Mighty Sector, Marginal Exports: Reflections on the SBA MSME Report 2026

Despite accounting for 98% of businesses in Barbados, fewer than one in ten Micro, Small and Medium-sized Enterprises (MSMEs) export. This striking finding was reported in the Small Business Association (SBA)’s newly released ‘National Survey of the Micro, Small & Medium Enterprise Sector 2026’. It underscores a persistent challenge within our import-dependent economy: how can we get more of our firms exporting. In this SRC Trading Thoughts, I reflect on some of the report’s findings from a trade policy perspective.

The SBA released the findings of its national survey of the MSME sector at its annual State of the Sector conference on April 15, 2026 which I attended. Commissioned by the SBA and conducted by Professor Dwayne Devonish of The University of the West Indies, Cave Hill Campus, this commendable and timely piece of research is the first since 2016 to provide a comprehensive assessment of the MSME sector in Barbados. The study’s findings reiterate the MSME sector’s strategic importance to the Barbados economy, accounting for about 55% of private sector employment. This is not dissimilar to the global picture where they account for about 90% of all businesses, 70% of employment and 50% of global GDP, according to the World Economic Forum.

What struck me, however, was that only 8.6% of MSMEs in Barbados export, a marginal improvement from the already low 6.1% recorded in 2016. This low statistic is not unique to Barbados. Globally, only a small percentage of MSMEs worldwide earn revenue from direct exports, with some estimates ranging from 5-7% depending on the source. However, this number is much higher in some countries, such as India where SMEs contribute 40% to India’s exports.

Another interesting finding is that among those Barbadian MSMEs which do export, export revenues typically account for less than 10% of their total sales. This shows that, even for those MSMEs that do export, export revenues appear relatively inconsequential to their business models.

Why encourage firms to export?
Encouraging MSME exports remains a policy priority for many governments, including the Government of Barbados. When firms sell goods or services overseas, this brings in foreign exchange, critical for our import-dependent governments. It also helps to reduce our balance of trade deficit. Exporting also supports job creation and stimulates economic activity. At the firm level, engaging in exporting allows businesses to diversify revenue streams and access wider markets. Some firms, often described in the literature as “born global” firms, internationalise or begin exporting early in their life cycle, and are emerging worldwide as technological advancements facilitate quicker linkages to markets abroad. This is particularly easier for services firms, which can deliver services electronically, which in our trade vernacular we call ‘Mode 1’ (crossborder supply of services).

Nonetheless, MSMEs seeking to export face many challenges, such as lack of knowledge of the regulations in target markets, limited access to finance, limited scale, among other things. The current global environment with rapidly changing trade practices in certain key markets, supply chain issues and heightened geopolitical risk present increased challenges for small exporters. It is for this reason by many export support programmes exist to assist entrepreneurs, including women entrepreneurs, to build export readiness. Entities such as Export Barbados, Caribbean Export, FundAccess, Barbados Trust Loan Fund, and the SBA itself provide significant support to firms. However, as a recent SRC webinar on “Export/Trade Finance for Women-led SMEs” found sometimes many MSMEs are not aware of the available support.

Although Barbados, through its membership of the Caribbean Community (CARICOM), has trade agreements with the European Union (EU), Costa Rica, Colombia, Cuba, The United Kingdom and Venezuela, the CARICOM market was the main market for those firms which export, and very few export outside of the region. This tracks with the data which shows that our trade agreements with third parties remain very under-utilised by regional firms, despite the many valiant interventions and support available to facilitate export readiness, capacity building and financing. What accounts for this? Future reports could consider the reasons behind the limited use of these trade agreements, and the efficacy of the export promotion programmes.

I would also love to see data on youth entrepreneurship. How many of our formal businesses are youth-owned? What sectors are they predominantly in and what barriers do they face? How many of these youth came out of programmes like the Youth Entrepreneurship Scheme? This would tell us a bit more about whether these programmes are leading to tangible results, and what other interventions might be needed.

Conclusion
The SBA should be commended for partnering with academia and the Inter-American Development Bank to formulate this data-driven analysis. The study lends empirical weight to the SBA’s calls for greater government support for this critical pillar of our economy, which supports livelihoods. After all, behind every small business is an entrepreneur and his/her family and the families of its employees.

In a country and region known for data scarcity, this kind of applied research is important to help governments not only create policies and incentives, but also craft cushioning measures for shocks. It is doubly so as our businesses navigate one of the greatest periods of geopolitical and global economic uncertainty within our lifetime, a period I have increasingly referred to as a “Twilight Zone”. Therefore, the SBA’s stated intention to conduct these analyses on a more frequent basis is encouraging. I hope that more sectors in our economy will partner with academia to conduct similar studies.

It was also encouraging to see Minister the Hon. Kerrie Symmonds, welcome and underscore the report’s relevance for Government’s planning for the sector. While trade does not fall under his current remit, this report would also be useful for the development of Barbados’ trade policy which is currently being formulated, particularly as it hopefully considers how to actively increase MSME export activity. The SRC stands ready to support any future efforts.

Alicia Nicholls, B.Sc., M.Sc., LL.B. is the {{alicia-role}} of the Shridath Ramphal Centre for International Trade Law, Policy & Services of The University of the West Indies, Cave Hill. Learn more about the SRC at www.shridathramphalcentre.com.