Each year, the Small Business Association of Barbados hosts its flagship event, Small Business Week (SBW), a time when the national spotlight is turned towards entrepreneurs and the vital role they play in shaping the economy and society. Now in its 22nd year, SBW has matured into more than just a calendar event. It has become a platform for dialogue, for celebration, and for charting the course of the small business sector in Barbados.

This year’s theme, Navigating Business in the Age of AI and Digital Trade, reflects both the challenges and opportunities that the 21st-century marketplace presents. Across the world, artificial intelligence is no longer a futuristic idea; it is a present reality, reshaping industries, transforming customer expectations, and redefining the way commerce is conducted. For a small, open economy such as Barbados, these shifts cannot be ignored. They demand that our micro, small and medium enterprises (MSMEs) adapt quickly, build capacity, and take full advantage of the opportunities emerging from digital transformation.

For many business owners, the idea of artificial intelligence can feel abstract or distant, something reserved for large corporations or developed economies. Yet AI is already here in Barbados, embedded in the tools and platforms used daily—from social media algorithms that help target customers, to online banking systems, to chatbots that enhance customer service. For small businesses, these technologies present real opportunities to reach wider markets, reduce costs, and improve efficiency.

At the same time, they bring new challenges. MSMEs often face resource constraints, making it difficult to invest in digital solutions or to access the skills needed to harness them. Policy frameworks and financial systems must therefore keep pace, ensuring that small firms are not left behind. This is where SBW plays a critical role—by facilitating the conversation, raising awareness, and helping both businesses and policymakers appreciate what is at stake.

SBW is a time for honest discussion about the obstacles MSMEs face: access to finance, regulatory burdens, training gaps, and the pace of technological change. By creating a national forum, the SBA ensures that these issues are not only voiced but placed on the agenda for action. Many of the themes explored in previous years—sustainability, resilience, transformative growth—have since found their way into government policy, donor programmes, and the strategies of private sector organisations.

This impact demonstrates the value of SBW beyond the celebrations. It is not simply a showcase; it is a driver of policy influence, education, and collective action.

The importance of SBW is not unique to Barbados. Across the world, such initiatives are recognised for their contribution to economic development and resilience.

In the United States, the Census Bureau notes that small businesses make up the majority of firms and employ nearly half of the private sector workforce, underscoring why their national Small Business Week is seen as central to economic recognition and policy dialogue. Similarly, the American Entrepreneurship Foundation highlights that these firms contribute significantly to innovation and community development, demonstrating the long-term value of celebrating and supporting them.

In the United Kingdom, small businesses account for 99 per cent of all companies, contributing more than half of private sector turnover. A recent report by Capital on Tap emphasised that SMEs are “the backbone of the UK economy,” showing how initiatives such as Small Business Week are vital in raising awareness of their challenges and promoting tailored support

In Canada, a Central York business support organisation describes small businesses as a “force behind economic growth,” responsible for employing millions and driving innovation. Their Small Business Week is framed not just as recognition, but as an economic development strategy to ensure these firms continue to thrive.

By drawing parallels with these international examples, it is evident that Barbados’ SBW performs a similar function—it is a deliberate intervention designed to strengthen one of the most productive and dynamic sectors of the economy.

The 2025 SBW theme will challenge stakeholders to think differently about the future. Digital trade—the exchange of goods and services enabled by electronic means—is expected to dominate global commerce in the coming decade. For small businesses in Barbados, this means competing not just with the shop across town, but with suppliers halfway across the world. It also unlocks possibilities that previous generations of entrepreneurs could only dream of.

A small agro-processor in St Philip can now sell products to Diaspora communities abroad through e-commerce platforms. A young creative in St James can market services to clients in North America using digital marketplaces. A tour operator in Christ Church can reach potential visitors through online experiences, long before they set foot on the island. The common thread in all these examples is the ability to leverage technology to overcome scale and geography.

To fully benefit, the ecosystem must be ready. Financial institutions must provide products tailored for digital enterprises. Policymakers must design a regime that protects consumers
without stifling innovation. Training institutions must equip the workforce with the digital skills required, and businesses must be willing to embrace change, to experiment, and to adopt new ways of working.

During SBW, entrepreneurs will be exposed to discussions that bring clarity to these issues, helping them to see not just the global trends, but how those trends apply locally. They will hear from experts and practitioners who can translate abstract concepts like AI into practical applications for marketing, accounting, customer service and production.

At the same time, the week provides visibility. For small firms that often struggle to gain attention in a crowded marketplace, SBW offers a platform to showcase achievements, build networks,
and attract customers and partners. The exposure can be transformative, especially for younger enterprises seeking to establish themselves.

Importantly, SBW also strengthens partnerships. By involving stakeholders across government, finance, academia, and development agencies, it fosters collaboration that extends well beyond the week itself. Initiatives sparked during SBW often continue into the following year, creating sustained impact.

Many small firms are breathing a sigh of relief following the announcement that the date for enactment of the tint legislation has been deferred to December this year. Some are even hoping for a complete repeal of the legislation.

The Road Traffic Act, last amended in 1984, has been updated to meet modern law enforcement needs, bringing Barbados in line with other Caribbean nations, including Jamaica, Trinidad and Tobago, and Antigua and Barbuda. Although initially announced in September 2024 with a grace period for compliance, the implementation of the tint rules was delayed until this month.

Small courier firms, agricultural suppliers, food vans, caterers, florists and many other general services that have panel vans, trucks and other commercial vehicles have been hastily trying to adjust their tint to comply with the law. The fact is, today, many are still noncompliant.

In many instances, the tint on vehicles is factory-applied. Consumers are unsure how such vehicles would be treated due to the difficulty in removing the tint. More so, the few small businesses with the capacity to remove tint have been inundated due to the demand from customers trying to meet the September 1 deadline.

