WASHINGTON, DC — Caribbean Export Development Agency Executive Director Dr. Damie Sinanan says micro, small and medium-sized enterprises (MSMEs) across the Caribbean continue to face significant obstacles to growth, with limited access to affordable financing remaining one of their biggest challenges.
Speaking to Ambassadors at the Organization of American States (OAS) Headquarters in Washington, DC, Sinanan noted that while MSMEs make up the overwhelming majority of businesses in the region, many are too small to attract the type of investment needed to expand.
“One of the major issues that small and medium-sized enterprises in the Caribbean face is the lack of access to patient growth capital,” he said. “Many firms are simply too small to justify the cost of investment, as investors incur the same due diligence costs on a US$1 million investment as they would on a much larger one.”
That, he explained, creates an immediate scale problem, forcing many businesses to rely on traditional financing through banks, credit unions, or friends and family.
“We do not have a mature market for equity investments or venture capital,” Sinanan said. “That seriously limits the capital available for businesses to scale, grow and compete in international markets.”
Beyond financing, Sinanan said many promising businesses are not yet investment-ready.
“A good business does not always translate into an investable business,” he stressed, pointing to weak governance structures, inadequate financial reporting and limited business information as factors that reduce the bankability of many firms.
He also highlighted the difficulties Caribbean businesses face when trying to export beyond the region. Many, he said, struggle to meet international food safety, phytosanitary and other regulatory standards because they lack both the capital and technical expertise needed to comply.
Technology adoption is another area where Caribbean businesses are falling behind, according to Sinanan.
He said many companies continue to operate using traditional methods instead of embracing innovations such as artificial intelligence, blockchain and other digital tools that are becoming standard in global commerce. Limited financing, innovation and technical capacity have all slowed digital transformation across the region.
Transportation and logistics also remain major barriers to competitiveness.
Sinanan noted that the Caribbean's geography as a collection of small island developing states makes shipping goods—and even moving people—costly. Small export volumes mean businesses often cannot achieve the economies of scale needed to reduce freight costs, putting them at a competitive disadvantage.
Despite the challenges, Sinanan believes the region already has many of the solutions it needs. The problem, he argued, is a lack of coordination.
He pointed to numerous programmes funded by international partners, including the Inter-American Development Bank (IDB), CAF and the European Union, but said many operate independently, resulting in duplication and gaps in support.
To build stronger, export-ready businesses, Sinanan called for a coordinated, year-round approach that develops a steady pipeline of bankable and investable enterprises capable of attracting capital and competing in global markets.
