Business Incubator Initiatives in the Caribbean Region

Transcription

1 Business Incubator Initiatives in the Caribbean Region By Roshan Seebaluck Team Leader Business Incubation Expert IBM /Integra November 26, 2007

2 Agenda 1 European Union SFA Technology Innovation Center (Jamaica) 3 Regional Management Office 4 SFA Components Business Incubator Components 3 islands Opportunities and Challenges Network Support & Regional Coordination

3 EU SFA 2005 Study in 2006 (EU Funded) - Supporting Innovation & New Business Creation: Business Incubation in Dominica, Grenada, St. Lucia, St. Vincent - Sustainability Through Ownership and Self- Determination (Supported from InfoDev) European Union Special Framework Assistance (SFA) 2005.

4 EU SFA 2005 Objective To support the governments of the three islands Dominica, Grenada and St Vincent and the Grenadines (Eastern Caribbean Region) to implement their national SFA 2005 programmes in order to foster economic diversification. (Agriculture to ICT Sector.

5 EU SFA 2005 Start-up phase :- Establish the Regional Management Office (RMO) offices in St Vincent and Dominica (March 2007) Visited all three islands and Barbados as well; Establish the project in all three islands; and Establish contact with stakeholders involved in the implementation and co-ordination of the project and lay down the foundation of the Regional Management Office Project life 3 years ( ) Total Project cost > 10 million Euros

6 EU SFA Objectives 1. Coherence Ensure regional coherence and consistency in areas such as the legislative an regulatory framework and the regional accreditation of training qualifications. 2. Critical Mass Some programme activities such as business incubators will need to be established as part of an overall regional network in order to be sustainable. 3. Economies of Scale Ensure the cost-saving and efficiency from economies of scale by managing and administering the programmes centrally. 4. Lesson Learning Provide an opportunity for individual countries to share and learn and experience and best practice regionally in the synergistic programme areas. 5. Technical Assistance to NAOs Assist in implementation of the SFA 2005 programmes.

7 EU SFA 2005 Approach - Key Principles Participation, Interaction and Dialogue of all related groups and stakeholders to broaden perceptions and to deepen analysis of concerns and understanding of interconnected issues. Active involvement of the counterparts and consequent delegation of responsibilities to the beneficiary and the target groups to ensure sustainability of capacity building and strategic planning Building synergistic co-operation between the relevant key players involved, as well as with other relevant projects and donors, such as SFA 2004, infodev, STABEX etc.

8 Technology Innovation Center

9 INCUBATOR MODEL For Profit On-site tenants Anchor tenants Virtual tenants Technology Oriented Incubator

10 Facilities 25 Office Suites & 4 Manufacturing Bays Stand By Generator Conference & Meeting Rooms Card access Control and CCTV systems Computer laboratory Integrated voice/data network

11 Status of Incubatees Not in Business 15% STATUS OF INCUBATEES In Business Not in Business In Business 85% Still in Business 17 Not In- Business 3

12 Regional Management Office (RMO) Three main functions of the RMO (IBM Belgium / Integra) 1)Support and assistance to individual country level project initiatives; 2) Regional coordination; and 3) Short-term demand-driven Technical Assistance to the National Authorising Officer (NAO) and implementing agency.

13 SFA Components No Components Dominica Grenada St Vincent & Grenadines 1 Information and Communication Technologies (ICT), e-business Strategy, Leadership and Awareness Development (PE) (PE) 2 Business skills development and e-business incubators Grant Contract Service contract Service contract 3 Capacity-building (PE) (PE) 4 Construction and establishment of a national ICT training and incubator Facility (work and supplies contract) 5 Legislative and Regulatory Framework (PE) Service contract (PE) 6 Business-oriented e-government Initiatives (PE) (PE) 7 Networking and experience-sharing (RMO) * PE Programme Estimates

14 Business skills development and e-business incubators No Components Dominica Grenada St Vincent & Grenadines 1 A National E-Business Incubator Centre is established, which provides high-quality ICT and business services 2 A network of four community resource centres works closely with the National E-Business Incubator Centre to deliver high-quality services to business users within their primary market areas. 3 A Regional Network of E-Business Incubator Centres is established in the Windward Islands region. 4 The Business Gateways and business associations develop highquality support services, which are used by local businesses to develop more effective businesses processes.

