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According to Ernst and Young Caribbean (2010) concerns of a ‘double dip’ recession have been
surfacing worldwide. Moreover, Trinidad and Tobago has for a third consecutive year, projected
a larger budget deficit for its 2010 – 2011 Budget. Ernst and Young Caribbean (2010) on
evaluation of the country’s economic position and the 2010 – 2011 Budget strongly suggest that
the country take immediate steps to stimulate the level of economic activity.
With the harsh reality, identified by Ernst and Young Caribbean (2010) that the driving force in
the economy – the energy sector, is not producing and not expected to produce anything close to
the record revenues produced of approximately TT$23billion in 2008. There have been current
attempts by the Government of Trinidad and Tobago to make fundamental changes to the
developmental path of the country.
1.2 Diversification
According to the UNDP and UNCTAD (2008 cited Persad 2010) there was a strong case for the
development of creative industries particularly in developing countries. Persad (2010) also notes
that the most advanced countries are using the creative industries as a strategic choice for
reinvigorating economic growth, employment and social cohesion. As shown by table 1.1 the so-
called creative cities are thriving in Europe and North America. Conversely, UNDP and
UNCTAD (2008 cited Persad 2010) iterate that the large majority of developing countries
including countries in the Caribbean region are not yet able to harness their creative capacities
for development gains as illustrated in table 1.2.
While it is evident that the development of creative and innovative industries will be an asset to
Trinidad and Tobago the right policies and infrastructure must be comprehensively put in place
with clear cut targets and measurable timeframes. The Global Competitiveness Report (2010)
ranks Trinidad and Tobago 84th out of 139 nations.
However, figure 1.2 shows that Trinidad and Tobago is currently ranked 138th in Innovation and
is transitioning from an Efficiency Driven Economy to a more Innovative Economy. One
solution offered by Persad (2010) to increase the country’s tendencies toward innovative
thinking and thus its Global Competitiveness is that of incorporation of stakeholders within the
education system.
One creative industry that can help increase both the innovative standing and creative standing of
the Trinidad and Tobago economy is the fashion industry.
According to Reis (2007) the fashion industry represents an avenue for phenomenal economic
growth and an alternative form of industrial development, job creation and can generate income
for entrepreneurs as well. One such example is the United States whereby according to The
University of Delaware (2010) 250 Billion US dollars is spent on fashion in the United States
alone with over 20 Billion US dollars generated in revenue annually. The industry also employs
4 million people.
Figure 1.2 Trinidad and Tobago Stage of Development
Already, the industry employs about 3,700 people who include apparel designers (the main focus
of this paper) factory workers, sales and administrative staff. The current government in its
attempts to diversify the revenue of the country has identified the Fashion Industry as a main
sector with the potential of earning greater revenue.
With recent ventures such as the establishment of Fashion Week Trinidad and Tobago (FWTT)
the country is beginning its drive towards transitioning from the more Efficiency Driven
Economy to a more Innovation Driven Economy as evident by figure 1.2.
Notwithstanding, the Minister has affirmed that although the country is making attempts to
become the leader in the regional garment industry, the way forward is not only about
showcasing clothing designs but by recognising that this venture is more like a business
opportunity and ‘in reality a manufacturing and service business’.
Francis (2010)
The above quotation by Francis (2010) echoes the sentiments of Porter ( 1990 ) in his Diamond
theory figure 1.3, whereby he argued that a nation can create new advanced factor endowments
to seek to have a more comparative advantage.
2.0 THEORETICAL FRAMEWORK – PORTER’S DIAMOND
Source: http://www.rotman.utoronto.ca/research/competitive_table2.gif
While Porter (1990) identified four ingredients that lead to a national comparative advantage as
shown in figure 1.3 which are:
2. Factor Conditions
Porter (1990) used the diamond to graphically depict the national and regional environment for
competition (figure 1.1). This section of the diamond addresses the information, incentives,
pressures and access to supporting firms, institutions and infrastructure. According to Porter
(1990) merely using the resources available or assembling more resources is not enough for
prosperity. It is with this in mind the Government of Trinidad and Tobago is seeking to improve
other industries so as to diversify the economy.
Porter (1990 cited O’Connel and O’Donnell 1997) believed that to understand competitive
advantage the basic unit of analysis should be particular industries within the nation or clusters
which affect competition in three (3) broad ways. These are:
1. Increasing productivity
Stemming from this he also argued that countries that have a competitive advantage in one
industry segment will have a competititive advantage in a set of related industries.
Porter (1990 cited O’Donnell and O’Connell 1997) suggest that there are two (2) residual
influences related to the diamond, these are:
2. Chance events – events that can also affect teh four determinants.
Stemming from this last pointer the competitive advantage in related industries that is those that
can share technology or skills or which involve products that are complementary, providing
opportunity for information flow and technological interchange often leads to new competitive
industries like for example the fashion industry.
