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Caribbean Diasporic Entrepreneurship Analytical Report Prepared by: Dr. Keith Nurse Dr. Claremont Kirton The University of the West Indies Regional Headquarters Hermitage Road Kingston 7 Jamaica, W.I 2014 © 2014 Whilst efforts have been taken to verify the accuracy of this information, neither the Inter-American Development Bank nor any sponsor or provider of financing of this information (nor their affiliates) can accept any responsibility or liability for reliance by any person on this information, opinions or conclusions set out herein. The ideas and opinions expressed in this publication belong to the authors and do not necessarily reflect the official opinion of the Inter-American Development Bank, or of any of its employees, agents, its Board of Directors, or the countries they represent. This report was originally authored by Dr. Keith Nurse and Dr. Claremont Kirton of UWI Consulting in 2014 and was commissioned by the Inter-American Development Bank (IDB) with funding from the Compete Caribbean Program, a regional private sector development, technical assistance initiative financed by the IDB, the United Kingdom Department for International Development (DFID) and the Department of Foreign Affairs, Trade and Development Canada (DFATD), and executed in partnership with the Caribbean Development Bank (CDB). 2 | P a g e Table of Contents LIST OF TABLES AND FIGURES....................................................................................................................................................... 4 EXECUTIVE SUMMARY ................................................................................................................................................................... 5 INTRODUCTION .............................................................................................................................................................................11 PROJECT OBJECTIVES....................................................................................................................................................................13 APPROACH.....................................................................................................................................................................................14 THE DIASPORIC ECONOMY AND ENTREPRENEURSHIP IN PERSPECTIVE ...........................................................................16 RESULTS FROM DIASPORIC ENTREPRENEUR SURVEY ...........................................................................................................22 THE RESULTS .................................................................................................................................................................................23 a) Links to the Home Country ......................................................................................................................................26 b) Finances......................................................................................................................................................................27 c) Investment .................................................................................................................................................................28 DIASPORIC FIRM PROFILES AND ANALYSIS .............................................................................................................................32 STRATEGIC REVIEW, ASSESSMENT AND DIRECTION .............................................................................................................42 STRATEGIC REVIEW ........................................................................................................................................................................42 STRATEGIC ASSESSMENT.................................................................................................................................................................46 STRATEGIC DIRECTION....................................................................................................................................................................47 BIBLIOGRAPHY ...............................................................................................................................................................................50 ANNEX I: LIST OF FIRMS INTERVIEWED ....................................................................................................................................52 ANNEX III: DERIVED FROM SURVEY INSTRUMENT - SECTION A: CARIBBEAN IDEA MARKETPLACE INITIATIVE.......53 3 | P a g e List of Tables and Figures Table 1: Remittances and Migration in the ACP ........................................................................... 17 Table 2: Diaspora population as percentage of Global City Population ....................................... 18 Table 3: Modes of Supply in Trade in Service and the Diasporic Economy.................................. 19 Table 4: Breakdown Of Respondents By Country Of Birth ......................................................... 23 Table 5: Breakdown Of Respondents By Base of Operations ...................................................... 24 Table 6: Breakdown Of Respondents By Country Of Business Registration................................. 24 Table 7: Length of Business Registration ...................................................................................... 25 Table 8: Non-mutually Exclusive Sectors of Involvement identified by Respondents ................. 25 Table 9: Number of Full Time Employees .................................................................................... 26 Table 10: Pre-tax gross income (US$) for 2012 ........................................................................... 26 Table 11: Non-mutually Exclusive Reasons that Diasporic Entrepreneurs travel to home Countries ....................................................................................................................................... 26 Table 12: Non-mutually Exclusive Reasons that Diasporic Entrepreneurs Maintain Non-Travel Contact with Home Countries....................................................................................................... 27 Table 13: Sources of Start-up Capital Identified by Firms ............................................................ 27 Table 14: Non-Mutually Exclusive Sectors Identified by respondents as Major Sources of Income ....................................................................................................................................................... 28 Table 15: Non-Mutually Exclusive Sources of Income by Geographic Source of Origin .............. 28 Table 16: Non-Mutually Exclusive Future Investment Plans ........................................................ 29 Table 17: Motivations for Investment Decisions .......................................................................... 29 Table 18: Preferred Types of Investments/Savings ...................................................................... 29 Table 19: Main constraints to investing in the Caribbean ............................................................ 30 Table 20: Recommended Investment Solution ............................................................................ 31 Figure 1: Sectors of the Economy in which Diaspora Entrepreneurs Operate ............................... 6 Figure 2: List of Diasporic Entrepreneurs by area of Trade in Goods, Services and Intellectual Property .......................................................................................................................................... 7 Figure 3: Strategic Assessment and Direction ................................................................................ 9 Figure 4: Methodology.................................................................................................................. 15 Figure 5: Remittances for Select Caribbean Countries 2001-2011 (US$ million) ......................... 16 Figure 6: Remittances/GDP, Selected Caribbean Countries (2012) ............................................. 17 Figure 7: Sectors of the Economy in which Diaspora Entrepreneurs Operate ............................. 42 Figure 8: List of Diasporic Entrepreneurs by area of Trade in Goods, Services and Intellectual Property ........................................................................................................................................ 43 Figure 9: Strategic Assessment and Intent ................................................................................... 48 4 | P a g e Executive Summary The Caribbean region, like many other small and developing country regions, has been negatively impacted by the global economic and financial crisis in terms of declining export markets and foreign exchange earnings particularly in traditional sectors like agricultural and resource-based industries as well as services sectors like tourism and financial services. The Caribbean region has also seen a decline in its global competitiveness and the issues of innovation and entrepreneurship have been raised as key considerations to improve the region’s economic and trade performance. In this context, many countries have begun to explore alternative sources of growth among which includes the economic impact of the diasporic economy. The growth of diasporas in the last few decades has led to a new development context with economic flows like financial transfers (remittances)

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