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Why “Scared Capital” is Killing Caribbean Innovation (And What We Must Do About It)

Dr. Tamu Browne quote on innovation and entrepreneurship from Sunbeam Chats interview

“To be an entrepreneur you have to create something. Innovation does not have a clear path, uncertainty and risk are necessary for innovation.”

I shared this perspective in a recent conversation with Sunbeam Chats, but the hard truth is this: the Caribbean understands innovation in theory but refuses to fund it in practice.

The numbers don’t lie, and they paint a sobering picture of a region standing at the edge of a massive economic opportunity yet unable to take the leap.

The Brutal Reality of Caribbean Innovation Funding

In 2023, venture capital investment in Caribbean tech reached just $215 million (Source: Medium, “Scared Capital: The Silent Killer of Caribbean Innovation,” Oct 2024). To put that in perspective, that’s less than what a single mid-sized Silicon Valley startup might raise in a Series B round. The entire Caribbean region, with its 44 million people, attracted less venture capital than many individual companies.

But the problem runs deeper than the total amount. Only 15% of that capital came from Caribbean-based investors. Think about that for a moment. When Caribbean startups do manage to secure funding, 85% of it comes from outside the region. Our own investors, the people who understand our markets best, are sitting on the sidelines.

The average Series A round in the Caribbean? A mere $3.5 million, compared to $15 million in Latin America (Source: Medium, Oct 2024). This isn’t just a funding gap. It’s a confidence gap. It’s a vision gap. And it’s costing us dearly.

This Isn’t a Talent Problem

Before anyone suggests that the Caribbean lacks the human capital for innovation, let me stop you right there. We’ve seen a 30% increase in STEM graduates since 2020 (Source: Medium, Oct 2024). Our universities are producing engineers, computer scientists, and innovators at an accelerating rate.

The ideas are there. I’ve personally witnessed the explosion of innovative startups across the islands. From fintech solutions addressing financial inclusion to agritech innovations tackling food security, from climate tech addressing our existential vulnerability to creative tech leveraging our rich cultural heritage, the Caribbean innovation ecosystem is bubbling with potential.

The problem isn’t our people. The problem is what I call “scared capital”: a toxic combination of risk aversion, short-term thinking, and a cultural reluctance to bet big on our own potential.

The Staggering Cost of Inaction

While we dither, the global innovation economy accelerates, and the cost of our hesitation compounds daily.

The Inter-American Development Bank , in 2022 estimated that a fully realized Caribbean digital economy could increase the GDP by 6 to 12 percent. That’s not a projection for some distant future. That’s the opportunity cost we’re paying right now, every single year we fail to build the infrastructure for innovation.

Consider the global markets that are exploding right now:

•Climate tech is projected to be a $7.1 trillion market by 2030

•Edtech will hit $404 billion by 2025

•Creative tech represents a $2.25 trillion global opportunity

These aren’t abstract numbers. These are sectors where the Caribbean has natural advantages, existing expertise, and urgent local needs. Climate tech? We’re on the front lines of climate change. Edtech? We have a young, digitally native population hungry for skills. Creative tech? Our music, art, and culture already dominate global markets.

Yet according to UNCTAD’s Digital Economy Report (2019), the Caribbean’s share of the global $26.7 trillion e-commerce market remains negligible as Latin American and the Caribbean account for approximately 6% as per IDB (2021). We’re not even a rounding error in the global digital economy.

I’ve Seen What’s Possible When We Get This Right

This isn’t just theoretical for me. I’ve lived both sides of this equation.

As Programme Director and Lead of the Small Entrepreneur and Enterprise Development (SEED) Program in St. Kitts and Nevis, I helped architect a multi-million dollar government venture capital initiative sponsored by the Sugar Industry Diversification Foundation (SIDF). This wasn’t a pilot program or a token gesture. This was a serious, strategic investment in human capital and entrepreneurial potential.

The program provided $30,000 to $50,000 USD per participant at 0% interest with no collateral requirements. For a small island nation, this was transformational. We weren’t asking entrepreneurs to mortgage their homes or provide personal guarantees. We were saying: we believe in you, we believe in your idea, and we’re willing to take the risk alongside you.

Years ago, when launching that program, I said something that still guides my work today:

“The SEED program is significant in that it is providing resources and showing there is a focused effort behind building human capital in the nation. It is also important because hopefully it will shift perspective, especially of young persons, that entrepreneurship, innovation and creativity are the domain of the developed nations. We have entrepreneurship, innovation and creativity right here… It is also significant because it begins to put our citizens in the role of the producer and not only the consumer.”

