Small Business

Start-Up E-Toolkit Complete Guide to Starting Your Business

Local

Regional

This Small Business Start-Up E-Toolkit has been produced by the Small

Business Association of Barbados with financial assistance from the

European Union.

Facilitated through the Human Resource Development Strategy of

Barbados and the Ministry of Labour, Social Security & Human Resource

Development.

E-TOOLKIT CONTENTS

Welcome Remarks

5-Point Checklist for Entrepreneurs

9 Steps to Follow When Starting A Business

CAIPO Registration Requirements

Optional Actions

Where to Go

Special Sector Licenses

Assessing Your Business Capacity

Funding Your Business

Local Micro-Enterprise Development Agencies

Regional Development Institutions

International Development Institutions

WELCOME REMARKS

The Small Business Association of Barbados (SBA)

welcomes you to this interactive and informative Small

Business Start-Up E-Toolkit. This E-Toolkit was

designed to assist you, the entrepreneur and potential

small business owner, to:

Enhance your business idea, and

Establish your business in Barbados

The objective of the E-Toolkit is to help entrepreneurs

and potential business owners to increase their awareness

of the requirements to start a business in Barbados. This

interactive tool provides a practical and easy-to-use guide to effectively

navigate the process of setting up a micro, small or medium enterprise

(MSME). The experience of many an entrepreneur or business owner has often

been a daunting one, when seeking to turn that idea into the reality of a business

start-up. Often a process that should be simple, is complicated by persons not

knowing all the steps to follow, or the agencies to engage, or the services

available in the market to facilitate the development of the business. The SBA

has therefore sought to mitigate this burden and bureaucracy through this E-

Toolkit and to enable every person desirous of fulfilling their dream, to be able

to start their own business. The E-Toolkit’s content outlines the cycle to be

followed from the conception of the business idea through to operationalising

that idea, to preparing the business plan to grow the business.

We hope that this E-Toolkit will be a useful guide to all potential start-ups and

that more MSMEs will be easily facilitated to enter the market, and to become

sustainable businesses.

The SBA thanks the Ministry of Labour, Social Security & Human

Development, through funding facilitated by the Human Resource

Development Strategy of Barbados and provided by the European Union.

Lynette P. Holder

Chief Executive Officer

Small Business Association of Barbados

5-POINT CHECKLIST

FOR

ENTREPRENEURS

Comments by:

Lynette P. Holder

5-POINT CHECKLIST

FOR

ENTREPRENEURS

An entrepreneur will conceive a business idea which must be taken

through this five-point checklist to determine if this ‘idea’ is worthwhile

pursuing.

01

02

03

04

05

Conceive or search for business idea.

Research (Scan the environment) for the demand for this idea.

This would include screening of similar idea already in the

market.

Discard idea if it duplicates an existing business or identify

competitive features for existing idea.

Determine opportunity for the new business idea or enhance

the value added of existing business idea.

Determine the feasibility of the business idea and develop a

Business plan.

9 STEPS

TO

FOLLOW

WHEN STARTING A

BUSINESS

HOW TO START YOUR BUSINESS?

The Definitive "9-Steps" to follow when establishing & running your business

CAIPO REGISTRATION

REQUIREMENT

OPTIONAL

ACTIONS

OBTAIN

- Sole Proprietorship

- Partnership

- Limited Liability

- International Business

Company

- Trademarks

- Brand Name

- Copyright

- Patent

- Employers' N.I.S. Number

BUSINESS

VENUE

SPECIAL

SECTORAL LICENSES

TAX

REQUIREMENTS

- Place of Business

- Website Registration

- Email & related

virtual contact info

- Health/Food

Related Businesses

- Entertainment/Music sector

- Travel operators/Agents

- Operation licenses

- Construction/development

- Exports/Import licenses

- Income Tax Number

- Value-added Tax Number

YOUR CAPACITY

FUNDING THE BUSINESS

TECHNICAL ASSISTANCE

- Business, Marketing, Financial - Self Funding - Local Micro Enterprise

& Operating Plans - Investors – Angels, Venture Capital Development Agencies

- Accounting Systems, Human - Commercial Loans - Regional Development Institutions

Resources - Fiscal Incentives - International Development Institutions

- Crowdfunding

The Corporate Affairs and Intellectual Property Office (CAIPO)

Sole

Proprietorship

Company

Registrations

Partnerships

Non Profit

Organisation

International

Business

Company

"Doing

Business

As"

The Corporate Affairs and Intellectual Property Office (CAIPO) Corporate Affairs and Intellectual Property Office (CAIPO) was established in 1988 and plays

a vital role in making Barbados an attractive international financial and business centre that

facilitates and supports the investment process and the government’s commercial activities.

