council: (1) Harmonizing and coordinating the efforts of our Foreign Affairs, Tourism, Investment and Labour officials in our overseas missions through a reenergized Team Barbados. (2) Strengthening the relationship with the Barbadian Diaspora, whether they return to Barbados or not, through the creation of a new unit, Barbados Network, to provide enhanced incentives to attract the participation of Overseas Barbadians in our development effort; and (3) the creation of a Centre for Philanthropy which will provide a comprehensive legal and administrative framework to channel the contributions and good works of individuals and corporations towards projects for the social and economic development of Barbados. The officer mentioned that CIEX gets many enquiries from prospective entrepeneurs. Having been exposed to the existence of CBET (Barbados) on the People’s Business TV programme on Sunday 21st February, she thought she would open up the door to effect a smart partnership between CBET (Barbados) and CIEX in the near future.

When each of the above partnerships has been established, then the parties embark on the joint task of identifying the financial capital and Government policy support to procure all the resources required for success. The individual solutions to the four challenges may all be couched in terms of the generic solution “shepherding-systems coordination-money- success”. This may then be applied to the multitude of other examples that arise in our society. When God, who is the best shepherd of all, comes out in the open with his rule, he'll see that you've done it right and commend you lavishly and you who are younger must follow your leaders.

Last Friday and Saturday, BBEC mounted its first Shepherding Training Programme which primarily built on the existing Shepherds’ observations in the Pilot project. There were also interested well wishers of BBEC in attendance, along with prospective shepherds who shared their experiences. A dynamic interactive experience resulted, which was acclaimed to be very successful. The new batch of shepherds will be selected from those who attended. The experience in the pilot project has already begun to extol the virtues of the shepherding model as being necessary and sufficient for sustainable business success in Barbados. As we develop one business enterprise after another, we contribute to growth in the economy and the attendant increase in job creation, foreign exchange earnings or savings and other macro-economic benefits. If Barbados wins, we all win. May the shepherding innovation and the meditation of our hearts, be acceptable in thy sight, O LORD, our strength, and our redeemer.

David still seemed to be writhing in pain from the thought of youngsters giving advice. He was again gracious but at the same time myopic by concluding that “Hope it does work well for you guys, we are just averse to the kind of advertorial presented on CBET- investors all over can get much better and more experienced and tested advice all over the region”. I am not sure what his reference to “advertorial" was about but at least the PR strategy is having some provocative results. We thank David for his comments but I would like to end by paraphrasing the biblical text above as follows “We are not saying that we have this all together, that we have it made. But we are well on our way, reaching out for Christ, who has so wondrously reached out for us. Friends, don't get us wrong: By no means do we count ourselves as experts in all of this, but we have got our eyes on the goal, where God is beckoning us onward—to Jesus. We are off and running and we are not turning back. We have spent many resources training youngsters in the region; we must back this by exuding confidence in them. The next cohort of BBEC businesses will be shepherded beginning March 2010.

In a recent BBEC press release entitled “Invest in the Caribbean”, Jeremy Stephen, a 25 year old BBEC financial advisor, gave investment advice. An experienced Caribbean consultant from Manchester Trade, Ltd., D.C. responded to the press release as follows: (1) In one of the most cost-expensive and uncompetitive market in the Americas?; (2) Go ahead and be my guest following the advice of a 25 year old financial advisor!!!; (3) Maybe in the DR, but I suspect BBEC's notion of Caribbean is not that broad, huh? (4) I wish it were that easy my friend...; (5) Stay well, but please try to stay real! I am puzzled by the style of the response but one positive thing about it is that it was copied to a virtual “Who’s Who” in economics and finance in the region, each of whom now has the opportunity to be aware of BBEC (www.bimventures.com), if they were not already aware. For the record, Jeremy holds a BSc. (Hons). Economics First Class Honours degree from the UWI, the Central Bank of Barbados Scholarship 2004, the Llewyn Rock Memorial Prize for Economics 2004 and the Charles M Kennedy Prize for Economics 2005. He since acquired his MSc. Finance at the Imperial College Business School, London on a British Commonwealth Scholarship 2006. He is an entrepreneur, with experience in the entertainment industry and has an avid interest in financial investment through Damoola Inc. On returning to Barbados he has immersed himself in the BBEC problem solving environment. The CBET Shepherding ModelTM is proprietary to Caribbean Business Enterprise Trust Inc (CBET) and all intellectual property rights in the CBET Shepherding Model (TM) are exclusively owned by CBET. The Barbados Government was approached in 2008 and, arising out of this initiative, the Barbados Business Enterprise Corp. (BBEC) emerged as a partnership between CBET Inc. and the Government and Private Sector in Barbados and is maturing day by day. The model is licensed to BBEC. CBET is promoting the CBET Shepherding Model to other sovereign countries as a necessary and sufficient condition for sustainable economic development in emerging nations, one enterprise after another. To date the Model has been promoted in London (Commonwealth audience), in Dominican Republic (Latin American and Caribbean audiences) and in Africa (African, Indian and Asian audiences) with uniformly favourable responses. It is interesting to note another response to the same press release from a Barbadian, ICT student at University in Canada. He is even younger than Jeremy, well equipped in the current global reality of social media marketing and has his own website development business. It reads as follows: “I completely agree with Jeremy Stephen. I think marketing and running with it will be a good turn for Barbados. It will allow our government to have more funds to allocate to the tourism sectors and market Barbados at faster and harder pace. Good call!”