That vision remains urgent today, not just for St. Kitts and Nevis, but for the entire Caribbean region.

The SEED program combined an accelerator and incubator model, offering not just capital but mentorship, business training, and institutional support. We didn’t just write checks and hope for the best. We built a comprehensive Caribbean innovation ecosystem around each entrepreneur.

The impact? Many of those businesses are thriving today (Source: St. Kitts Nevis Observer, Oct 2013). They’re employing people, generating tax revenue, and proving that when you combine patient capital with strategic support, Caribbean entrepreneurs can build sustainable, high-growth enterprises.

That’s what patient capital looks like. That’s what happens when a government, a foundation, and an ecosystem architect work together to invest in human potential, not just infrastructure.

What is Patient Capital, and Why Don’t We Have It?

Patient capital is investment that allows bold, untested ideas to develop and grow without the pressure of immediate returns. It’s capital that understands innovation requires time, iteration, and often, failure before success.

Silicon Valley didn’t become Silicon Valley overnight. It took decades of patient capital, government investment in research, university-industry partnerships, and a culture that celebrated risk-taking and learned from failure.

The Caribbean, by contrast, operates on what I call “scared capital.” Our investors want:

•Proven business models (which, by definition, aren’t innovative)

•Immediate returns (which stifles the experimentation innovation requires)

•Collateral and personal guarantees (which excludes most young innovators)

•Safe, traditional sectors (which misses the high-growth opportunities)

This isn’t just about individual investor psychology. It’s a systemic, cultural challenge rooted in our colonial economic history, our small market sizes, our geographic fragmentation, and our historical exclusion from global capital markets.

But here’s the thing: these are all solvable problems. They require intentional ecosystem architecture, strategic policy interventions, and a fundamental shift in how we think about risk and innovation.

Building Caribbean Innovation Ecosystems That Work

Innovation doesn’t happen in a vacuum. It requires a carefully architected entrepreneurship ecosystem with multiple interconnected components:

Financial Infrastructure: Patient capital in the form of government venture funds, angel investor networks, and regional venture capital firms willing to take calculated risks on early-stage ventures.

Institutional Support: Incubators and accelerators that provide not just space but strategic mentorship, business development support, and connections to markets and capital.

Human Capital Development: Universities and training programs that teach not just technical skills but entrepreneurial thinking, innovation methodologies, and the practical skills of building ventures.

Policy Environment: Governments that create enabling regulatory frameworks, provide tax incentives for innovation investment, and actively procure from local innovators.

Cultural Shift: A fundamental change in how we view entrepreneurship, risk, and failure. We need to celebrate the entrepreneur who tried and learned, not just the one who succeeded on the first attempt.

The Caribbean is at a Crossroads

We can continue down our current path: starving our innovators of capital, watching our brightest minds migrate to ecosystems that believe in them, and remaining perpetual consumers in the global digital economy.

Or we can make a different choice.

We can build the financial, cultural, and institutional infrastructure that transforms “scared capital” into strategic capital. We can create Caribbean innovation ecosystems where entrepreneurs have access to patient capital, strategic mentorship, and the support systems they need to build globally competitive ventures.

The talent is here. The ideas are here. The global demand exists. The opportunity is massive and growing.

All that’s missing is the courage to invest in our own future.

I’ve spent over two decades building entrepreneurship ecosystems across the Caribbean and beyond. I’ve worked with governments, universities, international development organizations, and hundreds of individual entrepreneurs. I know what works. I’ve seen it work.

The SEED program proved it’s possible. Now we need to scale that model across the region.

A Call to Action

If you are a government official, an economic development leader, a university administrator, or a corporate executive with the power to influence investment decisions, I’m calling on you to act.

The Caribbean doesn’t need more conferences about innovation. We don’t need more reports about the digital economy. We need action. We need patient capital. We need strategic ecosystem architecture.

And we need it now.

The next generation of Caribbean innovators is ready. The question is: are we ready to invest in them?


About the Author:

Dr. Tamu Petra Browne is an organizational transformation and ecosystem strategist who partners with governments, institutions, and corporations to architect thriving innovation ecosystems. As the former Programme Director of the SEED Program and creator of the High-Growth Entrepreneurship Roadmap©, she has designed national-level entrepreneurship programs and advised organizations including UNESCO, the World Bank, and the Caribbean Development Bank.

Ready to build a thriving innovation ecosystem in your organization or region? Schedule a discovery call to discuss how we can partner on your transformation journey.