Beyond the humbug that many feel this legalisation has brought to their operations, the question of relevance has been on the lips of many in the past few months. Barbadians are generally of the view that there is no positive correlation between the lack of tint on a vehicle and crime reduction. Accordingly, this issue has been treated with sheer comedy and was the punch line for many calypsos during the recent Crop Over festival.

While it is appreciated that a myriad of approaches will be needed to arrest the crime situation, there is a general belief among citizens that those behind the crime ring are known to the authorities. Targeting law-abiding citizens who use tint to cool their vehicles, to protect valuables and for personal privacy appears to be a draconian exercise by 

All right-thinking Barbadians agree that everything must be done to support police officers in the discharge of their duty and ensure road safety. Some posited that regulations could have been put in place requesting citizens to lower their windows when stopped by law enforcement officers for random checks or other inspections. Additionally, the necessary law could be introduced to ensure the windscreen of the vehicle bore no tint, as is the case in other countries.

Canada
In Canada, window-tinting regulations are generally among the strictest in the world. The key area of restriction is the front of the vehicle. In most provinces, any form of tinting on windscreens and the front driver and passenger windows is either completely prohibited or heavily restricted. By contrast, rear windows are subject to more relaxed rules, allowing for greater personalisation and driver comfort.Authorities emphasise that these rules are not driven by aesthetics or even crime prevention, but primarily by safety considerations. The central argument is that clear front windows ensure that law enforcement officers can maintain visibility into vehicles during traffic stops or roadside checks. This transparency allows officers to assess driver behaviour and identify potential risks, particularly in situations where safety may be compromised.

Europe
In Europe, regulations vary considerably from one country to another, yet there is a broadly consistent standard for the front of vehicles. Typically, windscreens must allow at least 75 per cent of visible light transmission, while front side windows must generally allow 70 per cent or more. The rear of the vehicle — including rear side windows and rear windscreens — is usually subject to far fewer restrictions, enabling motorists to apply darker tints if they wish.

This distinction reflects a balance between two considerations: on the one hand, road safety and law enforcement visibility; on the other, driver comfort, energy efficiency, and privacy. In the UK, the tinting rules are designed to ensure safe driving conditions by preventing reduced visibility, particularly in poor weather or at night.

Some sources also suggest that darker rear tints may offer secondary benefits, such as discouraging opportunistic theft by making it harder for would-be thieves to see valuables left inside cars. This has made tinting a popular choice among urban drivers, particularly in cities where vehicle break-ins are more common. However, there is little empirical evidence to demonstrate that tinting has a measurable effect on crime rates.

India
In 2012, the Supreme Court of India imposed a nationwide ban on tinted windscreens and front windows, regardless of the degree of visible light transmission. The decision was framed as both a road safety measure and a crime prevention tool, with authorities arguing that tinted glass could obstruct visibility into vehicles and potentially enable unlawful activity such as smuggling or assaults.

Despite the legal clarity, enforcement across India has been inconsistent. Cities continue to report widespread use of illegally tinted glass and even improvised coverings such as curtains. While periodic crackdowns by traffic police are reported in the press, compliance remains uneven. This inconsistency has raised concerns not only about the effectiveness of the ban itself but also about public confidence in the uniformity of its enforcement.

Some motorists contend that the total prohibition on tinting does not take account of India’s climatic conditions, where window films can provide relief from intense heat and sunlight. For many drivers, tinting is seen less as a style choice and more as a necessity for comfort and protection against harmful UV rays.

What is clear from these examples is there is little evidence to suggest a causal link between tint restrictions and lower crime rates. Instead, these regulations operate as risk management tools — aimed at increasing transparency, reducing uncertainty for officers, and ensuring that drivers have sufficient visibility under all conditions.

Mind Your Business initiated a conversation in an earlier article about the challenges business owners face in attracting the relevant skills for their sectors. Much has been said in the IDB Country Strategy 2025–2030 about Barbados’ skills gap, and academics, as well as development practitioners, repeatedly opined about the gulf that exists between the labour needs of industry and the talent pool being produced annually. This week, therefore, is an opportune time to continue the conversation, as much is being said about educational reform and the need to ensure the education system caters to future business needs.

Appreciably, today’s rapidly evolving global economy is shaped largely by technological advances. Consequently, the skills required by firms are changing, resulting in many businesses facing skills gaps, both on the supply and demand sides. The mismatch between the skills workers possess and those needed to meet current and future business demands must be addressed through transformational policy.

Policymakers seem aware, to some extent, of the issue at hand.

The Ministry of Labour reported some time ago that findings from an employers’ survey, conducted in partnership with the Inter-American Development Bank under its Skills for the Future programme, were designed to help the country better anticipate and respond to evolving skills demands.

The Minister of Labour was quoted in the press as indicating that the data collected would be instrumental in shaping workforce-related policies, including curriculum development, career counselling, and occupational standards. He emphasised the importance of aligning training with global labour standards to ensure that Barbadian workers remained competitive and mobile in an increasingly globalised economy.

The survey findings would also inform immigration policy and decisions related to work permits and CARICOM Skills Certificates, since it was found that 13 per cent of employers in the tourism sector relied on work permits to fill roles ranging from sushi chefs to CEOs. It was anticipated that the data would support efforts to guide training providers in developing programmes that matched actual market needs.

The IDB specialist on the project stressed that the goal of the survey was to build a demand-driven training system, and the results would be used by education and training institutions to update their offerings and better align them with the requirements of the labour market.

