Protecting local business in a small open market economy

Within the past weeks, practitioners in the transport sector have been engulfed in discussions around new entrant, Uber. Some argue the American brand will cause saturation in the small local market, while others welcomed the opportunity to participate in the international franchise. Yet others purport the increased competition will benefit the consumer and improve the standards in the sector.

Irrespective of the position taken, the issue is worthy of analysis. In a small open economy like Barbados, is the local taxi sub-sector deemed vulnerable and in need of protection or is this industry subject to the rules of free and open trade? Anyone following the recent development will admit that the issue seems localised to a section of practitioners in the industry rather than the pervasive national conversation which often follow such developments. A recent example was the entry of the McDonalds franchise in the market, which lasted for a little over a year. The market rules of supply and demand eventually determined the fate of this American fast-food chain; will the same be said for Uber?

When global models meet local markets

The arrival of Uber is more than a corporate announcement; it is a cultural test. For decades, local taxi operators have worked within a closely regulated framework that requires special licences, fixed fare structures and adherence to national standards. Uber’s model challenges this ecosystem by introducing a platform that promises efficiency, technology and flexibility in a small market where demand and margins are already tight.

Traditional operators expressed concern that this shift could destabilise an industry that supports hundreds of livelihoods and contributes significantly to the local economy through vehicle maintenance, insurance and service-related expenditure.

The global economy is increasingly defined by digital disruption, where innovation, not protection, determines who thrives. The presence of this American brand in Barbados will challenge our readiness to adapt. Since the world will not stop evolving, it is imperative that we assist our enterprises to be agile enough to evolve with it.

For the Bajan business community, Uber’s arrival underscores a broader truth: global models will deploy even in small economies. While we look to appropriate regulation to insulate where possible, strategic innovation, the ability to deliver something that is culturally authentic, technologically current and competitively sharp must be the response of our firms.

Innovation in motion: pickUP Barbados

In the same transport sector where Uber has drawn headlines, local innovation has also emerged. pickUP Barbados, a ride-hailing service built by Barbadians for Barbadians, demonstrates how local entrepreneurship can rise to the challenge. Its model leverages digital technology, but grounds itself in the cultural and regulatory realities of the island, using licensed drivers, transparent pricing and a clear commitment to safety and accountability.

pickUP recognised what many global entrants overlook: that in small economies, customer trust and familiarity are powerful assets. By adapting the digital ride-hailing model to suit local needs, it has shown that competition can stimulate creativity rather than crush it.

The message here is not that Barbados should reject global brands, but that local enterprises must be equally bold in redefining their value. pickUP did not wait for protection; it built its own competitive edge.

Lessons from the region and beyond

Across the Caribbean, similar dynamics are unfolding. In Jamaica, Uber’s expansion into Montego Bay and Kingston prompted both government oversight and new collaborations with local taxi associations, creating hybrid models that blended international platforms with domestic compliance.

In Trinidad and Tobago, Ridelink carved out its own space by focusing on safety verification and real-time tracking, addressing consumer concerns about legitimacy and trust.

Meanwhile, Guyana’s emerging digital-transport platforms have shown that competition, when properly managed, can lead to sector-wide improvement rather than destruction.

Globally, small economies that have succeeded in integrating international competition, such as New Zealand and Singapore, share one common feature: they view global entrants as benchmarks to rise to, not barriers to resist. Their SMEs thrive because national culture celebrates innovation rather than protectionism.

The modern Bajan business mindset

So, what defines the “Bajan business model” in this new era? It is not a rigid formula but a mindset. A modern Bajan enterprise is locally grounded, globally aware and digitally fluent.

It draws strength from cultural pride but does not mistake tradition for strategy. It competes on customer experience, trust and adaptability. It understands that innovation is not only about new technology, but about continuous improvement, how products are made, how customers are served and how value is communicated.

This mindset demands that we shift our thinking. When competition comes, the first response cannot be for protection through policy prescription. Yes, some sectors are more vulnerable than others and should be insulated through regulatory support. Some industries also serve a national good and must enjoy certain preferences. The real solution lies in agility, creativity and collaboration. Policy can create guardrails, but competitiveness comes from within.

For advocates of MSME development, there is the obligation to support the most vulnerable, the small operators who risk being left behind. This must be supported by a commitment to help traditional businesses transform. Barbados’ development depends on all sectors advancing together.

This month of Independence invites us to reflect on what economic freedom truly means. National pride is not only about flying the flag; it is about economic self-determination. To be proudly Bajan in 2025 means building businesses that can compete internationally while keeping their roots firmly planted in Barbadian soil.

The challenge before us is how do we empower our entrepreneurs to rise to the challenge. pickUP Barbados is not an anomaly; it is evidence of what is possible when cultural pride meets strategic execution. If we can replicate that spirit across sectors, from retail and hospitality to manufacturing and digital services, Barbados can prove that small size is no limitation to big ambition.