Building Businesses Outside the Caribbean: A Blueprint for Global Expansion

Latoyaa Roberts discussing building businesses outside the Caribbean on RARE Conversations podcast

Why Building Businesses Outside the Caribbean Matters Now

For Caribbean entrepreneurs, building businesses outside the Caribbean is no longer optional—it’s essential for sustainable growth. Our local markets are small, and relying solely on domestic customers limits your revenue potential and exposes you to economic volatility. Building businesses outside the Caribbean allows you to diversify your income streams, access larger markets, and create a resilient enterprise that can weather regional economic challenges.

Latoyaa Roberts embodies this philosophy with her mantra: “Live local, think global.” She has successfully navigated the complexities of building businesses outside the Caribbean while maintaining her roots in Tobago. Her journey offers a practical roadmap for any entrepreneur ready to expand beyond our shores.

The Mindset Required for Building Businesses Outside the Caribbean

Conquering the “Imposter Jumbie”

Practical Strategies for Building Businesses Outside the Caribbean

Strategy 1: Choose Your Market Strategically

Strategy 2: Export Services, Not Just Products

Strategy 3: Leverage Global Manufacturing Partnerships

The Power of Networks When Building Businesses Outside the Caribbean

Building Businesses Outside the Caribbean with a Lean Team

Key Takeaways for Building Businesses Outside the Caribbean

Memorable Quotes on Building Businesses Outside the Caribbean

Connect with Our Guest

I specialize in working with leaders like you to develop the frameworks, strategies, and mindset shifts necessary for transformational growth. Building businesses outside the Caribbean requires expert guidance, and I’m here to provide it.Click here to explore how we can work together and start your journey to building a business without borders.

AI in Leadership Decision Making: How AI is Reshaping Canadian Business

a futuristic Canadian boardroom with AI-enhanced collaboration

The Canadian Leadership Revolution: Why AI Matters Now

The research shows that organizations using AI for decision-making are seeing remarkable improvements in both speed and accuracy. But what does this actually look like in practice?

How AI Is Being Used in Leadership Today

The Three Pillars of AI-Powered Leadership

1. Data Analysis and Pattern Recognition
Your gut instinct got you this far, but AI can spot patterns you’d miss even on your best day. It’s like having a super-smart analyst who never sleeps, never gets tired, and can process information at lightning speed
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2. Predictive Modeling
Instead of just reacting to market changes, AI helps leaders anticipate them. Think of it as having a crystal ball that’s actually based on solid data rather than wishful thinking.

3. Automated Decision Support
This isn’t about replacing human judgment—it’s about giving leaders better information to make those tough calls. The latest insights demonstrate how AI can enhance rather than replace human decision-making capabilities.

What AI Can (and Can’t) Do for Leaders

AdvantageReal-World ImpactCanadian Example
SpeedDecisions in minutes vs. daysToronto fintech analyzing loan applications
ConsistencyRemoves human bias and fatigueVancouver healthcare scheduling optimization
ScaleHandles massive data volumesCalgary oil company risk assessment
24/7 AvailabilityNever stops workingMontreal e-commerce inventory management

The Honest Truth About AI Limitations

Responsible AI for Leaders: The Canadian Way

What Does Responsible AI Look Like?

How to Use AI in a Responsible Way

Start Small and Build Trust

The Future of Leadership with AI

What’s Coming Next?

The emerging research suggests we’re just scratching the surface. I’m seeing trends that will reshape how Canadian leaders operate:

AI in Leadership Decision Making: Practical Steps for Canadian Leaders

How Can AI Help Managers Right Now?

The Leadership Style of the Future

Key Characteristics:

Common Concerns and Real Answers

“Will AI Ever Be Able to Make Decisions?”

“Can We Trust AI to Make Decisions?”

“What About Job Security?”

AI in Leadership Decision Making: The Bottom Line for Canadian Leaders

Ready to Transform Your Leadership?


Connect with us to license programs or train your team virtually or in-person as part of this pioneering transformation. The future is collaborative, and it starts with leaders who aren’t afraid to evolve.

Business Support Organizations Foster Sustainable Success in Modern Enterprises

Introduction

The Role of Business Support Organizations

Overview of Services Offered by Business Support Organizations

– Training and Development Programs: From leadership workshops to skill-building sessions, these programs elevate the capabilities of a company’s workforce. We offer number of impactful programs for entrepreneurs, entrepreneur support organizations, and leaders of corporations.