That was in 2018. Fast forward seven years, and we still see firms in the hospitality sector looking outside of Barbados for skilled workers, while construction and other sectors continue to complain that the local market is coming up short in the supply of competent persons to meet the demands of their sectors. Admittedly, there are some sectors where a surplus of skills appears to exist. Technology and information and communications technology (ICT) readily come to mind.

The need for the right kinds of skills becomes even more acute when the productivity factor is assessed. At present, the country is faced with low productivity in both the private and public sectors. Ensuring adequate levels of skilled workers is one tool that can help to address this issue.

Productivity is a key driver of economic growth, improved living standards, and social inclusion. Higher productivity leads to better wages, job quality, and competitiveness across enterprises. However, despite rapid technological progress, recent findings from the International Labour Organisation (ILO) indicate that anticipated productivity gains, particularly in developing economies, have not been fully realised. A major contributing factor is the persistent and widening skills gap, especially among micro, small, and medium-sized enterprises (MSMEs).

MSMEs are critical to employment and economic activity, particularly in small and developing economies. Yet they often face significant barriers to productivity growth due to inadequate access to skilled labour, modern technologies, and financial resources. The ILO report suggested that the skills gap within MSMEs hampers their ability to innovate, adopt new technologies, respond to market changes, and scale operations. Many lack the capacity to clearly identify their skills needs, recruit competent workers, and access high-quality, industry-relevant training. This mismatch between workforce capabilities and business needs is a central obstacle to MSME competitiveness and growth.

One OECD study underscored the importance of workforce quality in productivity performance. The report found that over one-third of the productivity gap between high-performing and average firms could be explained by differences in workforce skills, diversity, and management quality. Beyond technical skills, effective skills utilisation and supportive workplace practices are essential for turning training investments into measurable performance gains.

Ongoing work by the ILO on Skills for Productivity, with a specific focus on MSMEs, has generated actionable insights for policymakers, employers, and workers on how to optimise skills development strategies to improve MSME productivity. The study examined both firm-level and structural dimensions of the skills-productivity relationship and investigated how targeted skills policies, and the incentives they create, can support inclusive structural transformation, enabling workers to transition into more productive and higher-quality jobs within MSMEs. Conversely, it considered how well-aligned skills strategies can drive MSME-led, job-rich economic growth.

Closing the skills gap requires a comprehensive and coordinated approach. This includes improving the design and delivery of skills development programmes, fostering closer collaboration between training institutions and enterprises, and creating policy incentives to integrate skills development into MSME strategies. The focus must go beyond individual training to system-wide interventions that align skills supply with evolving market demands.

A concerted effort is therefore needed, driven by a suitable policy framework to address the skills gap in the country. Incorporating productivity gains can be a catalyst for positioning the country on a path to greater economic growth through a competitive and world-class labour market. By placing the skills gap at the centre of the productivity challenge, more inclusive, competitive, and sustainable economic development can be achieved.

It has long been argued that sustainable growth amongst micro, small and medium enterprises cannot be realised in the Barbados market of 280 000 persons. Consequently, the CARICOM Single Market & Economy has been touted as an expanded market to be accessed by small firms, in addition to the wider CARICOM region of 15-member states and five associate members, representing 16 million consumers. The wider Caribbean, inclusive of French, Spanish and Dutch-speaking countries, provides further expansion with a market of over 44 million consumers. MSMEs must therefore be incentivised to internationalise as a deliberate strategy to grow their operations. 

The geopolitical headwinds, supply chain disruptions and the general volatility in the global economy necessitate that the business models of small firms include export strategies as a rule, not an exception. In an increasingly globalised economy, remaining confined to a single domestic market will limit growth and competitiveness. 

Internationalisation offers several advantages, such as:

• increased productivity
• cost efficiency through access to global resources
• enhanced brand visibility
• greater resilience to market fluctuations
• accelerated innovation
• contribution to the home country’s economy through job creation and revenue growth.

The challenges to internationalisation will always be highlighted; however, these ought not to be a deterrent but provide the opportunity for innovation and collaboration among stakeholders. Navigating complex legal and regulatory environments, managing the high initial costs of expansion, recruiting specialised staff with international trade expertise, and adapting products and marketing strategies to different cultural and market expectations are all issues that can be addressed through policy and programmatic solutions.

Governments through appropriate bilateral arrangements and the strengthening of overseas missions; financiers offering trade finance and other relevant funding solutions; and trade promotion agencies providing the market intelligence and entry data, must work hand-in-glove to create an enabling environment and to incentivise small firms. 

The data consistently and credibly shows that MSMEs are major employers in developing countries but remain limited in productivity and export performance. Direct exports account for just three per cent of MSME manufacturing sales, compared to 14 per cent for large firms, according to a World Trade Organisation report. Despite this gap, evidence shows that international trade can significantly benefit small businesses. 

Data published in an IGC report revealed that exporting increases MSME profits and household welfare. A randomised controlled trial in one market matched small rug firms with foreign buyers. The impact was that profits rose for the small businesses by 16 – 26 per cent and household wellbeing improved, with a 24 per cent increase in food consumption—a proxy for improved living standards. The conclusion was that exporting benefited not only firms but also the families of business owners, making a strong case for policies that enable MSME exports.

The report also highlighted that MSMEs gained skills and boosted productivity through exporting as firms acquired new knowledge from foreign buyers and intermediaries. Exporting firms also improved product quality and production speed as internationalisation leads to lasting improvements in firm capability.

Research on the Caribbean and Latin American region by IDBInvest showed that MSMEs exhibited low levels of internationalisation compared to their counterparts in developed or other emerging markets. Export strategies were identified to enable resource reallocation to more efficient firms, facilitating learning and innovation, and promoting technology diffusion. 

