2. 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.
3. E-TOOLKIT CONTENTS
Welcome Remarks
5-Point Checklist for Entrepreneurs
9 Steps toFollow 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
4. 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
6. 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.
8. 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
9. 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 Toolkit is for reference only and they should seek
professional advice where applicable for legal, accounting, taxation and other information
as will be required.
10. 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 Firm) 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.
11. 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.
12. 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/
13. 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
14. 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.
15. 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.
17. 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
18. 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/
19. 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.
20. 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)
