The key to unlocking business growth in T&T

Financial literacy is essential for micro, small, and medium-sized enterprises (MSMEs) growth in Trinidad and Tobago (T&T), yet many businesses face challenges like limited digital payment reach and inadequate financial management skills, restricting their access to financing. To address these gaps, the Trinidad and Tobago International Financial Centre (TTIFC) offers initiatives such as digital financial literacy programmes and capacity-building workshops. These efforts aim to empower MSMEs with the tools needed for effective financial management, digital adoption, and to foster business growth.

Financial literacy is not just a personal asset; it’s a critical foundation for the success of businesses across T&T. Effective planning and cash flow management enable organisations to meet operational demands while maintaining long-term sustainability. As a crucial element in managing production costs and resource optimisation, business owners who can demonstrate financial acumen through well-structured financial records and accurate forecasts have a much better chance of obtaining financing and positioning themselves for scalable growth.



The state of financial literacy in T&T According to the Central Bank of Trinidad and Tobago (CBTT) ( https://www.central-bank.org.

tt/ ), the financial literacy rate in T&T has grown from 23% in 2013 to 35% in 2022. Despite this, financial literacy remains challenging among micro, small and medium-sized enterprises (MSMEs). The Trinidad and Tobago International Financial Centre (TTIFC) ( https://www.

ttifc.co.tt/ ) recently released the first National Financial Inclusion Survey Report (2023) ( https://www.

ttifc.co.tt/signup-to-download/ ), which revealed that 77% of MSMEs operate without a dedicated business bank account.

The survey also found that digital payments remain significantly underutilised, with 86% of MSMEs not accepting digital payments and only 10% of household entrepreneurs linking their digital transactions to a business account. These businesses continue to rely on cash due to the perceived complexity of digital payment systems. Barriers to financial inclusion for MSMEs: Common financial pitfalls, education gaps Financial records management Despite rising awareness, many MSMEs grapple with requirements for proper financial records, such as income statements and balance sheets.

This is a fundamental factor of the low access and usage of merchant banking accounts; accurately reporting the state of affairs of their business is an essential prerequisite for formal business accounts and prevents fund commingling.Financial literacy in business is also critical for ensuring that MSMEs can assess their performance, obtain necessary credit facilities, and plan for future expansion, as comprehensive financial records provide transparency when seeking finance. Budget planning Another difficulty is poor budget management, often leading to cash flow problems and a hindering of business expansion.

A comprehensive understanding of budgeting is essential to avoid these challenges and maintain operational stability. Embracing online banking, digital payment systems, and financial technology (fintech) can help MSMEs streamline operations, reduce costs, and improve financial records. This will enhance their ability to access financing facilities and maintain a competitive advantage in today’s fast-paced economy.

Closing the financial literacy gap To address the challenges faced by MSMEs, the TTIFC leads several initiatives to enhance financial literacy among key local groups. Through its fintech innovation centre, One FinTech Avenue, the TTIFC offers capacity-building programmes designed to help MSMEs grow and scale their businesses.Initiatives such as the “Money Strategy Moves for Entrepreneurs” two-day mastermind programme equip participants with essential tools to develop business plans, market their services, and create comprehensive cash-flow projections needed for accessing merchant accounts.

TTIFC has partnered with industry experts and organisations including the Tech Startup Project to host fundraising masterclasses and similar initiatives. These programmes aim to empower businesses by enhancing their negotiation skills, exploring alternative financing options, and developing strategies to improve co-financing efforts, investor relations, and credit access outcomes. On a broader scale, the TTIFC has developed a National Financial Inclusion Strategy Roadmap that includes a digital financial literacy programme as a key strategic initiative.

This programme will be integrated into the CBTT’s National Financial Literacy Programme (NFLP) ( https://www.nflp.org.

tt/ ) as a partnership. The digital financial literacy component of the NFLP, which will be launched in early 2025, is designed to empower MSMEs with the knowledge needed to adopt digital payment systems, manage their finances online, and protect themselves from fraud. As MSMEs significantly contribute to Trinidad and Tobago’s GDP, it is crucial for the business community to embrace the transformative power of financial literacy fully.

By mastering financial management and adopting digital tools, businesses can position themselves for sustainable growth, increased competitiveness, and long-term success. This is not just an opportunity; it is a necessity for thriving in an increasingly dynamic and digital economy. The TTIFC is committed to leading this initiative, collaborating with public and private sector partners to create a financially inclusive and resilient ecosystem.

This effort will drive innovation, unlock new opportunities, and ensure that businesses across our nation are prepared to navigate future challenges. Together, we can foster a culture of financial empowerment that will elevate T&T to new heights of economic prosperity. —John Outridge, chief executive officer, Trinidad and Tobago Financial Centre (TTIFC).

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