MSMES Development Centers

SICA

MSMES Development Centersin Central America andDominican Republic To the commercial connection of the MSMEs in Central America and the world

PROGRESS REPORT 2014

Colonia San Benito, Calle Circunvalación, Nº 294, San Salvador, El SalvadorTeléfono: (503) [email protected]@Cenpromype_sica

General Directorate Ingrid Figueroa Santamaría

Editorial CoordinationKatya Moreira

CopyeditingLigia Carmona

TranslationVerónica Martínez

Design and Layout Alejandra Martínez Vanegas

PrintImprenta La Tarjeta

Print run: 100 copiesPrinted in El Salvador, Central America

What are the MSMEs Development Centers? Background

The Centers are the model used by governments of the SICA Region, through the public-private-academy scheme, to provide entrepreneurial development services to the SMES, aiming to improve innovation, productivity, and entrepreneurial management, productive and commercial performance that will lead the companies to be more competitive.

The Centers are based in the “Small Business Development Centers” (SBDC) model, transferred to the countries of the Central America Integration System (SICA), by the University of San Antonio Texas (UTSA) and its adaptation in the Development Centers for the Micro and Small Business (CDMYPE), implemented by the National Commission of the Micro and Small Business (CONAMYPE) in El Salvador.

From the Salvadoran experience, since 2011, the countries of the SICA region prioritized the adoption of the SME attention model, based in the

The region is moving ahead in theimplementation and consolidation of this model with the purpose of harmonizing the services of BUSINESS development for the MSMES and the creation of a specialized services network with the vision of becoming a platform for the use of regional trade.

BUSINESS advisory

Networking

Specialized technicalassistance

Main services:

Training

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public, private and academy partnership.

MSMEs DEVELOPMENT CENTERS: priority of the Heads of States and Government

Central America and the Dominican Republic Presidential Mandate

July, 2011Presidential Mandate

June, 2014“To instruct the Center for the Promotion of the Micro and Small Enterprises (CENPROMYPE) to manage technical and financial resources needed to develop and consolidate the MSMEs attention model, as well as reaching its regionalization and achieve a greater participation of these MSMEs in the regional and international trade”.

“Recognize the important advances in the SICA region in the development andconsolidation of the Centers for MSMEs in Central America and the Dominican Republic, based on academic private public partnership. In this regard, issue instructions so that the Regional Center for the Promotion of Micro and Small Enterprises (CENPROMYPE for its initials in Spanish) intensifies joint management and work with a common vision on the construction and consolidation of the Regional Network of Support Centers for MSME, facilitating regional and international commerce for MSMEs in the SICA region”.

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economicimpacts

socialimpacts

OF THE MSMEs DEVELOPMENT CENTERS BASED ON THE PUBLIC-PRIVATE-ACADEMIC PARTNERSHIP

Contribute to generate new jobs Contribute to the job retention Improve the competitiveness and business environment Contributes to increase sales and income of the MSMEs

Improve the MSMEs productivity, making them more competitive in the market

Support the creation of new initiatives and new businesses Generate private investment

Increase productive labor force Streamline local productive activity

Improves the living conditions of the inhabitants

Increases job opportunities

Improves the working conditions with quality jobs

Promotes female participation in the labor force and therefore, improves life quality of the families.

Reduces productive and qualified labor force to the capital city or abroad

Increases territorial ties

Reduces poverty in the area influenced by the Centers

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Results of the SICA Regionlocation of the MSMEs Development Centers

Countries Centers operating up to March 2015

Centers that will start before

Total projected

Belize 2 1 3Guatemala 5 5 10El Salvador 12 1 13Honduras 6 5 11Costa Rica 6 1 7Panama 0 4 4Dominican Republic 6 6 12Total 37 23 60

Centers operatingMSMEs Development Centers that will open in 2015

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Belize 2 1 3Guatemala 5 5 10El Salvador 12 1 13Honduras 6 5 11Costa Rica 6 1 7Panama 0 4 4Dominican Republic 6 6 12Total 37 23 60

Centers operatingMSMEs Development Centers that will open in 2015

RESULTS OF THE SICA REGION 2014

Over 200 advisors trained in Information and Communications Technology (ICT, in order to provide specialized services through the MSME Centers

Over 1,000 officials,directors, and advisors trained in the SBDC methodology, using the instruments and tools that are part of the model

directly involved inoperating those centers(up to March 2015):

15% in the public sector66% in the private sector19% in the academic sector

184

16 Centers operated by Universities, 6 by the Public Sector, 6 by Social Economy Business, 8 by Foundations/NGO/Business Associations (up to March 2015)

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institutions

8,061 jobs created created in 4 countries . On average, it is estimated that for every job created, the Government has invested US 323.65 dollars in the Centers.