It comprises two separate and distinct offices:

• The Corporate Registry, and

• The Intellectual Property Office

The Corporate Registry The services provided by the Corporate Registry include incorporating and maintaining records

for non-profits, local companies/international business companies, societies, business names,

partnerships and other businesses.

The Intellectual Property Office The Intellectual Property Office is responsible for the registration of industrial designs and

trademarks, the granting of patents and the maintenance of records pertaining to trademarks and

service marks, industrial designs, and patents.

For further information on the services offered, contact CAIPO at +1.246.625.2400 or email:

general@caipo.gov.bb

Users are advised that this T oolkit is for reference only and they should seek

professional advice where applicable for legal, accounting, taxation and other information

as will be required.

LEGAL CLASSIFICATION OF BUSINESSES

Sole Proprietorship A sole trader also known as a Sole Proprietorship, or Proprietorship, is a

business which is exclusively owned and managed by one individual. They

are entitled to all profits and responsible for declaring their income and

paying their own taxes.

Company Registration

A company is an artificial being existing as a legal entity that is separate and

distinct from its shareholders and directors. A company has all of the legal

rights and privileges of an individual and is responsible for its own debts.

Partnerships

A legal relationship existing between two or more persons in a

business.

Non-Profit Organisation A Non-Profit Organisation (Social Enterprise F irm) does not earn profits

for its owners. All of the money earned by or donated to a Non-Profit

Organisation is used in pursuing the organisation’s business.

International Business Company

“IBC” is an offshore company formed under the Laws of Barbados as

a low-tax, or tax neutral, company. There are limitations regarding

the activities it may conduct in Barbados.

“Doing Business As”

Doing Business As is a business name alias used by individuals/companies

that differs from their legally registered business name.

OPTIONAL ACTIONS

N.B. Both accounting and legal advice should be sought prior to

registering your business.

Trademarks A trade mark is a symbol, word, or

words legally registered or established

by use as representing a company or

product.

Brand Names A word, name, symbol, especially one

legally registered as a trademark, used

by a manufacturer or merchant to

identify its products distinctively from

others of the same type and usually

prominently displayed on its goods.

Copyrights The exclusive legal right to make copies,

license, and otherwise exploit a literary,

musical, or artistic work, whether

printed, audio, video, etc. Works granted

such right by law are protected for the

lifetime of the author or creator and

may also be protected for a set period

after his or her death.

Patents The exclusive legal right granted by a

government to an inventor to

manufacture, use, or sell an invention

for a certain number of years but more

especially the sole right to exclude

others from making, using, or selling

such invention.

Other For the extensive lists of subcategories

that apply to general, and specific,

business endeavours call CAIPO.

WHERE TO GO Business Facilitation Venues

`N.B. The addresses of these offices may change subsequent to the E-Toolkit's publication.

01 - REGISTER YOUR BUSINESS

Corporate Affairs & Intellectual Property Office

7th Floor, Baobab Towers

Warrens, St. Michael

Tel: +1.246.625.2400

Fax: +1.246.625.2400

Email: general@caipo.gov.bb / requests@caipo.gov.bb

Website: http://www.caipo.gov.bb

02 - N.I.S. REQUIREMENTS

National Insurance Scheme

Frank Collymore Building

Lower Collymore Rock, St. Michael

Tel: +1.246.431.7400

Fax: +1.246.625.2400

Email: info@bginis.gov.bb

Website: http://www.bginis.gov.bb

03 - TAX REQUIREMENTS

Barbados Revenue Authority

Treasury Building

Upper Broad Street, Bridgetown

Tel: +1.246.430.3101/2/3

Fax: +1.246.436.3238

Email: bramail@barbados.gov.bb

Website: http://barbados.gov.bb/bra

04 - APPROVED SMALL BUSINESS STATUS

The Ministry of Industry, International Business,

Commerce and Small Business Development

Reef Road, Fontabelle, St. Michael

Tel: +1.246.427.5270

Fax: +1.246.431.0056

Email: commerce.ps@barbados.gov.bb

Website: http://www.commerce.gov.bb/

SPECIAL SECTOR LICENSES

ENTERTAINMENT & MUSIC Public Entertainment License - Barbados Revenue Authority

Permission to Play from nearest Police Station and a

Retail/Liquor Licence from the District Court responsible for the

proposed venue Copyright Society of Composers Authors &

Publishers Inc. (COSCAP) http://coscap.org/musicusers

TRAVEL OPERATORS & AGENTS

Ministry of International Transport administers Annual Tax

Clearance Certificate for Renewal of Travel Operators

Licenses. (No Annual Tax Requirement for Travel Agents.)

