Project description

Title: Promoting investment and trade in the micro, small and medium-sized enterprise area (MIPYMES/MSME)
Commissioned by: European Union
Financier: EU-ALA
Country: Guatemala
Lead executing agency: Ministry of Economic Affairs
Overall term: April 2004 to November 2009

Context

Micro, small and medium-sized enterprises play a significant role in the Guatemalan economy. The official labour market in Guatemala is very poorly developed, deregulated and extremely susceptible to economic changes. Most workers in Guatemala are employed by micro, small and medium-sized enterprises (MSMEs), but productivity in this sector is very low. These enterprises mostly belong to the unofficial sector and so have access neither to credit facilities nor to social or legal protection. A systematic strengthening of this area is required in order to improve economic development in Guatemala.
This is the starting point for the programme financed by the European Union for promoting MSMEs. The project is part of the European commitment to strengthening the economic development of Guatemala and its incorporation into regional and international economic spheres.

Objective

A contribution is made to economic development in Guatemala, and the country’s economic integration into regional and international markets is improved. The efficiency of micro and small enterprises is increased.

Approach

GTZ International Services advises the Ministry of Economic Affairs on the goal-orientated planning and implementation of the programme in accordance with the EU’s procedures and guidelines.

The programme concentrates on achieving five important results:

1. Improving financial and non-financial services for small and medium-sized enterprises
   This focuses on promoting and increasing access to credit at acceptable terms and improving other services for micro, small and medium-sized enterprises.
   
   
2. Improving competitiveness, access to markets and enterprise management
   The main focus of this component is on the promotion of improved access to markets for micro, small and medium-sized enterprises. The programme supports MSMEs with market-specific analyses, intensive exchange of information at national and regional levels, strengthening of enterprise representation, access to trade fairs at national, regional and international levels, and advice on improving the quality of products, etc.
   
   
3. Improving negotiating capabilities of local authorities and enterprises at regional and international levels
   Negotiators from the business world, politics, enterprises and civil society receive targeted training, so that they can carry out international negotiations successfully in the global context and therefore increase the export potential of the Guatemalan economy.
   
   
4. Strengthening organisational capabilities of small and medium-sized enterprises and inter-institutional strengthening
   The interests of the MSMEs are better represented in the sector and in the region; exchange and cooperation are improved between the private and public sectors. Politicians and representatives of enterprise at national and local levels are made aware of the important role of MSMEs through information campaigns. 
   
   
5. Promoting women in small and medium-sized enterprises
   Women entrepreneurs in the MSME area are promoted, and strengthened in their roles, with targeted training adapted specially to the women’s requirements. They are supported with access to financial services, etc. Structures are developed that allow these women to combine family and career (e.g. child care).