For as the sky soars high above earth, so the way I work surpasses the way you work, and the way I think is beyond the way you think, and an opportunity hierarchy improves on the job arrangements and an employment space is created to allow us all to grow and blossom to their hearts’ content. We can recover our freedom and our peace of mind if we imbibe the entrepreneurial culture.

There is an article by Sarah Pierce on February 28, 2008, entitled, Spirit of the Entrepreneur, which names the 5 characteristics which will be a useful underpinning for an entrepreneur who wants to start a business. These are passion (passion for business and an incredible passion for life); positivity (the power of positive thinking), adaptability (willingness to improve, refine and customize their services to continually give customers what they want); leadership (charisma, a sense of ethics and a desire to build integrity within an organization-someone who is enthusiastic, team oriented and a great teacher); and ambition (a great idea and a dream to share it with the world). I would like to add a “high adversity quotient” (the ability to persist in the face of adversity). We leaned from our retreat that the characteristics of a good shepherd include: reliability; provision of accurate feedback; commitment to the business’ success and economic development; knowledge about business; flexibility, openness to new ideas and objective criticism; dedication to the entrepreneur, particularly initially; understanding entrepreneurship and the nuances of entrepreneurs; responding well to challenges; patience; willingness to always learn and transfer knowledge; willingness to change; willingness to take calculated risks; spotting opportunities and networking capability; demonstrated management experience; knowledge of the sector; availability of time; complementary skills; innovative flair, verve and fervour; willingness to treat the entrepreneur’s business as if it were his/her own; empathy with the vision of the entrepreneur; entrepreneurial flair.

At one point the dialogue was centred on the optimal financial capital investment mix. Loans and overdraft facilities are obtained from commercial banks and other financial institutions; they require a monthly repayment of principal and/or interest over a given period, which may be a cash flow burden on the emerging enterprise; and the enterprise must provide collateral, which it might not have, to secure the loan. Grants are really loans which attract a zero interest; which is never paid back and for which no collateral is required; they are much appreciated when available. Demand loans may be obtained from friends and relatives at a negotiated “win-win” interest rate and repayable on “demand”; this eases the cash flow and collateral is not required. The entrepreneur, friends, Angel investors (who also offer to provide management assistance to the enterprise) and the VCF may make equity investments in the enterprise. The terms of repayment to benefit the investor (exit strategy) will be negotiated prior to the signing of an equity agreement. Funds may be obtained through corporate sponsorship where a company may be willing to pay as part of its marketing budget for the exposure of its product or service by the entrepreneur. This is not to be confused with social corporate responsibility where the company takes part of their profits and allocates to a deserving cause. Where as the BBEC SCF helps the entrepreneur to establish the business, the BBEC VCF helps it to grow by taking shares in the business in such a way that the investors in the VCF get a healthy Return on Investment.

There is a marked increase in entrepreneurs coming forward now that the Venture Capital fund has been launched. There is also an increasing interest in the opportunity for shepherds and business advisors who themselves have an entrepreneurial bent in the way in which they offer their services. Individuals are responding to the notion that they should look for “opportunities not jobs” thus putting a greater emphasis on themselves to look after their future and not be dependent on others to do so for them.

As we embark on another year, may I exhort each and every one of you to recognise that you can make it through anything in the One who makes you who you are. He will stay alongside you with your troubles. May holistic prosperity abound in 2010.

