A Growth Mindset for Caribbean Women Micro, Small and Medium Enterprises (MSMEs)
Article by Novelette Morton
“Create your plan, be clear on your path and methodology, and forge forward.”
Tamisha Jones-Boyce, CEO
Stridz Events, Barbados
P: 246-261-7214
W: www.stridzevents.com
Introduction
Globally, Micro, Small and Medium Enterprises (MSMEs) make up about 80% of businesses in economies, 70% of employment and contribute 50% of the Gross Domestic Product (GDP) (https://www.un.org June 7, 2022). Similarly, in the Caribbean, MSMEs make up the majority of businesses, representing between 70 – 80% of Caribbean businesses. They contribute 40% of the GDP and 50% of employment (https://today.caricom.org July 29, 2021). The research shows that MSMEs contribute significantly to socio-economic development around the world. Worthy of note is that women MSMEs make up 40% of MSMEs in the Caribbean (https://today.caricom.org). These businesses tend to be informal in structure, to be confronted with challenges accessing financing and are often constrained by their small size.
The COVID-19 Pandemic and Its Impact on MSMEs
During the COVID-19 pandemic when millions succumbed to or were affected by the Coronavirus, MSMEs were devastated as the world literally ground to a halt. Many businesses were forced to lay off staff, scale down and even close their doors. It was during this chaotic period that the United Nations Development Programme (UNDP) Barbados and the Eastern Caribbean and the Caribbean Development Bank (CDB) in collaboration with the University of the West Indies (UWI) Open Campus and the Frankfurt School (FS) of Finance & Management, implemented a project called the UNDP Future Tourism Project: Rethinking Tourism and MSMEs in times of COVID-19 in the Eastern Caribbean. The UNDP engaged ten (10) governments, national institutions and the private sector in the region in the execution of the project to build a more resilient business environment.
The UNDP project targeted Caribbean tourism and hospitality businesses primarily, with a particular focus on women-owned businesses. The owners of four of the MSMEs that participated in this project were interviewed for this article, which seeks to highlight the skills and lessons learnt that helped them to pivot and survive the traumatic impacts of the COVID-19 pandemic.
These MSMEs include Stridz Events & Corporate Consulting of Barbados, led by Chief Executive Officer (CEO) Tamisha Jones-Boyce; Dereadygoods & Services of Dominica whose CEO/Founder is Ezra Nicholas; Sugar Town Organics of St. Kitts, led by CEO, Anastasha Elliott and Funtastic Island Adventures Ltd of Grenada whose CEO is Lisa Chase. They all gave their perspectives on the similar challenges facing women-led MSMEs and highlighted ways in which they have adapted to become more competitive and sustainable. The four MSMEs include a boutique special events and management consulting firm in Barbados, an agri-tourism farm in Dominica, an agriculture-based social enterprise in St. Kitts and a tour operator in Grenada. The writer also interviewed MSME Growth Expert and Female Entrepreneurship Champion, Dr. Tamu Petra Browne who was one of the facilitators in the UNDP Project and she lent her voice to the discussion, especially in pointing the way to the growth of MSMEs.
In the words of CEO Jones-Boyce, “Everything came to a complete halt. There was nothing, no clients, no prospects, nothing. It was difficult to plan or forecast anything.” These sentiments were echoed by CEO Elliott who stated, “It was a struggle to figure out what to do next when your income went to nothing but bills still kept coming.” It is evident that that period was one of pain and suffering for the MSMEs due to the negative economic impact of the pandemic on their businesses, and therefore the intervention of the UNDP Future Tourism Project was welcome! It sought to open the eyes of the MSMEs to growth opportunities and to ways to achieve sustainability.
The UNDP Future Tourism Project
In 2021, the UNDP team together with UWI and FS, coordinated the Business Adaptation Programme which entailed Open Training in Digital Technologies, Financial Planning and Marketing; Technical Assistance and Mentoring and the development of Business Improvement Plans (BIPs), with the end result being Grant Funding to the successful MSMEs to the tune of USD 4,000 or USD 6,500 depending on the scope of their BIPs. What is significant is that the project aimed to make Caribbean economies more resilient, competitive, sustainable and gender inclusive. In fact, the undergirding goals have been gender equality and gender empowerment! These goals are critical to developing a growth mindset among MSMEs and building greater resilience to withstand future external shocks. The feedback on this project has been positive.
