The Classism of Entrepreneurship in Jamaica
Source: Jamaica Information Service

The Classism of Entrepreneurship in Jamaica

Entrepreneurship is a vital driver of economic growth and social mobility in Jamaica. In a 2021 National Expert Survey carried out by the Global Entrepreneurship Monitor , it was revealed that our social and cultural Norms also demonstrate?a strong future for entrepreneurship. The strong?entrepreneurial culture present in Jamaica means that future?generations will see it as a viable and respectable?option to pursue. It also means that Jamaicans?will be more receptive to entrepreneurial ventures as a possible career option.

However, institutionalized classism is presenting significant barriers to success, particularly for marginalized groups. In the context of Jamaican entrepreneurship, certain groups, such as women-led businesses, rural enterprises, and youth entrepreneurs, face unique challenges stemming from class-based biases. This article will explore the impact of classism on these groups and highlight strategies to foster inclusivity and empower these entrepreneurs in Jamaica's dynamic business landscape.

Women-Led Businesses

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Source: The Sunday Gleaner

New data from the Caribbean shows that high collateral requirements and interest rates are among the top barriers for women-owned and -led businesses looking for financing (Reigniting Women-led Businesses in the Caribbean With Better Access to Finance, 2022). Women in Jamaica face multifaceted challenges in entrepreneurship due to classism and gender biases. Women entrepreneurs often encounter difficulties in accessing funding, as financial institutions may exhibit gender and class-related biases in loan approvals and investment decisions.

Addressing this issue requires targeted initiatives that provide equitable access to capital, such as microfinance programs and venture capital funds focused on supporting women-led businesses. Scotiabank’s Women Initiative is one such microfinance program that is trying to bridge this gap for our women entrepreneurs. Scotiabank Jamaica has set aside $3 billion as loan financing for women entrepreneurs to address what the bank says is the under-representation of women in the business world.

Aside from limited access to capital, women may have limited access to influential networks and mentors, which are vital for business growth and opportunities. Initiatives that facilitate networking events, mentorship programs, and women-focused business organizations can help bridge this gap and empower women entrepreneurs. The Women's Entrepreneurship Network of the Caribbean (WENC), launched in 2012, represents the first regional network for women in business throughout the Caribbean. It aims to strengthen the voice, visibility, and viability of women-led Caribbean businesses. The network’s objective is to assist women business owners to grow their businesses by providing them access to information, networking, training, professional development, funding, and markets.?As more women enter the entrepreneurial landscape, crowding out their male counterparts, more networks like the WENC will be necessary to provide the opportunities and benefits accrued from female entrepreneurs collaborating with each other to grow their businesses and networking for success.

Challenging gender stereotypes and biases is also crucial to fostering a supportive environment for women entrepreneurs. Women have been operating micro businesses for decades in Jamaica. However, there is still a strong prevailing notion that a woman is defined by the extent to which she is a homemaker. Fortunately, with the advent of technology and increased access to education, this has resulted in more and more women breaking away from this stereotype. Education campaigns, awareness programs, and celebrating successful women entrepreneurs have contributed to changing societal perceptions and empowering more women to pursue entrepreneurial endeavors.

Rural Businesses

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Source: Research Program on Climate Change, Agriculture and Food Security

Entrepreneurship in rural Jamaica has played a pivotal role in economic development and poverty reduction. Despite this, rural entrepreneurs often face unique class-based challenges that prevent them from scaling their farming businesses to participate in the global marketplace.

With roughly 41% of the total land area or 440,000 hectares of agricultural land, there are tremendous opportunities for investors in Jamaica’s agriculture sector to serve domestic needs as well as export markets (Agribusiness Sector profile). Jamaica’s 154,000 small rural farmers occupy the majority of the country’s agricultural land area (440,000 hectares) and are the backbone of its agriculture sector.?However, these farmers lack access to basic infrastructure, reliable internet connectivity, transportation, and market linkages to fully capitalize on the investment potential of their farms. Initiatives that promote rural development, such as building infrastructure, enhancing transportation networks, and providing access to business development services, can empower rural entrepreneurs. Realizing its vast potential, the Jamaican government has been actively trying to plug the gaps in the sector through strategic collaborations with public and private actors to uplift the viability of the sector.