15 Business skills development and e-business incubators No Components Dominica Grenada St Vincent & Grenadines 5 Businesses, particularly SMEs and businesses established by entrepreneurs currently or formerly dependent on banana production, improve their business performance and competitiveness and develop new services and markets through the use of ICTs and e-business skills. 6 The Business Gateways and business associations develop appropriate Internet-based jointmarketing initiatives which extend markets and market opportunities for local businesses. (SFA 2004) 7 Support to a number of small businesses with high-quality ICT investment proposals are made by the Business Gateway to a number of small businesses each year, which enable them to develop and succeed in generating employment, revenue and new markets.

16 Business skills development and e-business incubators No Components Dominica Grenada St Vincent & Grenadines 8 A growing ICT services sector provides high-quality ICT services to businesses within Dominica and makes a contribution to employment, exports and economic diversification. 9 Construction and establishment of a national ICT training and incubator Facility ( to house Centre for Enterprise Development, National Innovation Training Institute, Incubator Centre

17 Project Management and supervision Regional Steering Committee (inter-island) Regional Management Office National Steering Committee (Dominica) National Steering Committee (Grenada) National Steering Committee (St Vincent and the Grenadines) Multi- Stakeholder Forum (Dominica) Multi- Stakeholder Forum (Grenada) Multi-Stakeholder Forum (St Vincent and the Grenadines)

18 Opportunities Create new opportunities for potential entrepreneurs using ICT & ITES Create a new mindset & entrepreneurial culture based on knowledge

19 Challenges Entrepreneurship Culture is weak Small open economies Limited skilled labour Mass Migration. Limited resources. Dependency on single crop. (Bananas, Nutmeg, etc.)

20 Incubator Centre General Model Virtual Incubator Infrastructure Office Space Internet Access Electricity Air-conditioning Furnished Office Meeting Room Incubator Centre Business Support Counselling Advisory services Marketing Networking activities Based on a rent model Logistics Common Facilities Shared Administration Service Telephone, Fax Photocopying Cleaning amongst others

21 Non-Equity Model Organisation Structure Incubator Board 1 Based on a rent model Incubator Management Team 5 Non Equity 2 Promotion Activities to attract start-ups & creation of a critical mass of entrepreneurs Pricing Policy, Additional Services 4 3 Sustainability through grant

22 Network Support & Regional Coordination Regional Coordination & Networking events Intranet to share information Specific characteristics of Small Island Developing States (SIDS) Participation in Regional and sub regional events Creation of a Caribbean Incubator Association including Technology Innovation Centre (TIC) Jamaica Network with InfoDev and various counterparts

23 Caribbean Business Incubation Association Proposal to set up an Caribbean Business Incubation Association (CBIA) Mission To promote and foster business incubation in the Caribbean states..

24 AIM - CBIA 1) To promote business incubation, and, to work towards the advancement of the business incubation industry in the Caribbean Regions 2) To drive & guide the development of business incubators by providing :- i. Tools ii. Capacity building programme iii. Networks

25 TASKS - CBIA 1) Policy, Regulatory & Advocacy a) Facilitate institutional and political dialogue b) Collaborate with policy makers and stakeholders to set National Incubation policy c) Protect the rights of incubators and establish support structure d) Lobby the interest of incubators / incubates 2) Networking & Events 4) Training & Marketing (Group) 5) Research on BI 6) Good Practices on Business Incubation 7) Development of Business Incubators

26 TASKS CBIA (Contd..) 8) Ongoing assessment and evaluation of business incubators 9) Membership 10)National Incubator Awards (recognition)

27 Expected Impact 1) Micro Level Impact on Business Community and creation of start-ups 2) Meso Level a) Synergies across sectors (vertical and horizontal) b) Promote Entrepreneurship in a concerted manner 3) Macro Level a) Business Incubation as a PPP model (both Private and Public) b) Advocacy tool for policy makers c) Effective utilisation of resources

28 Eco-System for Business Incubation 1) Develop programs to promote entrepreneurship and creation of an entrepreneurship culture (incl Educational institutions, community level..) 2) Synergies b/w different institutions 3) Incentives to setup & promote Business Incubators (incl Fiscal/Tax incentives, Technical Assistance programs) 4) Public & Private sector participation (PPP) 5) Government Policy on Business Incubation and Institutional Framework National Business Incubation Association (NBIA)program; Caribbean Business Incubation Association (CBIA); World Bank InfoDev; RedLAC ; Relapi. 6) Support and long term commitment from a network of Leaders, Officials, Businesses and Universities 7) Availability of and access to Capital

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