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Strategies for the development of agro-processing for micro, small and medium enterprises (MSMEs) in CARICOM countries of Belize and Trinidad

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Abstract

Micro, small and medium-sized enterprises (MSMEs) in the agro and food processing industries in the Caribbean Community (CARICOM) face challenges such as a lack of knowledge and skills to launch quality products which hinder their exponential growth. The study objectives were to ascertain the most prevalent issues facing an intentional pool of MSMEs representing agro-processors, inclusive of wholesalers, retailers, restaurateurs, and tourism entrepreneurs in Belize and agro-processors in Trinidad. The study was conducted via focus group stakeholder meetings and questionnaire-based surveys. A SWOT analysis was conducted, and strategies were evaluated with input from government agencies. While MSMEs from both countries seemed proficient in marketing and equipment use, there was a significant gap (p < 0.05) in education, exporting opportunities, funding, and food testing along with MSMEs access to supermarkets, retail, institutions, restaurants and foreign markets. There was a strong positive relationship (R2 = 0.988) between the number of employees and years in business. From the data, agricultural extension and education; research and development; access to exporting opportunities; food testing laboratory services and infrastructure improvement are needed to assist these entrepreneurs. The value of this study is the interrelation and comparison of several key factors affecting MSMEs in these two CARICOM countries which can influence agro-processing and other entrepreneurial activity such that MSMEs can work synergistically, promote sustainable production and be more competitive on a regional and global scale. It is anticipated that this research can guide policymaking for MSMEs in Belize and Trinidad and other CARICOM countries and improve organizational performance. ©2022 Blue Pen Journals Ltd.
IJFR 9 (2022) 1-18 ISSN 2056-9734
Strategies for the development of agro-processing for
micro, small and medium enterprises (MSMEs) in
CARICOM countries of Belize and Trinidad
doi.org/10.33500/
ijfr.2022.09.001
Rohanie Maharaj1*, Farrah Mathura1 and Sattie Darsoo2
1Food Science and Technology Unit, Department of Chemical Engineering, The University of the West Indies,
St. Augustine, Trinidad.
2HR Professional, #2 Hanover Road, Brampton, Ontario, Canada, L6S 4H9.
Article History
ABSTRACT
Received 19 November, 2022
Received in revised form 12
December, 2022
Accepted 14 December, 2022
Keywords:
Agro-processers,
Entrepreneurship,
MSME;
Caribbean Community,
Food security.
Article Type:
Full Length Research Article
Micro, small and medium-sized enterprises (MSMEs) in the agro and food
processing industries in the Caribbean Community (CARICOM) face challenges
such as a lack of knowledge and skills to launch quality products which hinder
their exponential growth. The study objectives were to ascertain the most
prevalent issues facing an intentional pool of MSMEs representing agro-
processors, inclusive of wholesalers, retailers, restaurateurs, and tourism
entrepreneurs in Belize and agro-processors in Trinidad. The study was
conducted via focus group stakeholder meetings and questionnaire-based
surveys. A SWOT analysis was conducted, and strategies were evaluated with
input from government agencies. While MSMEs from both countries seemed
proficient in marketing and equipment use, there was a significant gap (p < 0.05)
in education, exporting opportunities, funding, and food testing along with MSMEs
access to supermarkets, retail, institutions, restaurants and foreign markets.
There was a strong positive relationship (R2 = 0.988) between the number of
employees and years in business. From the data, agricultural extension and
education; research and development; access to exporting opportunities; food
testing laboratory services and infrastructure improvement are needed to assist
these entrepreneurs. The value of this study is the interrelation and comparison
of several key factors affecting MSMEs in these two CARICOM countries which
can influence agro-processing and other entrepreneurial activity such that MSMEs
can work synergistically, promote sustainable production and be more
competitive on a regional and global scale. It is anticipated that this research can
guide policymaking for MSMEs in Belize and Trinidad and other CARICOM
countries and improve organizational performance.
©2022 Blue Pen Journals Ltd. All rights reserved
INTRODUCTION
Entrepreneurship is an essential catalyst for economic
growth, especially with dwindling non-renewable
resources which cannot guarantee long-term, sustainable
economic growth (Narine et al., 2014). Agro-processing
*Corresponding author. E-mail: rohanie.maharaj@sta.uwi.edu.
has long been a means of livelihood for lower-income
people and smallholders as it alleviates poverty in rural
areas, and generates significant economic growth
(Manasoe et al., 2021) but strategies are necessary to
ensure that these people are not exploited (Guidi, 2011).
At every level of the food value chain, there exist diverse
opportunities for entrepreneurship (Kuckertz et al., 2019).
Figure 1 shows a typical food value chain, the key
Int. J. Food. Res. 2
Figure 1. A typical food value chain.
stakeholders involved and the different levels at which
semi-processed or processed goods can reach the
consumer.
The agro-processing value chain is the entire range of
activities required to bring a product from the initial input-
supply stage, through various phases of production, to its
final market destination. Value chain assessments are
needed at every step to determine economic potential,
development benefits and feasibility of sustainable
strategies (Anderson, 2009). Strengthening the food value
chain is an important pathway to alleviate poverty.
Therefore, it is worthwhile to invest in expanding the
agricultural sector which is linked to several agro-
processing and food industries to ensure food security.
