The Inter-American Development Bank’s Multilateral Investment Fund announced today the approval of a US$780,000 technical cooperation grant to the Catholic University and US$400,000 in reimbursable financing to create a financial support mechanism in Paraguay to foster new dynamic enterprises.
The program has a medium-term comprehensive strategy to develop and implement a technically and financially sustainable framework for the promotion, incubation and financing of new dynamic enterprises. The initiative will help increase the number of successful entrepreneurs in the country.
“People interested in creating a dynamic enterprise or with new businesses with potential for commercial scaling up and growth will be the beneficiaries during the first two years of the project,” said IDB Team Leader Pablo Angelelli. “On the third year, efforts will be made to also include new businesses with knowledge and technology-intensive processes and products.”
The Catholic University will carry out the technical cooperation component and will provide $430,000 in counterpart funds. Visión S.A. will help the IDB set up a trust for new businesses to be managed by a local entity and will provide $200,000 in counterpart funding.
Catholic University “Nuestra Señora de la Asunción” has led a group of private institutions in proposing this pilot program to promote a culture of entrepreneurship through an innovative mechanism designed to foster the gestation of dynamic companies. This idea combines business services, access to networks and specialized financing.
“The program seeks to generate a demonstration effect on the role of entrepreneurs as agents for change and improvement in the social conditions of the population,” added Angelelli. “It will improve the capacities of institutions currently promoting entrepreneurship by creating links among them and helping them to improve the quality of their services.”
MIF, an autonomous fund administered by the IDB, supports private sector development in Latin America and the Caribbean, focusing on microenterprise and small business.