The State of Small Business in Barbados

National Survey of the Small Business Sector (Barbados)

Qualitative responses provide further insight into how these impacts manifest in practice. Businesses described flooding of offices, heavy rainfall reducing customer flow, and environmental factors such as seaweed affecting coastal vending. These responses point to climate change being experienced primarily as an operational and continuity challenge, rather than as catastrophic loss. 4.2 Climate Preparedness and Planning Figure 4.2: Climate Preparedness Measures among MSMEs

Not sure

6.0%

Despite identifiable exposure risks, formal preparedness remains limited among MSMEs. Only 8.1% of businesses report having a formal, written plan to prepare for climate-related risks. A further 23.0% rely on informal actions, while nearly two-thirds (62.9%) report having no plans in place at all. An additional 6.0% are unsure whether any measures exist within their business. 4.3 Barriers to Climate Resilience

No plans in place

62.9%

Informal actions

23.0%

Formal written plan

8.1%

0% 10% 20% 30% 40% 50% 60% 70%

Percentage of Businesses (%)

Businesses identified a range of barriers and challenges preventing them from becoming more climate-resilient, with responses clustering around financial constraints, knowledge gaps, and structural or operational limitations. Financial constraints emerged as the dominant theme (approx. 56%), with many respondents citing limited resources, lack of funding, or high costs associated with resilience investments. Knowledge and awareness gaps were also prominent (approx. 30%), reflected in responses such as lack of understanding, uncertainty, or not knowing what steps to take.

Table 4.1: Key Barriers to Climate Resilience (Qualitative Themes) Barrier Category Specific Issues Raised by MSMEs Financial constraints Limited funds, lack of financing, cost of upgrades Knowledge & awareness gaps Uncertainty, lack of understanding, not sure Risk perception Perceived lack of exposure or urgency

Operational constraints

Infrastructure limits, mobility, dependence on climate

Structural issues Rented premises, limited control over physical space

26

Small Business Association of Barbados