# Caribbean and Dominican MSME development challenges > Live situation record from CLSTR: https://clstr.news/situations/caribbean-and-dominican-msme-development-challenges > Updated: 2026-09-28T12:58:16.000Z. Sources: 29. Developments: 2. Micro, small, and medium-sized enterprises (MSMEs) in the Caribbean, specifically in the Dominican Republic, face systemic hurdles regarding competitiveness, global value chain integration, and limited access to financing. In the Dominican Republic, high informality rates—approximately 54%—leave many entrepreneurs without social protections like pensions or medical insurance. To address these challenges, the Dominican Ministry of Industry, Commerce and MSMEs (MICM) and the Dominican Confederation of Micro, Small and Medium Enterprises (CODOPYME) have established a development agenda for the 2026–2028 period. A primary objective is increasing MSME participation in public procurement. Minister Eduardo “Yayo” Sanz Lovatón characterized the monitoring of legal percentages for state suppliers as “an activity of national security.” The collaborative efforts also aim to promote entrepreneurship, digital transformation, labor formalization, and expanded market access, with a specific focus on ensuring opportunities for small businesses and those led by women. Recent legislative actions have furthered these goals. Under Decree 672-26, President Luis Abinader mandated that public procurement for special social programs—such as poverty relief, food, clothing, and school supplies—must prioritize national industrial MSMEs, provided they meet quality and quantity requirements. This directive affects various state institutions, including the Ministry of Education, the National Health Service, and the National Police. To qualify under this decree, companies must hold a Proindustria industrial registry and MICM MSME certification. The measure follows reports of irregularities in school lunch contracts. Additionally, CODOPYME has entered a new leadership term under Fernando Pinales to work with the MICM on realizing procurement provisions for small businesses and women-led enterprises. On the international stage, the National Association of Companies and Industries Herrera (Aneih) and the Guatemalan Association of Exporters (Agexport) signed a memorandum of understanding to identify commercial opportunities across 26 specific products to facilitate trade between the two nations. ## Claims - Issued Decree 672-26 to prioritize national industrial Mipymes in social program procurement. (corroborated by 8 sources) - Procurement should be conducted without unauthorized intermediation. (corroborated by 8 sources) - The measure applies to institutions managing poverty relief, food, clothing, and school supplies. (corroborated by 8 sources) - Participating companies must have an industrial registry from Proindustria and Mipyme certification. (corroborated by 2 sources) - The MICM will manage the Talent Up initiative in the Dominican Republic. (corroborated by 2 sources) - The program offers 15,000 free scholarships for digital skills training. (corroborated by 2 sources) - A memorandum of understanding was signed to identify $2.556 billion in potential Guatemalan exports to the Dominican Republic. (corroborated by 2 sources) ## Timeline ### 2026-09-28: Dominican Republic prioritizes national Mipymes for social program procurement Dominican President Luis Abinader issued a decree prioritizing national industrial Mipymes for social program procurement. Separately, 15,000 digital skill scholarships were announced for the country. 27 sources. https://clstr.news/cluster/dominican-msmes-to-receive-priority-in-public-procurement ### 2026-09-14: Caribbean MSMEs face competitiveness and financing hurdles MSMEs in the Caribbean, including the Dominican Republic, struggle with competitiveness due to limited financing and high informality rates, according to the World Trade Organization. 3 sources. https://clstr.news/cluster/caribbean-msmes-face-competitiveness-and-financing-hurdles --- Cite as: Caribbean and Dominican MSME development challenges. CLSTR, https://clstr.news/situations/caribbean-and-dominican-msme-development-challenges