Q1 BUSINESS PERFORMANCE SURVEY RESULTS
Cost of Doing Business & Cash Flow Challenges cited as top concern for Businesses
The Dominica Association of Industry and Commerce (DAIC) has released the findings of its Q1 2025 Business Performance Survey, offering a timely snapshot of the economic landscape and private sector sentiment across the island. The survey, conducted between April and May of 2025, gathered input from 42 businesses representing a wide range of sectors, including tourism, wholesale and retail distribution, manufacturing, professional and financial services, and IT.
According to the report, the first quarter of 2025 presented a polarized business environment, with over 40% of respondents reporting a decline in sales compared to Q1, 2024. While 28.6% saw improved sales, many businesses continue to grapple with rising operational costs, cash flow challenges, and limited access to finance, particularly in the small and medium enterprise (SME) segment.
Executive Director, Ashma McDougall, who also leads the Q1 Business Performance Survey, emphasized key findings from the report— notably the lack of participation from the agriculture and fishing sectors. She underscored the importance of wider engagement from across the private sector in the upcoming Q2 survey, highlighting the need for more inclusive outreach efforts to ensure that future reports reflect a more comprehensive picture of national business performance.
“We are excited to publish this report”, the executive director mentioned, “as it represents a meaningful step towards more data-driven policymaking in Dominica. While we would have welcomed broader participation across all sectors, we view this publication as a foundation for ongoing improvement. She added that, “moving forward, the Chamber will intensify its in-person outreach efforts to ensure wider engagement. Ultimately, these reports are intended to serve as practical tools to guide policy and foster stronger private sector development, for the benefit of the entire economic ecosystem.” McDougall remarked.
Key Findings:
- Inflation and high energy costs were the most cited challenges, affecting 67% and 74.5% of businesses, respectively.
- 66.7% of businesses did not engage in recruitment, with a third citing difficulty in finding skilled labour;
- 65.6% of surveyed businesses are led by women, showcasing strong female leadership across the private sector;
- Access to fiscal concessions, customs processes, and the rising cost of business inputs are major concerns impacting growth; and
- A growing number of businesses are calling for simplified application processes for government incentives and stronger alignment between training and real-world workforce needs.
President of the DAIC, Brenton Hilaire, emphasized the importance of the survey, stating, “This report is a step forward in giving voice to the realities our private sector faces. It’s the beginning of a quarterly pulse check that will inform smarter advocacy, stronger support, and resilient growth for Dominica’s growing business community.”
ED McDougall further added, “One of the most consistent concerns echoed throughout our engagements and consultations is the rising cost of doing business in Dominica. As we approach the pre-budget consultations, the DAIC has outlined a set of targeted recommendations aimed at easing operational burdens, stimulating private sector growth, and enhancing overall competitiveness. We believe these prescriptions can help shape a more enabling business environment that supports innovation, investment, and long-term economic resilience”, the ED closed.
Recommendations:
The DAIC is calling for
- Increased investment in skills development and productivity measurement;
- Improved communication and outreach on incentive and financing programs;
- Dialogue around energy reform and trade policy impacts (e.g., Article 164 of the Revised Treaty of Chaguaramas);
- Stronger industry-academia partnerships to close skills gaps.
The DAIC encourages stakeholders to review the full report and engage in ongoing dialogue to support a more inclusive and enabling business environment in Dominica.
