BlueWave Montego Bay

Despite the robust tourism sector, local residents continue to face socio-economic challenges, including poverty, crime, and income inequality. The Jamaica Survey of Living Conditions (2019) revealed that three out of every five households in Jamaica reported their main source of income as insufficient to meet basic needs (Planning Institute of Jamaica, JSLC, 2019). Further, the World Bank Inequality Database highlighted that in 2021, the wealthiest 10% of Jamaicans earned 53.3% of national income, while the poorest 50% earned just 9.3%.

To address these disparities, the development of micro, small, and medium-sized enterprises (MSMEs) and entrepreneurship is increasingly seen as a key driver for reducing income inequality and fostering sustainable economic development in Jamaica^. The rising influx of tourists has led to growing demand for goods, services, and activities that cater to the tourism industry. Yet, significant revenue leakage persists, often due to local businesses being unable to meet the industry’s standards and demands. Strengthening local entrepreneurship can reduce this leakage and boost job creation within the tourism sector.

Currently, MSMEs account for approximately 80% of jobs in Jamaica’s broader economy, making critical contributions to GDP, employment, poverty reduction, female empowerment, and social stability (The Ministry of Industry, Investment and Commerce). Despite their importance, many MSMEs face numerous constraints that inhibit their ability to scale and thrive.

Key barriers include:

• Limited Access to Financing: Traditional banks often view MSMEs as high-risk, leading to restricted access to loans and credit. While more financing programmes are becoming available, many MSMEs and startups lack the capacity to meet the requirements for accessing them.
• Limited Technical, Human, and Institutional Capacity: The tech infrastructure and entrepreneurial support systems in Montego Bay remain relatively underdeveloped, particularly in the areas of co-working spaces, incubators, and accelerators necessary for startup growth. 
• Inadequate Entrepreneurial Skills and Education: There is a pressing need for more entrepreneurship and innovation programmes to equip individuals with the skills required to start and run successful businesses and to grow existing businesses.
• High Levels of Informality: Complex regulatory processes, including business registration, tax compliance, and permitting, often deter formalization. Additionally, the costs associated with these requirements can be prohibitive, particularly for small and micro businesses, resulting in high levels of informality.