In 2025, Jamaica stood out as the only Caribbean country ranked among the top 100 in the Global Startup Ecosystem Index, placing 87th. While this reflects considerable progress, it also highlights the challenges that remain in building a thriving entrepreneurial ecosystem.
Unlocking Jamaica’s growth potential calls for coordinated public-private strategies to strengthen the ecosystem and expand access to financing for startups and micro, small, and medium-sized enterprises (MSMEs).
The IDB Group has been a long-term partner in this journey, combining both private and public support to expand and strengthen the financial system and access to financing for MSMEs through financial innovation, investments in commercial banks, and development of a native venture capital industry and entrepreneurial ecosystem.
Over a decade ago, IDB Lab worked with the Jamaica Stock Exchange (JA-M1029) to strengthen its Junior Market, enabling SMEs to raise capital through public listings. Fast forward to today, and the Junior Market has grown significantly: by 2024, 48 companies were listed, with a market capitalization of J$148.5 billion, up nearly 200 times from J$785 million in 2009 (Jamaica Information Service, 2025).
Expanding credit for MSMEs
Access to credit is still a big hurdle for the country’s main job creators: about 422,000 MSMEs in Jamaica employ over two-thirds of the workforce (Jamaica Information Service, 2024). Working through financial institutions to expand lending to this group so they can grow and create jobs is critical.
Early IDB Lab interventions helped commercial banks adapt credit scoring systems to SME needs and strengthen the business skills of these smaller enterprises (JA-M1027), while IDB support for Jamaica’s Credit Enhancement Programme (JA-L1075)—a Development Bank of Jamaica-managed guarantee facility covering up to 80% of MSME loans—reduced banks’ perceived risks. From 2018-2023, the program mobilized over $59 million in additional financing for more than 300 MSMEs, 41% of which were women-led. It also enabled collateral-constrained firms to access longer-tenor loans, extending average maturities from 48 to 61 months while maintaining portfolio quality. IDB Invest also works through financial institutions in Jamaica to reach SMEs. For example, a project with JMMB Bank more than doubled the number of loans in its SME portfolio from 2020 to 2023.
Sparking the venture capital industry
IDB Lab also played a foundational role in sparking Jamaica’s venture capital (VC) industry, together with the Development Bank of Jamaica, laying the foundation for the eventual scaling of these efforts through an IDB-supported public sector loan program. The Jamaica Venture Capital Programme (JV Capital) (JA-M1033), supported by IDB Lab, was launched in 2016, at a time when VC was virtually nonexistent in the country. The program focused on building awareness of equity financing, improving investment readiness, and connecting entrepreneurs with investors, universities, and business development organizations.
From 2016 to 2020, JV Capital supported over 700 early-stage firms, about 20% of which accessed financing. It trained nearly 900 ecosystem stakeholders, financed three university incubators, and launched the National Business Model Competition, which engaged over 3,000 students and helped formalize 40 businesses. These early efforts helped create a more receptive environment for alternative financing in a historically debt-centric economy and paved the way for more comprehensive policy and institutional reforms.
See this video recapping the results of JV Capital
Boosting innovation, growth, and entrepreneurship
Building on this foundation, the IDB scaled up this program, reflecting deep collaboration between the Group’s innovation lab and the public sector towards the shared goal of strengthening entrepreneurship in Jamaica. In 2019, the IDB launched the Boosting Innovation, Growth, and Entrepreneurship Ecosystems Programme (BIGEE) (JA-L1085) with a $25 million loan and an $8.7 million investment grant (JA-G1006) from the European Union Caribbean Investment Facility. Executed by the Development Bank of Jamaica, BIGEE aims to foster innovation and sustainable growth among startups and MSMEs across all stages of development, from ideation to scale.
By the end of 2025, BIGEE had directly benefited over 1,500 MSMEs and 60 institutions. Its Innovation Grant Fund catalyzed over $1.5 million in private investment, driving innovation in sectors such as ICT, manufacturing, and agritech. More than 60 MSMEs in agriculture, tourism, and health improved climate resilience and women's participation, while nine patents were filed for cutting-edge inventions in biofuels, carbon capture models, and smart self-cleaning door handles.
BIGEE also launched a $15.5 million Venture Capital Fund to finance high-growth firms and early-stage tech startups. Its IGNITE (Innovation Grant from New Ideas to Entrepreneurship) Programme supported 83 early-stage businesses, 16% led by women and 7% focusing on climate-friendly solutions. Firms from IGNITE’s first cohort generated a 22% increase in revenue on average, as compared to non-beneficiary firms and expanded their teams from 2.5 to 3.9 workers on average. The Go Digital program issued 951 digital adoption vouchers, nearly half redeemed by women-led firms.
The BIGEE program is a model for public-private collaboration and innovation promotion in the Caribbean. It also exemplifies the IDB Group’s long-term programmatic approach to nurturing Jamaica’s entrepreneurial ecosystem—from seeding innovations with IDB Lab to scaling impact through broader public sector programs.