The State of Small Business in Barbados

National Survey of the Small Business Sector (Barbados)

Together, these two categories show that nearly two-thirds of MSMEs (63.7%) were forced to close at least temporarily as a direct result of the pandemic. In addition, 11.6 per cent of businesses reported downsizing operations or staff, reflecting adjustments made to survive reduced demand, movement restrictions, or increased operating costs. Only 17.8 per cent of businesses reported that they did not experience closure or significant downsizing, indicating that uninterrupted operation during the pandemic was the exception rather than the norm. Figure 2.3 Business Closure or Downsizing During the Pandemic

A small proportion (5.9 per cent) selected “Other,” with qualitative responses. Open-ended responses provide additional nuance to the quantitative findings. Several businesses cited government mandated closures, restrictions on customer movement, and inability to travel to restock as key drivers of disruption. Others indicated that they were in the process of starting or registering their businesses during

Other 5.9%

Yes, temporary closure 33.9%

No 17.8%

Downsized operations/staff 11.6%

Yes, full closure 30.8%

the COVID period, which shaped their experience differently from established firms. Some respondents noted that while they were permitted to operate, business activity was severely reduced due to lower demand, fewer customers, or increased competition after the pandemic.

2.2.1 Differences by Firm Size

Table 2.1 Impact of COVID-19 by Firm Size

Temporary Closure

Firm Size Full Closure

Downsizing No Closure

Micro Small

29.8 34.4

38.4

14.2 15.6 38.5

17.6

26

24

Medium 23.1

0

38.4

Micro enterprises experienced the highest levels of disruption, particularly temporary closures, while medium-sized firms demonstrated greater resilience by maintaining operations through downsizing.

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Small Business Association of Barbados