21,561 jobs retained in 3 countries

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2

in sales generated from the intervention of the Centers in the four countries

86% of the Governments

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that taxes generated It is estimated

investments.4

2014 results

from the sales of those businesses supported, cover

8 1. Belize, Guatemala, El Salvador and Honduras. 2. Belice, Guatemala and Honduras. 3. Belize, Guatemala, El Salvador and Honduras. 4. Includes: Belice, Guatemala, El Salvador and Honduras. Estimated potential revenue collected by the States, through sales taxes, under the assumption that sales are reported to the proper authorities.

Over 22 million USD

“Recognize the important advances in the SICA region in the development andconsolidation of the Centers for MSMEs in Central America and the Dominican Republic, based on academic private public partnership. In this regard, issue instructions so that the Regional Center for the Promotion of Micro and Small Enterprises (CENPROMYPE for its initials in Spanish) intensifies joint management and work with a common vision on the construction and consolidation of the Regional Network of Support Centers for MSME, facilitating regional and international commerce for MSMEs in the SICA region”.

11,245 (55%M and 45%W) total customers advised in 5 countries: 23% of them are entrepreneurial and 77% business persons from the MSMEs

Of the total of enterprises supported in 3 countries: 85% ARE micro, 14% SMALL AND 1% mediUM

Agro-industry

Service

Industry

Commerce

FoodTourism

Crafts

No data

Other*

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5. El Salvador, Honduras and Costa Rica. 6. El Salvador, Honduras and Costa Rica. 7. Belice, Guatemala,El Salvador, Honduras and Costa Rica. 8. Includes: Belice, Guatemala, El Salvador, Honduras and Costa Rica

*Shoes, Construction, pharmaceutical chemistry, information technology, textiles.

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8

6

Over 8 million USD

5 Governments have contributed with more than 3.9 million usd

invested in the MSMEs Attention Centers from the Governments, and partners from the private and academy sector

for this initiative; which indicates that for every 1.00 USD invested in the Centers, the businesses supported generated an average of 6.54 USD, in sales

Business by sector:

21%17%

5%

7%

4%

2%11% 13%

20%

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Contribute to generate new jobs Contribute to the job retention Improve the competitiveness and business environment Contributes to increase sales and income of the MSMEs

Improve the MSMEs productivity, making them more competitive in the market

Support the creation of new initiatives and new businesses Generate private investment

Increase productive labor force Streamline local productive activity

Improves the living conditions of the inhabitants

Increases job opportunities

Improves the working conditions with quality jobs

Promotes female participation in the labor force and therefore, improves life quality of the families.

Reduces productive and qualified labor force to the capital city or abroad

Increases territorial ties

Reduces poverty in the area influenced by the Centers


belice*SBDCBelize-The Small Business Development Center BelizeFirst Center opened in the country: November-12

100%

Territorial coverage:

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Total number of advisors:

(40% W,60% M)

Financial support from the Government for the Center in 2014:

$ 148,610.00

Entrepreneurs:

131 (50% M , 50% W)

$ 265,530.00

Sales increased:

268

Total of clients:

(46% M , 54% W) 1,124

Business servicesprovided (training, entrepreneurial advisory):


(14% rural and 5% urban)

Centers operating:

Jobsretained:


Financial support from the Government, stakeholders and cooperation for the Centers in 2014:

Jobs created:

388

Sales increased:

$ 2,262,200.46Funding:

PROMIPYME: Units for the Promotion of the Micro, Small and Medium EnterprisesFirst Center opened in the country: October-13

5 19% 22 (64% M,36% W)

2,744

$ 580,000.00

$ 1,517,519.08

Centers operating:

2

MSME:

137 (46% M , 54% W)

2014 RESULTS BY COUNTRY

guatemala

Total of clients:

2,632 (47% M , 53% W)

Jobs created:

232

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(*) The SBDC model in Belize has support from the Univertity of San Antonio ( UTSA), the organization of American States (OAS) and the agency for Developing in the Caribbean (Caribbean Export) (**) In Belize a SBDCBelize and a specialized Center for International Trade (ExportBelize) operates. The Government Investment results and economic impact presented are only for the SBDCBelize Center.

