PROMYPE Project Integral services to improve the performance of urban micro and small enterprises in Bolivia


Micro and small enterprises in urban areas of Bolivia face difficulties that limit them increasing their productivity and improving incomes and jobs for their workers. The PROMYPE Project (formerly Jiwasa) supports the provision of integral public services aimed at addressing bottlenecks in production conditions and access to finance and markets. It also promotes the linking of national and local policies to support MSEs.

Country/region Topic Period Budget
Bolivia
Employment & economic development
SME development
Business support & economic inclusion
Urban development
01.04.2020 - 31.12.2023
CHF  4’800’000
Background

MSEs are the most relevant sector to employment in Bolivia, providing jobs to 83% of workers, although their contribution to GDP is just 25%. MSEs are business with the lowest productivity, estimated at just 20% of that of large companies.

Phase 1 proved the potential of a public service to support MSEs, the implementation of which had the backing of the Ministry of Productive Development. It also revealed the need to mitigate the risks of clientelism by working with the trade associations in the MSE sector. Law Nº 947 and its regulations on MSEs confirm the political will to promote this sector.

Bolivia suffered a political crisis in October 2019 which led to the resignation of President Evo Morales and a new transitional government under President Janine Añez. New authorities announced the continuity of public policies during the transition period and, due to the persistence of bottlenecks and needs of the MSEs sector, have ratified the project.

Objectives Improve the production and trading capacities of micro and small enterprises involved in manufacturing, seeking to increase incomes, improve working conditions and promote gender equality.
Target groups

The direct beneficiaries are 6.000 people working in productive unites provided with support, expecting to reach 40% women.

Indirect beneficiaries are 135.000 businesses in the manufacturing sector who will benefit from an intervention model that promotes the MSE sector.

Medium-term outcomes

1.    Linkages among public, private and academic actors at regional and local level supported to promote policies, actions and resources to foster the development of MSEs

2.    Productive efficiency of MSEs improved as a result of technical assistance and training services, transfers of productive assets and innovation

3.    Improved conditions for access to financial services and market access.

Results

Expected results:  

-    Mapping of public, private and academic actors at regional and/or local level;

-    Regional Committees of relevant local actors working to address MSEs development strategies; 

-    Integrated technical assistance, training and asset transfer services provided to MSEs; 

-    Innovation in processes, products, organisation and marketing promoted in 5 priority product sectors;

-    A preferential incentive mechanism for financing MSEs implemented;

-    Technical assistance service for market access.


Results from previous phases:   Preliminary estimates indicate that the real net incomes of 2.400 MSEs were increased by 16% and 5.700 workers (45% women) were provided with jobs. A pilot model of services for the MSE sector was established.


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Foreign state institution
  • Central State of South East


Other partners
Ministerio de Desarrollo Productivo y Economía Plural - PROBOLIVIA
Coordination with other projects and actors

OIT SCORE Project - SECO

Capital Semilla  Project– COSUDE

Formación Técnica Profesional Project – COSUDE

No other donors have been identified yet.

Budget Current phase Swiss budget CHF    4’800’000 Swiss disbursement to date CHF    2’598’504
Project phases Phase 2 01.04.2020 - 31.12.2023   (Current phase) Phase 1 01.09.2014 - 31.03.2020   (Completed)