The State of Small Business in Barbados

National Survey of the Small Business Sector (Barbados)

However, this average decline must be understood in context. Registrations were particularly elevated in 2020 (4,573) and 2021 (3,982), likely due to individuals entering self-employment during the COVID-19 economic disruption. As formal employment contracted in some sectors, self-employment and informal enterprise formation appear to have served as adaptive mechanisms. It should be noted that from 2022 onward, registrations declined sharply (2,227 in 2022) and subsequently stabilised within the 2,400-2,900 range through 2025.

1081

5000

4573

4500

1050

1032

3982

4000

1000

3500

1000

1003

1001

3000

2845 2984

New Business Name Registrations 2500

950

2477

2227

New Companies Registered 923

2000

2020 2021 2022 2023 2024 2025

2020 2021 2022 2023 2024 2025

Year

Year

Figure 2.2 New Business Name Registrations (Unincorporated Sole Traders and Partnerships) – 2020-2025

Figure 2.1 New Incorporated Companies (2020-2025)

2.2 COVID-19 Impacts and Business Closures The COVID-19 pandemic represented a major systemic shock to the MSME sector, disrupting operations, mobility, demand, and supply chains. Overall, the findings indicate that the vast majority of businesses experienced some form of operational disruption during the COVID-19 period. Just over 30 per cent of businesses reported full closure, indicating a complete cessation of operations for some period during or shortly after the pandemic. A further 33.9 per cent experienced temporary closure, suggesting that while operations were halted, businesses were able to reopen at a later stage.

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Small Business Association of Barbados