The Caribbean Development Bank (CDB) is backing a new effort to help Barbadian small businesses grow, with a US$350 000 grant aimed at preparing them to attract investors and list on the local stock exchange.
The funding will support the Innovation Growth Market 200 Programme (IGM200), a national initiative launched on Friday at the Lloyd Erskine Sandiford Centre.
Led by the Ministry of Energy and Business and the Barbados Stock Exchange, the programme will offer training, mentorship and support to 200 small and medium-sized enterprises (SMEs) looking to expand.
CDB President Daniel Best said the initiative would help reshape how small firms access equity capital, an area that has long been underused.
“The government of Barbados, under its national MSME policy framework, has taken steps to strengthen the sector, including opening new channels for raising financing through the Innovation and Growth Market, formerly the Junior Stock Exchange,” he said. “The idea is simple but powerful. Give MSMEs a dedicated platform to attract investment, raise equity capital, and grow.”
He added that the CDB’s grant will be used to build the capacity of 50 businesses, with at least 20 expected to become investor-ready and list on the IGM.
“This effort is not just about paperwork,” Best said. “It’s about training, mentorship and education, so that business owners and investors alike understand the opportunities of equity financing and stock market participation.”
Minister of Business Development Senator Lisa Cummins said the programme offers a way out of the debt trap many entrepreneurs face.
“Let’s be honest with ourselves; we know that many in the business community have not fully used the opportunity that is the Barbados Stock Exchange,” she told the audience. “The IGM must raise equity, it must build credibility and trust, and it must show that our capital market can fuel development.”
Cummins pointed to success stories like Lasco Manufacturing in Jamaica and UK brands ASOS and Fever-Tree, which started small and grew into global players.
“In principle, the lesson is clear,” she said, that with the right support, local businesses can do the same.
She also warned about the dangers of relying too heavily on bank loans. A recent review of one business sector found that every loan was backed by personal borrowing — at interest rates as high as 12.5 per cent.
“That’s a horror story,” Cummins said. “It’s not tenable. MSMEs’ debt financing, especially if you are financing it as a personal loan, is not sustainable to grow your business. In order to grow, you need to look at the various forms of financing.”
(SB)
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