The State of Small Business in Barbados

National Survey of the Small Business Sector (Barbados)

Section 3: Climate Change and MSME Resilience

81% of MSMEs report no direct climate-related impacts in the past five years, indicating uneven exposure rather than universal vulnerability. Among affected firms, extreme heat, storms, and flooding are the most commonly cited events. Exposure Only 8.1% of MSMEs have a formal climate preparedness plan. Nearly 63% report no plans at all, a pattern largely unchanged across firm sizes but most acute among micro enterprises. Preparedness Financial constraints and limited knowledge dominate reported barriers to resilience. These findings extend the 2016 report’s concerns about MSME vulnerability by introducing climate risk as an emerging systemic constraint. Barriers Section 4: Digital Adoption and Technology Use More than half of MSMEs operate at very low or low levels of digital adoption, while fewer than one in five report high or very high adoption. Social media use is widespread (78.7%), but advanced systems, integration, and AI use remain limited. Digital Maturity Cost, skills gaps, unreliable internet, and cybersecurity concerns continue to inhibit deeper adoption. Barriers Only 18.4% of MSMEs currently use AI. While 41.5% plan to adopt new digital tools, nearly one-third remain uncertain, indicating hesitation rather than resistance. AI and Future Intentions

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Small Business Association of Barbados