Equity financing could be the missing piece to help small and medium enterprises (SMEs) in Barbados scale up and thrive. That’s the view of Marlon Yarde, managing director of the Barbados Stock Exchange (BSE), who believes SMEs have a real opportunity to grow if they embrace equity capital through the BSE’s Innovation and Growth Market (IGM), its junior stock market.
Yarde explained that while most SMEs traditionally rely on loans, equity financing is “a cheaper form of financing” that not only fuels expansion but also allows others to share in the success of the business. “Sometimes it’s better to own 60 per cent of a $100 million business than 100 per cent of a $100,000 business,” he said.
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The IGM is part of the wider IGM200 initiative, a national programme aimed at supporting 200 SMEs with training, mentorship, and access to equity financing. The initiative is backed by the Ministry of Energy and Business, the BSE, and the Small Business Association, with technical assistance from the Caribbean Development Bank and other partners.
Professor Dermot Cahill, research and policy director at UK-based consultancy HelpUsTrade Ltd, added that raising awareness is key. “Our objective is to get at least 200 companies across retail, leisure, manufacturing, services, agriculture, and maritime engaged in the process. Those most suitable will receive mentorship, advice, and support as they prepare for listing,” he explained.
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Both officials pointed to the success of Jamaica’s junior stock market, which has raised more than US$126 million, supported 41,000 jobs, and created 48 new companies since its launch in 2009. They believe Barbados can achieve similar success, though with incentives tailored to its market rather than Jamaica’s large tax breaks.
Yarde stressed that concerns about losing control are often misplaced. As long as a business owner retains a majority stake, they remain in control. “All you’re doing is opening the door for others to participate in your business, helping it grow with their capital,” he said.
He concluded that a vibrant junior market could deliver broad benefits—more jobs, stronger tax revenues, and a thriving SME sector. “At the end of the day, everyone would benefit from a growing and thriving Innovation and Growth Market,” he said.
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