The signature event of Small Business Week 2024, the X Leo Leacock Memorial lecture, provided an opportunity for stakeholders to discuss the impediments to the growth of micro, small and medium enterprises and to hear from subject matter experts on tried solutions to addressing these issues.
This year’s lecture was facilitated by the Hon Allen Chastanet, current Opposition Leader of Saint Lucia and a well-known businessman in the Caribbean. Having served as the prime minister of Saint Lucia from 2016-2021, Mr Chastanet was able to draw from his wealth of experience as a policymaker in detailing the type of regulatory regime required to enable a vibrant and competitive MSME sector.
The lecture delved into small business development, entrepreneurship, and tourism as key drivers of economic growth, with examples drawn from Barbados and Saint Lucia.
Some of the key themes discussed included:
The role of Small Businesses
Small businesses were promoted as key drivers in preserving the region’s unique culture, especially in a world dominated by franchises like McDonald’s and Burger King. While a distinction was made between the small firm that caters only to the domestic market versus the business with an international outlook, MSMEs were the best enablers of monetising culture.Domestic small businesses, including grocery stores, hair salons and the like, may not directly contribute to foreign exchange; however, their efficiency adds value to the tourism product. For example, high-quality local services—including technical support and maintenance for million-dollar villas—enhance the region’s reputation.
The Power of Starting Small
Mr Chastanet highlighted examples of successful Caribbean entrepreneurs, such as the creator of the Tortuga Rum Cake, who began with a small venture in the Cayman Islands and grew into a global brand. This illustrates that even small Caribbean businesses can expand internationally if they think big and take calculated risks.Starting small but thinking big can lead to diversified, resilient businesses. Caribbean nations had a role, therefore, in fostering an environment that allowed such businesses to thrive.
A example of Clustering – the Saint Lucian Banana Industry
The Saint Lucian banana industry was discussed as a prime example of small business enfranchisement. The Government of Saint Lucia created the infrastructure—irrigation systems, roads, research companies—to support 16 000 farmers, transforming them into small business owners. The industry thrived by exporting bananas to the United Kingdom, but later political changes and privatisation led to the industry’s decline.Government must intervene but act as a facilitator.
Tourism as a Vehicle for Small Business Growth
Tourism provides a unique opportunity for small businesses to grow. By creating a franchise system called “village tourism,” small hotels, restaurants, and shops in Saint Lucia received access to accounting software, marketing platforms, and training. This model helped small businesses compete by offering standardised services, while maintaining the authenticity of local culture.Small businesses involved in tourism can serve as ambassadors for their countries, promoting local products and culture to foreign visitors. This strengthens the local economy.
Innovation and Differentiation
The importance of innovation was stressed throughout the presentation, a reminder of Peter Drucker’s mantra that “business has two functions—marketing and innovation”. Small businesses need to differentiate themselves by offering unique products that reflect local culture. The Barbadian company, Chefette Restaurant, a Barbadian fast-food chain, was cited as an example of a successful local brand that could be exported.Creativity was needed in product design, from limited-edition t-shirts featuring local art to handmade crafts and unique cocktails in bars. This level of innovation could elevate the perception of Caribbean products and attract higher spending from tourists.
Branding and Exporting Local Products
The transcript touches on the need for Caribbean countries to brand and export local products more effectively. The success of brands like Mount Gay Rum and the Saint Lucia Jazz Festival represent an example of building international recognition from local brands.Exposing tourists to local products is key. By creating positive associations with these products during their vacations, tourists are more likely to purchase them back home, fostering nostalgia and sentimentality around Caribbean brands.
E-commerce and Franchising
Mr Chastanet advocated for Caribbean countries to adopt modern e-commerce strategies to sell their products globally. He mentioned the need for innovation in online platforms and creating competitions to foster young designers’ talents in areas like t-shirt designs and unique crafts.He also described a vision where local vendors and artisans are supported to franchise their businesses, improving product display, marketing, and storytelling. This would help them to stand out in a crowded marketplace.
Government’s Role
The role of the government in supporting small businesses cannot be overemphasised. From providing the necessary infrastructure (shipping and packaging for agricultural products) to helping vendors market and sell their products internationally, government support is seen as crucial for success.Caribbean governments must create policies and frameworks that enable small businesses to thrive and export, ultimately bringing millions of dollars in foreign exchange to the region.Stakeholders must envision a Caribbean where small businesses play a central role in economic growth by tapping into global markets through tourism and export opportunities. By fostering innovation, government support, and modern e-commerce, the region’s unique culture and products can become a powerful force in the international marketplace. Through this approach, small businesses can create jobs, generate foreign exchange, and contribute to the long-term prosperity of Caribbean nations.
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