The State of Small Business in Barbados

FROM THE DESK OF THE RESEARCHER Micro, small and medium enterprises (MSMEs) remain the backbone of the Barbadian economy, accounting for the overwhelming majority of private-sector establishments and playing a critical role in employment generation, income creation, and community-level economic activity. Notwithstanding their importance, the MSME sector continues to operate within a rapidly evolving and increasingly complex economic environment shaped by post-pandemic recovery, rising costs, climate risks, and accelerating technological change. This report, commissioned by the Small Business Association (SBA), provides the most comprehensive national assessment of the MSME sector since the 2016 survey.

Ultimately, this report aims to inform policy, guide institutional action, and support collaboration among stakeholders. It is intended as both an evidence base and a strategic tool for advancing a more productive, competitive, and resilient MSME sector in Barbados. At the same time, the report underscores significant opportunities for transformation. Expanding participation in agriculture and manufacturing, strengthening export-oriented enterprises, improving access to finance, and aligning skills development with sectoral needs are all critical pathways for enhancing the contribution of MSMEs to national development. In this regard, the report moves beyond diagnosis to provide clear, evidence-based policy directions aimed at supporting a more balanced, productive, and resilient MSME ecosystem. The findings highlight a sector that is both vital and resilient but severely constrained. While MSMEs continue to demonstrate adaptability, particularly in the aftermath of COVID-19, persistent structural challenges remain. These include limited scaling beyond the micro level, low export participation, concentration in domestically oriented services, and ongoing barriers related to finance, labour, and technology. As a result, the sector is not yet fully positioned to drive sustained economic growth, export expansion, or long-term resilience. Using a mixed-methods approach, it combines nationally representative survey data with qualitative insights from MSME operators to present a detailed picture of the sector’s structure, performance, and resilience.

Professor Dwayne Devonish Director, The School for Graduate Studies and Research The University of the West Indies