FY21 Quarterly Report: Laos Microenterprise Quarterly Progress Report

The Activity's support will benefit at least 8,000 microenterprises, leading to 25 percent higher revenues and $1.3 million new investments. ACDI/VOCA will help USAID achieve these objectives by using a private sector-driven, market systems approach. The Activity identifies existing and potential market opportunities and incentives and engages medium and large businesses to invest in their operations and supply chains, while pulling microenterprises into productive market systems. The Activity works with lenders and borrowers to expand supply and demand for financial services to fuel investment. Partnerships with the Ministry of Agriculture and Forestry, Department of Technical Extension and Agricultural Processing, Provincial and District Agriculture and Forestry Offices, extension officers, and local business development services will equip rural microenterprises with the business skills, market linkages, and advocacy ability to exploit these opportunities. Beneficiaries will include microenterprises at the production level, input and service providers, intermediaries such as traders and exporters, value-adding enterprises, and financial institutions. ACDI/VOCA will target Xiengkhouang province due to its agricultural potential, proximity to major regional trade corridors connecting Laos to Thailand, China, and Vietnam, and potential to develop non-agricultural, rural enterprises and sectors, such as tourism and handicrafts. The Activity's project design is based on the theory of change that if microenterprises have improved entrepreneurial skills, improved access to technology and capital, are able to reduce operation costs, and create market linkages, and if the government of Laos gives more policy voice to these businesses, then Laos microenterprises will become more efficient, more effective, and thus more competitive. The Activity team will use a holistic push-pull approach to spur enterprise competitiveness along targeted value chains. During the first quarter of fiscal year 2021 (FY21), from October to December 2020, the Activity made significant progress in achieving its objectives. The Activity accepted the Monitoring, Evaluation, and Learning (MEL) Plan on December 17, 2020, and completed the Work Plan and Communication Plan. The Activity also contributed to the Guiding Principles, specifically Science, Technology, Innovation, and Partnership, Gender and Social Inclusion, and Collaboration, Learning, and Evaluation. However, the Activity encountered several challenges during the reporting period, including the concept of stakeholder discussions being new, the district's desire to reach all villages in their district, logistics, and government collaboration. The Activity plans to address these challenges through stakeholder engagement, capacity building, and improved communication. The Activity has several upcoming events and future directions, including the implementation of the MEL Plan, the completion of the Work Plan and Communication Plan, and the contribution to the Guiding Principles. The Activity will also continue to work with the government of Laos to strengthen the competitiveness of microenterprises in Laos. In terms of monitoring, evaluation, and learning, the Activity has made significant progress in achieving its objectives. The Activity has identified several challenges and lessons learned, including the need for improved stakeholder engagement, capacity building, and communication. The Activity has also achieved several successes, including the acceptance of the MEL Plan and the completion of the Work Plan and Communication Plan. The Activity has a strong team of volunteers who are committed to achieving the objectives of the Activity. The Activity also has a robust communication and outreach strategy, which includes a communication calendar and regular updates to stakeholders. Overall, the Activity has made significant progress in achieving its objectives during the first quarter of FY21. The Activity continues to work towards strengthening the competitiveness of microenterprises in Laos and contributing to the country's economic development.