Generative Artificial Intelligence (AI) has rapidly moved from a futuristic concept to a practical business tool. Across industries, organisations are using AI to improve productivity, streamline operations, enhance customer service and support decision-making. Yet while much of the public discussion focuses on what AI can do, far less attention is given to how AI is changing the way people think, learn, work and interact.

These issues formed the basis a recent webinar held by the Small Business Association of Barbados (SBA) under the theme "The Psychology of AI in Business: How Artificial Intelligence is Changing Business and Human Behaviour." The session was facilitated by Professor Dwayne Devonish of the University of the West Indies. During the presentation, Professor Devonish challenged participants to look beyond the technology itself and consider the profound impact AI is having on organisations and individuals alike.

One of the strongest messages emerging from the session was that AI is no longer an emerging trend. It is already embedded in the way modern organisations operate.

Professor Devonish highlighted how global firms such as Microsoft, Amazon and JP Morgan Chase have integrated AI into customer service, research, coding, marketing, data analysis and internal operations. Tasks that once required hours—or even days—can now be completed within minutes through AI-assisted systems.

For micro, small and medium enterprises (MSMEs), this reality presents both an opportunity and a challenge.

Small businesses often operate with limited staff, limited resources and limited time. AI can help address these constraints by automating repetitive tasks, generating marketing content, analysing customer data and improving operational efficiency. In many respects, AI provides smaller firms with access to capabilities that were once available only to larger enterprises.

Yet the research on Barbados' MSME sector suggests that adoption remains relatively low. During the webinar, Professor Devonish referenced findings indicating that fewer than one in five employers are currently integrating AI into their operations. This suggests that while technology is advancing rapidly, business adoption is not necessarily keeping pace.

While discussions about AI often centre on technology, Professor Devonish argued that the more significant issue may be psychological rather than technical.

Every major technological revolution created uncertainty. From the introduction of computers into offices, to the emergence of the internet, employees have often worried about whether technology would replace their jobs or make existing skills obsolete.

AI is generating similar concerns today.

The webinar explored how employees can experience anxiety about job security, concerns about being replaced by automated systems and uncertainty about whether their existing skills will remain relevant in the future. These concerns are not unique to Barbados. They are being reported globally across a wide range of industries.

Business owners cannot simply introduce AI tools and expect immediate acceptance. Successful adoption requires training, communication and trust. Employees need to understand that AI should be viewed as a tool that supports human decision-making rather than a replacement for human judgement.

The session also highlighted a critical balancing act.

On one hand, AI offers significant productivity gains. It can summarise reports, assist with research, draft correspondence, analyse information and automate routine administrative tasks. This allows business owners and employees to devote more time to strategic thinking and higher-value activities.

On the other hand, excessive reliance on AI can create unintended consequences.

Professor Devonish warned against the risk of outsourcing critical thinking to technology. When individuals rely too heavily on AI-generated outputs without questioning, analysing or verifying information, there is a danger that problem-solving and analytical skills may gradually weaken.

This issue is particularly relevant for entrepreneurs.

Successful business ownership requires judgement, creativity, intuition and adaptability. These qualities cannot simply be delegated to an algorithm. While AI can provide information and recommendations, the responsibility for making decisions ultimately remains with the business owner.

The challenge, therefore, is to use AI as an assistant rather than a substitute.

Another important theme emerging from the webinar was the increasing importance of digital literacy.

Professor Devonish noted that more than 90 per cent of jobs now require some form of digital skill. As AI becomes more integrated into the workplace, digital competence will become even more important for employees and business owners alike.

This has implications for workforce development, education and lifelong learning.

The reality is that technological change is occurring at an unprecedented pace. Skills acquired today may require updating within a relatively short period. As a result, continuous learning is becoming less of an advantage and more of a necessity.

This requires investing not only in technology but also in people.

Businesses that combine technological adoption with employee development are likely to be better positioned to compete in an increasingly digital economy.

The conversation around AI is not simply about technology. It is ultimately about competitiveness.

Barbados operates within a global economy where businesses increasingly compete across borders. Customers now expect faster service, personalised experiences and greater convenience. At the same time, competitors in other markets are leveraging technology to improve productivity and reduce costs.

