Preparing for a growing economy...

"Cautious Optimism" is the prevailing sentiment within the public and private sectors of the Bahamas concerning the short and medium term prospects for the Bahamian economy.

While we all keep an attentive eye on the spiralling costs of basic commodities (most notably oil) that can derail economic growth not only in the Bahamas – but worldwide, there is still cause to believe that the economy of the Bahamas will witness steady and stable growth in the coming years.

This prognosis is underpinned by the level of new and imminent foreign investment in major tourism resort and mixed developments throughout the Bahamas.

There are literally billions of dollars in planned hotel developments in New Providence and the Family Islands – and naturally public sector plans to create and improve the infrastructure throughout the Bahamas to support these projects.

As these developments move ahead, they will of course provide thousands of jobs for Bahamians, which will provide the opportunity for many to increase their professional skill sets, while at the same time improving their standard of living.

The development of resorts on the Family Islands will bring back vibrancy to many sleepy corners of our archipelago, while at the same time alleviating the overcrowding and undue stress on the infrastructure and ecosystem of New Providence.

More than "more jobs"

While the prospect of more jobs is always a good thing, these new developments throughout the Bahamas will provide perhaps an unprecedented number of opportunities for Bahamians to become entrepreneurs, investors and ultimately owners within the Bahamian economy.

For every new property will need vendors to supply them with the goods and services to keep their plants functioning; the increased number of guests will look for souvenirs to buy and things to do at all times of the day and night.

Bahamians moving into the Family Islands to work at these resorts will need places to live, consumables to buy, and places to go to socialize and relax.

For the existing business and the would-be entrepreneur, the possibilities are truly staggering.

But, in order for Bahamian businesses and citizens to seize the opportunities, both the enabling environment for local business and the attitudes of Bahamians toward investment and business ownership must also undergo a significant change.

Public agencies that facilitate – not impede – business growth

Businesses large and small throughout the Bahamas have complained over and over about the bureaucratic impediments to business start up and expansion.

While the regulations themselves are not usually overly onerous, the manner of implementation and execution are at best cumbersome and dated.

Whether it is a business licence renewal or an occupancy certificate or an immigration permit, there has seemingly been little or no attention given to how processes and procedures can be streamlined and automated to make it as easy and efficient as possible for the business client – for whom time carries a very expensive price tag.

Worse, the more convoluted and slow the business regulatory environment is, the higher the likelihood of corruption and non-compliance, as persons seek to sidestep the processes to save time and money.

Most importantly though, the more difficult it is for individuals and companies to get into business or tap into new markets, the less the number of persons who will be prepared to make the investment.

These issues naturally factor into the business decisions made by Bahamian and foreign individuals and companies, discouraging as opposed to encouraging them to start or grow a business here in the Bahamas.

The government has rightly stated their desire and objective to see Bahamians step up to take advantage of the opportunities that will be provided through the new investments in the tourism plant. The government must then appreciate why it is important to take a good look at the entire enabling environment for businesses to assure that the existing company or would-be entrepreneur can start or expand their businesses through public sector processes that clearly support, encourage and facilitate timely execution of promising commercial opportunities.

An Investment-

minded citizen

Yet, even if government works to improve the enabling environment, it will still be up to the individual Bahamian citizen to take advantage of the opportunities that present themselves. It is here where individually and collectively we as a nation must make the quantum shift from 'consumer' to 'investor.'

The key elements of this shift will be affected by the manner in which we manage our finances and in the way we plan our affairs. Almost all business opportunities will require that the entrepreneur put up some of his own capital. He or she can only accumulate that capital through prudent and consistent savings. So if you want to start that small business in two years when that project will be completed on the Family Island where you grew up, then you will need to start saving toward that investment today.

And even if you do not wish to get into business yourself, but still want to invest in and take advantage of the opportunities, then now is the time to start looking at those publicly traded companies on our stock exchange that will grow and expand their businesses as a result of the new investments.

In fact, if you share our sentiment that the economy will likely do well over the near and medium term, then you should make the time to talk to your financial advisors to see where you should put your investment dollars to take advantage of the opportunities in the economy.

As we all know, preparation is the key to success. As a country and as citizens within it, we must now actively engage ourselves and our talents to enable us to truly benefit from all the new investment that will come on stream in the coming years.

Please send comments and or questions to info@colinafinancial.com

© 2006 The Freeport News