USAID Economic Competitiveness Project Quarterly Report

The project focuses on two main objectives: Equipping for Growth and Governing for Growth. Equipping for Growth seeks to improve the capacity of business development service providers (BDSPs) to support MSMEs through innovation and implementation of new technologies. This objective is further divided into three components: Improved Business Development Services to MSMEs, Improved MSME Use of Innovation and Technology, and Expanded Market Access for MSMEs. The Improved Business Development Services to MSMEs component aims to increase the quality and quantity of business development services to MSMEs through institutional strengthening and identifies opportunities to address gaps in services, improve service quality, and encourage collaboration between providers and complementarity of services provided to MSMEs. The project has developed and launched the first Postgraduate Diploma in Foreign Trade, trained 12 consultants and 15 MSMEs from the pharmaceutical, plastics, and food and beverages sectors, and trained 125 beekeepers to meet international standards. The Improved MSME Use of Innovation and Technology component focuses on increasing innovation and use of improved technology among MSMEs. The project has supported the Alliance for Innovation and Entrepreneurship (ALIE) of El Salvador, which brings together BDSPs to promote the innovation ecosystem, and initiated a strategic plan and governance system for ALIE. The project has also supported the 5th International Business Encounter, which is likely to result in market connections and sales of over $2M. The Expanded Market Access for MSMEs component aims to link MSMEs to global markets. The project has signed a technical agreement for supplier development with Mama Lycha and Gotera, which will open the door to access the U.S. market for food and beverage MSMEs. The project has also presented 3 proposals for regulatory improvement this quarter, including improving registration on miepresa.gob.sv, simplifying VAT reimbursement for exporters, and simplifying procedures to close a business. The project has achieved several highlighted achievements this quarter, including achieving $287,000 in sales, 10 jobs created, and a pipeline of $30M in deals with over $4.1M in financing disbursed. The project has also signed Memorandums of Understanding (MOUs) with key partner institutions, including the Association of Micro and Small Business Development Centers (ACDMYPE), the National Commission for Micro and Small Enterprises (CONAMYPE), and the Ministry of the Economy (MINEC). The project's indicators for sales and jobs created are as follows: Indicator 3, Sales, has achieved $619,000 to date and $287,000 this quarter, exceeding the FY17-18 goal of $10M. Indicator 4, Jobs, has achieved 50 jobs created to date and 10 jobs created this quarter, exceeding the FY17-18 goal of 2,200 jobs. The project's performance-based Financial Facilitation activity has achieved a pipeline of $30M in deals, with over $4.1M in financing disbursed by the end of Q3.