Entrepreneurs should not shy away from listing on the Barbados Stock Exchange (BSE), says Senator Jepter Ince, parliamentary secretary in the Ministry of Finance and Economic Affairs.
He said owners often fear losing control of their companies but listing publicly “presents the opportunity for access to public capital which it does not have to repay and does not involve any interest charge, as would a loan from a commercial bank”.
“It is true that on becoming a public entity significant changes would have to be made, with some loss of flexibility and control for management.
“Nonetheless, if we want to grow our businesses then we have to accept changes that would result in new ideas and ways of operating,” he said.
Ince was speaking during a recent seminar hosted by the BSE and the Small Business Association on Exploring Equity Financing for SMEs.
SBA president Celeste Foster suggested that entrepreneurs find alternatives to debt financing.
“All the theory suggests that is not the way for small businesses to start business; that essentially we should go through the three Fs first, which are family, friends and foes – foes meaning that they are willing to take a risk with you. . . ,” she said.
Foster said small businesses should explore equity financing in the early stages and turn to debt financing when they are seeking to expand or grow.
“That has not typically been our experience in Barbados.
“We tend to try to start with debt financing and then you hear repeatedly statistics of how many businesses fail because they are not able to carry that burden at the beginning,” she said. (NB)
