The project seeks to improve the productivity of microenterprises in eastern El Salvador by promoting a sustainable market for training and technical assistance services and by developing an intervention methodology that successfully combines investments from the private, governmental, and international sector. Project components are: a) a system of training and technical assistance vouchers; b) a system for the improvement of supply; and c) a promotion, information, and dissemination system. Component 1, a partial and direct subsidy mechanism to stimulate demand among microenterprises, gives entrepreneurs in manufacturing, commercial and service enterprises the purchasing power to obtain prequalified training and technical assistance services, and provides incentive to suppliers to adapt or expand their services. A control system based on an electronic database will ensure fair and transparent use of the vouchers. Component 2 accelerates the adaptation of existing supply to the specific needs of microenterprises and helps redirect supply that exists in the metropolitan area of San Salvador toward the project region. The component supports some 18 service providers to receive training and technical assistance enabling them to adapt their services to the needs of microentrepreneurs and acquire and adapt modern technologies. The service providers selected will be training and technical assistance institutions (ICATs), consulting firms, and individual consultants that have entered into agreements with the Salvadoran Foundation for Integral Education (FEDISAL) certifying that they currently offer services in the program region or are prepared to establish permanent operations in the region. Under Component 3, consulting services will be hired to formulate a promotion campaign strategy and procure minor equipment for use by the promoters. Promotion of the program will be conducted via the mass media, including radio, television, the press, fliers, posters, brochures, folders and broadcasts.
Project Detail
Country
El Salvador
Project Number
TC9804271
Approval Date
May 31, 2000
Project Status
Closed
Project Type
Technical Cooperation
Sector
PRIVATE FIRMS AND SME DEVELOPMENT
Subsector
PRIVATE FIRMS AND SME DEVELOPMENT
Lending Instrument
Multilateral Investment Fund Instrument
Lending Instrument Code
MIF
Modality
-
Facility Type
-
Environmental and Social Impact Category (ESIC)
-
Total Cost
USD 1,275,000.00
Country Counterpart Financing
USD 405,000.00
Original Amount Approved
USD 870,000.00