CDB President Daniel Best Calls for a New Financing Model to Power SME Transformation

The President of the Caribbean Development Bank, Daniel Best, has issued a clarion call for a fundamental shift in the way Caribbean economies fund their future. Addressing regional partners, government officials and development agencies, Best warned that the region’s aspirations for innovation, diversification and resilience will remain out of reach unless equity financing becomes a central pillar of development.

Small and medium-sized enterprises, responsible for more than 70 percent of all businesses in the region formed the heart of his message. Best described SMEs as “innovators, risk-takers, community employers and the backbone of social stability,” yet noted they continue to be stifled by limited access to the right kind of capital.

“Debt alone will not finance the Caribbean’s development,” he stressed. “We need equity,  risk-tolerant capital that allows SMEs to grow, modernize, digitalize and scale.”

Best argued that equity is not simply another financing instrument, but a crucial partnership that gives entrepreneurs room to innovate without the immediate pressure of repayment. It also brings governance expertise, market access and stronger balance sheets—qualities essential for SMEs to compete globally and withstand shocks.

That resilience, he emphasized, is no longer optional. Best highlighted the staggering fact that the region has endured five Category Five hurricanes in the last eight years, underscoring the Caribbean’s exposure to climate-related threats. “When we say we are vulnerable to external shocks, this is what it looks like. This is our reality,” he said.

Despite its benefits, equity remains underutilized in the Caribbean. Best pointed to thin equity markets, fragmented investor networks and a still-emerging venture capital ecosystem as barriers. Many SMEs, he added, also hesitate due to concerns about transparency and ownership dilution.

To close the financing gap, Best outlined a regional agenda that includes modern regulatory frameworks, tax incentives for investors, blended finance models, diaspora investment channels and regional equity funds. He called for coordinated action among governments, multilateral development banks and private partners to create an environment where equity can thrive.

“If the Caribbean is to innovate, transform and thrive,” he said, “we must be serious about mobilizing equity at scale.”

Best painted a picture of what that future could look like: Caribbean tech entrepreneurs accessing angel financing within weeks, green energy firms scaling across borders, and manufacturing startups tapping into regional private equity funds designed for export-ready businesses.

“This is our moment,” he declared. “When we invest in our SMEs, we invest in our people, our economies and our collective future. Let us build an equity-powered Caribbean economy—one that innovates, transforms and thrives.”