Source: Adapted from Porter (1990 cited Gugler and Brunner 2007)
ANALYSIS
As shown in table 1.1 above Porter (1990 cited Gugler and Brunner 2007) defined related
industries as:
From the above definition this paper will seek to understand the support, training and assistance
institutions involved in making the nation of Trinidad and Tobago internationally competitive.
The author will seek to classify each section and give a detailed analysis on their effect on the
entrepreneurship, innovative and competitive capabilities.
3.1 Support
It is the collection of all institutions and mechanisms (public and private) that interact to
stimulate and support innovations. According to King (2010) the Cabinet of Trinidad and
Tobago has approved what is to be called a National Innovation System to be guided by a
council of Ministers. It is to consist of an Economic Development Board and Competition and
Innovation Council.
The main purpose of this system is to make the country more competitive and innovative. The
Government acts as facilitators of this process it is the collection of all institutions and
mechanisms (public and private) that interact to stimulate and support innovation.
Figure 3.1 National Innovation System
Source:
TTCSI is a national umbrella body that brings together all services sector organizations and
associations.
To promote the further development and competitiveness of the national services sector;
To represent the interests of the national services sector, including lobbying Government and
promoting fair multilateral rules for trade in services.
Accepted and Registered with the TTCSI as the umbrella body with the interests and
development goals of the Trinidad and Tobago Fashion Industry. In addition to the FATT there
are a host of other support institutions available to SMEs these include:
Designovators Ltd.
3.2 Training
Governments both past and present of Trinidad and Tobago have implemented many training
and assistance programs to assist in the development and competitiveness of the country.
According to Hegarty (2006) all modern economies entrepreneurial activity is a policy priority
because new businesses are a source of innovation and new ideas and thus create wealth,
increase competition and allow people of varying social and educational backgrounds to realise
their potential.
The current government of the day intends to build centres of excellence within the universities
or even tagged to our universities with the aim according to King (2010) to develop innovators
and entrepreneurs among those who have done their Masters and doctorates. The country has a
myriad of educational institutions as seen in figure 3.2 which not only develop entrepreneurial
skills but other skills as well.
This is achieved through the University’s Ideas Competition which looks at business ideas that
have commercial possibilities. The winners of this competition have beaten out submissions
from Harvard University, Georgia Tech, and other Global Universities in a global competition.
Thompson (2009 cited Contact 2009) has lamented that despite the success of their students in
this global Competition none of their students make the bold move to convert their plans into
action.
Of the 19 students who graduated eight have started their own businesses which were not related
to their entrepreneurship proposal which they submitted for the Ideas Competition. Thompson
warrants this to the lack of transitioning from the reality of academic to the reality
3.3 Assistance
There have been a number of agencies that assist in achieving the Government’s vision of
• Serve as the main catalyst in the reduction of unemployment and poverty and the
production of sustainable employment and wealth
The Government has offered a series of loan Guarantees and Tax relief for a period of 5 years
under the Corporation Tax Act (1988) and has implemented a credit support system for start ups.
Established in 2002 the BDC is the implementing agency for the Government of Trinidad and
Tobago’s policy for enterprise development. The BDC provides SMEs assistance to be better
equipped to compete locally as well as internationally and offers a wide range of business
solutions which include:
• Trade Assistance
• Trade Certification
• Trade Services
The BDC Trade portal is an online business platform launched in 2006 containing more than 900
registered companies across the globe. It is a premier online market space that allows SMEs to
access the online e-business guide, e-commerce and e-learning
NEDCO has been established with the prime responsibilities of developing a competitive and
robust SME sector that clearly contributes to socio-economic national development whilst
simultaneously boosting and harnessing the latent entrepreneurial capacity of the people of
Trinidad and Tobago.
This has been done through a series of tailored training programs their business advisory Support
whereby the company has Business Development Officers at all its 14 locations to offer real time
relevant information to critical issues and through ETIIC
ETIIC Entrepreneurial Training and Incubation Centres have been designed by NEDCO to
provide specialised knowledge/advisory services in all areas of entrepreneurship and SME
development. Some of these services include:
3.1.3 Mentoring and Business Advisory Services
NEDCO also offers promotional Assistance whereby access to marketing and promotional
channels which provide real opportunity to SMEs to foster growth and innovation are accessed.
They facilitate for their customers participation in marketing and distribution based initiatives
such as its Annual Trade shows and Trade and Investment Convention (TIC).
The government has also implemented a number of laws and initiatives to further assist SMEs
These include:
• Fair Trade Legislation – To protect local firms from unfair competition and easier market
access.
• Increased Bilateral Agreements – With nations such as Cuba, Costa Rica, Colombia,
Dominican Republic and Venezuela, making these markets an excellent platform to build
upon for the launch into the global marketplace.
• The Customs Act – Import duty Concessions whereby manufacturing enterprises are
allowed duty free treatment on their raw materials, machinery and equipment and in some
cases packaging material.