A definition of food security is when all individuals of all
socioeconomic statuses, at all times, have physical, social
and economic access to sufficient, safe and nutritious food
that meets their food preferences and dietary needs for an
active and healthy life (FAO, 2021). As science,
technology and innovation are growing rapidly, the quality
and variety of products at each step of the food value chain
increases. Consequently, customers expect better quality,
lower prices, reliability, automation, availability of products
outside of their seasons and general health and safety
(Crawford, 1997). Unequal income distribution in the food
value chain particularly with high-earned restaurants
having the biggest markup on food and importing the same
produce from foreign entities such as Latin America and
the United States of America (USA) threatens small farmer
development (Banson et al., 2014). The same holds true
for entrepreneurs in the Caribbean region. In the
Caribbean, the words ‘entrepreneurship’ and small and
micro enterprises’ are constantly used interchangeably
without any true distinction being made and this can
sometimes lead to confusion in the development of the
appropriate policies and solutions (Baptiste-Cornelis,
RAW MATERIALS
Seeds
Animals
Land
Chemicals
Feed
Water
FARMERS &
FISHERIES
Crops
Meats
Dairy
Eggs
Fish
PROCESSORS &
MANUFACTURERS
Packaged
Nonperishable
foods
Packaged
Perishable foods
FOOD COMPANIES
Cooked
food
Baked
goods
Snacks
Beverages
RETAILERS & EXPORTERS
Cooked food
Fresh produce
Dry goods
Beverages
Specialty items
Maharaj et al. 3
2010).
Many Caribbean people depend on agriculture and the
spin-off industries for their livelihood. MSMEs face several
obstacles in the growth of their business such as lack of
education, training, resources, and marketing and these
are compounded in many Caribbean countries. The
performance of MSMEs in the food value chain has not
improved significantly over the years and many operate in
an economy with little integration of their operations and
weak linkages to the rest of the supply chain. As a result,
MSMEs in the Caribbean have a business discontinuance
rate of 9.6% (Blake, 2018). Many MSMEs in their early
stages comprise only the owner who produces and
manages business affairs. This can create an
overwhelming amount of work which can hinder growth
and may not be competitive with the demand. Outsourcing
simple tasks can allocate labour for more technical tasks
and access to technologically advanced equipment can
boost production and increase scalability.
Developing the agro-processing sector in CARICOM has
the potential to generate employment, boost income for
families and create wealth for Caribbean countries. In
addition to generating employment through farming, other
activities in the value chain such as processing, transport,
packaging, and marketing lead to employment creation.
CARICOM countries are blessed with fertile land and a
suitable climate for agriculture. In several CARICOM
countries that are producers of key commodities such as
sugar, citrus, bananas, meat and marine products,
postharvest technologies including harvesting and
handling, processing, and storage are often quite
inadequate at the country level.
Although government-assisted organizations such as
The National Agricultural Marketing and Development
Corporation (NAMDEVCO) in Trinidad and Tobago,
Jamaica Agricultural Marketing Information System
(JAMIS), Barbados Agricultural Development and
Marketing Corporation (BADMC), Belize Marketing and
Development Corporation (BMDC) and Central Farm
Agro-processing Unit (CFAU) provide support and
information, however many MSMEs, do not utilize these
opportunities. On the other hand, the capacity of the
government to aid many MSMEs is limited. Mthombeni et
al. (2022) suggested that more experienced farmers can
train new persons in agro-processing to help bridge the
gap needed for training. In the Caribbean, there are not
many private investors in small businesses or startups
compared to developed nations. Many self-employed
persons have a steady job or resort to taking loans with
high interest rates to supplement costs for inputs in their
alternative business. The socioeconomic climate in the
Caribbean may prevent some entrepreneurs from
reaching their full potential and being able to grow outside
of their country. A glut of similar businesses such as
bakeries and cafes get their customers by convenience
and being located close to their customers. Hence,
difficulties in expanding in the home country would also
translate into difficulties with exporting products. Niche
markets are a valuable option for Caribbean MSMEs to
launch specialty products overseas.
The increase in online digital marketing and social media
have allowed customers to connect with entrepreneurs,
however, several farmers, agro-processors and other
MSMEs do not use these platforms for marketing their
produce. Narine et al. (2019) found that Trinidad and
Tobago farmers were open and willing to use information
communication technologies (ICT) in their practice.
While many entrepreneurs emerged during the
Coronavirus 2019 (COVID-19) pandemic after many job
layoffs, it also forced the closure of many small businesses
either for extended time periods or permanently due to
insufficient income to support profitable production
(Apostolopoulos et al., 2021). Large enterprises were able
to survive the economic downfall as they were able to
adapt and sell necessities which enabled them to be
considered essential services. Several MSMEs, especially
in the retail and food industries, in the Caribbean did not
have the resources to adapt (Ahmad et al., 2021).
Agriculture and food production are one of the most
important contributors to a country’s Gross Domestic
Product (GDP) and employment (Holtzman et al., 1997).
The World Bank estimates between 80-90% of all food
consumed in the Caribbean region comes from abroad,
and only three Caribbean countries (Guyana, Belize, and
Haiti) produce more than 50% of their own food (Mendes-
Franco, 2022). In fact, CARICOM is committed to reducing
its US $5 billion annual food import bill by 25% in the next
five years as it implements food and nutrition programmes
(Nurse, 2020).
Agriculture and food processing play an important role in
the Belizean economy. According to the World Bank
(2018), the agriculture and the food sectors are the largest
contributors to GDP at 15% and to the labour force at 6-
10%. Food and agriculture account for more than 80% of
Belize’s exports (World Bank, 2018). The agriculture
sector in Belize is characterized by three main sectors: (i)
a well-organized traditional export sector for sugar,
banana, citrus, papayas and marine products, (ii) a more
traditional, small-scale farm sector, producing mainly for
local consumption, and supplying raw material inputs for
agro-processing and (iii) a well-integrated large-scale
commercial sector operated mainly by the Mennonites, a
religious grouping (World Bank, 2018).
Trinidad and Tobago’s economic growth has been
fueled primarily by its energy sector and is considered one
of the richest countries in the Caribbean region in terms of
GDP per capita. However, in recent times, unemployment
has been on the rise and there are several persons with
tertiary education qualifications that cannot find jobs in the
government or private sector. Narine et al. (2017) found
varying levels of reluctance to pursue degrees at the
undergraduate and postgraduate levels in Trinidad due to
the perceived benefits not being rewarding enough.