For local MSMEs, the question is not whether AI will influence the business environment. It already is.

The more important question is how quickly businesses can adapt and whether they are prepared to develop the skills, systems and mindset necessary to take advantage of emerging opportunities.

Failure to engage with these technologies could widen productivity gaps and limit competitiveness. Conversely, thoughtful and responsible adoption could help MSMEs improve efficiency, enhance customer engagement and strengthen their market position.

The recent SBA webinar provided an important reminder that AI is not solely a technology issue. It is equally a people issue.

The success of AI adoption will depend not only on the quality of the technology itself but also on the willingness of individuals and organisations to learn, adapt and embrace change responsibly.

The opportunity is significant for MSMEs. AI has the potential to improve productivity, support innovation and expand access to information and expertise. However, realising these benefits will require investment in digital skills, thoughtful leadership and a commitment to maintaining the human judgement that remains at the heart of successful business decision-making.

As Professor Devonish observed during the session, the future is unlikely to belong solely to those who understand technology. Rather, it will belong to those who understand how to use technology responsibly, ethically and strategically to create value.

MSMEs seeking to remain competitive in an increasingly digital world, the use of AI wisely may be one of the most important lessons of all.

June 1^st marks the official start of the Atlantic Hurricane Season, a date that serves as an annual reminder of the importance of preparedness for the region. While much of the public focus tends to centre on households securing supplies and protecting property, hurricane readiness is equally important for the business community. Micro, small and medium enterprises (MSMEs) understand that preparedness is not simply about weathering a storm—it is about protecting operations, employees, customers, assets and revenue.

Hurricanes are not only weather events. They are business interruption events. They affect stock, equipment, staff, suppliers, customers, electricity, internet connectivity, transportation, cash flow and, in some cases, the ability of a business to reopen at all. For MSMEs operating with limited reserves, even a few days of disruption can create consequences that last for weeks or months.

The experience of Hurricane Beryl in 2024 brought this reality sharply into focus. Although Barbados was spared the worst possible outcome, the impact on coastal infrastructure and the fishing sector demonstrated how quickly livelihoods can be disrupted. More than 200 fishing vessels were reportedly damaged or lost, with some of the most significant impact concentrated at the Bridgetown Fisheries Complex.

The damage caused by Beryl was not abstract. It affected real businesses, real households, and real supply chains. The fisheries sector is often discussed as a livelihood sector, but it is also an economic sector connected to vendors, processors, restaurants, transporters and consumers.

A rapid assessment following Beryl reported that 209 boats were affected, either damaged or lost, out of 312 registered boats in Barbados in 2024. That represents a major disruption to productive capacity in one sector alone.

The recent MSME research reinforces why hurricane preparedness must be treated as a business priority. While 81% of MSMEs reported no direct climate-related impacts in the previous five years, only 8.1% had a formal climate preparedness plan. Nearly 63% reported having no plan at all.

This gap is important. It suggests that many businesses may not yet be experiencing climate shocks directly, but they are also not sufficiently prepared for when those shocks occur. That is a risky position in a region where climate-related events are becoming more unpredictable and more costly.

The same study found that financial constraints and limited knowledge were among the main barriers to climate resilience. This is understandable. Many small businesses are focused on immediate pressures: rent, wages, suppliers, customers and cash flow. However, preparedness cannot remain secondary, because a single event can reverse years of work.

Hurricane preparedness is still thought of in physical terms for many firms: boarding windows, moving stock and securing premises. These actions matter, but they are only one part of business resilience.

A prepared MSME should also know how it will communicate with staff, protect records, preserve cash flow, contact customers, manage suppliers and resume operations after disruption. A business continuity plan does not have to be complicated, but it must be practical.

The goal is not perfection. The goal is to avoid improvising during a crisis.

The cost of poor preparedness is rarely limited to physical damage. It often appears in lost sales, delayed reopening, spoiled inventory, damaged equipment, missed contracts and reduced customer confidence.

The national research study already points to a sector operating with limited financial buffers, with many MSMEs reporting low revenue levels and narrow margins. In that context, recovery is not automatic. A larger firm may absorb temporary losses; a micro business may not.

