SMALL ENTERPRISE DEVELOPMENT PVO - OPG

to assist in establishing or expanding self-help enterprises in El Salvador. Technoserve will implement the project. Technoserve will assist local enterprise sponsors and institutions to identify and develop new/on-going enterprises which will significantly benefit small farmers and small businesses, especially cooperative members. Particular emphasis will be placed on the development of agricultural or other food-related cooperatives. The prospective self-help enterprise will be considered in terms of its potential for economic viability; its potential broad-based community multiplier effect in meeting the needs of low-income people; the extent of its ownership base in the form of cash investment; the adequacy of local leadership; its degree of labor-intensiveness; its utilization of locally available raw materials; the extent to which it is nondiscriminatory; and its lack of access to other resources and services. Technoserve will conduct comprehensive socioeconomic feasibility analyses of potential participants. These analyses may include such aspects as markets, raw material supply, fixed assets, financial and legal evaluations, and pilot tests. In support of enterprises or activities deemed feasible, Technoserve will develop detailed business plans, project studies, and marketing plans; will train employees to take over management responsibility after it (Technoserve) departs; and will provide temporary management personnel as needed. Technoserve will also provide technical assistance in selecting, procuring, installing, and using appropriate technologies; and will assist enterprises in identifying local means of capital support. During the project, six to nine new enterprises will be developed, and a total of 24 plans for small business development will be implemented, e.g., introduction of new products, the purchase and installation of machinery, and the establishment of new credit lines. Authorization of 9/30/81 provides a funded 1-year extension of the project to 9/30/82. During the extension period, activities will be as follows. In the agrarian reform sector, Technoserve will provide ongoing assistance to four haciendas and to 5 or 6 new enterprises; in the non-agrarian reform sector, Technoserve will assist 3 new enterprises besides the 5 already being helped. Technoserve will also continue its relations with the Government of El Salvador (GOES) and strengthen its relations with other active rural institutions. Collaborations will include 12 major meetings to discuss/analyze problems concerned with farm operations; 10 major meetings with regional officials; and 3 short courses or seminars related to enterprise development. (PD-AAJ-224)