Quarterly Progress Report FY19: USAID Laos Microenterprise

The Activity's support will benefit at least 8,000 microenterprises, leading to 25% higher revenues and $1.3 million new investments. The Activity will focus on the Xiengkhouang province due to its agricultural potential, proximity to major regional trade corridors, and potential to develop non-agricultural, rural enterprises and sectors. The goal of this Activity is to increase the ability of microenterprises in Lao PDR to offer products and services that meet the quality standards and needs of domestic and international markets at competitive price points. The Activity's theory of change is based on the idea 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 Lao PDR gives more policy voice to these businesses, then Laos microenterprises will become more efficient, more effective, and thus more competitive. The Activity will use a holistic push-pull approach to spur enterprise competitiveness along targeted value chains. By working backwards from the markets for relevant commodities produced in Xiengkhouang, the Activity will identify lead businesses ready to invest in their supply chains. A package of technical assistance, credit facilitation, and matching grants will be provided to mitigate risk, catalyze private sector investment, and accelerate growth. The Activity will also push rural microenterprises toward commercial viability through the transfer of financial literacy and entrepreneurship skills, access to technologies, credit, and services. This will improve access to cash markets, technology, infrastructure, value chain finance, training, and services for microenterprises. The Activity will target beneficiaries including microenterprises at the production level, input and service providers, intermediaries, value-adding enterprises, and financial institutions. The Activity's objectives and intermediate results include increasing the ability of microenterprises to offer products and services that meet the quality standards and needs of domestic and international markets at competitive price points, enhancing their abilities to access and expand to markets, and increasing profit and growth. The Activity will work 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 to equip rural microenterprises with the business skills, market linkages, and advocacy ability to exploit market opportunities. The Activity will also engage medium and large businesses to invest in their operations and supply chains, while pulling microenterprises into productive market systems. The Activity will work with lenders and borrowers to expand supply and demand for financial services to fuel investment. The Activity will target 8,000 microenterprises, leading to 25% higher revenues and $1.3 million new investments. The Activity's progress during the reporting period from January to March 2019 is highlighted in the report. The report presents progress against indicator targets and highlights the achievements during the reporting period. The Activity has made significant progress in mobilizing the project, implementing activities, and completing reports and deliverables. The Activity has encountered challenges, including the need to address the lack of policy voice for microenterprises in Lao PDR. The Activity has developed a plan to address these challenges, including engaging with the government to give more policy voice to microenterprises. The Activity has also identified future directions and upcoming interventions, including the Memorandum of Understanding (MOU) process, Monitoring, Evaluation, and Learning (MEL) plan, baseline, Gender Equality and Social Inclusion (GESI), Environmental Management and Mitigation Plan (EMMP), market survey work, and training tools. The Activity has made significant progress in monitoring, evaluation, and learning, including challenges, successes, and lessons learned. The Activity has also made progress in grants, volunteers, communications and outreach, and has identified areas for improvement. The Activity will continue to work towards its objectives and intermediate results, and will provide regular updates on its progress.