See http://internationaltransport.gov.bb/index.php

BUILDING DEVELOPMENT & OPERATIONS

Town and Country Development Planning Office. The Chief Town

Planner MUST CERTIFY plans for the development BEFORE the

development begins. Written notification on commencement of the

development must be sent to the Chief Town Planner.

http://www.townplanning.gov.bb/content.aspx?c=42

ALL "HEALTH" SECTOR OPERATIONS

All businesses operating in the sale or processing of food, offering

pediatric or geriatric care, or hair salons and health spas, MUST

undergo site visits. Thereafter the venue, operators and/or staff

must obtain licenses/health clearances/certificates from the Ministry

of Health. http://www.health.gov.bb/

EXPORT & IMPORT BUSINESSES Contact Customs and Excise Department of the Central Revenue

Authority to determine which import licenses you need. Register with

the Barbados Investment and Development Corporation (BIDC) for

applicable Duty Free Entry status on your products. Duty Free Status

ONLY applicable where bilateral trade agreements exist

see http://www.bidc.org/data/trade-agreements

CHILD CARE SERVICES

All Businesses must obtain a permit from the Child Care Board (CCB) Cheapside, Bridgetown, once it will provide child care services. Venues must be examined by Health Authorities and the CCB prior to opening. Tel: +1.246.535.2800, Fax: +1.246.435.3172 and Email: childcareboard@caribsurf.com

in is

ASSESSING YOUR BUSINESS CAPACITY

DO YOU HAVE A BUSINESS PLAN?

A business plan allows you to review your overall strategy

at a glance: your value proposition, marketing assumptions,

operations plan, financial plan and staffing plan. A well

written business plan coupled with a track record of

delivering against its goals sends a clear message to

reviewers (investors or bankers) that you understand

your business and can deliver the results you promise.

A comprehensive business plan cannot be overemphasized.

50% of companies with a plan gain financing.

FUNDING YOUR BUSINESS

BOOTSTRAPPING

Self-funding from your savings (if you have it) is always

preferred.

FAMILY & FRIENDS

The end source of non-personal funds for business is friends and

family.

BANK/CREDIT UNION

Lending Agency e.g. Credit Union that sees value in

your investment.

MICRO FINANCE INSTRUMENTS (MFIs)

These are government-funded agencies established to provide low

interest loans to generate employment, enhance exports and develop

new areas of economic activity.

GUARANTEE SCHEMES

The Credit Guarantee Scheme for businesses is sponsored by the

Central Bank of Barbados in an effort to assist businesses in obtaining

adequate security for their loans from credit institutions.

VENTURE CAPITALISTS (VCs)

Seek out professional investors who invest institutional money in

qualified start-ups (Scrutinise all VC investment terms).

ANGEL INVESTORS (AI)

A former entrepreneur or professional who provides start-up or

growth capital in promising ventures and helps also with advice and

business strategy.

LOCAL

MICRO-ENTERPRISE

DEVELOPMENT

AGENCIES

LOCAL

MICRO-ENTERPRISE

DEVELOPMENT

AGENCIES

SMALL BUSINESS

ASSOCIATION (SBA)

Association

The Small Business Association of Barbados (SBA) is the island's

non- profit representative body for micro, small and medium

enterprises (MSMEs). As the voice of small businesses across the

island, the SBA represents its members, and by extension, the MSME

sector by undertaking advocacy, education and training, business

development and institutional networking actions. The goal of these

thematic foci is geared towards creating an enabling environment for

Barbadian small businesses to prosper and make a positive impact on

national development.

The services provided to members and the wider MSME sector include:

ADVOCACY & LOBBYING - Represent the sector to Government to

facilitate an improved regulatory and administrative environment for the

MSME sector. Lobby and advocate the wider business community on the

behalf of members in the areas of contract negotiations, access to finance,

supplier agreements, among other areas.

TRAINING & EDUCATION - As an approved TVET Council Training Centre, the SBA

provides training in various areas for persons to attain the National Vocational

Qualification. Other management and computer-related courses are also offered.

Additionally, educational seminars are facilitated on current affairs issues and business

development topics.

BUSINESS DEVELOPMENT SERVICES - A series of capacity building and

institutional strengthening projects and programmes, including marketing & promotional

activities, technical assistance and sectoral development interventions.

YOUTH DEVELOPMENT - A Youth Entrepreneurship programme facilitated in

secondary schools on the island. The programme titled Enterprise in Action Youth

Programme, focuses on preparing fourth and fifth form students with the technical and

practical knowledge in business development and entrepreneurship in preparation for the

world of work.

MEMBERSHIP

Membership in the SBA is opened to all legally established businesses meeting any

of the following criteria:

• Annual Sales under BDS $8 million

• Employing fewer than 100 persons.