The report posited several common barriers to export trade experienced by small firms, including:

• Credit constraintsdue to limited collateral and financial products suited to their scale.
• Low innovationand weak human capital, stemming from inadequate coordination, knowledge asymmetries, and lack of skilled personnel.
• Organisational limitations, including traditional management structures and insufficient governance.
• Operational hurdles, such as unfamiliarity with export logistics, legal procedures, and international standards.

While these barriers exist, several solutions can be applied to alleviate these constraints, such as:

• Reduce matching costs by improving market access tools and buyer connections.
• Invest in trade facilitation to encourage “learning by exporting.”
• Strengthen export promotion agencies with clear mandates and long-term strategies.
• Support participation in global value chains to enhance skills and competitiveness.

By addressing these constraints, governments can enhance MSME integration into global value chains and unlock broader productivity and income gains across the economy.

The trade commissioner of Canada recently offered key reasons for that country’s support to the internationalisation of MSMEs as a deliberate strategy for economic growth. 

More than 95 000 MSMEs in Canada are involved in exporting goods or services internationally, as this sector represents a significant part of Canada’s economy. The reasons posited for an aggressive exporting strategy include:

• Encourages innovation

Exporting companies tend to be nearly twice as innovative as those that do not export. Competing in global markets often pushes firms to improve their products, adopt new technologies, and refine their processes.

• Boosts sales and growth

Exporters generally earn more revenue, expand more quickly, and are better able to withstand economic challenges. This leads to stronger financial stability and long-term business success.

• Opens new markets

Since Canada makes up only about 0.5 per cent of the world’s population, the majority of potential customers are outside the country. Exporting helps MSMEs tap into these international markets—many of which are covered by Canada’s free trade agreements.

• Reduces risk through market diversification

Relying on just one domestic market can be risky. By exporting, businesses spread their risk across multiple markets, improving their ability to adapt and stay competitive.

• Strengthens brand value:

Canada has been successful in creating its own brand Made in Canada, which is an approach that should be considered for Barbados and possibly the wider Caribbean. Labels such as Made in Barbados or Made in the Caribbean will help to build trust and recognition in global markets. 

The next step for MSMEs looking to expand internationally is to ensure that the needed resources are available, including funding, business supports and government programmes to assist firms in their export journey. These tools will help businesses to explore new markets, navigate regulations, and grow globally.

The discussion on tariffs continued this month as the United States announced new tariffs and, in some instances, increased tariffs on some countries’ exports. It is acknowledged that a country has its right to impose levies on imports entering its jurisdiction, and in the absence of bilateral or other trade agreements, they are not obligated to treat any country favourably. 

It therefore raises the question why the Caribbean Community (CARICOM) has not been more aggressive in considering a regional approach to tariff talks with the US and, more specifically, bolstering the Common External Tariff regime within CARICOM to strengthen the region’s single market. For small and medium enterprises that were hoping to benefit from a single market and economy through free movement of goods, capital and labour, the slow pace of the regional apparatus to give effect to this does not instil confidence. Following the last Heads of Government meeting in Jamaica, where only four member states were bold enough to agree to free movement of people by October this year, many are left to wonder, whither CARICOM? 

President Donald Trump’s renewed ‘America First’ trade policy is the country’s right to self-determination. CARICOM should be incentivised to consider its industrial policy that can provide the equitable development of markets according to each member state’s comparative advantage. 

In 2023, CARICOM countries had a significant trade deficit with the US, importing nearly twice as much as they exported—US$9.76 billion in exports and US$18.9 billion in imports. Since the 1980s, the Caribbean has benefited from US preferential trade programmes like the Caribbean Basin Initiative and others, which are non-reciprocal. Notably, Guyana and Trinidad and Tobago, CARICOM’s main oil and gas exporters, maintain trade surpluses with the US. Their energy exports are more than commercial transactions; they are essential to US energy security, offering reliable, nearby sources of oil and gas in an increasingly unstable global environment.

A recent article in the Jamaica Gleaner posited that the CARICOM member states have played a consistent role in contributing to US economic strength by importing more goods from the US than they export, resulting in a long-standing trade surplus in favour of the US. Despite this relationship, 13 of the 14 CARICOM countries are facing a ten per cent tariff on their exports to the US, with Guyana, a significant oil exporter, facing a much steeper 38 per cent tariff.

Regardless of the potential harm from these tariffs, CARICOM nations are unlikely to respond with retaliatory tariffs. The reason is that between 60 per cent and 70 per cent of the region’s consumer goods come from the United States. Imposing duties on US imports would only raise the cost of living for Caribbean populations and risk a broader trade confrontation the region cannot afford.

The clarion call for the region is to prepare and adopt a regional strategy, more so than a country approach. Caribbean exporters will need to adapt their strategies, diversifying markets or investing in non-traditional entry routes to the US. For importers relying on US goods, alternative sourcing may become necessary to manage costs.

The region’s private sector is not advocating retaliation by CARICOM given the region’s high dependence on US imports and limited fiscal space. Instead, the private sector needs a regional industrial policy. 

According to Leo Preville, director of the CARICOM Single Market Unit, there needs to be more favourable trade between countries like Trinidad and Tobago and Barbados. He highlighted that Trinidad’s imports from Barbados declined from US$30.4 million in 2018 to US$24.7 million in 2022, despite the potential for higher figures. Additionally, Barbadian Minister Sandra Husbands also urged the region to address the $3.3 billion in imports from outside the Caribbean, despite having the capacity to produce similar goods regionally. Minister Husbands, while speaking during a regional trade mission, stressed the need for collaboration, removing barriers, improving logistics, and investing jointly to lower unit costs. She emphasised that Caribbean nations must focus on regional self-sufficiency to remain competitive.

