IDB, IIC, Itaú and Endeavour to provide training for SMEs in Brazil

Program to foster development of solutions for the base-of the pyramid

The Inter-American Development Bank (IDB) is teaming up with Banco Itaú and Endeavour Brazil to provide training for small and medium-sized companies in Brazil that are interested in developing high-quality products and services to theneediest population in the country, in the so-called base of the pyramid (BOP) in Latin America’s biggest economy.

The IDB, through its Opportunities for the Majority Initiative and the Inter-American investment Corporation (IIC), and its Brazilian partners will implement a pilot training program that will allow SME executives to develop new business ideas or expand their existing businesses focused on serving the Brazilian BOP market. The announcement of the program was made during BASE, the First Forum for the Development of the Base of the Pyramid, in São Paulo.

The training program, based on Endeavour ’s “Bota para Fazer” methodology, will allow SMEs to learn about several topics including: identify business opportunities; set financial goals; develop products; conduct market research as well as build an organization and manage cash flow and financial needs. In addition, participating companies will also have access to three training modules developed by the IIC through the FINPYME program to improve governance of family-owned SMEs, increase transparency and ethics inside the organization and fostering the adoption of best practices of energy efficiency.

Throughout the three-year program, the SMEs will have access to a range of materials including an on-line collaborative platform that will allow them to: interact virtually with professors; engage in individual or group exercises; view talks from renowned Brazilian entrepreneurs; monitor the evolution of the program; and receive updates and news from Endeavor, Banco Itaú, the IDB/IIC and other potential partners.

Over the next three years as many as 100 SMEs are expected to benefit from the business mentoring and, after that period, another 500 firms will receive training. Participants will be chosen from Banco Itaú’s and Endeavour’s client base as well as Web-based application forms on Endeavor’s online platform. The Korean government, through the IIC Korea-SME Development Trust Fund, is supporting the project with a $500,000 technical assistance program. Counterpart funds total another $500,000.