Driving Small Businesses Development in Jamaica

With the launch of its pilot Small Business Development Centers (SBDC) on January 23, 2015, the government of Jamaica marked a milestone in its support to the local small and medium enterprises sector. The launch signified a culmination of the efforts of a broader OAS initiative in the CARICOM region that began in 2012, designed to strengthen the capacity of the institutions that support, assist and train Micro, Small and Medium Enterprises (MSMEs) by adapting the United States SBDC model.

The support of the MSME sector is a key component of a comprehensive economic strategy to foster inclusive and sustainable development. The sector has traditionally faced obstacles that have hindered its performance, such as limited access to finance, difficulties in the internationalization of markets, and low levels of competitiveness. As such, in recognition of these challenges, Member States have taken steps at both the national and regional levels to strengthen this sector.

The Jamaican project seeks to leverage the successes of the U.S. SBDC model, which has provided small businesses with critical management and technical assistance, developing more than 1,100 centers, with 4,500 full–time advisors and 750,000 clients/ businesses served annually for over 35 years. The model offers extensive one-on-one, long-term professional business advising, low-cost training, and other specialized services to businesses. Support provided for SMEs is derived from the cooperative effort of the private sector, the educational community, as well as federal, state and local governments.

There are now a total of 15 countries across the Caribbean, Central and South America that already have or are in the process of adapting the SBDC model with the ongoing or initial support from the OAS-SEDI. To date the success of the program in the region is substantial. El Salvador, the first country in Central America to debut the SBDC model, has established an impressive network of twelve centers which continues to expand. Salvadorian SBDCs have assisted 6,600 micro and small businesses created 3,400 jobs and generated an increase of $11.3 million in sales (domestic and international) since its inception in 2010.

Belize, the first CARICOM country to launch an SBDC, reported that in its first year of operation (2012) it was able to train 800 clients, while assisting them in sourcing $1.8 million in loans, create or retain almost 200 jobs, and enter 29 new markets. Despite being a small center, the SBDCBelize has been able to mobilize government and multilateral support for the expansion of its pilot SBDC into the Belize Enterprise and Innovation Institute to be hosted at the University of Belize, which will also house a dedicated research facility.

At the launch of the program in Jamaica, the Minister of Industry, Investment and Commerce, Anthony Hylton, praised the model adding that it “provides a structured framework to promote the competitiveness and development of MSMEs. The provision of interventions throughout the firm’s life cycle, the partnership arrangement between universities, public and private sectors, as well as the monitoring and evaluation mechanisms will address in a major way, some of the deficiencies of current programs.” He went further to add that for Jamaica, “Other noteworthy advantages of the system include the economies of scale through shared resources and risks, the expansion and diversification of exports, and greater access to market intelligence afforded through the SBDC networks.”

“We know this model works” added Sherry Tross, OAS Executive Secretary for Integral Development in delivering her remarks at the launch proceedings. She further emphasized the value of the SBDC model, citing key benefits, including the model’s responsiveness to real needs; utilization of a partnership model; flexibility, and focus on the achievement of  results. Tross also highlighted the strategic importance of supporting the work of SMEs for development “I believe that innovation and entrepreneurship have the power to transform our economies and societies, open new frontiers for growth and competitiveness, improve efficiencies and strengthen productive capacity. At the same time, innovation and entrepreneurship can be powerful tools for inclusion, opening up possibility and opportunities for larger segments of the population.”

With support from the OAS-SEDI Department of Economic Development and the United States Government, in partnership with the University of Texas at San Antonio (UTSA) and the Caribbean Export Development Agency (Caribbean Export), Jamaica is the third country in the CARICOM region to launch the SBDC model, following Belize and Saint Lucia. The program will continue to expand in Barbados, where the SBDC model is expected to be launched in April 2015.