One regional diplomat opined that in a time of global instability, shrinking access to finance and the escalating effects of climate change, CARICOM should be stronger, and more robust. However, the deep-rooted trade disadvantages of smaller states have undermined regional solidarity. Despite efforts to build a true CSME, the necessary legal, structural, and compensatory mechanisms remain underdeveloped or unimplemented. Trinidad and Tobago has been the primary beneficiary of the CSME, while smaller states, particularly the Organisation of Eastern Caribbean States, have been most affected.

The 1992 West Indian Commission’s Time for Action report, which highlighted the trade disadvantages faced by smaller economies and called for stronger mechanisms to ensure balanced regional integration, still appears relevant today. The CSME was intended to foster balanced economic integration, but the compensatory mechanisms, like the CARICOM Development Fund (CDF), have failed due to inconsistent contributions from larger states. It would appear that with the geopolitical tensions that abound, CARICOM has to address issues internal to the integration project and position itself to represent the interest of the region’s private sector on the global stage. CARICOM after 50 years must move from ideation to implementation. 

During her recent chairmanship of CARICOM, Barbados Prime Minister Mia Mottley urged citizens, businesses, and regional leaders to brace for growing global uncertainty by strengthening financial preparedness, resource planning, and international partnerships. 

She called for increased investment in Caribbean agriculture and light manufacturing, asserting that the current 25 by 2025 initiative led by Guyana’s President Ali is no longer ambitious enough given the region’s circumstances. Encouraging a shift in consumption habits, she urged citizens to buy healthy, locally produced foods instead of imported processed alternatives. Mottley also highlighted the importance of strengthening ties with Africa, Latin America, Central America, and long-standing partners like the UK, Europe, and Canada, cautioning against over-reliance on any single market.

The Barbadian leader urged Caribbean citizens to support local and regional businesses, underscoring that unity would enhance the region’s resilience. 

The recently held SME Ministerial conference in Johannesburg was a call to action for all participating countries and a recognition that it cannot be business as usual in this post COVID-19 environment. The event organised by the International Trade Centre brought together ministers and senior officials in the SME space from over 100 countries to explore key thematic areas including access to finance, the green transition and digital transformation. Hosted by the Government of South Africa, the conference served as a historic call to action to place SMEs at the centre of global trade policy, investment strategies, digital transformation, and environmental adaptation.

One clear observation from the week of consultations, bilateral talks and analyses is that countries the world over are faced with very similar issues. It has been underscored repeatedly that small and medium enterprises account for over 90 per cent of formal businesses and contribute over 50 per cent to Gross Domestic Product (GDP) and private sector jobs. These statistics alone justify the need for policymakers and administrators to ensure SMEs can pivot to new levels of growth regardless of the exigencies of climatic events, supply chain disruptions and geopolitical factors.

Access to finance: Tackling the $5.2 trillion credit gap

The World Bank estimates a staggering $5.2 trillion annual financing gap for SMEs. Some countries were able to demonstrate innovative programmes in this area. Examples include Egypt, who mobilised over $15 billion in development finance and $300 million in targeted technical assistance between 2020 and 2025. Barbados was able to share the success of its Trust Loans programme for start-ups and Fund Access as a second tier financial solution for early growth and expansion.

The meeting underscored that access to finance must be inclusive, equitable, and aligned with SME realities. It must move beyond high-level pledges to on-the-ground financial products, fintech integration, and targeted fiscal incentives.

Digital transformation: Bridging the divide for SME competitiveness

The digital economy was another dominant theme, with countries reaffirming the need for technological democratisation. While 90 per cent of digital services firms in Nigeria are locally owned, SMEs in small island developing states and landlocked nations remain significantly excluded. Highlights included:

Nigeria’s digital services directory: Launched in May 2025 with UNDP, the directory maps Nigeria’s digital firms across 17 sectors. Key findings include:

• 41 per cent of digital entrepreneurs are under 35
• 64 per cent of health tech and 48 per cent of edtech firms are women-led

Barbados and other Caribbean states emphasised the urgency of tailored digital policies and infrastructure investment to unlock regional innovation and plug SMEs into global value chains.

Asia’s digital economy framework agreement aims to establish trusted regional e-commerce and interoperable digital payment ecosystems by 2026.

The ministers affirmed that digital trade is not a privilege—it is the new baseline. Empowering SMEs to access digital infrastructure and training is now a global development imperative.

Climate resilience and the green transition

Climate change continues to disrupt SMEs globally. The ministerial session acknowledged that the transition to a green economy cannot succeed without empowering small enterprises as climate solution providers.

Egypt’s nexus of water, food and energy platform, launched at COP27, integrates SMEs into green infrastructure, sustainable agriculture, and energy transition pathways.

Switzerland’s partnership with ITC supports green trade tools and SME integration into circular economy value chains, particularly under the African Continental Free Trade Area.

Barbados’ Energy Smart Fund provides access to grants and low interest funding for energy efficient projects and the green transition.

SMEs were recognised as front-line actors in the climate response—able to deliver local innovations at scale, if adequately resourced and de-risked.

Other areas of strategic importance were youth and women entrepreneurship, and regulatory reform.

With over 70 per cent of Africa’s population under 30, Africa’s youth bulge is promoted as a comparative advantage. Some solutions to convert this potential into economic productivity includes:

• The Digital Readiness Programme, supported by Google and Microsoft, which trains SMEs in AI, digital marketing, and future-of-work skills.
• The Green Energy SME Programme, which trains youth as solar technicians and clean energy entrepreneurs.
• The Industrial Development Centres, providing shared production spaces, stable electricity, and professional-grade machinery.

The story of Joy Dogara—a young Nigerian woman who trained at a government-supported hub and now exports over 600 garments to the UK—illustrates the transformative power of intentional SME investments.

