Are ‘Butch’ Stewart and Lascelles Chin mad?

Gary Peart

Wednesday, February 22, 2012

WHAT do you say about two entrepreneurs who put a combined investment of $3 billion (US$34 million) into an economy that is still facing the headwinds of the global economic recession? Are they seeing connections between the financial, labour, technological, consumption, human capital and innovation dynamics that the rest of us are missing? Has the importance of entrepreneurs been recognised fully in economic planning?

As you drive by Oxford Road heading to Cross Roads on a typical work day you perhaps notice the ubiquitous zinc fence beside ATL Autohaus Motors signifying that construction of some sort is going on. Or perhaps Spanish Town is your route of choice and on White Marl Road you notice the heaps of dirt behind the walls near the Lasco head office. These are not just the average run of the mill construction activities. The ATL Autohaus will add jobs and J$1 billion into the construction sector and its

offshoots and the Lasco expansion will create 250 new jobs and add $2 billion into the economy during the construction phase.

Speaking at the ground breaking on January 19, it was announced that ATL Autohaus is projecting a 25 per cent growth in Audi sales and a doubling of Volkswagen sales in 2012. As it stands, the ATL Group has grown and is the largest private employer and earner of foreign exchange in Jamaica, St Lucia, Antigua and Barbuda and the Turks and Caicos Islands.

Yet, the Caribbean and Jamaica, in particular, were severely hit during the World Economic Crisis which started in 2008. This was reflected in a significant and generalised slowdown in economic activity, as evidenced by lower demand for exports and a decline in tourist arrivals, remittances and fiscal revenue. Jamaica faces high public sector debt ratios, above 100% of GDP and the expectation of government retrenchment, resulting in lower spending and higher taxes. Further the Economic Commission for Latin America and the Caribbean projects Jamaica's growth at 1.2 per cent with our economic recovery expected to lag behind the US by two years.

So back to our headline question — are Messieurs Stewart and Chin mad? Without claiming licence to practice psychiatric medicine, we argue that it is the economy and not our entrepreneurs that suffer from a case of delusion. The fact is that the opportunity for economic growth is everywhere but nowhere. Signs of economic retrenchment abound as we have stated but according to these gentlemen and many other Jamaican entrepreneurs, a recession is a disguised opportunity.

Entrepreneurs are major contributors to economic growth, development, and prosperity of a nation. Entrepreneurs play a central role in the modern economy because they are the prime movers of goods and services. Entrepreneurs are fundamental to economic equilibrium because they set the economy in motion. Firms are responsible for practically all economic activity outside of government: innovating, pricing, contracting, employing resources, labour, and capital goods, raising financial capital, organising production, and marketing goods and services.

As we enter our 50th anniversary of independence, we need to recognise the genius behind the seeming madness of bold entrepreneurs that see opportunity where others see none.

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COMMENTS (3)

Gale Peart
2/22/2012

I wish there were more 'mad people' in JA with respect to entrepreneurship. The referenced men are visionaries, bold and are keen on finding opportunities and solutions. As Apple’s Steve Jobs said, “Here’s to the Crazy Ones http://ow.ly/9e3n7 "glorify or vilify them about the only thing you can't do is ignore them b/c they change things. The people who are crazy enough to think they can change the world are the ones who DO." Keep it going Messrs. Stewart & Chin. Here's to women in the mix too!

Peter Callen
2/22/2012

Not Mad.......Visionary!!!

John Christian
2/22/2012

Poor people voted in the Govt...looking to eat better food..how does Butch and Lascelles 'madness' help them...

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GCT to go down, white rum prices going up

Are ‘Butch’ Stewart and Lascelles Chin mad?