Development Centers for Micro and Small Business

Total of clients Entrepreneurs:

Jobs created:

$ 19,067,366.11

First Center opened in the country: August-10

Centersoperating:

12 100%Territorial coverage:

Financial support for the centers 2014(Government):

$ 4,914,340.00

EL sALVADOR*


80(40% M, 60%W)

3,197 (43%M, 57% W)

Sales increased due to the operation of the Centers- CDMYPE:

Agro industry (37%), commerce (8%), tourism (6%), crafts (11%) and others (38%) **

Sectors supported:

663 (35%M , 65% W)

MSME

2,534 (45% M, 55%W)

Segments supported:

Micro 2,330SMALL 204

(92 %)

(8%)

22,074

(*) THE CDMYPE model in El Salvador has support from the United States Agency for international Development (USAID) trough its MSME Development program, and initially it had support from USAID, from Booz Allen, and the organization of the American States (OAS)

(**) Shoes, construction, pharmaceutical chemistry, information technology, textiles

5,830

Business services provided (Training+Technical Assistance+BusinessCoaching+Networking+Market Intelligence):

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Jobs retained:

Jobs created:

Sales increased:

CDEMIPYME - Center for the Business Development of Micro, Small and Medium EnterpriseFirst Center opened in the country: May-13

Centersoperating:

6


46% (21% rural 79% urban)

Financing for the Centers in 2014 (Government and stakeholders)

$ 1,335,291.62

Total ofclients:

2,559 Entrepreneurs: MSME

Segments supported:

353 2,206 Micro 1,678small 478 mEDIUM 50

(76%)

(22%)

honduras

(50%)

Agro industry (10%), service (24%), industry (23%), commerce (12%), food (4%), tourism (3%), crafts (8%), N/D (16%) *

Sectors supported:

1,611

Number of business services provided (Training+Technical Assistance+Business Coaching+Networking+Market Intelligence):

Institutions directly related with the MSMEs Centers:


31 (39% M , 61 % W)

(*) Not determined

$ 2,006,135.17 21 public115 private19 academy

1557,918

18,486

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CIDE: Integral Center for Entrepreneurial Development

Entrepreneurs:

First Center opened in the country: November-12


(30% M , y 70% W)

Segments supported:

costa rica

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Financial support from the Government to the Center in 2014:

$ 993,509.00

869 (31% M , 69% W)

MSME

1,720 (52% M, 48% W)

Micro 1,495small 200 medium 25

(87%)

(12%)

(1%)

Agro industry (5%), services (51%), industry (26%), commerce (16%), food (2%), crafts (2%)

Sectors supported:

(*) Centers restructured in 2015

Centers operating:

6


40%(35% rural y65% urbano)

Total ofclients:

(45% M ,55% W)2,589

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1. Belize, Guatemala, El Salvador and Honduras. 2. Belice, Guatemala and Honduras. 3. Belize, Guatemala, El Salvador and Honduras. 4. Includes: Belice, Guatemala, El Salvador and Honduras. Estimated potential revenue collected by the States, through sales taxes, under the assumption that sales are reported to the proper authorities.

5. El Salvador, Honduras and Costa Rica. 6. El Salvador, Honduras and Costa Rica. 7. Belice, Guatemala,El Salvador, Honduras and Costa Rica. 8. Includes: Belice, Guatemala, El Salvador, Honduras and Costa Rica




Estimated financial support from the Government and stakeholders to the Center in 2015:

PROMIPYME: Units for the Promotion of the Micro, Small and Medium EnterpriseFirst Center opened in the country: May-15

60%

Panama

12 $ 944,000.00 (*) Estimated data for 2015

Centers that will open:

4

(12% rural; 28% urban)

40% $ 1,227,272.60


Centers operating:

Total advisors:

Financial support from the Government for the Center in 2014:

First Center opened in the country: February-15

(57% M , 43%W)6 35

DOMINICANREPUBLICCentro PYME: Center for Integrated Support Services for Small and Medium Enterprise

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Regional vision for the business network of the MSMEs Development Centers

Regional Cooperation and Learning Economy among the countries

Manage useful market information for the MSMEs

Promote the productive and service offer of the MSMEs in the SICA region.

Create regional partnerships to look for new markets for the MSMEs

Create MSMEs networking for regional and international market use

Become part of the Small Business Network of the Americas (SBNA).

Increases the regional network and stimulate the commercial trade of the MSMEs

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Challenges 2015 – 2018: Support the consolidation of the mSMEs Development Centers

Institutional Strengthening

Strengthening of the Human Resources

Facilitating the proposals to improve policy and regulatory framework

to the countries that are working on making the MSMEs

assitance model, an institutional one.