This is why resilience must be seen as part of competitiveness. A business that can reopen quickly after a disruption is not only protecting itself, but protecting jobs, customers and community services.

One of the strongest lessons from Hurricane Beryl was the vulnerability created by uninsured or underinsured assets. Reports indicated that many of the vessels affected by the hurricane were uninsured, creating a heavier recovery burden for owners and the State.

Insurance should not be treated as an afterthought. Business owners should review whether their coverage includes storm damage, flooding, equipment, stock, business interruption and liability. They should also keep digital copies of key documents, including policies, licenses, supplier agreements, payroll records and customer information.

Cash flow planning is equally important. Businesses should consider how many days they can operate without income, whether emergency reserves exist, and how quickly they can access financing if repairs or replacement stock are needed.

Hurricane preparedness is also a digital issue. If records are only kept on one computer, if customer information is not backed up, or if payment systems depend on one physical location, recovery becomes harder.

The National MSME study found that while social media use is widespread, deeper digital adoption remains limited among many firms. This matters because digital tools can help businesses communicate during disruption, receive payments remotely, update customers, store records securely and resume operations more quickly.

A business that can continue taking orders, advising customers and coordinating suppliers online has a better chance of maintaining income during disruption. Digital readiness should therefore be part of every hurricane preparedness plan.

Preparedness, however, should not be viewed as a once-a-year activity. It should become part of how businesses operate.

This means reviewing plans before the season begins, updating emergency contacts, checking insurance, backing up records, securing premises, identifying critical suppliers, and speaking with staff about roles and expectations.

Business support organisations, financial institutions and government agencies also have a role to play. MSMEs need practical templates, affordable insurance options, emergency financing pathways, and targeted training that speaks to their realities. A preparedness plan that works for a large corporation may not work for a sole trader, vendor, fisher, salon owner or small manufacturer.

Hurricane Beryl showed Barbados that climatic shocks can affect business sectors quickly and deeply. The damage to the fishing industry was a national reminder that livelihoods, supply chains and productive assets can be disrupted in a matter of hours.

For MSMEs, the message is simple but urgent: be prepared.

Beyond protecting buildings, preparedness is also about protecting income, employment, customers, records, assets and continuity. It is about ensuring that a business can recover not only physically, but financially and operationally.

As another hurricane season has started, the small business community cannot afford to treat resilience as optional. In a climate vulnerable region, preparedness is now part of doing business.

The recent public discussion around Apple Pay, Cash App, Venmo, Google Pay, and online creator monetisation touches a larger issue than convenience. It raises a central question for Barbados’ digital economy: are our small businesses and creators being given the same tools as the customers, tourists, and audiences they are trying to serve?

For micro, small and medium enterprises (MSMEs), payments are no longer a back-office issue. They affect sales, customer experience, cash flow, and market access. A tourist accustomed to tapping a phone to pay for coffee, a taxi, a craft item, or a tour experience does not separate payment convenience from the quality of service. If the transaction feels difficult, the business—not the payment system—often absorbs the frustration.

Payment flexibility can determine whether a sale is completed or lost. This is especially true in tourism-facing sectors, where visitors often arrive with established payment habits. Barbados recorded 727,310 stay-over tourist arrivals in 2025, which reinforces the scale of the market interacting daily with local businesses, restaurants, taxi operators, vendors, attractions, and service providers.

Digital wallets are already standard in many of Barbados’ key visitor markets. Apple’s official list shows Apple Pay support in countries including Canada, the United States, The Bahamas and the Dominican Republic, while Google Wallet’s supported-country list includes Barbados. Cash App, however, states that its core app is only available in the United States and United Kingdom, and Venmo requires users to be physically located in the United States. These differences matter because “digital payments” are not one system; each platform has its own geographic, banking and regulatory limitations.

The recent research on the MSME sector shows that more than half of MSMEs operate at very low or low levels of digital adoption, while fewer than one in five report high or very high adoption. Social media use is widespread at 78.7%, but advanced systems, integration and AI use remain limited. This suggests that many firms are visible online, but not yet fully integrated into the digital systems that convert visibility into sales, payments and growth.

That distinction is important. A business may have an Instagram page, WhatsApp contact and a loyal customer base, but still struggle to complete a transaction smoothly. Digital presence without digital payment readiness creates a gap between marketing and revenue.