Importance of Tailored Solutions

Economic Empowerment through Strategic Growth

Crafting Growth Plans for Enterprises

Such well-laid plans bring clarity and focus, guiding enterprises through every phase of their growth journey. As a business support organization we support transformational growth and strategic engagement, utilizing our RARE Transformational Leadership Framework. Contact us to discuss how we can support your strategic transformational journey as an organization or a CEO/Manager.

Supporting Innovation and New Market Entry

Leveraging Resources for Maximum Impact

Building Resilience in Modern Enterprises

Training and Leadership Development as Key for Business Support Organizations

Navigating Economic Challenges

Enhancing Competitive Advantage

Measuring Success and Sustainability

A person holding a tape meausre

Key Performance Indicators

Long-term Impact Assessment

Success Stories and Case Studies

In the vibrant and unpredictable world of modern enterprises, business support organizations play a vital role. They equip businesses with the tools, knowledge, and inspiration needed to build resilience, maintain a competitive edge, and measure success in a sustainable manner. The journey to sustainable success is continuous, and with the right support, it’s one filled with growth, innovation, and lasting impact.

Conclusion

Train the Trainer Certification: Transforming Expertise into Exceptional Learning Experiences

Dr. Tamu conducting a Train the Trainer Certification Session or the HR and Learning Development Team at the Inland Revenue Department (St. Kitts)

Understanding Train the Trainer Certification: More Than Just Another Credential

What Makes a Train the Trainer Certification Valuable?

Key Components of an Exceptional Train the Trainer Certification:

Why Invest in a Train the Trainer Certification?

Professional development is more than collecting credentials. A robust train the trainer certification provides tangible benefits:

The Changing Landscape of Professional Training

Selecting the Right Train the Trainer Certification

Real-World Application: The Elite Transformational Trainer Approach

Our Elite Transformational Trainer Masterclass goes beyond traditional train the trainer certifications by focusing on:

Who Benefits Most from a Train the Trainer Certification?

Practical Considerations: CPD Accreditation

Invest in Your Professional Future

Ready to Elevate Your Training Expertise?

Explore the Elite Transformational Trainer Masterclass


Related Resources

Why Enrolling in an Entrepreneurship Training Program is Essential for Experts in their Fields

Dr. Tamu training showcasing her Elite Transformational Trainer skills. Elite Transformational trainer is an entrepreneurship training program

The Limitations of Traditional Expertise in Entrepreneurship Training Programs

The Essence of Transformational Training in an Entrepreneurship Training Program

Embracing Experiential Learning

Fostering Critical Reflection

Cultivating a Supportive Environment

The Impact of an Effective Entrepreneurship Training Program

Increased Learner Engagement

Improved Retention and Application

Empowerment and Confidence

A Personal Journey in Transformational Training

Embracing the Future with the Elite Transformational Trainer Accelerator Program

Ready to Elevate Your Training Impact?

Unleashing Your Business’ Full Potential: Insights from Online Business Coach Dr. Tamu Petra Browne

Picture of Tamu Browne engaging in online business coaching
  1. Learn about HER

Insights from the Draper University Pitch Competition

Dr. Tamu at the pitch competition stage at Draper University

How to Succeed in a Pitch Competition

Choose the Right Pitch Competition for Your Business Stage

Visibility and Networking Are Just as Valuable as Winning

Pay Attention to Investor Q&A and Establish Credibility

Observe and Learn from Other Competitors – Refine and Revise

Balance Team Assignments Without Unnecessary Stress

Ensure the Program Offers Tangible Business Benefits

Final Thoughts

How a Business Coach for Women Entrepreneurs Can Help You Scale Your Venture

Dr. Tamu as Business Coach for women entrepreneurs in Grenada as part of a UNESCO initiative

1. A Business Coach for Women Entrepreneurs Encourages a Growth Mindset

2. Invest in Coaching and Accelerator Programs

3. Build and Nurture a Strong Network

4. Leverage Technology to Scale Smartly

5. Secure the Right Financing to Scale

Take the Next Step with a Business Coach for Women Entrepreneurs

Are you ready to take your business to the next level? Let’s make it happen—contact me today and start your journey to scaling success!

Business Coach for Women: Challenges to Female Entrepreneurial Growth

Business Coach for Women. Founder Dr Browne training women in entrepreneurship
Business Coaching for Women

Women Entrepreneurs Are on the Rise

The Challenges Facing Women Entrepreneurs

1. Women-Led Businesses Tend to Be Smaller

2. Lack of Access to Capital

3. Limited Representation in High-Growth Industries

4. Work-Life Balance Constraints

What Can Be Done? Insights from a Business Coach for Women

Take the Next Step Toward Your Success with a Proven Business Coach for Women