At Kingston Beta last night, a bunch of us were discussing as ot what were teh chief reasons for many Caribbean startups in the Tech/Internet/Mobile space startup then stagnate.
The group agreed on these top 3:
1. Lack of funds
While it is easier and quicker to startup using blogs, free and open source software,cheap hosting etc.
It’s the growth period that makes the difference between winners and losers. Alot of Caribbean dotcoms die on the vine soon after because they don’t have the cash (loans, venture/angel capital) to continue.
2. Politics- the old guard reinforcing the status quo
This one brought the most groans and grunts especially from Jamaican entrepreneurs and programmers who were pretty much frustrated by the seeming collusion of traditional big guys in the market to hold consumers at ransom until they were ready or able to directly benefit from the release of a product or service. The major sorepoint was the lack of ecommerce activity in Jamaica and the Caribbean. The dream of Paypal opening up in the Caribbean.
The rumours abound of a solution in the works from big bank brand National Commercial Bank (NCB) and Paymaster.
3. Lack of information and confidence in the Caribbean and Caribbean Diaspora market Few take the time to understand the nature and revenue potential of the Caribbean regional and Diaspora markets.
Any others?
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To your 3rd point: Great opportunity for those who can seize it!
May 30th, 2009 at 4:00 pm
4. lack of drive and determination to make it work, despite the problems and obstacles
June 1st, 2009 at 2:42 am
Thanks for adding that Sandor. Someone gave my a 5th…lack of support from peers and seasoned been there, done it entrepreneurs.
June 2nd, 2009 at 1:03 am
Ingrid, What would be the ideal Ecommerce platform to build for the Caribbean? What do you think are the hurdles that have prevented this from happening already?
June 9th, 2009 at 10:14 pm
I believe any services/product that allows Caribbean nationals to be able to use their credit card online AND accept payment onlinefor goods/services rendered and it not take 60days for them to get the cash..would be what most people are looking for. The main hurdles that have prevented this.
1. Lack of insight by local banking and govt sectors.
2. Lack of understanding of the great need for an ecommerce payment product/service by Caribbean nationals and Caribbean entrepreneurs.
3.Lack of drive and lobbying on the part of Caribbean entrepreneurs to find a way to make things happen. Whether it means lobbying Paypal to open up or lobbying banks to get off their collective asses and bring their current ecommerce services down from the prohibitive prices they have attached to them.
June 10th, 2009 at 1:39 am