The research shows that over 53% of MSMEs report annual revenues below BDS $100,000, while nearly half report operating at a loss or breaking even. In that environment, every lost transaction counts.

The rollout of BiMPay should not be seen as being in competition with global payment platforms. It is better understood as part of the foundation Barbados needs for a modern payments ecosystem.

The Central Bank of Barbados states that BiMPay will be a national instant payment system (IPS) allowing payments between individuals, businesses and Government on a 24/7/365 basis. It is designed to be interoperable, allowing users to send and receive money regardless of whom they bank with, or whether they are banked at all.

The IPS can help reduce delays, improve cash flow and lower dependence on cash. However, BiMPay solves a domestic payments problem. It does not automatically solve the issue of global platform access, tourism-facing payment preferences, or creator monetisation restrictions. Barbados needs both: strong local payment infrastructure and broader compatibility with the tools visitors and digital markets already use.

Tourism is increasingly shaped by frictionless experiences. Visitors book online, check in online, review businesses online, navigate by phone, and expect to pay digitally. The payment experience is now part of the destination experience.

Consider a small tour operator selling last-minute experiences to cruise passengers or stay-over visitors. If the visitor can book through social media but cannot pay instantly, the business may lose the sale. Likewise, a food vendor or craft seller may attract attention through a viral post, but if payment options are limited, interest may not convert into income.

This is where the digital economy becomes practical. It is not only about technology for technology’s sake. It is about ensuring that businesses can meet customers where they already are.

The second part of the discussion—the ability of Barbadian creators and influencers to monetise content—is just as important.

The recent visit by global streamer IShowSpeed to Barbados and the wider Caribbean showed the scale of opportunity in real time. His Caribbean tour generated major online attention, and CBC reported that Barbados received significant exposure during his visit. BET also reported that the tour included Barbados among several Caribbean stops.

This matters because creators are no longer merely entertainers. They are tourism promoters, cultural exporters, brand partners and digital entrepreneurs. YouTube states that it paid more than US$70 billion to creators, artists and media companies between 2021 and 2023. That figure shows the scale of the global creator economy and why countries excluded from monetisation systems are not just missing entertainment revenue—they are missing business income.

The frustration around “geo-tagging” or geo-restrictions is really a frustration about unequal participation. Many platforms determine eligibility based on country availability, banking infrastructure, tax systems, compliance frameworks and advertising-market readiness. For creators, this can mean building audiences without access to the same monetisation tools available elsewhere.

Instagram’s monetisation policies require accounts to reside in an eligible country to use monetisation or promotional tools, while Facebook Content Monetisation is available only in certain countries and languages. These eligibility rules shape who can earn directly from content and who must rely on indirect income such as sponsorships, event hosting or brand deals.

Creator monetisation intersects with entrepreneurship, tourism, culture, foreign exchange earnings and digital exports. A creator who earns from content is operating a business. A small business that uses creators to market products is also participating in the digital economy.

The appeal for Apple Pay, Cash App, Venmo, Google Pay and creator monetisation is ultimately a plea for modern business infrastructure. MSMEs are not asking for novelty. They are asking for tools that reduce friction, expand customer reach and allow them to compete.

The challenge is regulatory as much as technological. Payment systems require compliance with anti-money laundering rules, banking standards, data protection, taxation and platform-specific requirements. That work cannot be avoided. However, delays have real costs. Every year without broader digital compatibility is one where businesses and creators operate with fewer tools than their international counterparts.

In today’s economy, being digitally visible is no longer enough. Barbados must also be digitally payable, digitally bankable, and digitally monetisable.

Across Barbados, there are certain business names that carry more than commercial value. They represent history, familiarity, and in many ways, a sense of national identity. For generations, companies such as Carters General Stores, Chefette Restaurants, and Carlton Supermarkets became examples of what Barbadian enterprise could achieve—businesses built locally, expanded locally, and recognised as distinctly Barbadian.

Today, however, the ownership landscape of big business looks very different.

Many of the major commercial players operating in Barbados are now controlled regionally or internationally. Whether through mergers, acquisitions, restructuring, or equity sales, ownership across key sectors has gradually shifted beyond Barbados’ borders.

