FY21 Quarterly Report: Laos Microenterprise Supported by USAID

The Activity's support will benefit at least 8,000 microenterprises, leading to 25 percent higher revenues and $1.3 million new investments. The Activity's project design is based on a 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. The Activity has identified 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. During the reporting period, the Activity made significant progress in achieving its objectives. The Activity's Access to Finance (A2F) program has expanded supply and demand for financial services to fuel investment, with over 2,500 microenterprises receiving training in sustainable agriculture techniques. The Activity has also made progress in reducing business operation costs, with a 27% increase in household income among program participants compared to the control group. The Activity has encountered several challenges, including the COVID-19 shutdown, which has impacted the implementation of some activities. However, the Activity has developed a plan to address these challenges and continue making progress towards its objectives. The Activity has also made significant progress in achieving its intermediate results, including improved ability to respond to market opportunities, increased access to financial resources, reduced business operation costs, and improved access to markets. The Activity has also contributed to the guiding principles of science, technology, innovation, and partnership, gender and social inclusion, and collaboration, learning, and evaluation. Overall, the Activity has made significant progress in achieving its objectives and contributing to the guiding principles. The Activity will continue to work towards its objectives and make progress towards its intermediate results.