BARBADOS – Mentorship is a key element of a thriving economy, according to the head of a Barbadian Venture Capital Fund.
Dr. Basil Springer, Project Manager of the Barbados Entrepreneurs’ Venture Capital Fund (BIM Ventures), believes successful mentorship relationships are essential for propelling economic growth in Barbados and the Caribbean, and is pleased with the results of advocacy efforts to place this issue on the front burner.
Global statistics, asserted Springer, reveal 80 to 90 percent of start-up businesses fail within the first few years of operation. These collapses, he argues, are due to the failure of at least one of the basic business functions – corporate governance, marketing, operations, information communications technology, human resource development or finance.
Dr. Basil Springer of BIM Ventures.
“If you ignore this fact the business failure rate will not be improved. If you introduce a shepherding process (an enhanced form of mentoring), then we mitigate the risk of business failure,” declared Dr. Springer, who designed the now popular CBET Shepherding Model™.
The Model is a risk mitigation tool designed to create sustainable and profitable businesses. One of its key components is the presence of a shepherd (mentor) who advises the entrepreneur about essential aspects of business development.
Shepherding then lays the foundation of a business and focuses on revenue generation from the start of operations, Springer contended. “The shepherd works with the entrepreneur to develop revenue earning systems, a business plan and a road map which includes estimates of the capital required to successfully implement the plan.”
The BIM Ventures pilot in Barbados, now in its second year, is monitoring the development of 10 start-up enterprises which feature an entrepreneur whose idea has the potential to generate foreign exchange and quick access to capital to support the development of the idea.
“I am thoroughly convinced that shepherding is a requirement for venture capital funding,” asserted Dr. Springer, who has counseled businesses and international development organizations for the past four decades.
At the November 2010 Barbados Entrepreneurship Foundation (BEF) Summit, organizers noted that there were low levels of trust among entrepreneurs and potential mentors, limited focus on helping entrepreneurs build confidence and overcome fear, and no celebration of the success stories of home-grown entrepreneurs.
“They were right, but we are pleased to see this changing,” responded Dr. Springer. “At BIM Ventures, we have built a family environment nourished by bi-monthly soirees which build trust and induce synergies. The shepherd/entrepreneur relationship is a smart partnership which builds confidence and overcomes fear. We have turned the corner,” he reported.
