Project assistance completion report [: close out report for microenterprise development program (Accion International - AITEC) OPG no. 522-ESF-0319]

Although 90% of overall targets were accomplished according to AITEC"s final report, some of the most important outputs did not reach their planned levels. For example, the project was seriously constrained by the constant displacement of street vendors by local authorities; this problem particularly affected the project component to unite entrepreneurs in "solidarity groups" to serve each other as loan guarantors. As a result, only 258 of a targeted 750 groups were formed. This component"s effect on employment was also disappointing, with only 775 jobs created or maintained, compared with the target of 4,350. A component to provide credit directly to microenterprises also fell short of objectives. Loans disbursed amounted to nearly L1 million less than expected, primarily as the result of the limited credit capacity of borrowers. This problem was compounded by the insufficient level of training and TA provided to ASEPADE to establish reliable monitoring, financial, and loan processing systems. A major lesson learned is that the project"s objectives regarding ASEPADE"s institutional strengthening were optimistic, since indigenous PVO"s usually have many unforeseen problems which require additional resources and time. With this in mind, the follow-on Small Business II project (5220241) includes appropriate resources to strengthen ASEPADE"s financial and management systems.