Although the agricultural sector contributes only 0.5% to
Trinidad and Tobago’s GDP, it accounts for over 4% of
employment and is important for the diversification of the
economy (Shik et al., 2018). Trinidad and Tobago’s
economy has been facing difficulties due to the slowdown
in the petroleum sub-sector, making economic
diversification even more pressing and with a growing
annual food import bill of about US$590 million (CSO,
2021). While the agro-processing sector currently relies
mostly on imported raw materials, its development opens
opportunities for agriculture by expanding demand for the
farming sector’s production (Shik et al., 2018).
MSMEs can contribute to the sustainable development
goals (SDG) by innovating new business models to
eradicate poverty, increasing education, providing jobs to
women to close the gender gap, increasing productivity of
smallholder farmers to end hunger, building better
infrastructure and promoting sustainable production and
economic growth (UNDESA, 2020).
This study is intended to provide recommendations for
MSMEs in Belize and Trinidad which have not been
previously reported. There are few Caribbean studies on
MSMEs in the agro-processing sector but there exist
studies on MSMEs in other developing countries. A study
by Kigozi et al. (2021) on 40 selected agro-processing
MSMEs in Uganda focused on product optimization, raw
material and equipment procurement and infrastructure
among other factors and found only 23.7% of agro-
processing MSMEs understood the standards and 74% of
the agro-processing MSMEs were compliant in declaring
the raw materials on the product label which resulted in
delays in certification and hindered expansion and
exportation. In Nigeria, a regression model factoring
innovativeness, risk-taking, proactiveness and competitive
aggressiveness only accounted for about half of the
performance of agro-processing SMEs (Nwankwo et al.,
2022). Low product competitiveness, limited infrastructure
and food technology were identified as key issues facing
MSMEs in Indonesia (Sulistyono et al., 2022).
In Vietnam, Philippines and Peru, several persons were
found to be below the poverty line and consequentially,
several women were informally employed. Additionally, up
to 76% of persons who wanted to start a business
particularly in the food industry needed assistance and it
was recommended improvement in outlining of
opportunities and agro-industrialization strategies,
infrastructure, financing and technology and cooperation
among economies (Asia Pacific Foundation of Canada,
2022). A study done on MSMEs in the Caribbean and Latin
America found that about 30% of MSMEs were financially
constrained based on data from the World Bank with a
major reliance on banks (Herrera, 2020). Private financing
is not often an option for startup firms or small enterprises
since they may not qualify for loans.
In this study, the inputs of MSME’s businesses,
Int. J. Food. Res. 4
government assistance, marketing, food testing and
training were assessed to identify strengths and shortfalls
in the agro-processing and production industries to better
assist Caribbean MSMEs. While governments also
increased expenditure due to COVID-19, this on the other
hand limited their capacity to provide grants to assist seed
businesses. Entrepreneurship to a limited extent has been
examined in some Caribbean countries such as Jamaica,
Barbados, Trinidad and Tobago and Guyana in
descending order of productivity of small businesses
(Baptiste-Cornelis, 2010). There is also a deficiency of
research on MSMEs in smaller Caribbean countries like
Belize and key factors that affect agro-processing to guide
policymaking and support systems. Hence this study was
undertaken using surveys to determine the most prevalent
issues facing an intentional pool of MSMEs in Belize and
Trinidad who manufacture and process a variety of
products and consequently evaluate using the data and
strengths, weaknesses, opportunities, and threats
(SWOT) analysis, strategies to strengthen their
entrepreneurial activities. Since there is a dearth of
information on MSMEs in the agro-processing and food
sectors in the Caribbean, it is anticipated that this study
which is the first in-depth comparison of prevalent issues
facing agro-processors MSMEs in Belize and Trinidad, will
bridge the knowledge gap between the policymakers and
the MSMEs and bring both entities closer to improve
business conditions such that MSMEs can work
synergistically and be more competitive on a regional and
global scale.
MATERIALS AND METHODS
The methodology for the formulation of strategies for the
development of the agro-processing sector for MSMEs in
Belize and Trinidad consisted of two main phases. Phase
1 consisted of a one-day stakeholder (agro-processors,
wholesalers, retailers, restauranteurs, tourism
representatives and government service providers) focus
group meeting that was convened to gather data and
information on the status of agro-processing activities in
Belize. This was followed up with a similar meeting in
Trinidad but only with agro-processors. In the second
phase, to properly assess the status of these MSMEs,
questionnaire-based surveys were then disseminated to
38 MSMEs participants (n = 38) in the age range 18 to 71
who represented businesses involved in agro-processing,
food production and food services in Belize and Trinidad.
These surveys were administered to ascertain the urgent
needs of MSMEs to improve entrepreneurial activities.
These 38 MSMEs comprised agro-processors (16);
wholesalers (6); retailers (9), restaurateurs (6) and a
specialty shop/souvenir shop owner (1). In Trinidad,
surveys were disseminated to MSMEs representing a
range of service providers of baked goods, fresh produce,
Maharaj et al. 5
restaurant food, desserts, and teas. In Belize, surveys
were administered to MSMEs providers of key products
from chicken and eggs, fresh fruit and vegetable produce
including honey and cocoa to bakery products, restaurant
food, a tourism store and included two government
agencies that supported MSMEs. There were 3 survey
types: government agencies (Belize), agro-processors/
food manufacturers (Belize and Trinidad) and other
MSMEs (Belize) comprising a wide range of business
service providers such as hotels, restaurants,
supermarkets etc. The surveys for agro-processors/food
manufacturers comprised 66 questions in 4 sections
(company information; production and marketing;
machinery/equipment/training/food testing and human
resources) while the other questionnaires comprised 45
questions in 3 sections (company information; souvenir
shops and hotels and restaurants), with some responses
to questions optional. The questionnaire aimed at
government agencies comprised 73 questions in 7
sections (general information; training; incentives; food
testing services; education; marketing and packaging and
labeling). Each of the surveys consisted of general
questions on demographics followed by questions to
determine specific needs to strengthen the food value
chain and entrepreneurial activities of the MSMEs. A
statement of confidentiality was presented at the beginning
of the questionnaire to assure participants of the strict
privacy of their responses and to comply with the
requirements of research ethics. All participants
volunteered to complete the questionnaires and were
contacted either face to face or via e-mail. No vulnerable
or potentially vulnerable participants were used. Written
responses were collected, and the data were tallied with
no information about the entrepreneurs’ identities being
disclosed or traceable. Thus, a mix of quantitative and
qualitative methods, such as the use of questionnaires and
focus group meetings, were preceded by background
research, comprising mainly desk research. A SWOT
analysis was conducted and strategies to improve MSMEs
entrepreneurial activities were evaluated with input from
government agencies.
