FAMILY-owned businesses in Jamaica that have long struggled to access capital are being urged to consider listing on the stock market as a viable alternative to traditional bank financing.

The recommendation comes as many of these businesses continue to face persistent challenges securing funding for expansion, with industry leaders pointing to the capital market as a strategic tool not only for raising equity but also for supporting succession planning and long-term business continuity. The issue was raised during the Manufacturing 360 Conference, hosted by the Jamaica Manufacturers and Exporters Association (JMEA), where business owners and capital market professionals emphasised that preparing a company to list on the stock exchange can help formalise succession, attract investment, and reduce dependence on traditional bank loans.

“I found it difficult to deal with banks. They weren’t interested in a small family business, and I said, ‘I’m not going to be dependent on the banks for my growth,’ and so I went to the stock market to get the money,” shared John Mahfood, CEO of Jamaican Teas.

Jamaican Teas, a family-owned business, faced two major challenges that led Mahfood to go public: difficulty accessing capital for expansion as a private company and the need to implement stronger governance. He recalled that Jamaica’s banking sector experienced major failures in the late 1990s and early 2000s, driven by leadership that, in his view, was not doing what it should have been doing. The fallout led to widespread mistrust and damaged many businesses, particularly those without independent boards. Determined to avoid that outcome, Mahfood pursued a strong board of directors to keep the company focused and growth-oriented, support he believed the stock exchange could provide.

“The good news is, once you go on the stock exchange, then the banks want to deal with you,” he said with a trace of humour.

Many early-stage start-ups struggle with access to capital due to a lack of cash flow, and while many other businesses are often profitable, the issue among them is their reluctance to give up ownership. Capital Markets manager at Sagicor Chede Baugh added that many small businesses have the misconception that bringing in outside investors means giving up control. In reality, equity financing offers flexibility and can be accessed multiple times, provided the business is structured properly. He emphasised that the capital market is an expansion tool, particularly relevant now as interest rates make debt financing more expensive.

“You need to strike the right balance with capital structure between debt and equity,” said Ryan Strachan, CEO of Sweat Equity.

Strachan urged businesses to consider the total cost of capital and market timing. Although valuations may be lower now due to high interest rates, companies with growth potential shouldn’t hesitate to explore the market when necessary. For Jamaican Teas, equity financing remains a viable strategy to grow aggressively while giving up only a portion of the business. That approach is now being pursued by Home Choice Enterprise, which is preparing to go public by March 2026. The strategy aims to dispel the fear that giving up equity equals losing control and instead positions listing as a path to building a reputable company equipped for long-term success. While going public is often seen as a financial move, it also prompts deeper considerations around succession, particularly in family-owned businesses. Kareema Muncey, managing director of Home Choice, has approached succession from within the family. From the outset of her entrepreneurial journey, when she started walking around to make sales, she integrated her children into the operations and taught them to contribute without receiving allowances.

“Today, all three of them [her children] work in the business as general manager, operations manager and marketing and export manager,” she shared.

For Muncey, building continuity meant preparing the next generation to earn their roles and responsibilities. She encouraged small businesses to identify a model company to emulate as they grow and scale. For Home Choice, that model is GraceKennedy. Transitioning from succession planning to public market readiness, presenters agreed that strong corporate governance remains a missing piece for many small businesses. Managing director of Caribbean Foods Limited Christopher Ramson warned that putting off succession planning introduces both operational and relational risks. He urged business owners to identify future leaders early and establish a clear plan for how the company will evolve.

“Just because you are family doesn’t mean you are entitled to a job,” he said.

Ramson noted that several companies have scaled rapidly only to falter when passing the baton. While family involvement provides a foundation, it does not mean that children are automatically equipped to lead. Succession, she stressed, is not always linear or confined to relatives. Some businesses, however, brought in competent general managers, but without the right structure in place, transitions failed. This is what Jamaican Teas faced when Mahfood attempted to step away from leadership by hiring an external general manager. The transition proved difficult, as too much responsibility rested on the general manager in the absence of strong internal systems. Mahfood eventually returned to lead the company and has spent the past two years building out the necessary structure to better support future leadership transitions. They agree, however, that financial advisors play a crucial role, not just in preparing companies for listing but in staying with them after to guide sustainable growth and while family-run businesses have traditionally operated informally, long-term success now requires stronger governance, formal succession planning, and a willingness to tap capital markets to support the next stage of growth.