DEVELOPMENT AGENDA PRIORITY U: Growth in small, medium-sized, and large businesses.
About priority U
- The growth of small and medium enterprises (SMEs) and large businesses is directly related to the overall growth of the Tobago economy.
- Currently, the THA offers substantial support to businesses through loans, grants, and venture capital financing.
- The THA will expand its support to SMEs and large businesses through capital investments in key focus areas, including tourism, agriculture, infrastructure development, information and communication technology, fashion, crafts, music, entertainment, and small to medium-sized manufacturing.
- A key component of business growth is the concurrent increase in consumer spending on goods and services within the retail service sector, particularly spending by Tobago’s transient population.
- In the short term, the THA will focus on strategies that drive retail spending through transient population growth, e.g., strategies related to event tourism and community tourism targeting mainly local tourists from Trinidad.
- In the medium to long term, the THA will focus on growing Tobago’s permanent population.
Primary performance benchmark: Priority U
- Benchmark: Increase the contribution of small and medium enterprises to at least 30% of GDP by 2035 and at least 40% by 2045.
- Indicator of progress/success: Percent contribution of small and medium enterprises to GDP year-over-year.
- Benchmark Country: CARICOM.
Primary performance benchmark: Priority U
- Benchmark: Increase the contribution of large businesses to at least 20% of GDP by 2035 and at least 30% by 2045.
- Indicator of progress/success: Percent contribution of large businesses to GDP year-over-year.
- Benchmark Country: Trinidad and Tobago.
Major concerns: Priority U.
| Concerns | Problem Statements |
| Contributions of SMEs and large businesses to GDP | a. The relatively low contribution of small and medium enterprises and large businesses to Tobago’s GDP |
| Low business growth | b. The low growth rate of small and medium enterprises and large businesses. |
| Undercapitalization of businesses | c. The undercapitalization and subsequent low expansion rates of small and medium enterprises and large businesses. |
| Lack of policy linkages | d. High levels of youth emigration. d. The lack of policy linkages between business growth, population growth, and the demand for retail services. |
1.0 Selected Focus Areas Priority U?
The Division of Finance and the Economy, in collaboration with Invest Tobago, the proposed Tobago Economic Development Corporation (TEDCO), business chambers in Tobago, and entities such as the Hotel and Tourism Association, will promote investment and growth in small, medium, and large enterprises, focusing on the following:
- Strengthening the SME Base
- Support for Entrepreneurship: Promote entrepreneurship through programs that provide business incubator support.
- Access to Funding: Provide SMEs with better access to funding through loans and grant programs.
- Development Policies: Implement the Micro and Small Enterprise (MSE) Development Program to create a holistic ecosystem that supports entrepreneurship and provides necessary resources and support systems.
- Enhancing the Business Environment:
- Improving Public Services: Enhance public services and improve the business environment to make them more supportive for SMEs and larger enterprises to operate and thrive.
- Public Awareness Campaigns: Host public awareness campaigns to inform business owners about available support programs, funding opportunities, and best practices for business growth.
- Promoting Export-Oriented Growth:
- Export Promotion: Support both SMEs and large enterprises in exploring export opportunities by offering essential tools, training, and market access assistance to broaden their reach regionally and internationally.
- Public Procurement: Ensure that SMEs and large enterprises have equitable access to public procurement opportunities, which can support their growth and enhance their competitiveness.
- Innovation and Technology Adoption:
- Industry 4.0: Promote the adoption of Industry 4.0 technologies, such as automation, big data, and the Internet of Things (IoT), to improve productivity and competitiveness in small and medium-sized enterprises (SMEs) as well as large enterprises.
- Digital Transformation: Support digital transformation by offering training and resources to assist businesses in leveraging new technologies and improving operational efficiency.
- Sustainable and Green Practices:
- Green Economy: Encourage businesses to embrace sustainable and environmentally friendly practices aligned with global trends, reducing their environmental impact while gaining access to new market opportunities in the expanding green economy.
- Energy Efficiency: Promote energy efficiency and use renewable energy sources in business operations to reduce costs and enhance sustainability.
- Financial and Regulatory Support:
- Access to Finance: Facilitate access to finance for SMEs and large enterprises by introducing innovative financial instruments and offering support from institutions such as the Exim Bank.
- Regulatory Reforms: Support regulatory reforms aimed at reducing bureaucratic hurdles and fostering a more business-friendly environment. This includes streamlining the procurement process and enhancing the efficiency and quality of public spending.
- Skills Development and Human Capital:
- Training and Education: Invest in workforce training and education to enhance skills, giving businesses access to skilled labour that drives innovation and fosters growth.
- Human Capital Development: Invest in human capital to enhance the overall productivity and competitiveness of the workforce, thus supporting the growth of both SMEs and large enterprises.
- Infrastructure Development:
- Infrastructure Improvements: Invest in the development of infrastructure, such as transportation, communication, and utility systems, to foster business growth.
MAIN REFERENCE INFORMATION
- Business Accelerators and Incubators: Improving Performance Measurement and Data Collection
- Tobago rolls out more initiatives under a new strategy.
- The current situation of small and medium-sized industrial enterprises in Trinidad & Tobago, Barbados and St. Lucia
- Ewart S Williams: Small and medium-sized enterprises in Trinidad and Tobago – challenges and priorities
- Innovation Implementation by SMEs in Trinidad and Tobago
- MICRO AND SMALL ENTERPRISE (MSE) DEVELOPMENT POLICY FOR TRINIDAD AND TOBAGO 2014 – 2016 Driving Entrepreneurship
OTHER INFORMATION
Targets and Indicators of Progress/Success
(small and medium-sized enterprises)
Target-U-1
Increase in the number of small enterprises with a capital value of between $1 and $2 million TT by at least 25% by 2035 and by at least 50% by 2045.
Indicator-U-1
Number of small enterprises with a capital value between $1 and $2 million TT per year, year-over-year.
Target-U-2
Increase in the number of medium-sized enterprises with a capital value of between $2 million and $5 million TT by at least 25% by 2035 and by at least 50% by 2045.
Indicator-U-2
Number of medium-sized enterprises with a capital value between $2 million and $5 million TT, year-over-year.
Target-U-3
Achieve at least 20% youth ownership in SMEs by 2035 and at least 30% by 2045.
Indicator-U-3
Number of SMEs owned by young entrepreneurs year-over-year.
Target-U-4
Invest an appropriate % equivalent of GDP in capital growth in SMEs by 2035 and an appropriate % equivalent of GDP by 2045.
Indicator-U-4
Percentage of GDP equivalent invested in the capital growth of SMEs year-over-year.
Targets and Indicators of Progress/Success
(large businesses)
Target-U-1-(a)
Increase in the number of large businesses with a capital value greater than $5 million dollars TT by at least 10% by 2035 and by at least 20% by 2045.
Indicator-U-1-(a)
Number of large businesses with a capital value greater than $5 million TT year-over-year.
Target-U-2-(b)
Invest an appropriate % equivalent of GDP in capital growth in large businesses by 2035, and an appropriate % equivalent of GDP by 2045.
Indicator-U-2-(b)
Percentage of GDP equivalent invested in the capital growth of large businesses year-over-year.