The validity of the research findings was strengthened
by using multiple sources of evidence and data
triangulation. Quantitative data analysis was done using
Microsoft Excel. Statistical analyses were done using
SPSS (Statistical Package for the Social Sciences) version
29 and Microsoft Excel. The results were subjected to a
one-way ANOVA accompanied by Tukey post hoc test and
significant difference among means were established at p
< 0.05.
RESULTS
While most of the questionnaires were answered
completely, there were some questions that were left
unanswered. This could have been possibly due to the
number of questions as well as some questions, such as
those relating to demographics or business income range
were probably considered sensitive or some questions
were not applicable.
Demographics
There was a total of 38 MSMEs: 29 from Cayo (West
Belize), 3 from Orange Walk (North Belize) and 8 from
Trinidad (4 from East, 2 from North and 2 from South).
Apart from the 38 MSMEs there were 2 public agencies:
Belize Trade and Investment Development Service
(Beltraide) in Belize and the University of Belize in
Belmopan, West Belize. The 38 MSMEs comprised 16
agro-processers and the other 22 MSMEs were food
service providers: wholesalers (6); retailers (9);
restaurateurs (6), and a specialty shop/ souvenir shop
owner (1).
Overall, the male: female ratios of the agro-processors
were 8:8; wholesalers were 4:2; retailers, 1:8 and
souvenir shop owner 1:0. Figure 2a shows the
distribution in ages of the 38 MSMEs surveyed. Most
businesses (50%) were established over 9 years as
shown in Figure 2b. In Figure 2c, most establishments
(34%) had 0-3 employees with a higher proportion of the
retail businesses being female owned. There was a
statistical significance at p < 0.05 in the number of years
established and number of employees, suggesting
businesses with more employees also were established
for longer. There was a strong positive relationship (r2 =
0.98) between expansion of human resources and years
in business. The lower likelihood of expansion of female
led businesses may be hindered by socioeconomic
factors. Entrenched gender roles such as more males in
farming and agro-processing, more females in cooking
and more males in managerial positions has led to
gender imbalance in the industry which has not been
investigated further than number of women in these
industries (World Bank, 2011). The rationale behind this
might be due to females also having to focus on non-
economic goals such as balancing family life and work
and be less willing to make large, risky investments which
results in having smaller businesses and hinders growth
(Zampetakis et al., 2016).
Clientele
The MSMEs processed a wide variety of products and
most of them (82%) were interested in producing other
products as seen in Figure 3a. Many of the MSMEs were
interested in health products (Figure 3b) and the clientele
that the MSMEs served were also broad in scope with the
majority from the retail, restaurants, and wholesale
businesses as shown in Figure 3c. MSMEs were
Int. J. Food. Res. 6
Figure 2. MSMEs information on (a) age range, (b) age of establishment and (c) number of
employees at establishment.
interested in acquiring clientele from supermarkets,
foreign entities, and institutions. There was a significant
difference (p < 0.05) in the number of persons wanting to
access and able to access supermarkets, retail,
institutions, restaurants and foreign markets. This
suggests that these are key target areas for connecting
MSMEs.
MSMEs incomes ranged from 2,700 to 325,000 USD
annually. At least 75% of the MSMEs sold goods to the
domestic market while 5 MSMEs had access to foreign
markets and 2 MSMEs were able to access trade
agreements such as CARICOM, NAFTA and SICA. The
barriers to exportation and trade need to be addressed
by the government. Additionally, when businesses are
able to export their goods, they generate more revenue
so the cost per unit sold decreases which makes prices
more competitive with similar or parallel international
goods.
Inputs
The most popular raw material inputs were fruits and
vegetables, milk, sugar, eggs, flour, pectin, honey, butter,
and seasonings which are readily available in Caribbean
markets and important for food security. Other raw
materials used in manufacturing comprised: rennet,
cheese cultures, oats, coconut, crab, cocoa, peanuts,
corn, salt, ham, garlic, raisins, cheese, cohune, and
baking powder. The MSMEs produced a wide range of
products with the most popular being cakes, pastries,
pepper, honey, chocolate, oil, chicken, jam, granola, and
bread. Other diverse products included: bananas, pork,
mutton, yogurt, butter, cheese, dried fruit, condiments,
eggs, sweet peppers, cabbage, cilantro, hot peppers,
tortillas, chips, brownies, coffee, soursop, liquor, wine,
vinegar, pollen, crab, juice, peanut butter, propolis and
pollen. Figure 4a shows the inputs required by MSMEs
for manufacture of products, with ingredients and
packaging being the most necessary. Where MSMEs had
difficulty in obtaining inputs, the top three issues cited
were: lack of support, lack of training, and insufficient
funding by the government as shown in Figure 4b. Most
MSMEs (65%) had no difficulty in obtaining the raw
materials, but 35% had issues as seen in Figure 5a and
attributed this to high prices, packaging, and
transportation issues as well as shipping and delays.
