Micro, Small and Medium Enterprise Development in Rural Areas (PYMERURAL)

In Central American positive economic growth rates between 3% and 5% have been observed, but poverty reduction has been slow. Therefore, SDC has been supporting sustainable micro, small and medium enterprise (MSME) development and pro poor growth. Recent crises’ have affected economic growth additionally. However, opportunities for pro-poor growth interventions remain strong, especially in agriculture, livestock production and the food industry areas.

Contribute to employment and income (E&I) generation for poor men and women in rural areas in Honduras and Nicaragua by ensuring sustainability of MSMEs through value chain development (VCD):

1. Generation of 4’700 new full time equivalent employments (30% youth, 30% women)
2. Generation of USD 2 million per year of net additional income for direct beneficiaries in the currently supported value chains, and additional net income of US$21 million in other value chains (with partners’ resources)
3. Outreach: 42’000 MSMEs and agricultural producers (directly and indirectly)

• Direct: i) MSMEs in selected territories and value chains ii) private and public actors providing services to MSMEs, in particular: Honduras: Secretariat of Agriculture and Livestock (SAG), Association of Municipalities of Honduras (AMHON), LED Practitioners Network Nicaragua: Ministry of Family, Community, Cooperative and Associative Economy (MEFCC), Association of Municipalities in Madriz (AMMA) and Nueva Segovia (AMUNSE)
• Indirect: i) more MSMEs receiving services from trained partners, with partners’ own resources, ii) pre-existing employees maintained and new hired, iii) total population benefiting from improved LED and local governance

1. Increased sales (approx. USD76.5 million turn-over in two years), production and productivity of 9.000 directly and 31.250 indirectly supported MSMEs and agricultural producers
2. Public and private services for Value Chain Development provided to 9.000 MSMEs and agricultural producers (by gender). Public services include i.e agricultural health, research and technology transfer, and irrigation infrastructure
3. Local economic development (LED) processes by promoting value chain development (3 Honduras, 2 Nicaragua) with 5 regions (total inhabitants: 1’871’471 in Honduras, 340’979 in Nicaragua)

Resultate von früheren Phasen:  

• Support to 10’500 small enterprises (19’735 indirectly);Contribution to the generation of additional net income of more than USD 11.6 million (USD 23 million indirectly)
• Increase of the number of enterprises owned by women in the currently supported value chains by 2’867; relative increase of 10% of women’s salaries compared to men’s salaries
• Important contributions to public policies, in particular:(i) 4 public-private arrangements of national scope in 4 value chains (so called Acuerdos Marco de Competitividad = long term strategies with implementation plan and budgets financed by public, private actors and PYMERURAL) and (ii) comparable, complementary instruments at local level (so called Agenda de Competitividad Territorial)

Phase 2 01.05.2013 - 30.08.2015   (Completed)