During this mid-morning rest, the radio in the background was tuned to BBC FM 92.1, a 24 hour radio service which keeps one in touch with international affairs and serves up many a high quality diet of educational and entertainment offerings. Towards the end of my slumber, my subconscious tuned into a programme which may have been entitled, “Prospects for 2010 from a Christian perspective”. There was a smooth transition to my conscious mind in time to register the closing remarks which promoted the philosophy of “Hopeful Realism” in the context of dynamic wealth creation activity with responsibility to look after the less fortunate in society.

The feedback since the official launch of the Barbados Venture Capital Fund over a month ago has been awesome. The rate at which entrepreneurs call with business ideas, is unprecedented. The number of potential shepherds/advisors interested in participating in the programme has increased. Interest from abroad in the model abounds. Response locally to sophisticated investors has been positive, especially when advised that the principal sum invested is guaranteed by Government.

One participant wanted to know whence the source of funds to pay the shepherd. I delineated the creative way in which the shepherd is paid: (1) the seed capital company advances funds to the entrepreneur to pay the shepherd to prepare the business plan; (2) the enterprise buys the business plan at a profit from the management of the seed capital fund with investment funds, if necessary, from the Venture Capital Fund; (3) the enterprise follows the business plan and grows the business by selling the product or service to the consumer; (4) as the business grows the VC capital fund sells its shares to the enterprise and handsomely replenishes its capital; (5) the Venture Capital Fund is liquidated at the end of the agreed period and the investors obtain their return on investment. The answer to the question therefore is that, in reality, the consumer pays the shepherd.

Little by little you will improve yourself and your life. Learn from your past- look back on your past mistakes and try to understand how not to repeat them. It is important to learn from your mistakes so that you can evolve and improve yourself. A mistake is not really a mistake if you learn something new about yourself from it. Don't try to be something that you are not-value yourself for who you truly are inside. Don't be obsessed with being someone else like supermodels, celebrities, and famous people. You will never improve yourself if you aspire to be someone else. You need to stay true to yourself and your values and ethics. We must pay attention to our emotional being. We must improve our outlook on life- in order to improve ourselves. You must first improve the way that you view yourself. Self esteem is essential to feeling good about yourself. We must practise positive belief systems such as good relationships, self-confidence, security and ambition. We must reject negative emotions such as anger, fear, worry and guilt – they induce stress and may make you seriously ill. Improve the way you act around people- You should try to be nicer, and you will receive that kindness back in return. It will also help you to have a more positive attitude overall. If people view you as a nice person then you will radiate a positive energy and people will want to be around you. Set small goals for yourself- improving your self takes time. You need to set small goals for yourself so you are not overwhelmed and feel a sense of accomplishment. We must pay attention to our spiritual being.

The Prime Minister of Barbados, the Hon. David Thompson, in his address at the Launch of the Barbados Entrepreneurs’ Venture Capital Fund, which is designed for Quick Response had this to say: “We have been faced with one crisis after another. Over the past few years, we have witnessed the global triple “F” crises related to Fuel, then Food and, most recently, we have suffered and are still suffering from the effects of the Financial crisis”. He continued: “Barbados as a small emerging open market economy, will not escape the tsunami effects of the global crises as they wash up on our shores. The only thing we can do, other than fold our arms and ponder – which I don’t intend to do - is to respond with innovative and creative solutions to address the critical imperative to grow the size of the Barbados economy and by restoring and increasing our growth rates. Sustainable economic growth and development can only take place in Barbados by building successful enterprises that are well managed, aggressive, innovative, civic-minded and attain high levels of performance”. Jeremy Rifkin was on the same wavelength as Prime Minister Thompson but spoke more comprehensively and from an international perspective. He addressed the challenges of devising triple “E” creative solutions related to Energy security, Environment and global Economic recovery.

Whether we are feeling the effects of a financial crisis or not, there is no denying the fact that: without the entrepreneur there will be no business enterprise; without one successful business enterprise after another there will be no economic development; without sustainable economic development, our socio-economic well being is at risk. We therefore need to do everything in our power to manage the factors that ultimately put us at risk.

The Prime Minister, in his address at the launch of the Venture Capital Fund (www.bimventures.com), held on the first anniversary of the advent of the Seed Capital Fund, confirmed the Government’s incentives to the private sector to invest in the VCF. The six business enterprises, which were included in the pilot phase, were showcased at the launch and the entrepreneurs, along with their Shepherds, gave testimonies, as to the current success of the CBET Shepherding ModelTM.