There was a significant difference (p < 0.05) in the
Maharaj et al. 7
Figure 3. MSMEs (a) access to markets, (b) types of products and (c) clientele.
number of MSMEs who had access to raw materials
compared to those that did not. The sources of raw
material inputs were 45% domestic and 55% foreign as
seen in Figure 5b. There is a need for more financial
support and training to boost business activities among
MSMEs.
From the inputs of the restaurateurs surveyed, the
majority had access to only 20-40% local inputs which
showed an inability of some MSMEs to obtain their
products locally. There should be better linking of
wholesale and retail markets to increase local products
and it may be cheaper to order in bulk to reduce shipping
costs.
Table 1 describes the frequency of problems
encountered by restaurateurs who had issues with price
and packaging but shelf life and level of innovation with
products were lesser concerns. The main issue with
packaging was identified to be containment and less
frequent responses were poor quality, unattractiveness,
and expansiveness.
Solutions were proposed by MSMEs such as having
more lenient government regulations, reducing taxes,
Int. J. Food. Res. 8
Figure 4. (a) Inputs and (b) incentives required by MSMEs.
Maharaj et al. 9
Table 1. Frequency of problems encountered by Restaurateurs.
Problems faced by Restaurateurs
Yes
No
Shelf-life problems
2
5
Packaging problems
3
3
Problems with price
3
4
Innovation in products
3
4
Satisfactory level of innovation
3
4
Satisfactory level of feedback
6
0
Specialty products available
7
0
Satisfactory level of specialty products
2
1
Figure 5. (a) Raw materials availability and (b) their sources.
partnering with stakeholders, amending electricity issues,
decreasing prices, providing financial support, aiding
marketing, increasing training, and outsourcing
unavailable inputs. MSMEs faced several challenges,
and it would be important for government agencies to
provide this assistance to encourage entrepreneurship.
Foreign markets were desirable for increased profits and
for those seven MSMEs that were exporting, the conduit
was the private sector as opposed to the government.
MSMEs expressed a need to expand their businesses,
however expansion required a significant amount of
capital which might not be available to these
entrepreneurs.
Demands
Although not all MSMEs completed this section, however
on average more MSMEs (38%) as shown in Figure 6a
were able to meet the demand for their products which
was mainly from the domestic market (61%) as seen in
Figure 6b. There was a significant difference (p < 0.05) in
the number of MSMEs who had access to domestic
markets compared to foreign markets. In the domestic
market, the majority of MSMEs sold products in both
wholesale and retail outlets as shown in Figure 6c.
MSMEs who were able to meet the demand
accomplished this by expanding infrastructure and
workers, customer understanding, delivery, experience in
addition to adjusting to the season, coping with a small
population, and having the raw materials readily
available. For MSMEs unable to meet the demand (28%)
for their products, reasons were provided such as storage
limit, insufficient supply, insufficient machinery, and cost
constraints.
Feedback
All MSMEs surveyed received consumer feedback. Most
MSMEs (80%) received feedback from talking to
customers, followed by surveys or reviews (10%) and the
remaining MSMEs (10%) received feedback from
distributors or guidance by repeat purchases as shown in
Figure 7a. There was a significant difference (p < 0.05) in
the number of MSMEs who found marketing strategies
ineffective compared to those that did. Figure 7b shows
that “word of mouth” was the most popular market
research strategy despite other more effective or
analytical methods and may partially account for why
marketing strategies appeared to be not as effective
(60%) as shown in Figure 7c. This customer feedback
data can be used to enhance business and determine
demand and by conducting regular due diligence and
analysis of the changes in the market, may also benefit
business owners.
Int. J. Food. Res. 10
There was a significant difference (p < 0.05) in the
number of MSMEs who innovated often compared to
those that did not. Figure 8a showed that innovation was
popular among MSMEs (61%) and was mainly driven by
consumer feedback (37%) as shown in figure 8b. From
the questionnaires, all MSMEs except one agreed that
there were insufficient government incentives and
suggestions were postulated namely increasing training,
funding, tax exemptions, exporting opportunities and
assistance with packaging and marketing.
Food testing
Only three MSMEs utilized food testing of which one was
a public institution and two were private. Of the MSMEs
that answered the section pertaining to training and
qualifications, specifically the necessity of a degree in
Food Science and Technology for their profession, the
majority found it irrelevant or unnecessary (17 MSMEs)
citing that it was too expensive to pursue, or their job was
too basic, or it was not applicable to their profession. On
the other hand, several reasons for the acquisition of a
degree were outlined from the 20 MSMEs such as: to
enhance certification; to acquire knowledge to expand; to
develop the food production industry; to improve
products; to improve practices; to aid food security and to
increase employment and profits. With respect to the
necessity of a Food Technologist, 7 MSMEs responded
that a food technologist was beneficial citing reasons
such as improving the product (14%), developing new
materials (28%) and enforcing food safety (58%). The
attitudes of Caribbean MSMEs statistically (p < 0.05)
were not in favour of the necessity of a food related
degree and food testing.
Governmental agencies
Surveys were conducted with Beltraide in Belize and the
University of Belize. Beltraide provided support, training,
tax incentives, business proposals, raw materials and
access to machinery and equipment and development
but not food testing services, marketing and packaging
and labeling. Exporting was not their responsibility, but
Export Belize was cited as a government agency that
could have assisted. They were challenged by limited
resources and poor business plans provided by some
business owners. There was apparently a breakdown in
communication between these agencies and private
businesses which could be improved by better marketing
and advising as despite consistent outreach, there was
low turnout at training programs. It was found that
University of Belize provided research and development,
training, tax incentives, and policies but not food testing
services, marketing and packaging and labeling. They
Maharaj et al. 11
Figure 6. (a) MSMEs able meet their demand, (b) major markets for products and (c) domest ic market
Figure 5. (a) Raw materials availability and (b) their sources
Figure 6. (a) MSMEs able meet their demand, (b) major markets for products and (c) domestic
market
Int. J. Food. Res. 12
Figure 7. (a) Feedback and (b) marketing strategies used by the MSMEs and (c) their
effectiveness.
