Business Adaptation Programme

Technical and Financial Support to MSMEs in Barbados and the Eastern Caribbean

As part of COVID-19 recovery efforts, UNDP Barbados and the Eastern Caribbean in collaboration with ten countries, territories and partners, has launched the Future Tourism Project. The project aims to support governments, national institutions and the private sector including Micro, Small and Medium Enterprises (MSMEs) with adapting and responding to the changing needs of a new tourism demand.

The key components of this project are training and capacity building sessions, as well as technical and financial assistance for MSMEs. The long-term goal of the project is to ultimately assist the different stakeholders in the tourism sector by helping them to adapt to the rapidly changing and evolving COVID-19 pandemic. Currently, due to the negative economic impact caused by the COVID-19 pandemic, businesses are forced to reinvent and adapt to the current market needs. For the sector to thrive, it must evolve towards a more resilient, community-oriented, environmentally friendly, gender-inclusive and innovative zone.

Business Adaptation Programme: Technical and Financial support for MSME retooling and access to markets within tourism value chains.

In the framework of the Future Tourism Project, the United Nations Development Programme (UNDP) in collaboration with the University of the West Indies (UWI) Open Campus and the Frankfurt School of Finance & Management, has developed the Business Adaptation Programme with the objective to reimagine and transform how businesses operate across ten partner countries and territories in the Eastern Caribbean Region.

Through this programme, MSMEs will build capacity in the areas of digital technologies, financial planning, and marketing. These skills will enable these businesses not only to restore and retain income, but also to build more sustainable and adaptable operational systems that are more consistent with the current technological business environment, equip them to better withstand future external shocks and ultimately enable them to continue to make their contribution to the MSMEs sector and their local economies. The three main components of the Business Adaptation Programme are:

1. Open Training

The programme provided open training to MSMEs to strengthen their digital skills and support their operations considering the effects of COVID-19. The training commenced in June 2021 for the duration of twelve (12) weeks, consisting of three (3) areas namely; digital technologies, financial planning, and marketing. The training allowed the MSMEs the option to select the most appropriate level of training depending on the stage of their business and their goals.

2. Personalized Technical Assistance and Mentoring

This initiative is geared to assist MSMEs to innovate and digitalize their business model considering the new market trends. The technical aassistance component rolls out in two (2) phases; phase one (1) covers technical support workshops and phase two (2) includes one- to- one mentoring sessions. Participants of Phase 1 will receive assistance to develop a Business Improvement Plan (BIP) and in Phase 2, participants will receive advice on guidance to implement the BIP.

3. Provide grants and facilitate the access to credit lines to MSMEs

The grants and credit lines permit strategic investments, financial support to employee retention and further support resilience recovery from the impact of COVID-19. MSMEs, who complete the process, will be selected to receive grants through a government led process.

Additionally, UNDP will work closely with the Caribbean Development Bank (CDB) to gain access to local banks and existing credit lines in order for MSMEs to be able to apply for loans. Special recognition and consideration will be given to MSMEs owned by women.

Women owned businesses are the main target of this programme as its two main cross-cutting principles are; gender equality and gender empowerment. Through gender-responsive training, technical assistance and mentoring, the project will strengthen women´s capacities as well as access to financial lines of credit and grants in effort to promote faster recovery of livelihoods and enhancement of living conditions.

Successful completion of this output is expected to lead to:

Reactivation of a more inclusive, safer, and sustainable tourism product in the Eastern Caribbean.
The formation of connections between anchor companies, MSMEs and clients: businesses and professionals who offer online services and/or safe home deliveries to be known by the public – and allow the public to purchase their services online or upon delivery.
The technology gap as well as gender differentiated access and control over technology/internet access being addressed.
A well-known platform for small business owners, workers and employees who have lost their income-generating activity to COVID-19, to post their job search and for recruiting business to quickly find suitable candidates.