Posted: Tuesday, May 6, 2025. 8:29 am CST.
By Horace Palacio: In a country where youth unemployment hovers around 20%, according to the Statistical Institute of Belize, and where many Belizeans are actively seeking ways out of poverty and stagnation, entrepreneurship should be the lifeline. It offers a chance for individuals to create their own opportunities, generate wealth, employ others, and ultimately strengthen the national economy. But while entrepreneurship should be the path forward, Belize’s existing system — from government red tape to banking hurdles — makes starting and sustaining a business an uphill battle.
Across towns and villages, Belizeans are selling food, offering tours, crafting goods, and launching digital ventures. Many of these are born out of necessity rather than luxury. According to the Global Entrepreneurship Monitor, necessity-driven entrepreneurship remains high in developing countries like Belize, often due to limited access to formal jobs. But these grassroots businesses reveal something important: the people are willing to hustle — they just need an environment that lets them grow.
Starting a business in Belize means navigating an exhausting web of bureaucracy. From acquiring trade licenses and environmental clearances to paying steep municipal fees, the process is not only time-consuming but often costly. A 2023 World Bank report on Doing Business in the Caribbean flagged Belize as one of the more difficult places to start a formal business, largely due to inefficiencies in government services and inconsistent policy implementation.
To compound the issue, corruption and lack of accountability plague many departments. Entrepreneurs frequently report being given the runaround, hit with surprise requirements, or having to “know someone” just to get a license processed. Instead of encouragement, the system delivers frustration.
The other major obstacle is the banking system. Commercial banks in Belize remain deeply risk-averse, often demanding high collateral, detailed cash flow history, and interest rates that border on predatory. For a young entrepreneur — especially those without generational wealth or property — getting a small loan is next to impossible.
The Development Finance Corporation (DFC), created to support entrepreneurs, does offer loans at better terms. But limited funding, slow approval processes, and bureaucratic hurdles often result in missed opportunities. In 2024, the Belize Chamber of Commerce noted that many micro and small enterprises operate in the informal sector precisely because they cannot access capital in the formal one.
Globally, governments that value entrepreneurship invest in incubators, seed funding programs, and technical assistance hubs. Belize’s investment in these areas remains minimal. Agencies like BELTRAIDE and the Small Business Development Centre do some good work, but they are underfunded and overstretched. Moreover, initiatives are often concentrated in urban areas, leaving rural entrepreneurs without access to mentorship or training.
The government’s budget allocations have traditionally prioritized infrastructure, security, and education — all important — but without meaningful support for small business development, these sectors miss out on the multiplier effect that a vibrant entrepreneurial class can bring.
If Belize is serious about job creation, economic diversification, and reducing poverty, entrepreneurship cannot be just a buzzword — it must become national policy. This means:
- Simplifying and digitizing the business registration process.
- Creating dedicated low-interest funding streams for start-ups.
- Mandating that a percentage of government procurement goes to small Belizean-owned businesses.
- Providing tax incentives for new entrepreneurs, especially in underserved communities.
- Reforming the banking sector to prioritize productive lending over asset hoarding.
These aren’t radical ideas — they are proven policy tools used in countries like Rwanda, Estonia, and Barbados to unleash entrepreneurial potential and drive GDP growth.
Entrepreneurship is not just a survival strategy for Belizeans — it is the key to unlocking the country’s future. But without real systemic reform, we will continue to frustrate the ambitions of our best and brightest. It’s time the government and banks stopped treating entrepreneurs as a risk and started recognizing them for what they are: Belize’s greatest opportunity.
The views expressed in this article are those of the author, Horace Palacio, and do not necessarily reflect the views or editorial stance of Breaking Belize News.
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The post Entrepreneurship is the future of Belize — So why is the system rigged against entrepreneurs? appeared first on Belize News and Opinion on www.breakingbelizenews.com.
In a country where youth unemployment hovers around 20%, according to the Statistical Institute of Belize, and where many Belizeans are actively seeking ways out of poverty and stagnation, entrepreneurship should be the lifeline. It offers a chance for individuals to create their own opportunities, generate wealth, employ others, and ultimately strengthen the national economy. But while entrepreneurship should be the path forward, Belize’s existing system — from government red tape to banking hurdles — makes starting and sustaining a business an uphill battle.
The post Entrepreneurship is the future of Belize — So why is the system rigged against entrepreneurs? appeared first on Belize News and Opinion on www.breakingbelizenews.com.