The issue is not necessarily whether foreign or regional investment is good or bad. Caribbean economies are deeply interconnected, and regional investment remains an important part of economic development. The deeper concern is whether Barbados is producing enough firms capable of remaining locally owned across generations—or whether selling has quietly become the natural end point for many successful businesses.

Over the past two decades, regional corporate consolidation has accelerated across the Caribbean.

One of the most defining examples in Barbados came in 2008, when Trinidad-based Neal & Massy Holdings acquired the Barbados Shipping & Trading Company (BS&T), historically one of the island’s most significant conglomerates. The acquisition reshaped ownership across several major Barbadian commercial assets and symbolised a broader shift taking place throughout the region.

Since then, several other Barbadian companies have either been acquired, restructured, or absorbed into larger regional groups.

In 2021, Jamaica-based Proven Investments Limited acquired a 50.5% stake in Roberts Manufacturing Company Limited for more than US$21 million.

Companies such as Hanschell Inniss and Collins Limited have also undergone regional restructuring under Trinidad-based Agostini Limited.

Even where businesses continue operating locally, ownership has often shifted overseas.

In many cases, consumers may not immediately notice these changes. The brands remain visible, stores remain open, and products remain available, however, behind the scenes, strategic decisions, investment priorities, and long-term corporate directions are increasingly being determined outside Barbados.

Part of the answer lies in the economics of operating within a small open market.

As firms grow, they often encounter structural challenges that require significant capital to overcome—modernisation costs, internationalisation, technology upgrades, logistics systems, succession planning, and rising operational expenses. For many family-owned businesses, acquisition offers from larger regional groups provide immediate liquidity and financial certainty in an environment where long-term scaling remains uncertain.

Many legacy Barbadian businesses were built by first- or second-generation entrepreneurs who spent decades establishing operations. Successive generations may not always wish to continue operating within the same industries or manage the pressures associated with running increasingly complex businesses. In those situations, selling becomes less about failure and more about exit strategy.

At the same time, profitable firms themselves become attractive acquisition targets.

Regional conglomerates are often not purchasing weak businesses—they are purchasing established brands, customer loyalty, distribution networks, and market presence. Barbados, despite its small size, remains an attractive commercial market with relatively strong institutions, consumer purchasing power, and regional connectivity.

This means that successful Barbadian firms can sometimes become more valuable as acquisition opportunities than as independently scaled regional competitors.

The issue becomes more complicated when ownership transitions are followed by downsizing, restructuring, or closure.

The recent closure of the manufacturing operations of Berger Paints Barbados reignited this concern publicly. Although the Berger brand remains present within the market, local manufacturing operations were shut down, resulting in job losses and renewed debate around local production capacity.

When strategic ownership leaves a country, several broader risks emerge over time.

First, profits generated locally may increasingly be repatriated rather than reinvested domestically. While regional investment can stimulate economic activity, long-term ownership patterns influence where accumulated wealth ultimately resides.

Second, major corporate decisions may no longer prioritise local economic considerations. Decisions regarding expansion, employment levels, manufacturing location, sourcing, or consolidation are often made from the perspective of regional efficiency rather than national development.

Third, the country risks losing institutional business knowledge and entrepreneurial continuity. Businesses that remain locally owned across generations often contribute to mentorship, local investment ecosystems, and the development of future entrepreneurs.

Across the Caribbean, regional conglomerates have expanded aggressively through mergers and acquisitions. Trinidad and Tobago, in particular, has produced several firms that now operate across multiple CARICOM territories. Jamaica has similarly developed large-scale financial and manufacturing groups with regional reach.

The difference is that these countries have also managed to retain several domestically controlled corporate champions while expanding outward.

Barbados, by contrast, appears to have produced fewer firms capable of competing regionally while remaining locally controlled.

Part of this reflects scale. Barbados’ economy is smaller than many of its regional counterparts, with limited land space, higher operating costs, and a narrower domestic market. Manufacturing competitiveness has historically been more difficult to sustain at scale.

Economists have long argued that Barbados naturally gravitates toward higher-value services rather than large-scale industrial production. Yet even within service sectors, ownership consolidation has continued.

