Question

Briefly discuss the importance of small and medium size enterprises to the economies in the Caribbean

Answer 1

Small and medium-sized enterprises ( SMEs) are seen as drivers of global economic development and job creation. Such companies are at the center of economic development in the Greater Caribbean, they are among the key foundations for progress in the Caribbean. Although a common definition of what constitutes a small and medium-sized enterprise remains somewhat disparate, SMEs remain at the core of sustained growth throughout the Region.

Caribbean small and medium-sized enterprises account for the majority of existing jobs and are the generators of most new jobs. SMEs represent 90-95 percent of the establishments / businesses produced in the manufacturing, trade and services sectors in Latin America and the Caribbean. They produce about 85-90 per cent of jobs, and contribute about 30-40 per cent of the region's countries' Gross Domestic Product (GDP).

Promoting Small and Medium-sized Enterprises can be seen as a sustainable development strategy. In less developed countries ( LDCs), this sector mobilizes limited capital and also provides a buffer for domestic markets and economies. Because of this, SMEs have remained one of the most important sectors for Caribbean countries. SMEs are one of the most practical mechanisms in many countries to address the challenge of unemployment and poverty, forming the bridge that forms the full circle between productive enterprises and industries, and providing increased capacity for local product and service innovation.

It has been realized that SME development needs different factors, including the need for a strengthened system of regulations , policies, structures, and public goods to support the sector 's growth prospects and opportunities. Legislation and public policy must be in place, providing the enabling environment; supporting the development of SMEs and supporting demand for growth. An important element in the approach to public policies under the current conditions is the need to encourage the creation of an atmosphere that facilitates inter-entrepreneurial collaboration, promoting innovation processes and thus contributing to technological capacity building