Figure 8. (a) Innovation frequency and (b) inspirations among MSMEs
Figure 7. (a) Feedback and (b) marketing strategies used by the MSMEs and (c) their effectiveness
Figure 8. (a) Innovation frequency and (b) inspirations among MSMEs
Maharaj et al. 13
also were deficient in resources but also did not have a
significant clientele, as Beltraide was cited to be
responsible for some of these tasks such as market
research. Several participants (85%) in the MSMEs
surveys did not employ the assistance offered by
agencies such as CFAU, BMDC and NAMDEVCO and
suggested better access to exporting opportunities, tax
exemptions, training, and support. Hence there appeared
to be a breakdown in information dissemination to
MSMEs. It can be suggested that upon business
registration, these avenues can be offered and
adequately advertised.
Perceptions between MSMEs in Trinidad and Belize
Table 2 outlines the similarities and differences MSMEs
in both Belize and Trinidad faced with respect to several
key issues such as market access, infrastructure and
equipment use, marketing strategies, qualifications and
training, export, government support and food testing.
DISCUSSION
The main challenges highlighted in this study were lack of
access to education, training, exporting opportunities,
food testing, tax exemptions and equipment. This
overlapped with another study done in Belmopan, Belize,
which found the main challenges to be insufficient
finances, high taxes and market competition (Thiagarajan
2019). Furthermore, another study found quality
measures such as planning, leadership, human resource
management, customer focus, supplier focus, information
and process management and quality assurance to be
critical success factors (Talib et al., 2012). All these
factors are linked and have feedback on other factors. The
nucleus of these factors is profit generated as financial
difficulty is affected to different extents by equipment to
mass produce, food testing to increase the chances of
exporting and outsourcing labour (Figure 9).
SWOT analysis
Table 3 summarizes the main findings from the surveys in
terms of their strengths, weaknesses, opportunities, and
threats (SWOT) faced by MSMEs in agro-processing.
Saputeri et al. (2022) also identified additional
opportunities of government and regional institutions to
empower MSMEs. Similar threats were identified
especially in terms of environmental issues. Additionally,
similar strengths and weaknesses were identified except
in Indonesia, certification was a strength.
While a larger sample size and persons from other
Caribbean islands could have concretized these trends, a
significant amount of information was gleaned to assist
MSMEs and government agencies with decision making.
These bodies are interconnected and must work together
to increase productivity and food security.
There were limitations of the study such as small sample
size, unequal demographic distribution and unanswered
questions which reduced the amount of data collected.
The questionnaires were able to trace entrepreneur name
to income level which discouraged some MSMEs from
answering this question unlike a blinded questionnaire for
example via an online forum.
MSMEs have great potential as drivers of economic
growth and employment creation (Baptiste-Cornelis,
2010). However, different strategies would be helpful to
realize their full potential to increase the country’s GDP.
Every MSME entrepreneur has unique needs and
deficiencies but by increasing the opportunities available
to them, some of the shortcomings can be overcome.
Agricultural education and extension are imperative to
helping agro-processors. In 2022 the Youth Agricultural
Shade House Project was launched in Trinidad and
Tobago in collaboration with the University of the West
Indies and the Ministry of Youth Development and
National Service to train agro-entrepreneurs with follow up
agricultural work opportunities (MYDNS, 2022). This was
modelled after a similar successful program in Guyana.
The following can be done to help enhance agricultural
and food security in both Belize and Trinidad:
Provide training to farmers in the use of equipment, use
of fertilizers, use of pesticides, crop production, and
compost making etc.
Encourage the use of modern technology to decrease
the cost of labour.
Encourage and facilitate contract farming.
Encourage farmers to become compliant in good
agricultural practices (GAP).
Provide incentives to agro-processors and farmers who
are registered.
Create a database of MSMEs as well as the products
they currently produce.
Strengthening research, development and innovation
capabilities of the government agencies will help with
keeping up with new global trends whilst creating new
trends. An example would be to enhance product
formulations for producing a more nutritious and safe food
product. Innovative products will create market
competition on a local and regional scale. To improve the
research, development and innovation capabilities of
government agencies, the following should be
implemented:
Expand the knowledge of the government agencies
employees.
Int. J. Food. Res. 14
Table 2. Perceptions on key issues faced by MSMEs in Belize and Trinidad.
Issue
Similarities
Differences
Market access
Lack of market information to support agro-
processors.
Inadequate value chain development.
All MSMEs from Trinidad wanted access to other
markets whereas some MSMEs from Belize who
were already were in high demand did not want
access to other markets.
Infrastructure and
use of Equipment
Limited and inadequate infrastructure
(transportation, electricity, irrigation,
networks) to support development of the agro
and food processing sectors.
High requirement of working capital.
All MSMEs from Trinidad were trained to use
their equipment while a few MSMEs from Belize
were not trained to use their equipment.
Marketing
Strategies
Used advertisements, point of sale display
and word of mouth as marketing strategies.
All MSMEs from Trinidad found that the current
marketing strategies were effective while there
were some in Belize that found them ineffective.
Qualifications
and Training
Lack of a skilled and knowledgeable labour
force.
Technical and knowledge gap related to
developing and enhancing small scale agro-
processors.
Remuneration in the sector is less attractive
for talent in comparison to contemporary
disciplines.
All MSMEs from Trinidad who responded to
Training Needs in the agro-processing
questionnaire found that a degree in Food
Science and Technology was unnecessary for
their business citing that they were holders of
other degrees and attaining another degree was
not helpful in their business. The cost to acquire
a degree in Food Science and Technology could
be a factor in terms of willingness to pursue this
degree to complement their business.
However, some MSMEs in Belize felt that a
degree might have been useful.
Figure 9. Process flow diagram showing the interlinkages between factors affecting MSMEs.
Maharaj et al. 15
Table 3. SWOT analysis of agro-processing for MSMEs.
