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Socioeconomic recovery of micro and small enterprises, agricultural production units and organizations providing social services within the framework of the COVID-19 pandemic

Project completed
Due to the devastating impact of COVID-19 on Bolivia’s economy, many micro and small enterprises are facing bankruptcy. As they are the backbone of the Bolivian economy and responsible for most of its job creation, employees and the self-employed are seeing huge job losses and rising food insecurity. This project will help preserve jobs and increase the resilience of micro and small enterprises by providing sanitary support measures in the short term, and by promoting alternative and innovative business models in the long-term.

Country/region	Topic	Period	Budget
Bolivia	Health Employment & economic development Health education SME development	20.08.2020 - 30.04.2022	CHF 800’000

The project in brief

Background	The number of cases of COVID-19 infection in Bolivia is growing rapidly, reaching 51,000 cases by mid-July. The figures put to test the weaknesess in the diagnostic and care capacity of the Bolivian health system.The complex health situation, coupled with a long political crisis that has been dragging on since the end of 2019, have seriously deteriorated the economy, affecting more than 250,000 jobs, particularly among MSEs (Micro and Small Enterprises). According to information from the Ministry of Productive Development and Plural Economy, MSEs contribute to approx. 83% of employment almost 95% of Bolivia's entrepreneurial base. The impact of the pandemic on the MSEs is directly translating into higher rates of unemployment, the closure of businesses and thus, higher levels of poverty in Bolivian households. MSEs in Bolivia are in particular vulnerable, as most belong to the informal sector, which entails limitations in access of social security and financial services, among others.
Objectives	Overall goal Greater economic-social inclusion, equity and resilience of vulnerable population groups contribute to productive revitalization with innovation, aimed at poverty reduction. Project objective Workers in micro and small enterprises, agricultural production units and organizations providing social services in the project intervention area have recovered and/or maintained their jobs and have enhanced their socioeconomic resilience in the face of pandemics such as COVID-19.
Target groups	- 15,220 people from MSEs, agricultural production units and organizations providing social services. - 30% of MSEs led by women.
Medium-term outcomes	Outcome 1: Selected MSEs, agricultural production units and organizations providing social services have reactivated their socioeconomic activities by implementing biosafety measures in the face of the COVID-19 pandemic. Outcome 2: Selected MSEs and agricultural production units have recovered their economic activities by adjusting their business models with a gender-sensitive approach and enhancing their resilience to this type of crises.
Results	Expected results: - Selected MSEs, agricultural production units and organizations providing social services have been provided with Personal Protection Equipment (PPE) and other biosafety inputs for the reactivation of their socioeconomic activities. (15,220 people); - Selected MSEs, agricultural production units and organizations providing social services properly apply biosafety protocols for developing their socioeconomic activities. (15,220 people); - MSEs and agricultural production units use digital tools in response to their needs for digital services, virtual technical assistance and/or access to financial services. (200 MSEs).
Directorate/federal office responsible	SDC
Credit area	Development cooperation
Project partners	Contract partner United Nations Organization (UNO) United Nations Development Programme Other partners United Nations Development Program (UNDP) Other partners: Development Financial Institutions, SME Banks Autonomous Municipal Governments Associations of micro entrepreneurs
Coordination with other projects and actors	SDC projects: The beneficiaries of all projects in the Bolivia portfolio will receive Personal Protection Equipment and biosafety protocols. Thematic articulation with Promype and Inclusive Markets Other: Productive Development Bank, Vice Ministry of Micro and Small Enterprises, Financial System Supervisory Authority.
Budget	Current phase Swiss budget CHF 800’000 Swiss disbursement to date CHF 790’524
Project phases	Phase 1 20.08.2020 - 30.04.2022 (Completed)

Further technical details

Sector according to the OECD Developement Assistance Commitiee categorisation	HEALTH INDUSTRY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation	Health education Small and medium-sized enterprises (SME) development
Aid Type	Project and programme contribution
Project number	7F10546