Internships and exchanges to learn the best practices

of the SICA Region and the Americas Network.

Supporting the creation of the National Associations

of the Centers to Supportthe MSMEs (Development Centers)

Establish services and Specialized

Attention Centers.

Develop accreditation standardsfor the SME Supporting Centers

that guaranteed the quality of theservices and best practices of the

Centers, at a regional level.

Plan of specialized training for directorsand advisors of the Centers, and for thetechnical staff of the institutions that support the MSMEs.

Develop accreditationstandards of the Centers Advisor

Participation of the regional and national meetings of MSMEs Development Centers

Develop internships and exchangesto learn from other MSMEs Centers in theSICA Region and the Americas Network

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Establishing the CommercialNetwork of the MSMEs

Improve the tracking softwareand customer management,

incorporating modules forcapturing specialized services

Maximize the creationand captureof economic impact to evaluate the performance of the MSME Centers

Improving operational frameworks of the Centers for channeling and

manage the services provided by the MSMEs.

Develop aregional impact

assessment.

Equipping and strengthening information structure.

Creation of the Regional Network of the MSMEs Centers

Commercial Articulation of the SICA Network with networks in America and the world.

SBDCGlobal.com and other international trade promotion platform.

Improving operational processes

Challenges 2015 – 2018: Support the consolidation of the mSMEs Development Centers

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Testimonials

“Since that time my business took a turn and I received advisory at all times, because the main idea was to keep selling black soap which contains healing properties for the skin, but did not really know how to move and where to sell ...... PROMIPYME St. Marcos helped me to focus my sales and helped me to rescue my company, taking it afloat at the right time "

Marvin González, Comercializadora González (Gonzalez Marketing). Guatemala

“Omar, who is part of the Center’s team, has been of great help to organize my business and have it ready for its launching. SBDCBelize continues to be an important part o f my success ... Excellence in a word"

María Villanueva, Marvilleous Sauces. Belize

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“Our hope and our desire have always been to continue to grow. We are grateful to the CDE-MSMEs, which has been a key to our business grows. We have supported the development, business plans and strategies to expand our business partners. Our company is generating 18 direct jobs and 450 indirect. We also support schools with home gardens in 10communities of the west. We are growing and we believe that together we will achieve more”

Marlon Barias, Empresa Asociativa de Productores Fuente de Vida. Honduras

“This center is part of the strategy that UNPHU has developed since its inception, which is the community outreach. The SME Centre alsostrengthens our Entrepreneurial strategy. Through a single window, entrepreneurs of our country will have access advice, technical assistance, training and linkages needed to make our idea, our small business, a large-scale reality”

José Rafael Espaillat, Vicerrector of Management, UNPHU. Dominican Republic

“The university, through CDMYPE, is directly linked to the productive sector. One of the benefits of this partnership is that the University projects its academic image to the productive sector, as it explains the businesses the way that the academia can support their growth. Moreover, we have achieved a synergy between industry, government and academia that is transformed into benefits for business and wellbeing of the population. The sustainability of the Centers is to transform them as a measure of state policy, as well as a need to improve the coverage, quality and service diversification thereof”.

Luis Alonso Martínez Perdomo, Director of entrepreneurship and innovation of the University Francisco Gavidia (UFG)

Awarded as the best SME Center 2014/ Award for leading the process of creating the CDMYPE Association in El Salvador.

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STRATEGIC PARTNER FOR THE TRANSFER OF THE SBDC MODEL

STRATEGIC PARNERS FOR TRANSFER OF THE CDMYPE SOUTH-SOUTH COOPERATION MODEL

REGIONAL COOPERATION AGENCIES AND ALLIES

CENPROMYPE:

The Regional Center for the Promotion of the Micro and Small Business is an institution attached to the Central America Integration System (SICA) and its Board of Directors is formed by the is made by the national authorities that promote MSMEs in Belize, Guatemala, El Salvador, Honduras,Nicaragua, Costa Rica, Panama, and the Dominican Republic.

VISION:

MSMEs of Central America and the Dominican Republic are integrated and connected with the SICA region and the world.

MISSION:

Articulate an ecosystem to support entrepreneurship, the competitive development of MSMEs and their integration into markets, through the strengthening of institutional capacities and the promotion of targeted public policies.

This report is a publication of CENPROMYPE, thanks to the collaboration of the MSMEs Center Network in Central America and the Dominican Republic.

Institutions member of the Board of Directors of CENPROMYPE

CENPROMYPE is an institution attached to SICA

MSMES Development Centers

Documents

Transcript of MSMES Development Centers