Trade Capacity Development for Small and Medium Businesses

With technical support from USAID and its local partners, businesses are participating in national and international fairs and business conferences as part of efforts to promote international marketing of El Salvador’s business base. Photo by chemonics International.

El Salvador has a small economy, which has nonetheless not escaped the negative effects of the recent world recession. To promote economic growth, the country must meet the challenge of growing and strengthening its entrepreneurial base in order to create a positive impact on investment and employment. According to the General Director of Statistics and the Census (2005 data), 99% of the businesses in El Salvador, 47% of national sales, and 36% of jobs are generated by micro, small, and medium businesses (MSMEs). Thus, to support economic growth in El Salvador, USAID supports MSMEs so that they may have better access to quality business development services, which will allow them to increase their productivity and competitively, as well as grow their operations in local and export markets.

Current Activities

Support for the Network of Micro and Small Business Development Centers (CDMYPE) – USAID Works in coordination with the National Micro and Small Business Commission (CONAMYPE), in order to consolidate the CDMYPE model in El Salvador and make it sustainable. To this end, USAID has partnered with the Association of Small Business Development Centers (ASBDC) from the United States, which supplies consultants who are experts in business center management that transfer good practices and tools to strengthen the competencies of CDMYPEs and increase their capacity to generate an economic impact.

Strengthening Mechanisms of Government Support for Exports – USAID provides technical assistance to the government institutions in charge of promoting productivity and exports, so that they may offer more efficient and effective business development services based on demand. USAID is also promoting dialogue and strategic alliances between the public and private, as well as the integration of technology use and innovation in the development of the Salvadoran business base.

Creating Alliances with the Private Sector – USAID promotes strategic alliances with businesses and organizations that support strengthening MSMEs and their access to national and international markets. These actions include initiatives to increase the productivity and competitivity of small and medium enterprises.

Expected Results

• USAID will contribute to improving MSME’s access to business development services and increasing their productivity, competitivity, and participation in local and export markets. 
• Exports and domestic sales by businesses benefitted by the project will increase by $90 million.
• 4,000 new jobs will be created by businesses participating in the project.
• Participating MYPEs will receive support to improve their access to resources, including both goods and financing.

Contact:

Carlos Arce

USAID/El Salvador

503-2501-3427

carce@usaid.gov