The Business Adaptation Programme Methodology was replicated in 2022 to extend the learning to other MSMEs through the instrumentality of UNDP, CDB, UWI, and FS. Additionally, a Training of Trainers was also facilitated to hand over the Methodology to 30 Government Officials and Private Sector specialists across the region. Course Facilitator, Dr. Browne highlighted the multi-faceted approach comprising training, mentoring and the completion of a Business Improvement Plan as a major success of the programme. She added that the regional approach enabled peer learning and support. Moreover, what is admirable is that the UNDP has endeavoured to train persons on the ground in the various territories through the second cohort of training. This is a definite step to ensure sustainability and foster a growth mindset amongst women entrepreneurs!
Digital Skills – A Must!
As the focal point for St. Kitts and Nevis during the period March 2021 to August 2022, Novelette Morton was able to interact with some of the participating MSMEs in St. Kitts and Nevis, and most of them highlighted digitization as a primary factor in their survival. They learned the importance of occupying a virtual space, social media marketing, going global through the creation of business websites, the need to be cashless and to use credit and debit cards, and automating some of their processes to achieve efficiencies and competitive advantages. These are essential tools for engendering a growth mindset. All five interviewees for this article pointed out the importance of digital skills for all entrepreneurs irrespective of gender or age. The CEO of Dereadygoods & Services spoke about setting up her PayPal and Payoneer accounts to receive online payments and the need to purchase a Point of Sale System for her shop. Funtastic Adventures Ltd of Grenada had this to say, “Together with our IT personnel, we are continuing to look at areas in the company where digitization can make a significant difference for us in terms of increased efficiency such as lowering costs.” It was no longer business as usual. They all had to pivot, innovate and become competitive to survive!
The Significance of A Growth Mindset
As an entrepreneurship coach, Dr. Browne explained that the most significant challenge facing MSMEs is a fear of growth and experimentation. What this means is that they tend to be reluctant to innovate and to seek capital and human resource investment which are essential ingredients in the growth process.
The UNDP Future Tourism Project opened new doors. Apart from the increased knowledge, retooling and upskilling acquired by these women entrepreneurs, this question is important. How does one grow and expand one’s business? Female Entrepreneurship Champion, Dr. Browne lists these key elements that would enable MSMEs to be competitive and profitable:
- Seek out capital through grants and low-interest loans
- Never stop pitching their business in all fora
- Seek out coaches and mentors
- Be bold and pivot when necessary
- Concentrate on regional visibility and regional growth
- Be unafraid to register and conduct business in territories with a more mature and supportive entrepreneurship ecosystem.
However, it is important to hear from the heads of MSMEs themselves who go through the pains of running a successful business. They all mentioned that MSMEs need to have a vision, a sound plan and a purpose for the business; to be passionate about their business; be prepared to work very hard and to make the necessary sacrifices as well as network in their area of business. They also mentioned digital skills as critical to the growth and success of businesses going forward. Two of the CEOs also offered this challenge to women entrepreneurs, “Forget that you are a woman and be prepared to walk and talk right along with men…be brave and know your worth.”
Conclusion
These two (2) quotes on success capture a critical element of the growth mindset:
“Bringing great people onto your team is about demonstrating that size really doesn’t matter – people do.”
Jess Campbell
“Spend time upfront to invest in systems and processes to make long-term growth sustainable.”
Jeff Platt
In a region where women entrepreneurs make up a significant proportion of MSMEs, the time has come for them to innovate where necessary, to be willing to take risks, to continuously enhance their skills and to put in the hard work to develop more competitive businesses. These actions will enable them to reinvent, adapt and pivot when necessary. When this happens the Caribbean private sector, societies and communities are strengthened, people generally are empowered and lives and livelihoods enhanced.
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Novelette Morton is passionate about human and small business development. Having recently retired from the field of tourism where she worked for over 20 years, she has embarked on freelance writing and the full-time teaching of music, both of which are also her passions!
She has a Bachelor’s Degree in English Literature and French, a Master’s Degree in Mass Communications, specializing in Public Relations, and a Diploma in Hospitality and Tourism Management.