The ministers across the African, Asian, European and Caribbean regions highlighted the importance of regulatory clarity and the dismantling of systemic barriers. Some proposals that can assist with business facilitation include:

• Automating the corporate registration portal
• Establishing small claims courts for SME dispute resolution
• Enacting credit laws to increase SME access to collateral-free finance

Some countries echoed the concerns that non-tariff barriers, administrative burdens, and “firm-size neutral” trade rules disproportionately affect SMEs. They advocated for WTO reform, streamlined standards, and regulatory coherence to reduce market fragmentation.

The message was resolute—SMEs need rules that reflect their reality, not one-size-fits-all frameworks that stifle innovation and growth.

Multilateralism and regional cooperation emerged as vital anchors for success. The shared conviction was that no country thrives alone. Global prosperity depends on inclusive multilateral platforms that treat SMEs not as aid recipients but as policy co-creators.

From talk to transformation

The Global SME Ministerial conference concluded with a unified resolve to transition from declarations to delivery. The time for pilot projects has passed—scalability, co-investment, and policy alignment are the next frontiers.

As reiterated by Barbados’ Minister for Business Senator Lisa Cummins, investing in SMEs is investing in our shared future. The next steps require:

• Clarity of purpose – ensuring every policy, budget, and trade agreement reflects the lived realities of SMEs
• Credibility of action – with transparent, accountable delivery mechanisms
• Commitment to alignment – across sectors, regions, and platforms

SMEs are not waiting for change. They are building it. Governments must now catch up—with bold reforms, inclusive investment, and empowered collaboration. The future of trade is small, connected, and powerful.

Share 

There is nothing more pervasive in business today than generative AI. The speed at which GenAI is going suggests that in the next decade, communication as we know it today will be obsolete, and artificial intelligence will be the new normal. Like it or not, there is little that can be done to avoid this disruption. 

GenAI is rapidly reshaping and transforming the business landscape by enhancing productivity, driving innovation, and automating routine tasks. However, as organisations increasingly adopt AI technologies, they must also contend with a range of significant challenges, limitations, and ethical concerns. 

A Forbes Advisor report notes that 64 per cent of businesses expect AI to enhance productivity. While this enthusiasm is justified in many ways, the rush to adopt AI—especially without a full understanding of its limitations—poses serious risks. The Forbes report suggests the following concerns that underscore the need for a more cautious and strategic approach to GenAI implementation:

1. Impersonal customer interaction

AI-powered chatbots and automated messaging systems help streamline customer service, handling basic tasks efficiently. However, relying too heavily on automation can depersonalise the customer experience. 

2. Generic and homogenised content

Generative AI tools can quickly produce marketing copy, blog posts, and web content. But this convenience often comes at the cost of originality. Without human creativity and oversight, AI-generated content can become repetitive and indistinct, weakening brand identity. 

3. Flawed data interpretation

AI excels at processing large datasets, but it is not immune to error. Even simple logic problems can trip up AI models, especially earlier versions. While newer models like GPT-4 are more reliable, mistakes still happen. Without human review, these errors can lead to flawed insights and poor business decisions. 

4. Shallow business analysis

AI can generate contract templates or standard legal documents, but it lacks the intuition and contextual judgment required for deeper analysis. It cannot assess risk tolerance, interpret unique business dynamics, or navigate industry-specific regulations. These are human tasks. 

5. Creative and aesthetic limitations

In areas such as branding and design, GenAI can quickly generate visual assets but it lacks aesthetic judgement. Creativity requires cultural awareness, emotional sensitivity, and personal taste, traits AI cannot replicate. Without human input, creative outputs can feel generic or disconnected from target audiences. 

With access to vast amounts of consumer information, companies can now tailor products, services, and customer interactions to meet individual preferences ushering in what is often referred to as the personalisation economy.

Economics Observatory reports that in retail and entertainment, AI recommends products and content based on browsing and consumption habits. Companies like Amazon, Netflix, and Spotify use algorithms to enhance engagement and increase spending by matching users with relevant offerings. In finance, AI tools personalise investment strategies in real time, adjusting based on changes in a user’s life, such as job shifts or family milestones. Platforms like Betterment combine automated insights with human advice to deliver more personalised financial planning. 

Health care is also undergoing an AI transformation. Tools like Tempus and IBM Watson Health analyse patient data to tailor treatment plans, while AI-driven apps like Ada provide symptom checks based on individual health profiles. 

Education platforms, including Duolingo and Coursera, use AI to adapt learning content to students’ needs and pace, improving engagement and retention. In marketing, AI enables hyper-targeted advertising, personalised emails, and automated customer outreach, while in retail, companies like Sephora use virtual try-ons and product suggestions to improve the shopping experience.

As AI becomes more integrated into physical and virtual spaces, personalisation is extending beyond screens. Smart devices like Dyson’s air purifiers adapt to environmental changes, while fast-food chains use AI to adjust menus based on time and weather. In the metaverse, Gucci and Nike are experimenting with custom digital experiences and products. AI tools allow retailers to predict shopping patterns, tailor inventory, and adjust prices in real time. Companies like Uber and airlines use dynamic pricing based on demand and behaviour. Meanwhile, brands including Nike and L’Oréal offer personalised products using biometric and skin data.

Despite its advantages, AI-powered personalisation raises concerns. Poorly designed algorithms can reinforce social biases, as seen in Amazon’s biased hiring tool or Facebook’s discriminatory ad targeting. Data privacy is another major issue, especially as companies collect sensitive personal information at scale.

AI advances raise concerns about surveillance, data misuse, and the erosion of privacy in public and commercial spaces. Businesses must strike a balance between innovation and ethical responsibility, ensuring AI serves as a tool for empowerment, not manipulation.

