LocationsMicro, small, and medium-sized enterprises in Latin America and the Caribbean driving their businesses forward.
Small Business, Big Dreams
June 27, 2024
“We depend on the forest, we have grown here, and we want to protect it by adapting our business,” says Eleazar Félix, producer and leader of AGROLICOP (Agricultural Association in Pueblo Libre de Codo de Pozuzo).
In recent years, Peruvian entrepreneurs have witnessed the negative impact of climate change and biodiversity loss, on their territory and economy. A significant portion of poor households in the region (71.5%) are located in areas with high levels of biodiversity, such as the Amazon region, where their livelihoods mainly depend on ecosystems.
‘Growing your Business’ is one of UNDP’s programs within the framework of the Sustainable Productive Landscapes project. It provides producer associations with sustainable production tools, creating incentives for forest conservation and allowing their activity to be more economically and environmentally sustainable. Additionally, they are advice on how to strengthen their production processes in order to better manage their inputs and improve the quality of their products.
AGROPLICOP has achieved important savings in supplies and significantly reduced costs: “Before, with 13 liters of milk, we produced 1 kilogram of cheese. Now, with the knowledge gained from CCSN, we can produce the same amount of cheese with 6 liters, and it tastes better,” explains Eleazar.
Improved costs management has allowed AGROPLICOP to offer more competitive prices and expand their client portfolio. Today, they supply another store, which has allowed them to increase their profits.
In partnership with public and private entities, ‘Growing your Business’ has supported nearly 8,000 productive organizations and small producers to improve their financial, administrative, commercial, and productive skills.
PRODUCTIVITY AND COMPETITIVENESS
Micro, small, and medium-sized enterprises (MSMEs) represent 90% of businesses, between 60% and 70% of employment, and 50% of global GDP. As the backbone of societies worldwide, they contribute to local and national economies creating employments, particularly among the poorest workers, women, youth, and other vulnerable groups.
In Latin America, MSMEs represent more than 99.5% of businesses and are responsible for about 60% of formal employment. For over 20 years, the UNDP’s SDG Value Chains Program in Latin America and the Caribbean, together with governments, the private sector, and other partners, has fostered the incubation and acceleration of MSMEs with a focus on sustainable economies, inclusion, and better conditions throughout the value chain.
This program is UNDP’s flagship initiative to support inclusive value chains and private sector development through methodologies aimed at increasing the productivity and competitiveness of MSMEs and their ecosystems: the ‘Supplier’s Development Program’, ‘Growing your Business’, ‘Starting Your Business’, ‘In Motion’, and ‘Digital In Motion’.
These methodologies include local capacity development, fostering women’s participation, and access to financing. The program was born in Latin America and the Caribbean but has expanded to other countries such as Albania, Kosovo, Pakistan, and Botswana, thanks to its success. As today, it has supported over 40,000 businesses in 16 countries. 65% of participants are women.
DOUBLING SALES
“My business used to be very disorganized. Sales were very low. I had no business organization whatsoever. I didn’t feel good because everything was going wrong,” says Yrdilonia Espino, from Sabana de la Mar, Dominican Republic.
Thanks to group training through the ‘In Motion’ program, her store Alanny Variedades has doubled its sales. She has made special offers to clear stock, organized her clothing, and even made donations to hospitals, prisons, and underprivileged children.
8,500 businesses in the country have participated in recovery programs for MSMEs like ‘In Motion’, a methodology that seeks to strengthen micro and small businesses by updating their business models. 60% of businesses participating are women-led. 69% have now a new commercial image, and 23% have seen an increase in sales.
‘In Motion’ was born in Haiti in 2010 after the earthquake as one of the UNDP’s tools for the country’s economic recovery. It has been implemented in other post-emergency contexts, such as the earthquakes in Ecuador (2016) and Albania (2019), supporting the economic reactivation of affected communities and over 21,000 businesses worldwide.
DOING BUSINESS DURING PANDEMIC
“I believe the pandemic has many stories, and one of them is mine.”
Ana Lucía Morales, from Quito, Ecuador, lost her job during the COVID-19 pandemic and decided to start a business, venturing into clothing manufacturing with her store Annie Stores.
“You see people posting content on social media, and I thought it was something I could do, it’s like just standing in front of the camera and doing it. But you need guidance because it goes far beyond just having your phone,” she says.
Through ‘Digital In Motion’, aimed at promoting the digital transformation of businesses, Ana Lucía has been one of the 511 participants who have learned to improve their business using digital tools and innovative applications, create marketing plans, organizing finances, generating attractive products and promotions for customers, and maintaining environmentally sustainable practices.
BUSINESS ROUNDS
Natural is Oscar Julián Guevara’s sportswear business, created seven years ago in Bucaramanga, Colombia, from his passion for cycling. He currently employs 13 people who dedicate their creativity and time to the entire process behind a garment.
“Thanks to ‘Growing your Business’, I was able to get a new machine that sped up the production process. Additionally, the training allowed us to learn how to identify weaknesses, improve cost management, production, times, and marketing,” he says.
Single mothers, Venezuelan migrants, and people with hearing disabilities are some of the individuals who make up his team and help him realize his business dream.
“This was like a small school for me because I reduced production times and increased profitability with my team. Also, thanks to business rounds I had the opportunity to connect with major companies like Electrificadora de Santander,” says Oscar.
In Colombia, ‘Growing your Business’ has strengthened over 500 small businesses, trained 340, and supported the development of 452 commercial agreements.
LISTENING TO CUSTOMERS
Food Industry HERMO is one of the companies that has been part of the ‘Supplier’s Development Program’ in Venezuela. This initiative is present in 14 states and has included organizations of various sizes and economic activities, promoting the adoption of good business practices in finance, marketing, operations, human resources, gender equality, and technology, among others. The program focuses on a leading company and its MSME suppliers, improving quality, competitiveness, and business relationships.
“I have gained a lot of knowledge and started connecting with other suppliers. Through this, I got more clients, many more clients, and more services. I have been gradually growing as a company,” says Yulimar Aponte, president of Multiservicios Petax 100.
For Wilmer Rodríguez, operations manager at HERMO, “anything involving training always has a positive impact. For this group, it has been life-changing”. He asserts that the program not only helps small, medium, or large businesses improve their management but also allows for “the company that trains its suppliers, to achieve better services and quality.”
The ‘Supplier’s Development’ program has been implemented in 14 states in Venezuela and has trained over 750 people, with 100% of businesses trained in gender equality and inclusion.
Photos: UNDP Colombia, UNDP Dominican Republic, UNDP Ecuador, UNDP Peru, UNDP Venezuela.