This is the third such Awards session and it is always amazing to me the wealth of talent that exists in the Caribbean. All praise to the Foundation for embarking on this Caribbean Awards programme to encourage selected existing operations to grow from strength to strength with the very attractive cash awards in the categories of Arts and Letters, Public and Civic Contribution and Science & Technology. Unfortunately only the winners receive awards, but perhaps other successful companies in the Caribbean can follow suit, thus creating greater possibility for advancement of entrepreneurial activity and hence economic growth.

One of the most recent initiatives is the CBET partnership with the government and private sector in Barbados, of which Minister Boyce made mention in his presentation, to adopt the CBET Shepherding model which includes seed and venture capital funding. The first six plot enterprises under this model will be showcased in less than two weeks time when the Prime Minister gives the feature address at the launch of the Barbados Quick Response Entrepreneurs’ Venture Capital Fund. Righteous are his ways, mighty and marvellous are his acts. Listen to Him we shall all overcome.

Whereas, I am prepared to concede that it is a bit premature to ask commercial banks to change their risk assessment process, based on a promise of the advent of a risk mitigating measure, I think that the time is right to invite commercial enterprises, including commercial banks, to invest in a bond issue which will capitalize the Venture Capital Fund, especially if the Government, on behalf of the people of Barbados, is prepared to give a significant incentive to guarantee the investment principal.

One of my missions in life is to persuade the commercial banker that the shepherding concept, where an experienced shepherd is assigned to the entrepreneur, mitigates the failure of the business in a way that no amount of hard collateral can and that the adoption of the CBET shepherding model by an enterprise, should be regarded as part of their risk assessment process. More loan business for the bank increases the return on its shareholders’ investments and contributes to the economic growth of the country, which in turn enhances the banks growth. In last week’s article where I addressed the topic of risk in organisational systems, I had a response from Sir Courtney Blackman, the founding Governor of the Central Bank of Barbados, “I liked this piece especially since it places the responsibility for risk management squarely on management”. I interpreted this statement as support for the CBET Shepherding Model. The CBET pioneering application in Barbados has reached a point where the first six enterprises are about to present their business plans for venture capital funding. I am looking forward to the possibility of approaching commercial banks to encourage them to develop a partnership with CBET’s clients and the CBET Shepherding model in the bank’s own best interest.

Last week, I was invited to present at a seminar mounted by G.O. Lynch Consultancy Inc. The theme “The new critical importance of the HR practitioner in planning for and managing your next crisis”. My approach was to create an environment for the participants to think about the origin of business risks and how to combat them with growth strategies and therefore inculcate a culture of sustainable success in the organisation. In laying this foundation, the first stone was to recognize that the partnership between the public and private sectors is one where the public sector creates an enabling environment to permit the private sector “To Conduct Business”. The second stone was to recognize that change induces risk in organisational systems which generically include strategic management; marketing; operations; HRD; administration; ICT; legal; and financial. I gave examples of the risk inducing types of factor that one should look for within the various systems in the organization and then to identify the corresponding growth strategies to mitigate those risks.

My suggestion is that, in order to experience sustainable tourism growth, we must “move our marketing strategies to the East” and not plough more and more resources into Western markets which are more severely hit by recession and from where the centre of gravity of global wealth has long moved to the East. Remember that “Hope Springs Eternal in the Human Breast”. In entrepreneurial development across many productive sectors, the expected failure rate of start-up businesses is 80% to 90% in the first two years of operation. This number is repeated time and time again as if it were an inevitable phenomenon. My hypothesis is that if we recognise the reason why these businesses fail is due to weak management of business systems such as marketing, operations, human resources and finance and introduce the CBET Shepherding ModelTM, we would probably experience a dramatic turnaround so that the business failure rate in the first two years of operation would only be 10 to 20%. This is a potential factor of four in economic growth irrespective of threats of financial crises or other manifestations of a paradigm shift.

On a daily basis I deal with entrepreneurs, many of whom are four decades my junior. They are warming to the shepherding experience and in fact recognize the value of the smart partnership which has been spawned. In Rotary, in the same way that women were admitted into Rotary which was previously a male domain, in our Rotary Club we have now invited well trained young professionals men and women to provide some diversity and energy into a club whose average age was inevitably on the increase. I observe too that, relatively speaking, such an intrusion of younger members is also necessary in the Barbados Association of Retired of Persons (BARP) whose membership threshold is 50 years of age.

The Barbados Government has demonstrated, by its support of this innovative smart partnership, that is a servant to this people; it is considerate of their needs; it responds with compassion; and works things out with them. As this process becomes more and more successful, the government therefore has a reasonable expectation that the people will end up commensurately reciprocating to the Government.