By Lesley John, ACCA From Newsday tt

Many countries across the Caribbean recognise that access to finance is a determining factor for doing business and becoming and entrepreneur and have a number of schemes in place to support entrepreneurs. World renowned businessman, Richard Branson, has the Branson Centre of Entrepreneurship in Jamaica, which aims to tackle the lack of financial investment and the culture not always nurturing of growth and change. Earlier this year, the Caribbean Development Bank (CDB) has announced that it will provide the initial capital for a multi -donor fund to improve the competitiveness of the cultural and creative industries sector in its borrowing member countries (BMCs), including Jamaica. In Barbados, the Inter-American Development Bank has backed the Enhanced Access to Credit for Productivity program which gives small and medium-sized enterprises (SMEs) across the island more access to credit.

By opening access to finance, Barbados will be able to enhance its competitiveness on the global stage.

Competitiveness can be defined as the “ability and performance of a firm, sub-sector or country to sell and supply goods and services in a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the same market.” Access to credit is an important link to productivity in Barbados. To continue to improve their performance, firms in Barbados can use the finance to preserve or increase their competitiveness, particularly in key economic sectors such as tourism. The guarantee mechanism of the Enhanced Access to Credit for Productivity program itself supports firms that are credit constrained as they do not meet conventional credit guarantees.

But finance alone doesn’t determine the success of business. Becoming an entrepreneur does have some obstacles.

Research has already revealed that more than 50% of start-ups fail within the first five years. Financial literacy is a major skill most entrepreneurs fail to master, which contributes to these disappointments. And it’s not something they can afford to ignore either as research has shown that up to 36% of business failures are caused by inadequate financial management.

Financial skills are at the heart of running a successful business but sadly many budding entrepreneurs are lacking the vital knowledge to make informed and effective financial decisions.

Financial expertise helps to uncover a company’s financial strength, financing cost, financial flexibility, business control, financial risk, personal finances and business strategy. These areas are essential for highlighting business performance and the areas and capabilities to be able to innovate.

After all, financial management is at its most powerful when used to drive improvements.

Crucially, financial knowledge is not an onus to be solely carried by entrepreneurs. There are plenty of good accountants that can give good financial advice, especially in the planning stages. They are indeed experts in areas such as raising business finance, tax planning, business planning, and setting up financial management systems.

People across the Caribbean who are on the journey to a professional qualification with ACCA are learning a variety of technical and business-related components in their training. These bright and motivated individuals achieving the qualification will go on to provide finance and accounting services throughout the island. Through their commitment to this, and the rigorous grounding they have received in governance, good practice, ethics and transparency, the next generation of professional accountants will ensure that businesses in the Caribbean always strive to be better.

Having the right financial management is vital throughout the life of a business.

Whether you are just starting out, have an established business or are looking towards a final exit from a firm, you need to have the right financial capabilities to ensure your organisation achieves its full potential.

Today’s businesses are changing and innovating more rapidly than ever before and their financial management needs must continue to evolve alongside their developments. Recognising the right financial management capabilities is therefore imperative to their success.

Entrepreneurs are creative and capable people and the Caribbean has a particular talent for churning ones in the tech industry.

They are the brains behind a growing number of programs across the sectors of Internet of Things, eLearning, Online Media, Mobile Gaming, Mobile Surveys, eAgriculture, eHealth, Social Shopping and more. Barbados is amongst the top three performing Caribbean countries in this space alongside Jamaica and Trinidad and Tobago. With the expert support, guidance and financial investment available, entrepreneurs will continue to flourish across the islands

For more on this story go to: http://www.newsday.co.tt/businessday/0,248414.html

IMAGE: Boing Boing