Since the onset of the pandemic, the Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF) has dedicated nearly $3 million to address the challenges posed by drought and the effects of COVID-19. Regarding the issue of drought, the government's main priority is to enhance irrigation infrastructure and adopt climate-smart strategies.

A 2019 collaboration between the Technical Centre for Agricultural and Rural Cooperation (CTA) and The Rural Agricultural Development Authority (RADA) has bolstered the ability of local farmers to withstand climate challenges. This has been achieved through the introduction of an early warning and climate information system. As a result, numerous farmers now have the privilege of receiving up-to-date information, personalized weather forecasts, and pertinent guidance via SMS and smartphone applications. This valuable data is made available to them three months ahead of climate-related events.

Rural businesses also encounter difficulties in accessing financial services and business support programs. Tailored financial products, microcredit schemes, and training programs specifically designed for rural entrepreneurs can enhance their access to capital and knowledge resources. Jamaican farmers actually have their own back i.e. the National People’s Co-operative Bank of Jamaica Limited (NPCB) which has been in operation since 1905. It is the only ‘community bank’ for rural agricultural and community development in Jamaica. The Bank provides a range of services to its members/clients including savings and loan facilities to the micro, small, and medium-sized enterprises (MSMEs) in the Agriculture sector. Despite the presence of the NPCB, rural businesses still cite access to capital as a primary hindrance to business growth. This could be due to poor financial management systems on the farmers' part that are preventing them from accessing opportunities for financing.

Along with limited access to capital, rural businesses also struggle with limited access to markets to reach broader markets due to location and limited exposure. Some efforts over the years from various market actors to alleviate this included creating and maintaining platforms to showcase rural products such as the Denbigh Agricultural, Industrial, and Food Show; facilitating partnerships with urban enterprises such as the partnership in 2019 between Red Stripe Jamaica and Cassava Farmers to expand its local supplier network; and supporting e-commerce and digital marketing initiatives that can help expand market opportunities for rural entrepreneurs such as Farmlnkr which is a local startup that offers fresh produce from their network of farmers via direct sales for local buyers and direct sales for exports.

Youth Entrepreneurs

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Source: Junior Achievement Jamaica

Youth entrepreneurship is vital for Jamaica's future economic growth. Due to limited job prospects in Jamaica, many young people are compelled to seek ways to generate income on their own. Despite the establishment of various organizations aimed at supporting business growth, a significant number of young entrepreneurs continue to face difficulties in transforming their ideas into lucrative ventures. Regrettably, a considerable percentage of these aspiring entrepreneurs will not achieve success in their endeavors if these difficulties are not addressed.

Providing quality entrepreneurship education, training, and mentorship programs to young people can equip them with the necessary knowledge and skills for business success. Collaborations between educational institutions, government agencies, and the private sector can foster entrepreneurial ecosystems that support youth entrepreneurship. Examples of successful collaborations over the years include Vincent HoSang UWI Venture Competition, The National Business model competition, and the Junior Achiever's JA BizTown initiative. These efforts, though commendable, are not enough to impact the majority of young entrepreneurs who need access to training and mentorship programs.

Young entrepreneurs also struggle to access capital due to limited credit history and collateral. Young people normally have limited participation in the financial markets, besides modest savings which would make them ineligible for traditional financing products in the marketplace. They are also among the poorest groups of individuals along the asset ownership spectrum, therefore their capacity to collateralize loans is also limited. Strategies to resolve these challenges might include establishing youth-focused loan programs such as the Jamaica Youth Business Trust program and setting up Angel investor networks and venture capital funds that can help bridge the financing gap and provide essential resources to young entrepreneurs. The latter strategy especially has the potential to create an explosive impact on the youth entrepreneurship landscape.

