Entrepreneurship is often presented to young people as an opportunity: start a business, pursue an idea, become financially independent and perhaps even create employment for others. However, between having an idea and building a sustainable enterprise lies a much more difficult journey—one that requires skills, mentorship, networks, access to markets and an understanding of what it takes to operate a formal business.
That gap between entrepreneurial ambition and sustainable enterprise is precisely where stronger partnerships can make a difference.
It is against this background that the Small Business Association of Barbados (SBA) and the Barbados Youth Development Council (BYDC) recently entered into a three-year Memorandum of Understanding (MOU). The agreement establishes a strategic partnership focused on youth entrepreneurship, business development, training, digital innovation, networking and the creation of practical opportunities for young Barbadians.
The significance of the agreement, however, lies less in the signatures on the dotted line and more in what happens next.
The case for greater attention to youth entrepreneurship becomes clearer when the numbers are considered.
MSMEs account for approximately 98 per cent of formal businesses in Barbados, making entrepreneurship and small business development fundamental to the country's economic landscape. Yet young Barbadians remain considerably underrepresented among formal businesses.
Data highlighted from the recent State of the Sector research showed that only about 2 per cent of formal businesses were owned by persons aged 18 to 24 at the end of 2025. Ownership increases among those aged 25 to 34, but overall, less than 20 per cent of formal enterprises are owned by persons within the broader youth demographic.
That distinction—formal enterprises—is particularly important.
Barbados does not necessarily have a shortage of young people with business ideas. Social media has made it easier than ever to see young Barbadians selling food, clothing, beauty services, creative products and professional services. The challenge is moving more of that entrepreneurial activity from the informal or early-stage level towards businesses that are properly structured, sustainable and able to scale.
BYDC President Caleb Brathwaite addressed this concern during the signing, noting that young people are already creating businesses but may not always understand how to formalise and operate them successfully.
This is where business support becomes critical.
Starting a business is relatively easy. Sustaining one is considerably harder.
Young entrepreneurs must understand pricing, financial management, taxation, marketing, regulatory compliance, customer service, technology and business planning. They must also build networks and learn how to identify opportunities beyond their immediate circles.
The MOU seeks to create a more structured pathway through which young people can access some of that support.
Under the agreement, BYDC members will be encouraged to participate in entrepreneurship programmes and training opportunities, while eligible youth-owned businesses can access SBA initiatives. The partnership also provides for workshops, seminars, networking opportunities and leadership & business skills development.
Importantly, the agreement includes access, where appropriate, to the National Vocational Qualification (NVQ) in Small Business Entrepreneurship.
That component matters because entrepreneurship should not be treated simply as something one attempts when traditional employment is unavailable. Running a business requires competencies that can be taught, developed and strengthened.
The SBA's involvement in youth entrepreneurship also predates this agreement. During the signing, reference was made to entrepreneurial training, job attachments, mentorship and other initiatives provided through schools since 2009, as well as the Association's subsequent work in vocational entrepreneurship training with secondary schools.
The partnership with the BYDC therefore provides an opportunity to extend that work through an organisation whose network reaches youth groups across Barbados.
Training alone, however, does not build a business. Entrepreneurs need customers.
One of the more practical aspects of the partnership is therefore its potential to connect young entrepreneurs with existing businesses and consumers.
The MOU specifically provides for networking events, youth enterprise exhibitions, Small Business Week activities and other collaborative initiatives. It also envisages young entrepreneurs participating in programmes and opportunities across the SBA's wider business network.
This creates the possibility of something particularly valuable: intergenerational business relationships.
Established entrepreneurs can provide mentorship and experience. Young entrepreneurs can bring new ideas, digital capabilities and different approaches to consumer engagement. Connecting the two creates opportunities for collaboration that neither group necessarily achieves in isolation.
It also addresses one of the less visible barriers to entrepreneurship—access to networks. Knowing who to speak to, where to find information and how to access an opportunity can sometimes be almost as important as the business idea itself.
The partnership also recognises that the businesses being created today will operate in a very different environment from those established a generation ago.
Digital capability is increasingly fundamental to competitiveness.
The MOU therefore includes collaboration on digital innovation, paperless business practices, technology-enabled services and digital communication platforms. One of the proposed initiatives is a digital Youth Discount Card using the SBA's digital membership platform.
The wider Youth Discount initiative also demonstrates how collaboration can create benefits on both sides of the marketplace.
During the event, it was announced that more than 100 businesses had agreed to participate in activities surrounding International Youth Day on August 12, offering young people discounts on selected purchases.
Such an initiative increases access to participating goods and services for young consumers. For businesses, it provides exposure to a younger customer base, increased traffic and an opportunity to develop relationships with consumers who may return long after the promotion ends.
There is a wider lesson here for business development.
No single institution can build an entrepreneurial ecosystem alone.
Youth organisations understand and represent the needs of young people. Business support organisations possess technical knowledge and networks. Government provides the policy and institutional environment, while the private sector offers markets, mentorship, investment and practical business experience.
The MOU signing should therefore be viewed as a starting point rather than an achievement in itself. The agreement explicitly commits both organisations to fostering entrepreneurship, supporting youth-owned businesses, encouraging innovation and developing programmes that create long-term value for young people and the wider small business community.
With young people currently accounting for a relatively small share of Barbados' formal businesses, there is considerable room for that number to grow. The SBA-BYDC partnership provides another mechanism through which that can happen.
The real value of this partnership will be seen if, three years from now, more young Barbadians have moved beyond simply having a business idea to owning enterprises that are formal, resilient, innovative and positioned to grow.
