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by Pamela Coke-Hamilton!

There is no denying lhe imorlanl roIe lhal lhe rivale seclor Iays in lhe Caribbean
region. According lo slalislics from lhe CARICOM Secrelarial, lhe regionaI rivale
seclor creales al Ieasl 70% of |obs. Aarl from Iarge mineraI comanies (e.g. bauxile
and elrochemicaIs), lhe ma|orily of Caribbean firms can be considered SMIs and
lhey oerale in a variely of seclors incIuding lhe agricuIluraI, manufacluring,
lourism and services seclors. There is no fixed definilion of an SMI across lhe region
even lhough efforls are undervay lo deveIo a RegionaI Micro, SmaII and Medium
Inlerrise IoIicy lhal viII slandardize such definilions. Ior examIe, in }amaica a
smaII enlerrise is defined as one vilh 4-10 emIoyees and vilh assels of US$
100,000 or Iess vhereas in Trinidad and Tobago, a smaII enlerrise musl have
belveen 6-25 vorkers vilh assels of US$40,000 - $240,000.
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According lo lhe CARICOM Secrelarial, SMIs conlribule aboul 40% lo lhe Region's
GDI. Given lheir imorlance, lhe Revised Trealy of Chaguaramas eslabIishing lhe
Caribbean Communily incIuding lhe CARICOM SingIe Markel and Iconomy has
deIiberaleIy focused on eslabIishing an environmenl caabIe of suorling lhe
deveIomenl and viabiIily of SMIs. Ior lhe urose of lhis arlicIe, ve viII examine
lhe roIe lhal SMIs Iay in lhe economic, sociaI and environmenlaI deveIomenl of
lhe Caribbean.

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WhiIe SMIs are lhe backbone of Caribbean economies and a nolabIe source of
emIoymenl, inadequale slalislics on lheir conlribulion lo economic deveIomenl
Iimils lhe degree lo vhich one can effecliveIy assess lhe economic roIe lhey Iay. A
simiIar silualion exisls vhen allemling lo quanlify exorl earnings generaled by
SMIs. Hovever al lhe vider regionaI IeveI, lhal is al lhe IeveI of Lalin America and
lhe Caribbean, SMIs conslilule over 95% of comanies in lhe region, bul onIy 13% of
lhese exorl. In addilion, lhe Caribbean SMIs lhal do exorl lend lo exorl a Iimiled
number of roducls lo a smaII number of markels
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.

Caribbean Ixorl has been vorking lo enhance regionaI exorls lhrough a number
of inilialives such as markel sludy lours, lhe CARIIORUM-IU usiness Iorum,
seclor secific lrade missions, lhe Direcl Assislance Granls Scheme and Ixorl

1
Benuiickson, 2uu9. SNE Competitiveness in the Caiibbean: Challenges anu 0ppoitunities- ECLAC
2
IBB INTAL publication, #S7, vol 17, }uly-Becembei 2u1S
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Markeling lraining among olhers. One inilialive vorlh highIighling is a coIIaboralive
efforl belveen lhe }amaica Iromolions Cororalion (}AMIRO), Caribbean Ixorl,
and olher slakehoIders, lo assisl comanies vhich are aIready exorling or vhich are
exorl-ready lo increase lheir exorl saIes lhrough a number of caacily buiIding
inilialives. This efforl dubbed lhe Ixorl Max DeveIomenl iIol inilialive, has
assisled smaII exorlers in generaling roughIy }MD $1.4 biIIion, among 15 IocaI
roducers.

The SMI seclor is aIso becoming an imorlanl source of lax generalion, given ils
significanl conlribulion lo crealing emIoymenl in lhe region. The chaIIenge remains
lhe high informaIily of SMIs in lhe Caribbean vilh lhe WorId ank and ID
eslimaling lhis lo be aboul 40%. Olher vays in vhich SMIs conlribule lo lhe
Caribbean economy incIude vorkforce skiIIs ugrading and innovalion and
lechnoIogy changes.

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eyond generaling economic benefils, regionaI SMIs aIso rovide soIulions lo sociaI
and deveIomenl robIems such as food securily. SMIs in lhe agricuIluraI and agro-
rocessing seclors, from honey roduclion in Guyana, shrim farming in eIize and
coffee roduclion in }amaica, have lradilionaIIy Iayed a vilaI roIe by converling
indigenous rav maleriaIs inlo food and beverage roducls. Hovever, lhis is a
conlinuous chaIIenge for CARICOM member slales vhich generaIIy suffer from a
high food imorl biII. One inilialive embarked on by lhe Trinidad and Tobago
governmenl enlilIed lhe Iood Securily IaciIily couId oen u addilionaI
oorlunilies for firms inleresled in meeling lhe region's food needs. Through lhis
inilialive, farmers in Trinidad viII have access lo Iand in Guyana lo roduce a range
of food cros.

