Well-known music business executive and marketing giant, Steve Stoute, yesterday said he had encountered all the difficulties associated with of doing business in the Bahamas, adding that this nation was "a tough nut to crack" for entrepreneurs.

Mr Stoute, chief executive of Transaltion LLC, speaking at the sixth annual Business Education seminar hosted by the Bahamas Chamber of Commerce and the US Embassy, said the high import tax regime and capital intensive nature of start-ups could be two immediate disincentives to small and medium-sized business development in the Bahamas country.

"I know that the current laws make it prohibitive to build a business as an international businessman in the Bahamas; that's the first obstacle," said Mr Stoute.

"It is widely recognized that the way we underwrite the Government is through duty, and those fees make it cost prohibitive for the local business guys to invest in goods. It makes the price of those goods very expensive to the consumer.

"That's a tough nut to crack. I have to sell you goods at a very high price, and yet your income isn't going up - that business model doesn't work.

"Knowing that those are some of the obstacles I foresee if I was to trying to jump in the game and that I would have to deal with, it makes it tough."

Mr Stoute, who is also building a home in the Bahamas, said he has seen a lot of changes in this nation in the past five years, as people tried to enter and understand the local business environment. He said that with the numerous opportunities that exist in the Bahamas, he would "love" to do business here.

However, he lamented that there are issues that need to be fixed in order for businesses to flourish.

"You are facing them and I am facing them," said Mr Stoute. "The residents and citizens don't pay taxes, but they pay 50 per cent of everything coming in - that's worse than taxes. That makes it very tough to open up and have your business survive.

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