Trinidad and Tobago has approximately 20,000 to 25,000 SMEs, representing 85 per cent of registered businesses.
Collectively, they contribute more than 30 per cent to GDP.
SMEs are major job creators and play a crucial role in fostering economic development.
They drive innovation and create a more inclusive and resilient economy.
The TT Chamber’s Trade and Business Development Unit features all you need to know about SMEs in TT.
1. Defining SMEs in TT
Within the rich tapestry of the small and medium-sized enterprises (SMEs) sector in TT, there is a spectrum of business sizes, ranging from sole proprietorships to medium-sized enterprises.
Understanding the breakdown of SMEs based on size categories accentuates the diversity and complexity inherent in the sector.
Recognising the unique characteristics and challenges faced by businesses of varying sizes is paramount to fostering inclusivity, promoting equitable growth and tailoring support mechanisms to meet the specific needs of each segment.
According to the Central Statistical Office (CSO), SMEs in TT meet the following definitions:
• Micro-enterprises have one to five employees and a turnover of up to $1,000,000.
• Small enterprises have six to 25 employees and a sales turnover of up to $8,000,000.
• Medium enterprises have a complement of 26 to 50 employees and a sales turnover of up to $10,000,000.
2. What is the number of SMEs operating locally?
TT has approximately 20,000 to 25,000 SMEs, representing roughly 85 per cent of all registered businesses.
The growth of SMEs in TT has increased over the past five years.
[caption id="attachment_1155146" align="alignnone" width="546"] A table showing the number of SMEs operating in TT according to the economic sector. -[/caption]
This can be attributed to various factors, including demand, covid19 government support initiatives, a burgeoning entrepreneurial spirit and an environment conducive to innovation and business development.
The proliferation of SMEs fosters economic diversity and plays a pivotal role in job creation, market expansion and overall economic advancement.
In particular, the covid19 pandemic significantly impacted SME growth in TT. However, businesses and governments have taken steps to support adaptation to new working conditions, including re-designing workspaces, adopting new technology-enabled processes and implementing safety measures to comply with public health requirements.
3. Distribution of SMEs in TT by industry
An analysis of the distribution of SMEs across various industries unveils intriguing patterns in TT.
The concentration of SMEs in specific areas and industries sheds light on the distinct economic strengths and opportunities.
The prevalence of SMEs in the wholesale and retail trade, repair of motor vehicles and motorcycles, accommodation and food service activities, and construction industries in TT can be attributed to the factors of market demand, low barriers to entry, growth in tourism, supportive government policies and the e