Successful AI in this new era depends on thoughtful, ethical implementation that combines the strengths of automation with the judgment and creativity of human expertise. Companies that use AI to enhance, rather than replace, human decision-making are more likely to build lasting customer relationships, gain trust, and lead their industries into the future.

AI also raises critical ethical issues that businesses must address:

1. Workforce displacement

AI-driven automation has the potential to displace human workers, particularly in roles involving repetitive or routine tasks. Organisations should take responsibility for mitigating job loss by investing in employee reskilling, upskilling, and redeployment initiatives.

2. Algorithmic bias and fairness

AI models are only as objective as the data they are trained on. If training data reflects existing social or cultural biases, the resulting models may perpetuate discrimination or inequality. Businesses must implement rigorous evaluation procedures to detect and correct bias, and promote fairness and inclusivity in AI outcomes.

3. Security risks and system vulnerabilities

AI systems, especially those deployed in critical domains such as finance, healthcare, or transportation, can pose substantial security risks. Vulnerabilities in AI models may be exploited by malicious actors or lead to unintended consequences if systems are compromised. Strong cybersecurity measures and continuous threat assessment are necessary to safeguard AI infrastructure.

4. Unintended consequences and system behaviour

Due to their ability to learn and evolve, AI systems may exhibit unexpected or unintended behaviours. These outcomes can disrupt business operations or produce harmful results if not carefully monitored. To mitigate these risks, organisations must implement robust oversight mechanisms and conduct regular system audits.

While AI offers significant benefits, it is not a substitute for human expertise. Businesses must adopt a gradual, thoughtful approach to AI integration—one that prioritises human oversight at every stage.

The Small Business Association of Barbados (www.sba.bb) is the non-profit representative body for micro, small and medium enterprises (MSMEs).

For a few weeks every year the orange economy is in full view of locals and visitors alike, as thousands participate in the annual Crop Over Festival. Actual receipts from economic activity are not readily available but researchers project that some $100 million is generated in economic activity from the festival each year. 

In an $8 billion economy this represents just over one per cent of Gross Domestic Product (GDP). Compared to neighbouring Trinidad & Tobago, whose Carnival accounts for 4-6 per cent of GDP, Barbados’ one per cent signifies an opportunity for greater monetisation of the festival.

The Crop Over Festival is Barbados’ most prominent annual celebration, with its origins going back over 300 years to the island’s colonial period, when enslaved Africans created a harvest festival to mark the end of the sugar cane season—a time of intense labour on over 500 plantations across the island.

Rooted in the sugar industry, which was historically the backbone of Barbados’ economy, the early version of the festival combined African and European traditions. It merged elements of the African Yam Festival with the British ‘Harvest Home’ celebration. Enslaved people transformed plantation mill yards into vibrant spaces of music, dance, and ritual, developing a unique cultural expression that persisted after emancipation.

The festival continued for centuries until 1943, when it was discontinued due to economic hardship during World War II. It was revived in 1974 by local cultural advocates with support from the Barbados Tourist Board. The modern festival expanded to include a grand opening gala, calypso competitions, art showcases, weekly events, and a large, costumed street parade similar to Trinidad and Brazil’s Carnival.

There are many sectors and stakeholders that benefit directly and indirectly from the annual event. While top of the list for many will be the artistes, event promoters and band leaders, scores of small businesses downstream also benefit from Crop Over. Appreciably, attention is placed more on the former stakeholder groups as these represent the foundational stakeholders, without which the festival will lose its value proposition. 

However, businesses do benefit. Whether it’s small retailers trading in clothing, hair products and cosmetics; vendors, farmers and agricultural producers; taxi drivers, small hotels and car rental firms, they all share in the millions being generated during the June-August period. Crop Over creates employment opportunities in areas such as event planning, logistics, music, dance, costume design, and hospitality. The influx of tourists also increases demand for accommodation, food, entertainment, transportation, and retail, creating a wide-ranging economic ripple effect.

The recent COVID-19 pandemic was a stark reminder of the holistic impact of this national festival on the economy. Leaders of several farming and vendor associations, retailers and artisans were able to quantify the losses on account of the country not having the event for two years. The poultry sector reported significant growth thereafter—especially those supplying ingredients for baked goods—realising up to a 50 per cent surge in egg sales, driven by elevated demand during the festive season. Former Central Bank Governor Cleviston Haynes emphasised Crop Over’s importance in stimulating spending, tourism, and foreign exchange earnings. Even without large numbers of tourists, the festival still generated substantial local economic activity. According to the Central Bank of Barbados, the revival of Crop Over contributed to an estimated 4.4 per cent economic growth in 2023, mainly through its support of the tourism sector.

Feedback from key practitioners of the festival suggest there is much that needs to be done for the festival to contribute even greater to the economy and society. An article in this section of the press highlighted the concerns of some cultural practitioners particularly at the 50th anniversary milestone of the festival. Issues raised included declining band participation, limited artist support, the lack of meaningful investment in the sector and overall decline in cultural standards. A lack of data and insufficient support for non-traditional cultural expressions as local artists often feel forced to leave the island to advance their careers due to limited opportunities at home.

Practitioners called for long-term investment in artist development rather than short-term financial assistance and more sustainable development strategies that prioritise talent cultivation and create viable economic pathways for creatives in Barbados.

Event promoters lament the over compliance experienced from the tax collecting agency. The jury is out on the effectiveness of this approach to the collection of tax revenue. It stands to reason, however, that the country will benefit more from stimulating economic activity than applying burdensome regulations on sectors that appear to have the potential for significant revenue generation. This is clearly an area that the authorities should revisit if the festival is to do more in monetising its activities. 

