The BEDC was established in 1980 as the Bermuda Small Business Development Corporation. This joint venture between Bermuda’s banks and the Government was formed to actively assist the development of a strong, well managed and prosperous small business sector in Bermuda. In 2011, the BSBDC Act was amended to expand its remit. Under the new legislation the Corporation performs the following functions:

- the granting of loans or other forms of financial assistance, to assist persons in establishing, carrying on or expanding small businesses, medium-sized businesses and entities within economic empowerment zones;
- the provision of technical advice or assistance to persons who are seeking or who are granted financial assistance;
to operate and manage markets;
- to oversee and manage the development and implementation of the economic empowerment zones; and
- the maintenance of a Register of Small Businesses, Medium-Sized Businesses and Economic Empowerment Zone Business Entities.