The challenges and opportunities for small businesses in Montserrat are influenced by various factors. The volcanic activity has had a significant impact on the economy, leading to the destruction of arable land, crops and fishing areas – as well as – the closure of airports and seaports, resulting in a decline in economic activity and the loss of businesses, particularly in the tourist industry.
The small size of the banking sector in Montserrat and other Caribbean countries often results in high operating costs, as many banks focus primarily on their home markets and are too small to realize economies of scale.
High ratios of nonperforming loans – particularly in small countries like Montserrat – can be attributed to undiversified economies, delays in judicial processes, and inefficient registries for companies and properties
This has created challenges for small businesses, including unclear regulations, limited access to information and support and the need for restructuring to rebalance the economy. However, there are also opportunities for small businesses, such as the potential for growth in niche tourism opportunities, including volcano-based tourism and the need for a cultural shift to nurture private enterprise and new start firms.
Despite the challenges, there is a willingness among private sector businesses to accept risks and operate in Montserrat, indicating potential for further support and growth. The government and stakeholders recognize the need to create a business-friendly environment and provide incentives for new businesses to establish in Montserrat, which could contribute to the growth of small enterprises and the overall economy.
Stakeholders in Montserrat have identified complex international regulations as a key constraint to the to the growth of the financial services sector. Small businesses in Montserrat’s financial services sector may face challenges in accessing information and support to help them establish and grow.
The government of Montserrat can address these challenges by providing incentives for new businesses to establish in Montserrat— ensuring transparency and accountability in the financial services sector and offering access to information and support for small businesses.