Economic considerations must now play a central role in festival planning. Organisers must carefully balance cultural heritage with financial sustainability. One researcher opined that rising inflation, climate change, global instability, and increased operating costs challenge both vendors and organisers. These pressures affect decisions about ticket pricing, sponsorship, and marketing. For suppliers, inflation may force them to either absorb higher costs or pass them on to consumers, while sponsors face tighter budgets.

Moreover, tensions sometimes arise between preserving tradition and adapting for economic viability. For example, changing the festival route to wider roads helps manage crowds and improve vendor sales, but can disrupt historical or sentimental aspects of the event. As Crop Over continues to evolve, stakeholders must navigate the intersection of cultural values and economic realities to ensure the festival’s long-term success.

The recent pronouncement by head of the Criminal Justice Research and Planning Unit (CJRPU), that on current trajectory, Barbados could record some 60 homicides by year-end, should give every citizen pause. 

Beyond the unenviable record position this would place the country in relation to crime, this news is a startling reality that existing efforts to curb the rise in gun crime and violence have not been working. 

It would appear the country is reaping seeds sowed at some earlier time. The notion of an all-of-country approach may be seen as just platitudes if those proverbial seeds are not uprooted. Some policies and legislation earlier passed may need to be repealed, and some actions reversed, changed or cancelled, to set in order the course for positive and sustainable change. Let those who have ears to hear be so warned. 

Of particular concern in this week’s article is the implication for legitimate economic actors who have taken the risk associated with starting a business and have a reasonable expectation to reap a profitable reward from their investment. The crime situation in the country threatens to erode the positive performance indicators realised by many small business owners, as these firms appear to be the targets of criminal activity.  

The data compiled by the CJRPU for January-May 2025 showed that commercial entities are increasingly targeted, particularly by property and theft-related crimes. During the period commercial burglaries rose sharply by 45 per cent, reaching 97 reported cases, even as residential burglaries declined by 4 per cent. This rise in business break-ins suggests that commercial properties are becoming more vulnerable, potentially due to perceptions of weak security or financial gain. Criminal damage, which often affects business infrastructure, accounted for 40 per cent of all major property crime incidents during the period.

Theft-related crimes also had a significant impact on the business community. Overall theft increased by 7 per cent, with shoplifting rising by 52 per cent. Vehicle theft rose by 67 per cent, potentially affecting both commercial fleets and customer confidence. Agricultural businesses were not spared either, as theft of crops and livestock surged by 150 per cent, threatening food production and the viability of small-scale farming operations.

Firearm-enabled crimes, especially armed robberies, have become an increasing threat to business safety. Robberies rose by 95 per cent overall, with firearm-enabled robberies more than doubling compared to the same period in 2024. These crimes put employees, customers, and owners at serious personal risk and increase the need for costly security investments.

According to a recent national survey conducted in May and June 2025 by Professor Dwayne Devonish of the University of the West Indies, Cave Hill Campus, small businesses in Barbados are bearing substantial financial burdens due to rising violent crime. The findings highlight a significant disparity in the ability of citizens to afford security, with many unable to meet the high costs associated with personal and property protection.

The study revealed that Barbadians are spending nearly $1 million annually on crime prevention measures. However, this cost is not evenly distributed. While a small proportion of individuals invest heavily in advanced security systems, the majority rely on basic, low-cost measures due to financial constraints.

Among the respondents were 100 business owners, 15 per cent of which reported being victims of crime within the past 12 to 18 months. This marks an increase from 10 per cent in 2022. Commonly reported crimes included burglary, assault, theft, vandalism, and fraud.

A similar study done in the United Kingdom by Abby Security showed that exposure to crime was a key operational challenge faced by small firms. These businesses are often vulnerable to various forms of criminal activity, including theft, burglary, vandalism, fraud, and cybercrime. Such incidents can lead to considerable financial strain through the loss of goods, physical damage, disruption of services, and the cost of implementing additional security measures or addressing legal consequences.

Data from the Federation of Small Businesses (2019) highlights the prevalence and cost of traditional crime in England and Wales. Approximately 34 per cent of small businesses reported experiencing at least one traditional crime in that timeframe, with robbery and burglary (42 per cent), theft (38 per cent), and criminal damage (36 per cent) being the most common.

Criminals frequently target small businesses due to their often limited security infrastructure and financial resources. The direct financial impacts of stolen or damaged inventory are compounded by lost revenue, repair expenses, and increased insurance premiums. Vandalism, including broken windows and graffiti, can also interrupt daily operations and require costly maintenance.

In addition to financial harm, crime can produce significant psychological and emotional effects. For many owners, their business represents years of personal investment. Experiencing criminal activity may lead to stress, anxiety, and a diminished sense of personal and professional security.

Mitigating the risk of crime requires a combination of physical security upgrades and organisational procedures. Security measures such as CCTV systems, alarms, outdoor lighting, and controlled access points (e.g. electronic locks or ID systems) are effective deterrents. Regular site assessments can help identify weak points and guide the implementation of appropriate safeguards.

Employee awareness also plays a critical role. Staff should be trained to recognise suspicious behaviour, adhere to established security protocols, and respond appropriately during incidents. Routine practices—such as securing entry points, monitoring cash handling, and logging unusual activity—can help prevent criminal acts.

When crimes occur, timely reporting to law enforcement is essential for investigation and recovery. Accurate records, including descriptions, timestamps, and witness accounts, support both criminal proceedings and insurance claims.

While it may not be possible to eliminate crime entirely, especially in high-risk regions, businesses can take proactive steps to reduce its impact. Investing in effective security, maintaining awareness of current threats, and developing contingency plans are essential for long-term business resilience and sustainability.

Even minor incidents, when repeated over time, can lead to significant financial strain. Ongoing attention to crime prevention is therefore critical for supporting business growth and protecting economic activity in vulnerable communities.