SMIs have aIso rovided services in heaIlh care and educalion vhich have heIed lo
ease lhe burden of lhe slale in meeling lhese needs. Such invoIvemenl of SMIs in lhe
rovision of vhal can be considered ubIic goods is execled lo conlinue in lhe
fulure as comanies become more avare of lheir cororale sociaI resonsibiIily. In
2013, lhe }amaican NalionaI uiIding Sociely Ioundalion arlnered vilh lhe Uniled
Slales Agency for InlernalionaI DeveIomenl (USAID) lo deveIo and imIemenl a
lhree year rogramme caIIed lhe SociaI Inlerrise oosl Inilialive (SII) lo
slrenglhen sociaI businesses lhroughoul lhe counlry. Moreover, some of Caribbean
Ixorl's cIienls have aIready incororaled a sociaI mandale inlo lheir business
modeIs. Ior examIe, one Grenadian firm in lhe heaIlh and veIIness seclor has sel
u ils roduclion faciIilies in Haili afler lraining ruraI vomen lo manufaclure
naluraI oiIs vhich are lhen urchased as business inuls. As lhe region conlinues lo
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exerience economic difficuIlies, lhere viII be a groving need for SMIs lo imacl
sociaI deveIomenl.

Inlrereneurshi has aIso served as a sociaI safely nel for vomen and youlh.
According lo sludies conducled by lhe GIobaI Inlrereneurshi Monilor,
arlicuIarIy in Iesser-deveIoed counlries vomen are more rone lo slarl or
mainlain businesses oul of 'necessily.' Caribbean Ixorl has vilnessed an increase in
lhe number of femaIe arlicianls across severaI of ils rogrammes deIivered under
lhe 10lh Iuroean DeveIomenl Iund (IDI). Ior examIe, 776 femaIes arlicialed
in Agency inilialives in 2012. Hovever lhis increased by 5% lo 817 in 2013. Il is
execled lhal SMIs viII conlinue lo offer vomen and youlh lhe oorlunily lo earn
a IiveIihood and emover lhem lo be aclive arlicianls in lheir reseclive
economies.

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Caribbean SMIs are aIso beginning lo Iay an increasingIy imorlanl roIe in
conlribuling lo lhe grovlh of a green economy in lhe region. Wilh rising oiI rices
gIobaIIy, smaII isIand deveIoing slales are in search of aIlernalive energy sources. In
some counlries such as arbados, SMIs have been making a difference in reducing
lhe deendence on imorled fossiI fueIs. This is crilicaI given lhal lhe counlry
roduces a mere 15 ercenl of lhe lolaI energy required domeslicaIIy.
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As a resuIl of
SMIs vhich rovide soIar valer healing services, in 2002 arbados, vas abIe lo save
15,000 melric lons of carbon emission and achieved US$100 miIIion in energy savings
from lhe 35,000 soIar hol valer syslems lhal had been inslaIIed al lhe lime.
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SMIs have aIso Iaunched inlo olher lyes of business aclivilies vhich furlher reduce
lhe carbon fool rinl in lhe region. Ior examIe, one arbadian SMI is nov offering
energy efficienl LID Iighling as an aIlernalive lo lhe lradilionaI incandescenl and
fIuorescenl Iams. Moreover, in 2013, Caribbean Ixorl faciIilaled lhe inlroduclion
of lhe firsl eIeclric vehicIes in lhe isIand and lhe crealion of lhe firsl soIar overed
eIeclric vehicIe charging slalion. SMIs in olher Caribbean counlries Iike Anligua and
arbuda and }amaica are aIso Iaying a simiIar roIe as evidenced by lhe increase in
holeIs and guesl houses lhal have inslaIIed soIar aneIs lhereby reducing lheir
deendence on eIeclricily. Caribbean Ixorl's suorl lo firms in lhis regard has
been mainIy lhrough lhe rovision of funding lhrough lhe Agency's Direcl
Assislance Granl Scheme. The conlinued inveslmenl inlo comanies in lhe
renevabIe energy seclor has lhe olenliaI lo assisl lhe region in overcoming one of
lhe grealesl imedimenls lo rivale seclor comeliliveness, high energy cosls.


S
http:blogs.iaub.oigcaiibbean-uev-tienus2u1S1122baibauos-eneigy-maiket
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http:www.unep.oiggieeneconomySuccessStoiiesSolaiEneigyinBaibauostabiu29891Befault.aspx
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Il is evidenl lhal Caribbean SMIs are suorling lhe region's economies and
socielies in a Ielhora of vays, hovever, lhere are sliII some chaIIenges or barriers
lhal musl be overcome if lhey are lo conlinue lo Iay such an inlegraI roIe. Some of
lhese incIude difficuIly in accessing credil, Iack of business and markel inleIIigence,
inadequale lransorlalion and bureaucralic rocedures. RegionaI agencies and
governmenls musl lherefore conlinuousIy seek vays lo imrove lhe enabIing
environmenl for SMIs. Caribbean Ixorl is conlribuling in lhis regard lhrough
faciIilaling SMI access lo finance, research and markel inleIIigence services,
advocacy efforls on key issues affecling lhe rivale seclor and lhe rovision of exorl
deveIomenl and romolion services.


415$'1 0&6$7815-'/&. is lhe Ixeculive Direclor of Caribbean Ixorl. Caribbean
Ixorl is a deveIomenl agency eslabIished in 1996 by an InlergovernmenlaI
Agreemenl as a lrade romolion agency for lhe 15 CARIIORUM Member Slales.
hll://vvv.carib-exorl.com/
This documenl is a conlribulion lo lhe }une 2014 edilion of lhe nevsIeller of lhe IU-
LAC Ioundalion dedicaled lo SMIs.