Caribbean MSMEs face competitiveness and financing hurdles

Micro, small, and medium-sized enterprises (MSMEs) in the Caribbean, including the Dominican Republic, face significant challenges regarding competitiveness and integration into global value chains. Matthew Wilson, the Barbados ambassador to the World Trade Organization, noted that limited access to financing is a primary obstacle preventing these businesses from growing and investing.

In the Dominican Republic, informality rates are approximately 54%. Many entrepreneurs avoid formalization to bypass tax obligations, though this leaves them without social protections such as pensions or medical insurance. This vulnerability was particularly evident during the COVID-19 pandemic and natural disasters.