Strengths
Weaknesses
Entrepreneurs utilize agro-processed goods
Diverse range of products produced
Entrepreneurs are versed in equipment use
Marketing strategies are effective
Innovation fueled by changing markets
Entrepreneurs in control of activities
Difficulty in sourcing some raw materials
locally
Food testing not common
Few tax exemptions
Insufficient support for growth
Financial challenges
Opportunities
Threats
Better agricultural infrastructure
Better packaging
Increased education
Tax exemptions for Good Agricultural Practices (GAP) and
Good Manufacturing Practices (GMP) compliant persons
Food testing by public sector
ICT incorporation to link entrepreneurs
Niche products can be exported
High startup risk
High maintenance costs
Negative effects on environment
threaten sustainability
Competing cheaper international products
preferred in recession
Crop losses
Recruit new personnel with the expertise in Food
Science and Technology.
Create new products using local commodities.
Advise agro-processors on how they can improve and
innovate their existing products.
Encourage innovation amongst agro-processor MSME
through government incentives.
The MSMEs currently supply the local market but
access to the regional and global markets will provide a
higher income.
Provide advice and training on how to access
international markets and provide guidance to MSMEs
on international packaging and labeling requirements to
enhance product quality and safety standards.
Export promotion services Participate in trade fairs for
target markets and products, create linkages to global
supply chains and export consortia.
Conduct primary and secondary market research to
identify new sales opportunities, new/current markets
for new value-added products, new export markets for
current agricultural commodities.
Provide tax exemptions to those MSMEs who are
compliant in Good Manufacturing Practice (GMP).
Review and amend policies and strategies for agro-
processing.
Review and amend incentive and regulatory framework.
Improved access to funding by facilitating loan support
from banks and investors.
Encourage entrepreneurship by the provision of
relevant business and advisory services.
Conduct feasibility studies for different products and
markets and develop bankable models.
Encourage public-private sector partnerships.
Develop awareness programmes on the standards and
requirements for market access.
Safe, quality food is dependent upon monitoring,
inspection, and testing. Many government agencies are
unable to carry out all laboratory testing on food products
to ensure they have met the standards and requirements
for the global and regional export market. The cost of
doing laboratory tests abroad is very high which deters the
MSMEs from carrying out tests on their food products.
Some ways in which to develop and improve laboratory
services are to:
o Create a database of the various type of foodborne
illnesses and foodborne pathogens associated with the
local commodities.
o Assess the technical capacity and equipment status of
the laboratories.
o Develop Standard Operating Procedures (SOPs).
o Recruit new competent staff and train existing ones to
conduct the various food tests.
o Provide concessions to MSMEs who are HACCP or
GMP Certified.
o Work with the other laboratories at the country and/
regional level to subcontract some laboratory testing
services.
o Follow international best practice and standards to
ensure that the laboratory services offered meets the
requirements for export.
Infrastructure is key to developing countries economic
activities. It includes energy, electricity, water, waste
management, transport, and roads. Infrastructure
development provides many opportunities for growth and
investment. It is therefore imperative that the
infrastructure is enhanced and easily accessible. To
overcome infrastructural challenges:
Assess the current infrastructure and outline its needs
and requirements for improvement.
Assess and audit the equipment and laboratory.
Acquire new equipment through grant funding for the
exploration of new food product categories.
Assess, improve and upgrade the current facilities to
promote training, development and entrepreneurship
Move towards green energy implement renewable
energy such as solar power to keep energy costs low.
Use technology and ICTs to improve and promote agro-
processing.
The ability to convert raw agricultural materials into
industrial products that meet the global, regional, and
local value chain with specific standards, volume and
packaging requirements depends on the capacity of the
entrepreneurs. Creating a business friendly operating
environment for the private sector can lead to an improved
value chain. The emergence of new technologies,
international trade rules and niche markets can also drive
the success of the value chain. Some things to consider
are to:
Conduct feasibility studies for small-scale agro-
processing plants based on resource maps
Provide business support services such as accounting,
marketing, ICT.
Provide common manufacturing facilities for agro-
processing.
Provide training and relevant technology for developing
agro-processing products
Facilitate contractual engagements between SMEs and
large firms.
Provide advice and access to acceptable recognized
forms of packaging at competitive prices.
Ensure that all food processed comply with the relevant
standard, packaging and labelling requirements.
Encourage green packaging technology.
Attract the investment opportunities for packaging from
global companies.
There was overlap in the study by Busaidi et al. (2019)
where limited access to markets and finance, lack of
awareness to global markets, unfriendly business
environment, poor management skills, bureaucracy
issues and training were major issues affecting SMEs in
developing countries. Islam and Miajee (2018) found that
SMEs in Bangladesh were drivers of economy through the
creation of jobs, income and advancement of skills.
COVID-19 was an example of the response of
entrepreneurs to a major economic disruption and Cueto
et al. (2022) also highlighted that MSMEs in the
Philippines were affected by mobility restrictions, market
conditions, and household economic status and had to
move all their business operations online, which was
different to the present study which had a hybrid
approach. In Ghana, usefulness, ease of use,
Int. J. Food. Res. 16
compatibility with the business and cost effectiveness
increased ICT use among SMEs (Selase et al., 2019).
Saputeri et al. (2022) noted that there was also increased
difficulty in the procurement of raw materials,
transportation and concerns over products produced at
home but there was a concomitant increase in innovation.
They segregated marketing strategies in terms of product,
price, promotion and place which was different to the
present study which only examined ease and attitudes
toward marketing.
In a study done in Indonesia, in addition to a lack of
financial support and infrastructure, Sulistyono et al.