CONTACT

Small Business Association of Barbados

Suite 101 Building 4,

Harbour Industrial Estate, Bridgetown

Tel: (246) 228-0162

Fax: (246) 228-0613

theoffice@sba.bb

www.sba.bb

LOCAL MICRO-ENTERPRISE

DEVELOPMENT AGENCIES

Enterprise Growth Fund LTD. (EGFL) provides loans and venture

Capital financing ranging from BDS$100,000.00 to BDS$1.5

million. Its target group consists of dynamic, small and medium

sized Barbadian companies in the productive sectors. EGFL also

provides financing for technical assistance to its clients.

http://www.egfl.bb/

To qualify at Fund Access (FA), a business must be a commercially

viable project and once developed, must be the primary source of

income and employment for the applicant. Loans can range from as

little as $700 up to $100,000. A business plan is needed for loans

greater than $50K.

http://www.fundaccess.org/

The Barbados Investment and Development Corporation’s (BIDC)

core activities are aimed at assisting SMEs and companies in

conceptualising, planning and implementing new ventures,

marketing internationally acceptable goods and services and

penetrating overseas markets.

http://www.bidc.org

The Barbados Youth Business Trust (BYBT) provides start-up

capital, business mentoring, networking, advisory and marketing

support services to young Barbadian entrepreneurs.

http://www.youthbusiness.bb/

The Youth Entrepreneurship Scheme (YES), is a department of the

Division of Youth, Ministry of Culture, Sports and Youth, YES

supports young entrepreneurs (18 to 35) who have a viable

business idea and have either started or are considering starting a

small business.

http://yes.gov.bb/

The goal of the Barbados Entrepreneurship Foundation Inc. (BEF)

is to support the development of the country’s entrepreneurial

environment and to make Barbados the Entrepreneur’s Island by

2020.

http://www.barbadosentrepreneurshipfoundation.org/

The Caribbean Centre of Sustainable Livelihoods (CoESL) overall

goal is to help to ensure the economic well-being, health and

happiness of Caribbean and Latin American people by using

entrepreneurship to increase the number of good and decent jobs

and livelihoods in the region

http://www.coeslye.org/

REGIONAL DEVELOPMENT

INSTITUTIONS

What Are Regional Development Institutions (IDIs)?

Regional Development Institutions (RDIs) are entities that provide financial

and technical support for economic, social and environmental activities in the

Caribbean. The term Regional Development Institutions includes organisations such as

The CARICOM Secretariat, Caribbean Development Bank, Caribbean

Tourism Organisation, etc.

Many of the RDIs provide support in quality, tourism, financing, education,

business development, export development and private and public sector

development.

Caribbean Export Development Agency (CE)

Caribbean Development Bank (CDB)

Caribbean Microfinance Alliance (CMFA)

Caribbean Tourism Organisation (CTO)

CARICOM Development Fund (CDF)

CARICOM - Caribbean Single Market and Economy (CSME)

CARICOM - Office of Trade Negotiations (OTN)

CARICOM Regional Organisation for Standards & Quality (CROSQ)

CARICOM Secretariat

Centre for Development Enterprise (CDE)

Inter-American Institute for Cooperation on Agriculture (IICA) - Barbados Organisation of Eastern Caribbean States (OECS)

Information provided in this E-Toolkit, is not a complete list of Regional Development Institutions.

01

03

INTERNATIONAL DEVELOPMENT

INSTITUTIONS

What Are International Development Institutions (IDIs)?

International Development Institutions (IDIs) are agencies that provide financial support

and professional advice for economic and social development activities in developing

countries. The term International Development Institutions includes the World Bank and

United Nations and similar Development agencies. Many of the IDIs have the word "bank"

appended to their names but are not banks in the ordinary sense but a unique partnership

to support member country development objectives and programming. They provide low-

interest loans, zero to low-interest credits, and grants to developing countries and it is

because they support "investments" in areas like education, health, public administration,

infrastructure, financial and private sector development.

U.S.A. AND CANADA IDIs Global Environmental Facility (GEF)

Inter-American Development Bank (IADB)

International Labour Organisation (ILO)

Ministry of Foreign Affairs, Commerce and Development Canada

United Nations Development Programme (UNDP)

United States Agency for International Development (USAID)

World Bank Group

World Food Programme (WFP)

UK AND EU IDIs

Department for International Development (DFID)

Denmark - Danish International Development Agency (DANIDA)

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

European Union

Europe Aid Development & Cooperation (EADC)

European Bank for Reconstruction & Development (EBRD)

European Investment Bank

Spain - Spanish Agency for International Development Cooperation (AECID)

Switzerland - Swiss Agency for Development & Cooperation (SDC)

ASIA AND THE PACIFIC IDIs

Asian Development Bank (ADB)

Australia - Department of Foreign Affairs and Trade (Development Cooperation Division)

China - Department of Foreign Aid of the Ministry of Commerce (MOFCOM

Japan - Ministry of Foreign Affairs: Official Development Assistance

Korea - Korea International Cooperation Agency (KOICA)

Republic of China (Taiwan) – International Cooperation and Development Fund (ICDF)