Another aspect of the conversation may be cultural. Within some business environments, there is a growing tendency to view acquisition as the ultimate measure of success. Building a profitable company and selling it at a high valuation can represent a rational financial decision for owners, particularly where succession planning, access to expansion financing, or generational transition remain uncertain.

Globally, mergers and acquisitions activity continues to rise as larger firms seek market consolidation, established customer bases, and operational efficiencies. According to PwC’s Global M&A Industry Trends report, acquisitions are increasingly being driven by strategic consolidation rather than purely distressed assets.

Over time, this creates a broader economic question: what happens when too many successful businesses eventually exit local ownership?

An economy cannot rely solely on entrepreneurship at the start-up level. It also requires firms capable of remaining locally rooted while scaling, innovating, and competing regionally.

Without that middle layer of sustained corporate development, economies risk becoming increasingly dependent on external ownership structures for large-scale economic activity.

The issue is therefore not whether Barbados should reject foreign or regional investment. Open economies require capital flows, partnerships, and integration. The more important question is whether the country is creating the conditions necessary for Barbadian businesses to scale successfully without needing to sell ownership as their primary growth or exit pathway.

That includes access to capital, succession planning frameworks, regional market support, export competitiveness, technology adoption, and long-term industrial strategy.

Ultimately, ownership is not simply about sentiment. It shapes where decisions are made, where profits accumulate, and who determines the future direction of major sectors within the economy.

Barbadian businesses need to internationalise. The ability of firms to access external markets is essential—not only for foreign exchange earnings, but also for long-term expansion, competitiveness, and resilience.

Yet despite years of discussion around trade diversification and internationalisation, export participation among Barbados’ micro, small and medium enterprises (MSMEs) remain relatively modest. Many firms continue to operate primarily within the domestic market, while broader ambitions around global market penetration have been anemic.  

This reality was brought into sharper focus during a recent webinar hosted by the Pan African Organisation for Small and Medium Industries (PAOSMI), in collaboration with the International Trade Centre and other trade stakeholders, which explored how digital trade intelligence tools can help MSMEs across Africa and the Caribbean navigate international markets more effectively. The session focused on practical export support mechanisms, including the Global Trade Helpdesk and Trade4MSMEs platforms, both designed to simplify access to trade information for smaller firms.

When compared to the export participation of firms, evidence in the national MSME research study, much work is needed to incentivise the sector to use these trade tools to export.

One of the clearest findings from the research is that export participation among MSMEs remains limited.

Only 8.6% of firms report engaging in export activity. Even among businesses that do export, international sales generally account for less than 10% of total revenue. Exports remain supplementary rather than central to the business models for most firms.

The issue is not necessarily the absence of entrepreneurial activity. Barbados continues to produce new businesses regularly, and the MSME sector remains highly active across retail, professional services, hospitality, and creative industries. Rather, the challenge appears to be the transition from domestic participation to sustained external market engagement.

What makes the research findings particularly noteworthy is the similarity to the earlier 2016 baseline study.

At that time, discussions surrounding MSMEs frequently centred on competitiveness, market access, productivity, and export diversification. A decade later, while there has been measurable growth in business activity overall, the export profile of the sector does not appear to have shifted significantly.

This continuity is important because it suggests that while the MSME sector has evolved in some areas, international market penetration has remained comparatively slow.

The research also highlights structural realities that may help explain this pattern. More than half of MSMEs generate annual revenues below BDS $100,000, while nearly half report operating at break-even or at a loss. Businesses operating at this scale often face limited internal capacity to pursue export development, particularly where additional investment, certification, logistics management, or market research are required.

Exporting is therefore not simply a matter of ambition. It is also a matter of scale, preparedness, and access to support systems.

One of the more interesting dimensions of the recent PAOSMI webinar was its focus on Africa-Caribbean trade opportunities.

Over the last several years, there has been growing diplomatic and commercial interest in strengthening trade relationships between Africa and the Caribbean, particularly under broader South-South cooperation frameworks. Discussions surrounding the African Continental Free Trade Area (AfCFTA), diaspora trade, and cultural exchange have all contributed to increased visibility around Africa as an emerging market.

