The Chief Executive Officer (CEO) of the Barbados Entrepreneurship Foundation (BEF), Celeste Foster, has appealed for legislation to address the issue of alternative financing measures for start–up companies on the island.
She made the call this morning at the official launch and orientation programme of the 2017 Youth Entrepreneurship Scheme’s Entrepreneurial Development Training Programme.
Foster said the country’s financial system has failed to integrate alternative financing options such as equity financing or crowdfunding, leaving most entrepreneurs to apply for loans or grants to fund their companies.
“We don’t have a lot of systems set up for alternative types of financing such as equity financing which the Barbados Entrepreneurship Foundation is seeking to do through its Trident Angels Network,” Foster told Barbados TODAY.
“We do not have legislation that encourages crowdfunding so we need to see more done with alternative financing options.”
While commending young entrepreneurs, Foster said that there was a lack of market research or knowledge exhibited by individuals starting a business.
“We need to do some research. We can see a problem and ask how we can solve it in a way that allows us to make money because business is about creating wealth and creating money for ourselves,” she said.
“We need to marry those two, we need to identify what are some of the solutions to the problems we face, how can we make money from doing it and at the same time how can we divorce ourselves from government where we have the government as a facilitator and not necessarily as an input to our process directly.”
Foster stressed that for enterprises to grow and develop, market research is necessary to guide them along the correct path, as they move from idea to enterprise. (KK)