(2022) also identified overpricing of goods and less
attractive package design as factors affecting MSME
profitability. A ten-year study done in Guntur, India from
2004-2015 revealed an increase in growth rate for the first
five years but a decline in the latter five years for similar
reasons (Rao and Sreekrishna, 2018). It might be
worthwhile to examine the factors in this study over a
longer time frame to identify if policymaking positively
impacted growth of MSMEs and addressed the pertinent
issues. Another study done in India also identified
marketing, finance, technology, raw materials and labour
as problems facing MSMEs, but they also found
management to be important (Maheshkar and Soni,
2022). Chladkova and Formankova (2016) suggested to
increase the competitiveness of agro-processors, they
needed to take advantage of all available grants and
advisors, increase diversification and quality of inputs and
create associations to balance the competition and again,
they found management to be important.
This study adds to previous work by detailing an
integrated framework with more factors being considered
than previous studies. Food security is a regional priority
and MSMEs can utilize natural resources to grow and
process food to different capacities to reduce the
excessive food import bill. Governments need to extend
leniency to MSMEs and expunge the notion that
entrepreneurship is self-serving when it is a driving force
for propelling a nation forward. Once a business’ income
level is considered high income then higher taxes may be
applicable. At the level of inception and growth, these
MSMEs should be encouraged. The human resource is a
major contributor to the economic growth of a country and
the government is responsible for growing this resource if
more returns are to be reaped by the government and if
the livelihoods of these persons are to be sustainable.
Conclusion
The agro and food processing sectors are crucial for
economic diversification in the CARICOM countries of
Belize and Trinidad. These are key sectors with a high
potential to affect the economy of the country through
economic development, export performance, food safety
Maharaj et al. 17
and quality.
In conclusion, this study found a disconnection between
support frameworks provided by governmental agencies
and MSMEs entrepreneurs which were a deterrent to
exponential growth. Several challenges hindered
productivity such as lack of access to education, training,
exporting opportunities, food testing, tax exemptions and
equipment. Additionally, these MSMEs in CARICOM need
better linking with support infrastructure to increase the
proportion of local produce incorporated into the food
industry and to reduce imports. From the baseline data
collected, seven key strategies were identified: agricultural
extension and education; enhancement of agricultural
productivity; improvement of research, development and
innovation; increase access of food products to domestic,
regional and global markets; development of accessible
laboratory services for quality food testing, improvement of
infrastructure for agriculture and enhancement of agro-
processing industrial value chains. The creation of
linkages and marketing channels targeted at MSMEs are
key enablers to develop the agro-processing sector. Due
to agriculture’s relative importance in the Latin America
and the Caribbean and the fact that most of the sector’s
produce leaves the country in an unprocessed form, there
is the potential to develop MSMEs local processing
capacity. It is the responsibility primarily of governments
and CARICOM to create an enabling environment and this
ultimately will add value and generate employment for
Caribbean people and make a more food secure region.
Compared to other studies, the diversity of agro-
processing businesses and government and integration
institutions including the interrelation of different factors
affecting MSMEs in CARICOM countries were
investigated and key strategies were identified from our
study. Furthermore, the requirements of a food-related
degree and food testing were not considered as key
contributors to the success of MSMEs in CARICOM
countries and these were not specifically considered in
other existing previous studies. Comparisons between the
two CARICOM countries revealed socioeconomic
differences in factors affecting MSMEs in the agro-
processing sector. Since there is a dearth of information
on MSMEs in the agro-processing and food sectors in the
Caribbean, it is anticipated that this study which is the first
in-depth comparison of prevalent issues facing agro-
processor MSMEs in Belize and Trinidad, will bridge the
knowledge gap between the policymakers and the MSMEs
and bring both entities closer to improve business
conditions such that MSMEs can work synergistically and
be more competitive on a regional and global scale.
ABBREVIATIONS
BAHA: Belize Agricultural Health Authority
BADMC: Barbados Agricultural Development and
Marketing Corporation
BELTRAIDE: Belize Trade and Investment Development
Service
BMDC: Belize Marketing and Development Corporation
CARICOM: Caribbean Community
CFAU: Central Farm Agro-processing Unit
CIL: Central Investigation Laboratory
COVID-19: Coronavirus 2019
CSO: Central Statistics Office
FAO: Food and Agriculture Organization
GAP: Good Agricultural Practices
GDP: Gross Domestic Product
GMP: Good Manufacturing Practices
HACCP: Hazard Analysis and Critical Control Points
ICT: Information Communication Technology
IDB: Inter-American Development Bank
JAMIS: Jamaica Agricultural Marketing Information
System
MSME: Micro, Small and Medium Enterprise
NAFTA: North American Free Trade Agreement
NAMDEVCO: National Agricultural Marketing and
Development Corporation
SDG: Sustainable Development Goals
SICA: Central American Integration System
SOPs: Standard Operating Procedures
SWOT: Strengths, Weaknesses, Opportunities and
Threats
USA: United States of America
USD: United States Dollars
ACKNOWLEDGEMENT
The authors wish to acknowledge the business owners
who participated in this study.
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The MSMEs have attained a significant group in terms of their number, employment investment, output and exports. However, these units suffer from various problems. In the light of this background, the present study has been taken up to highlight the problems of MSME units of Guntur district. In Andhra Pradesh as it is learnt that they have been suffering from many problems on several fronts such as production, marketing, labour, finance etc. In fact, the performance of these units has been for better had they been free from these problems. The study is largely based on the primary data collected from MSMEs of different industrial Estates and Auto Nagar of Guntur District. The study has been divided into seven chapters. The first chapter deals with the role development and problems of MSME Sector. The second chapter describes the objectives of the study and the methodology followed. The third chapter outlines the growth and performance of MSME in the Indian scenario, Andhra Pradesh Scenario and Guntur scenario. The fourth chapter presents the sickness of MSMEs. The fifth chapter presents in a case study on development of MSMEs in Guntur District. The sixth chapter deals with the problems of sample needs in the Guntur District. The seventh chapter deals the findings and conclusions drawn from the study, besides suggestions made to MSMEs, policy makers and financial institutions to enable them play their respective roles in resolving the various problems faced by MSMEs.