Supporting micro, small and medium enterprises, the backbone of Caribbean economies

Excerpt from eureporter.co

The United Nations commemorated Micro, Small and Medium-sized Enterprises (MSMEs) day on 27th June. This day dedicated to MSMEs is to recognise their contribution to the global economy.  There is indeed a clear reason for doing so. The United Nations Conference on Trade and Development reports that MSMEs account for more than 90% of all businesses and around 70% of jobs globally, writes Deodat Maharaj. 

Right here in the Caribbean, MSMEs form the backbone of many of our economies generating precious jobs and opportunities for our people. According to the Caribbean Development Bank, MSMEs represent between 70-85% of Caribbean businesses and contribute between 60-70% of Gross Domestic Product. Critically, they account for an estimated 50% of total employment. Importantly, 40% of Caribbean businesses are owned by women. The success of these enterprises reflects the ingenuity, industry, and innovative spirit of our entrepreneurs. Based on the data, to build a resilient Caribbean under normal circumstances where business must be a central partner, we would need to ramp up support to the entrepreneurs in micro, small and medium scale business enterprises.

However, given the fact that we are living in unprecedented times with small and vulnerable Caribbean countries reeling from the coronavirus pandemic, the emphasis must be on fast-tracking recovery and building resilience. To be successful, the private sector has a major part to play. Consequently, given the role of MSMEs in creating opportunity and jobs, it is logical that MSMEs must get priority attention. Policy measures excluding them or providing sub-optimal support will be counterproductive and only ensure a prolonged recovery phase or even worse, job loss and suboptimal growth.

MSMEs require a range of support including finance on which I have previously written. However, it is not only about providing financial support and creating an enabling environment for business to flourish. There are other crucial areas where support is required to give our MSMEs the maximum chance of success.