Jamaican middle and upper classes don't have the entrepreneurial spirit — Ventura

BY PAUL RODGERS Business Editor rodgersp@jamaicaobserver.com

Friday, January 27, 2012

THE poverty that blights much of the Caribbean economy has one big upside -- it has created a huge pool of people rich with entrepreneurial spirit, says a leading expert in the field.

Conditions such as inequality and poverty "awaken entrepreneurial spirits in efforts to survive", Professor Arnoldo Ventura said in a presentation to the Jamaica Stock Exchange's regional conference on investment and capital markets.

"They're the most innovative group in Jamaica," the Mico University College academic later told Caribbean Business Report. "The middle and upper classes don't have that entrepreneurial spirit."

The Jamaican market women who import goods for sale are an example of this, he said. Some of them now travel as far away as China to look for new products.

"They have to be fully aware of what will give them that little margin," he said. "They do so by being informed about products and techniques available abroad. They reach out for information."

More established businesses often just wait for management consultants to advise them or pick up ideas from business magazines, he said. "Many of the main productive enterprises are not nearly as creative."

However, spirit alone is not enough, Ventura argued at the JSE conference in the Jamaica Pegasus Hotel in New Kingston, yesterday. For the entrepreneurial poor to be successful, they also need information.

A tomato farmer, for example, who wants the best price for his produce when he takes it to market, needs to know if there is a glut of salads at Coronation and a shortage at Linstead.

He also needs to know about how well different fertilisers and herbicides work and where to buy them at the best price.

But in today's rapidly changing technological environment, the information that could turn small-scale entrepreneurs into the founders of more successful enterprises is often scientific. "The technological ferment of today is a fertile environment for entrepreneurial opportunities."

Ventura argued that many of the psychological characteristics of entrepreneurs are also present in scientists, such as creativity, self-motivation and a drive to achieve.

"The mindset is similar, although the ultimate goal may be different," he said. "A heavy reliance on logical reasoning is the pivot of science, as it is the crucial step in entrepreneurship."

Jamaica has started to build on this relationship with its National Science and Technology Commission, he said. That network is complemented regionally by the Barbados-based Caribbean Science Foundation.

Ventura warned policy makers and investors not to be risk averse. "They do not realise that the status quo is often more dangerous than the unknown.

"Science is the dynamo behind worldwide socio-economic progress," he added. "A society with limited scientific capabilities and literacy, as exists in Jamaica and other parts of the Caribbean, diminishes the scope for entrepreneurship."

"There is no doubt that entrepreneurship is now a required element for Caribbean economic progress."

Since the region has tried every other development strategy available, he said, perhaps now is the time to give science a chance.

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COMMENTS (12)

Stevespeaks Puretruth
1/29/2012

After FINSAC, super high interest rates on loans, who would want to open a business in Jamaica? Ventura, should recognize this pay attention to what Ian Francis said. He speaks truth.

Beresford Davidson
1/28/2012

Take a look at the Jamaican government of today; it’s a collection of pauper torpors! They are dull, sad, disingenuous and over certified enchantresses. I cannot accept this last election outcome as true; Jamaicans are vibrant, truthful, smart working people; how did they make such a fatal error? In an age where we built everything to limit the size of government so we can go about our work in true independence, a government of thievish mentality, of desperation, of power hungry and having no ethics, scruples or sense of responsibility in unnecessarily top-heavy. A country of 14 parishes don’t need 60-odd F’Arts sitting up looking in their faces with heavily armed policing and pseudo-scientists of micro-management to tell them what to do.

Tone Bag
1/28/2012

Prof is talking of science being the analytical tool that drives entrepreneurship Business is like an expedition He is right the familiar venture is probably more/as risky as the unknown Sorry to hear of failures Reality is though that 70% of businesses fails over 10yr Persons here before jumping to party political explanation for this should know that there is an international ideological conspiracy against socialist regimes including the PNP but the Bible says he that watches the wind sow not

john mack
1/27/2012

I think a lot of the diehard PNP dont want to accept that their messiah Manley led people to believe entrepreneurs are evil capitalists and told them they could leave the country. After he went you had another heir to Manleys throne Omar Davis who said if you making money you need to pay super high interest rates ...and these were highly "educated" people. No wonder why the business class abhors PNP we know what they are capable of...

douglas gooden
1/27/2012

Leadership by example is what is required and a vision for that example to involve everyone so that all can benefit.
For instance, Rome had the colessuem. Jamaica has the National Stadium which was sufficient for the 1960's when it was built. Jamaica has more raw undeveloped talent than any other country that is comparable. So that talent has to be harnessed for development. Facilities that are commercially viable on an international that can be marketed have to be the way answer.

Ian Francis
1/27/2012

So Ventura, given the earlier scenarios I described, would YOU go out & start a business in Jamaica? I think not. I tried many years ago & it failed, but I am LOATHE to risk all that I have worked for since then in starting another one.
Damned socialist idealogues like you need to hush rather than telling us hard working, PAYE payers that we "lack the entrepreneurial spirit". You should be working to level the play field to encourage entrepreneurs, not condemning us who tried before & failed

Ian Francis
1/27/2012

(cont.d) In Jamaica, the platform is not level or fair, so small entrepreneurs face many hurdles in starting a "legitimate" business (i.e. it's registered, pays taxes etc.).
The Jamaican rules are against business failures (i.e. total liquidation of assets to pay off creditors) unlike the US where viable businesses are protected by bankruptcy protection laws.

Ian Francis
1/27/2012

As one who was born to a well off family, I saw generations of hard work wiped out by the financial debacle in the 90's caused by the PNP. My own father sunk everything he had into his retirement business only to see it fail because of high interest rates. And at the age of 60, migrated & started all over again and now has a menial accounting job in the US.
After those examples, am I risk averse? U betcha, but to have a professor who has never worked advise I lack the entrepreneurial spirit?

Will Will
1/27/2012

Is the nation serious about creating jobs for its people? In your piece, you refer to the Jamaican woman going as far as China to look for new products. Are Jamaicans not capable of manufacturing again? We have got to become a nation of doers again or else we will forever be burdened with our high unemployment.

Fabian Williams
1/27/2012

The 1970s was a very challenging and difficult time for private entrepreneurs in Jamaica. Many talented entrepreneurs went overseas and the country is yet to recovery from that sad period. Your comment that investors should not be risk averse is absolute rubbish. How can investors not be risk averse when the investor is investing other people's money?

nervous investor
1/27/2012

... and what killed off the entrepreneurial spirit of the upper and middle classes in Jamaica ? .... might it possibly have anything to do with the constant attack by certain political interests that they have endured since at least the 1970s as "wicked capitalists" ... as Tourism interests holding their workers in "servitude" ... as "exploiters" ... of "users of slave labor" .... as FINSACED persons .... as objects to be fleeced ...
Go underground my man and do just enough to hustle a bread.

larry smith
1/27/2012

But,can you blame them!!!alot of these business people do their best to help the economy.but both the jlp and pnp came in and changed the environment, making it harder to keep the business vibrant.now,how sad is that!!same old politicians ,so why should these entrepreneurs be optimistic.

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Jamaican middle and upper classes don't have the entrepreneurial spirit — Ventura