Yet, despite this growing conversation, there is little evidence that MSME exports from Barbados into African markets have expanded significantly. Trade activity remains primarily concentrated within the Caribbean, North America, and traditional trading partners. Africa, while increasingly discussed, remains largely outside the operational reality of most MSMEs.

This reflects several challenges simultaneously.

First, African markets are not monolithic. They differ significantly in terms of regulation, logistics infrastructure, payment systems, consumer demand, and market entry requirements. For MSMEs with limited export experience, navigating these differences can appear highly complex.

Second, transportation and logistics connectivity between the Caribbean and Africa remain underdeveloped. Shipping routes, distribution systems, and trade facilitation mechanisms are still evolving, creating additional barriers for smaller exporters.

Third, many MSMEs are still grappling with export readiness at a foundational level. Issues such as standards, compliance, digital visibility, trade financing, and market intelligence continue to affect the sector more broadly.

As a result, Africa remains more of an emerging conversation than an established export market for Barbadian MSMEs.

Another theme emerging from the webinar was that MSMEs globally are often constrained not just by financing, but by information.

Among many smaller firms, identifying export opportunities can be difficult enough. Understanding tariffs, customs requirements, standards regulations, shipping costs, and buyer expectations adds another layer of complexity.

This is where the webinar’s featured tools become particularly relevant.

The Global Trade Helpdesk, presented during the session by representatives from the International Trade Centre, was designed specifically to consolidate trade intelligence into a more accessible format for businesses. The platform allows firms to compare export markets, identify tariffs, analyse demand trends, review regulatory requirements, and assess market-entry costs across countries.

Similarly, Trade4MSMEs provides simplified educational guidance tailored specifically for smaller enterprises navigating international trade. The platform includes resources on customs procedures, digital trade, trade finance, e-commerce, standards compliance, and dispute resolution.

What makes these tools significant is that they reduce one of the major barriers facing MSMEs: fragmented information.

Historically, export development has often depended heavily on networks, consultants, or institutional support structures that smaller firms may not always access easily. Digital trade platforms help to democratise part of that process.

Participation in international trade is increasingly tied not only to physical production, but to digital capability. Businesses are now expected to manage online visibility, digital payments, logistics coordination, customer analytics, and e-commerce integration as part of normal operations.

The national MSME research suggests that while social media usage is widespread among businesses, deeper forms of digital integration remain less developed. Advanced adoption of AI tools and more sophisticated digital systems is still relatively limited across the sector.

This matters because digital readiness increasingly intersects with export readiness.

A small firm in Barbados can theoretically access customers across multiple markets without establishing a physical overseas presence. However, doing so effectively requires systems, data, branding, payment infrastructure, and digital literacy.

In many respects, modern exporting is becoming as much a technology issue as a production issue.

Export development requires more than products alone. It requires information, financing, logistics coordination, standards compliance, and increasingly, digital integration.

The encouraging aspect of the recent webinar is that many of the tools needed to support that transition is becoming more accessible to MSMEs.

Over the past decade, the presence of women within Barbados’ small business sector has become more pronounced. What was once a gradual shift is now clearly reflected in the structure of the micro, small and medium enterprise (MSME) landscape, where women are not only participating at higher levels but are increasingly shaping the composition of the sector itself.

In this week’s column, Mind Your Business revisits the national MSME research report, providing a critique on the state of women-owned businesses, with a comparison to the last national research project done in 2016.

What emerges from the data is not simply a story of increased participation, but a more layered picture of where women operate within the economy, how their businesses are structured, and the conditions influencing their ability to grow.

Between 2016 and 2026, female-only or female-dominant ownership increased from 34.4% to approximately 40.8% of formal MSMEs, marking a clear upward shift in women’s participation in business ownership.

This expansion reflects broader structural changes, including increased educational attainment and a stronger presence of women in the formal economy. It also reinforces the growing role of women-owned enterprises as a meaningful component of national economic activity.

However, the data makes it equally clear that participation and progression are not moving at the same pace.

Approximately 82.6% of female-owned MSMEs remain at the micro-enterprise level, a distribution that has remained largely unchanged since 2016. While more women are starting businesses, relatively few are transitioning into small and medium-sized firms. This persistent concentration at the lower end of the size spectrum highlights a structural “missing middle” in the growth pathway.

