JAMAICA-EU funds new MSME digital transformation initiative

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EU funds new MSME digital transformation initiative in Jamaica
The European Union is funding a new digital transformation initiative for MSMEs in Jamaica

KINGSTON, Jamaica, CMC – The Jamaica Business Development Corporation (JBDC) says it has increased its efforts to drive the digital transformation of micro, small and medium-sized enterprises (MSMEs), with at least 500 businesses set to digitise one internal process this year under the European Union (EU)-funded ‘Digital Jamaica’ Project.

The three-year initiative, launched in 2023, is managed by the Ministry of Industry, Investment, and Commerce and aims to accelerate the adoption of digital solutions across the MSME sector.

Targeted areas include e-payments, payroll, human resource systems, customer relationship management software, e-commerce, contracts, invoicing, and vendor management.

JBDC’s acting chief executive officer, Harold Davis, underscored the programme’s role in equipping entrepreneurs with the requisite tools and competencies to navigate and succeed in an increasingly digital marketplace.

“One of the critical areas for them to master is being able to operate in a digital environment. This means utilizing digital solutions to enhance the value of their business, communicate effectively with suppliers and the marketplace, trade efficiently, and conduct financial transactions. The world has already moved there, and we need to get there too,” he said.

Davis noted that the findings of a survey conducted at the start of the project revealed that only 32 per cent of local MSMEs were comfortable using digital solutions, with the majority of engagement confined to social media platforms.

“With the support of the EU, we embarked on the Digital Jamaica Project to move that needle, because it is essential if our MSMEs are to compete internationally and grow sustainably,” he added.

JBDC’s manager for the Project Management and Research Department, Chantol Dormer, said that while training remains central to the programme, the current phase focuses on helping MSMEs implement practical solutions to improve their operations.

“This year, we are targeting 500 MSMEs who will be assisted to transform one of their internal processes digitally. That can be anything, from as simple as us helping them with their social media to something more complex like implementing a Customer Relationship Management (CRM) or Enterprise Resource Planning (ERP) system,” she said.

In its inaugural year (2024–2025), the Digital Jamaica Project surpassed expectations, training approximately 1,200 entrepreneurs islandwide, well above the initial target of 700.

The broader objective is to equip 2,700 MSMEs with the tools and competencies necessary for digitization, digitalization, and complete digital transformation by 2026.

Dormer stated that the JBDC acknowledges the diverse levels of digital readiness across the MSME sector, and as such, the project does not take a ‘one-size-fits-all’ approach. Instead, each intervention is carefully tailored to meet the specific needs and challenges of participating businesses.

“Every business is different. For some, implementing e-payments or online invoicing may be the priority, while for others, it is payroll or vendor management. Our role is to guide them through the process so that the technology chosen truly addresses their pain points and delivers measurable impact,” Dormer said.

She said that businesses must complete training sessions through to the digital transformation stage and meet key eligibility criteria, such as formal registration, before being shortlisted for support.

A subsequent digital assessment identifies operational gaps and informs the prioritisation of tailored solutions.

“Once we’ve done that, the assessment gives us a full landscape of where they are, and when we implement the tool, we are bridging at least one of those gaps,” Dormer said, adding that post-implementation support is also provided.

She also noted that “because there is no cost to MSMEs participating in the project and we are utilising funds from the government of Jamaica and the European Union, we want to ensure that businesses selected are registered and viable”.

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