A review of Barbados’ economic performance during financial year 2014 – 2015 revealed that the micro, small and medium enterprise (MSME) sector continued to be challenged in maintaining operational viability and profitability on account of the prolonged recessionary business environment in Barbados. The macro economic conditions, as reported by the Governor of the Central Bank in his various updates on the economy, demonstrated that the country’s fiscal deficit continued to increase owing to the lack of growth in the gross domestic product (GDP). This had resulted in several attempts on the part of Government to raise revenue through a medium term programme of fiscal adjustment. The resultant impact has been an increase in taxation on the populace and the attendant effect of reduced spending power by consumers.

The fiscal period July 2013 – June 2014 was characterised by further economic downturn as the Barbados economy continued in a state of recession, recording some five consecutive years of flat or negative growth. This macro condition impacted on the local micro, small and medium enterprise (MSME) sector on account of reduced disposable income among consumers resulting in a decline in spending power, continued high cost of inputs such as utilities, raw materials and labour, and further decline in the traded and non-traded sectors. The MSME sector continued to be challenged during the reporting period, to maintain viability resulting in several closures and/or reduced work schedules. Equally the Small Business  Association as a members’ organisation was impacted by the weak  performance of the local economy and the resultant impact on the sector.

The financial year 2012 – 2013 was characterised by macro economic conditions that mirrored those of the previous fiscal period – protracted decline in the traded and non-traded sectors influencing anemic performance in the economy and compounded by the high cost of business inputs and utilities. This was further exacerbated by reduce disposable income among consumers. Overall the economy of Barbados continued in a state of recession on account of consecutive quarters of no growth. Against this background the small and medium enterprise (SME) sector found it increasingly challenging to realise growth and sustainability as a result of this fiscal and economic situation.

This past year has indeed been exciting, yet challenging for the Small Business Association. The Board took the opportunity to review the Work Plan for 2011/12, and establish goals for the year which were more in concert with the prevailing financial and economic environment. In keeping with our new strategic direction announced last year, our focus was on “Building Networks, Creating Wealth”.