Question

Briefly discuss the importance of small and medium size enterprises to the economies in the Caribbean. Discuss. Provide references

Answer 1

Caribbean countries are located near or around the Caribbean sea, and the business in these countries is processed due to small and medium-size enterprises as such countries are generally labor-intensive. They prefer SMEs rather than large enterprises. Caribbean countries are developing the help of SMEs only as these enterprises are the driver of innovative and creative business strategies, and increase competition enhances job opportunities in the Caribbean countries. Small and medium enterprises encourage a green economy. Due to small islands, people are searching for vital resources to become self-sufficient or reduce the dependency on other countries for vital resources.

One of the reasons for the increased number of small and medium enterprises is the lack of long-term financing opportunities for large enterprises. People start small enterprises and serve all the resources to the people and use the resources efficiently for the growth of the Caribbean. One of the significant sectors in such countries is tourism, which contributes a greater share in the Caribbean's total income.

Hence, small and medium enterprises (SMEs) play a significant or vital role in the growth of the economies in the Caribbean.