Startups in Jamaica.

Jamaica is one of the leading producers of spirits and beverages, which account for more than 15% of its export. At the same time, this country hosts so many non-traditional religions and denominations that it also can be considered as a spiritual center of Caribbeans. For example, local 30,000-members Rastafarian community is the largest of its kind in the world.
Jamaica — important Caribbean sugar producer in XVI-XVIIth centuries — is the major tourist destination and aluminum oxide ore (corundum) exporter in XXth. More than 1.5 million tourists visit this island each year. However, Jamaica’s geographical location inside of the “hurricanes belt” presents a constant threat to its agriculture industry. Infamous hurricanes ‘Charlie’ and ‘Gilbert’ caused local economic depressions in 1951 and 1988.
Politically Jamaica — the Commonwealth member — is the constitutional monarchy headed by the British Queen. Jamaica adapted Westminster system and its 63-seats House of Representative is shared by two major parties: Jamaica Labor Party (right) and People’s National Party (left).
Jamaica has on of the largest concentration of English-speaking population in the Caribbean. That fact together with the developed tourists industry provides niche opportunities (primary in Kingston) for local startup founders in such industries as FinTech, e-services (tourism) and entertainment (for fast growing urban youth population). At the same time, small, sluggish economy, high legal barriers for SME, high energy costs, absence of VC and seed capitals as well as shortage of qualified personnel put a severe constraints on growing local startups ecosystem.
Business Notes for Startups Founders:
- political climate: indifferent;
- economic climate: not friendly;
- regions to focus: locally;
- industries to focus: FinTech, e-services, tourism, entertainment and recreation;
- major limitations: small economy (GDP at around $14 billion), negligible GDP growth rate (under 1%), small population (less than 3 million), high energy costs, over-bureaucratization, multiple legal barriers to SME, absence of VC and seed investments, dependence on remittances, relatively low average wage (less than $15,000 / year), fixed Internet penetration rate stands under 50% and its growth is not exceeding 3% a year, shortage of qualified personnel, very high youth unemployment rate (above 25%), relatively high costs of commuting in \ from an island;
- stimulus: English speaking population, constant influx of foreign tourist;
- opportunities: To build a local e-services operator orientated on tourists and large diaspora community.