The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A technology entrepreneur has warned the business licence process is “not fit” for the government’s digitisation ambitions given a frustrating “five-plus months” trying to obtain approval.

Brent Burrows II, in a widely circulated posting on Facebook, exposed the disconnect between the government’s technology and “ease of doing business” rhetoric and the reality faced by many budding entrepreneurs by describing the latter as “the exact opposite” of its ambitions.

Detailing his frustrations, which will likely be familiar to many in the private sector, Mr Burrows wrote: “How many brilliant ideas by young Bahamian entrepreneurs go unrealised due to government red tape and antiquated processes?

“I don’t normally come on Facebook to vent, but I’m over it. I’m now going on five months-plus in my venture to form a company and obtain a business licence for a web-based business. Doing so with no connections and no grease.”

Mr Burrows, the e-commerce head and brand strategist at CBS Bahamas (Commonwealth Building Supplies), added: “It’s beyond frustrating. Every step is met with delays, bureaucracy, incompetence and unnecessary paperwork. 

“Not to mention the various government departments and agencies that have absolutely no idea what’s being requested or conveyed via their counterparts....

“The entire process is out of date, and not fit for a society in which the current administration wishes to promote ‘digitisation’ and encourage small technology start-ups - it’s the exact opposite,” Mr Burrows blasted.

“Our government offices don’t know what tech is; they can’t grasp that the entirety of a business can be located on a server half-way around the world. If you don’t get frustrated by the overly complicated process, you’ll quit due to the timeline.

“For a procedure that takes just minutes in other countries, we Bahamians spend months trying to navigate a web of outdated information, poorly trained (rude) bureaucrats and endless red tape, all while start-up funding and dreams dwindle to zero.

“For me it’s no big deal; this is a side hustle. I can afford to let it wait a few more weeks (or months). But what about the ambitious young Bahamians who have a beautifully innovative idea with a limited timeline to bring that idea to fruition?” he added.

“It’s only a matter of time before you call it quits and realise it’s way easier to just join the rat race.” Mr Burrows’ comments stand in stark contrast with the pledges and version of reality unveiled by the Prime Minister in last week’s Budget communication when it came to the ease of doing business, the Government’s own digitisation, and ambitions to grow and diversify the economy via technology.

His posting was picked up by the Nassau Institute think-tank, which in a statement yesterday said it showed little to nothing had changed in more than 20 years in The Bahamas when it came to obtaining the necessary permits and approvals for getting into business.

“Open a time capsule from 1999 where it took a restaurant owner 10 months to receive the numerous permits and licenses to open a $350,000 investment, delaying the hiring of 60 employees. Not to mention the other spending in the economy that would be necessary to conduct their ongoing business,” the Nassau Institute said.

“The Bahamas Chamber of Commerce & Employers Confederation can become a real advocate for business instead of continuing to operate in a form of collusion with Government. The Chamber, should challenge these many procedures in court instead of trying to ‘negotiate’ the best deal possible for its member firms and other businesses/entrepreneurs.”

Pointing to what it described as “undesirable aspects” of needing to obtain government permits, the Nassau Institute listed these as “those with permits have control over entry by others into their occupation, leading to a monopoly situation.

“Trust is placed in government for protection and the individual is less reliant on his own judgment or ability to make good decisions. They lead to ‘rent seeking’ with bribes becoming the way to do business,” it added.

“Licensing has become extremely difficult to justify because it goes furthest in the direction of trampling upon the rights of individuals to enter into voluntary contracts. Licensing tends to use political means to control entry and prevent ‘non-members’ from competing within their market.

“Then there is the annual inspections and processes to renew a business license. Some businesses face numerous inspections and applications, like hotels and restaurants for example, causing waste of man-hours that people could be devoting to their business instead of catering to bureaucrats,” the Nassau Institute continued.

“Surely some of these licenses and inspections can be eliminated and others amalgamated into one department. If any Government is serious about economic growth and ease of doing business, the business licensing and renewal processes would be a good place to start.”