In conclusion, entrepreneurship in Jamaica holds immense potential for economic growth and social advancement. The country's strong entrepreneurial culture ensures that future generations perceive entrepreneurship as a viable and respectable career path. However, institutionalized classism poses significant obstacles, particularly for marginalized groups such as women-led businesses, rural enterprises, and youth entrepreneurs.

Women entrepreneurs face challenges in accessing financing due to gender and class-related biases. Initiatives like microfinance programs and venture capital funds tailored to support women-led businesses can address this issue. Enhancing access to influential networks and mentorship opportunities is also crucial for empowering women entrepreneurs.

Rural entrepreneurs struggle with limited access to infrastructure, market linkages, and financial services. Building infrastructure, improving transportation networks, and providing tailored financial products and training programs can empower rural businesses and enable them to tap into their investment potential.

Youth entrepreneurs face difficulties in transforming their ideas into successful ventures. Quality entrepreneurship education, training, and mentorship programs are essential to equip young entrepreneurs with the necessary skills and knowledge. Establishing youth-focused loan programs, angel investor networks, and venture capital funds can address the challenge of limited access to capital.

To foster a supportive environment for entrepreneurship in Jamaica, it is vital to challenge gender stereotypes, address class-based biases, and celebrate the successes of entrepreneurs from all backgrounds. Collaborations between educational institutions, government agencies, and the private sector are essential in creating robust entrepreneurial ecosystems that support and empower entrepreneurs.

By addressing these barriers and implementing inclusive strategies, Jamaica can unlock the full potential of its entrepreneurial talent, driving economic growth and social mobility across the nation.

? Gerbry, 2023

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Germaine Bryan is an entrepreneur, trainer, and business development strategist with over five years of experience leading, advising, and coaching micro, small, and medium-sized businesses in the Jamaican MSME sector. Germaine is a skilled tactician in strategic business planning and has helped hundreds of entrepreneurs optimize their value proposition to realize exponential growth in revenues and customer acquisition. Germaine is a former Business Development Adviser with the?Jamaica Business Development Corporation (JBDC)?and Adjunct Lecturer of Entrepreneurship at the?Mona School of Business and Management. For enquires. please [email protected].




Cameka Ruth Taylor

Jamaican Authorpreneurship Specialist ~ Publishing Consultant ~ CEO of BambuSparks ~ Author of "Authorpreneur Secret$?"

2 个月

I appreciate this article. Very insightful.

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Tishauna . Indomitable . Mullings, JP., Msc (hons)

Development Practitioner ~ Social Entrepreneur ~ Project Manager ~ Event Host ~Chevening Scholar

10 个月

This article resonates on so many levels. You are a hero in the sector; doing work that is shaping the ecosystem. I am using these revelations to frame a programme. Lets chat!

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Karen Y. Johns

Nonprofit CEO/ Caribbean Connector l Speaker

1 年

Thanks for shedding a light on this Germaine A. Bryan . Sadly this a global problem but still an opportunity for Jamaica to lead the way with a local solution. Look forward to connecting and possibly collaborating on some solutions as I look to do funding for women in rural Jamaica. Will circle back so we can maybe connect when I am working remotely from Jamaica in August.

Rosemary Campbell-Stephens (We/Us)

Heart led | Leadership | Speaker | Author | Teacher | Global Majority | Advocate | Captive of Hope

1 年

Germaine A. Bryan this is a smashing article on so many levels and as the universe would have it, timely; thank you. As a woman living in a rural part of Jamaica, I count several of these female entrepreneurs among my circle of friends, and they are engaged in all kinds of business, it would be good to have a conversation.

Abimbola Oliyide.(MBA, MA)

Spirit Mastery for Burntout Leaders to Transform Chaos into Clarity, Purpose,& Balance through holistic coaching | Creator of the Life Navigation Blueprint | Executive Leadership Coach | Women & Youths Advocate | Speaker

1 年

Firstly, I love the picture, so rich, so colourful, and so woman. Secondly, this is well articulated, and shows that marginalization of women is global and comes in different forms. But like you said education and technology is paving way for better inclusion for women in business. To this end I truly believe the future is for the female.

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