The State of Small Business in Barbados

National Survey of the Small Business Sector (Barbados)

Administrative data indicate that Barbados’ formal private sector comprises 9,196 enterprises, employing approximately 112,595 persons (end of 2024), compared with 9,651 firms and 100,449 employees in 2016. MSMEs account for approximately 98% of all private-sector establishments, and 55% of private-sector employment, while large firms (around 2% of establishments, predominantly in services sector such as retail/wholesale) employ the remaining 45%. Services dominate the private economy, accounting for 87.7% of firms, up from 77.4% in 2016, indicating a deepening structural shift toward service-based economic activity. Section 1: Structure of the MSME Sector, Employment, and Ownership Dynamics SUMMARY OF RESEARCH FINDINGS MSME Profiles MSMEs employ approximately 61,556 persons, with employment heavily concentrated in medium-sized enterprises, particularly in services and industry. Medium-sized firms, though relatively few in number, contribute disproportionately to employment due to much higher median employment per firm. This employment structure is broadly consistent with the 2016 findings, with most jobs still concentrated in larger firms rather than evenly spread across all business sizes. Employment Patterns About 24% of MSMEs were established between 2020 and 2025, reflecting continued entrepreneurial activity despite COVID-19 and macroeconomic shocks. The largest share of firms (43%) were established between 2015 and 2019, while one-third are over ten years old, indicating a mix of new entrants and long-standing enterprises. Compared with 2016, business start-ups continue, but there is little sign that firms are moving more quickly into larger and more sustainable size categories. Business Age and Entry Nearly two-thirds of MSMEs (63.7%) experienced either full or temporary closure during the pandemic. Micro enterprises were most severely affected, with almost three-quarters reporting closure. Medium-sized firms were more likely to remain operational through downsizing rather than closure, highlighting stronger adaptive capacity. These findings confirm and deepen the 2016 report’s warning about MSME vulnerability to systemic shocks. COVID-19 Impacts

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Small Business Association of Barbados