Why an ecosystem for services

Micro and Small businesses matter

By Vashti Guyadeen
CEO, Trinidad and Tobago Coalition
of Services Industries

Commemorating World Micro and Small Business Day on June 27 presented an opportunity to focus on sharing valuable information and experiences that can benefit potential and existing entrepreneurs.

One crucial aspect for the growth of the services sector, which employs over 85 per cent of the labour force in Trinidad and Tobago, is the development of an enabling environment for services exporters to thrive.

Vashti Guyadeen

However, several challenges hinder the expansion of services exports including the lack of disaggregated data, insufficient information for export promotion agencies, and limited platforms for showcasing service providers’ work.

To address these challenges, the Trinidad and Tobago Coalition of Services Industries (TTCSI)’s National Services Exporters Portal was launched in September 2022, providing a platform to track the performance of registered firms.

Over the past three years, the TTCSI highlighted sectors with high export potential including Business and Events Tourism, Business and Professional Services, Energy Services, and ICT Services (including Animation).

Each sector offers significant opportunities for growth and global market share. The question begged to be asked is what ecosystem must be established to accelerate the growth of services Micro, Small and Medium-sized Enterprises (MSMEs) in the country?

Secondly, why does this matter? To shed some light on why it matters, let’s assess the global value of some key sub-sectors.

The Business and Professional Services market is projected to reach US$7,063.9 million by 2025, with estimations of reaching US$9,371.1 million by 2030.

With a pool of talented professionals, capturing even a small percentage of this market could yield substantial benefits. Similarly, the global Energy-as-a-Service Market is expected to grow from US$57.6 billion in 2020 to US$106.6 billion by 2026, presenting opportunities for local firms to gain traction.

In the Information and Communications Technology (ICT) sector, worldwide spending reached US$4.3 trillion in 2020, with significant investments in hardware, software, IT services, and telecommunications.

The animation services subsector, valued at USD$391 million in 2022, offers both a global service export opportunity and employment prospects for the local youth. Proper institutional support is crucial to realising the potential of this resilient industry.

The events industry, valued at US$1,135.4 billion in 2019, is projected to reach US$1,552.9 billion by 2028. Developing Cluster Development Plans for Business and Events Tourism and Sports Tourism can further harness this market’s potential.

To capture two per cent of each global market share by 2026, strategic steps are critical. This includes determining the required institutional support, strengthening the TTCSI to collaborate with key players, ensuring sustainability for firms in the Gateway to Trade programme, and defining the roles of support agencies.

By leveraging research, market intelligence, and a comprehensive strategy, Trinidad and Tobago can tap into the immense potential of these sectors, diversify the economy, and position itself as a competitive player in the global services marketplace.

Image by wendy julianto from Pixabay