The sectoral distribution of women-owned businesses provides further context.

The 2026 data shows that 91.5% of female-owned MSMEs operate within the services sector, up significantly from 77.5% in 2016. By comparison, only 2.8% of female-owned firms operate in industry, underscoring a sharp underrepresentation in more capital-intensive and production-oriented sectors.

Within industry itself, 86.8% of firms are male-dominated, while female-dominant firms account for just 10.5%, reinforcing the extent of this imbalance.

Services remain the primary entry point for women into entrepreneurship, offering lower barriers to entry. However, these sectors are often characterised by tighter margins and more limited scalability, particularly when compared to industrial or export-oriented activities.

The result is a pattern where participation is expanding, but the distribution of opportunity—especially in terms of scale and long-term growth—remains uneven.

One of the more striking findings from the research is the educational profile of MSME owners.

Among women, 47% hold a university degree, compared to 35% of male business owners, while an additional 51% of women report technical or vocational training. Only 2% of female entrepreneurs report secondary education or below, indicating a highly educated base.

On the surface, this suggests strong capacity for innovation and growth. Yet, when viewed alongside firm size and revenue patterns, it raises a more important question.

If capability exists, what is constraining expansion?

The persistence of micro-scale operations points to structural barriers rather than skill deficits. The report highlights that access to finance—particularly collateral-based lending—remains a key constraint. Women-owned businesses, often operating in lower-capital sectors and without significant asset bases, may face greater difficulty accessing the level of financing required to scale.

This dynamic is reflected in the lived experience of many entrepreneurs.

A small business may begin informally and grow steadily through demand and reputation. Over time, it builds a customer base and establishes itself within its market.

However, expanding beyond that stage introduces new requirements—commercial space, additional equipment, staffing, and regulatory compliance. Each step requires access to capital and structured support.

Without this, growth tends to be incremental rather than transformative. The business remains seeks to survive, but its ability to scale is constrained by the conditions within which it operates.

The broader revenue profile of MSMEs reinforces this reality.

The report indicates that a significant proportion of businesses operate at relatively low revenue levels, with many concentrated at or below subsistence thresholds. For women-owned businesses—given their strong concentration at the micro level—this has direct implications for reinvestment and expansion.

Lower revenue limits the ability to adopt new technologies, expand operations, or enter new markets. While these enterprises play a critical role in income generation and community stability, the gap between survival and scalability remains evident.

Participation, in this context, does not automatically translate into economic advancement at scale.

Export participation remains limited across the MSME sector, with fewer than 10% of formal firms engaged in external markets. For women-owned businesses, participation is even less pronounced. Export readiness requires meeting standards, managing logistics, and accessing financing—factors that can be more challenging for smaller, service-based enterprises.

While many women-owned businesses are leveraging digital platforms for visibility and customer engagement, the transition to fully integrated digital business models—supporting transactions, logistics, and cross-border trade—remains limited.

During the post COVID-19 period, businesses adapted through operational shifts, new delivery models, and increased use of digital tools. However, the report also indicates that formal risk planning remains limited, suggesting that resilience is often reactive rather than structured.

Limited resources constrain the ability of many women-owned businesses operating at smaller scales to plan for future shocks, reinforcing a cycle where adaptation is necessary but not always strategic.

The 2026 report indicates that participation has increased meaningfully, with women now accounting for approximately 40% of MSME ownership. Newer firms also show a strong female presence, with women accounting for about 58% of businesses established between 2020 and 2025.

At the same time, the structure of that participation remains largely unchanged. Businesses are still concentrated at the micro level, sectoral segmentation persists, and progression into larger firms is limited.

The broader constraints shaping the MSME sector—access to finance, scale, and market reach—continue to influence the trajectory of women-owned enterprises.

The findings of the MSME research point less to a single conclusion and more to an evolving set of realities.

Women are firmly embedded within the business landscape, contributing to its diversity and expansion. Their presence is no longer emerging—it is established.

The question now is less about access and more about advancement.

The data suggests that while the barriers to entry have lowered, the barriers to scale remain high. Bridging that gap will determine whether increased participation translates into sustained growth, stronger enterprises, and broader economic impact.