CABEI consolidates support to Salvadoran MSMEs through DINAMICA initiative with more than US$9.5 million
In this first phase, more than US$630 thousand in non-reimbursable technical assistance was also granted.
San Salvador, September 2022. In orderto contribute to the promotion of innovation, entrepreneurship and participate in socioeconomic development and poverty reduction, the Central American Bank for Economic Integration (CABEI), the European Union (EU) and the government of Germany, through KfW, consolidated an important support of US$9,539,171.30 in loans to 175 Salvadoran MSMEs, which strengthened 1,292 jobs through the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA) initiative in its first phase.
The initiative, which has impacted the lives of Salvadoran entrepreneurs, has been implemented through loans and technical assistance, benefiting intermediary financial institutions, business development centers and MSMEs.
"DINAMICA has been supporting young and innovative companies that have had the opportunity to access financial products suitable for their business and the development of their potential. With these types of tools, we support MSMEs to achieve greater productivity, competitiveness, growth and job creation. We are very satisfied with the results," stated CABEI's Executive President, Dr. Dante Mossi.
In addition, other benefits have been granted in the area of visibility in the amount of US$32,687.00 through 20 sponsorships to different institutions such as the Universidad de Oriente, Voces Vitales, IMPACT HUB, and the Escuela Superior de Economía y Negocios ESEN, which carried out activities related to entrepreneurship and innovation.
In order to contribute to the development of the sector's business ideas and give visibility to the different Salvadoran initiatives, a total of US$632,392.90 in non-reimbursable technical assistance was also granted. This assistance benefited 27 MSMEs, which received assistance related to the formalization of their businesses, marketing plans, creation of websites and mobile applications, registration of patents, creation of financial and accounting control programs, among others.
In addition, two Intermediary Financial Institutions created specific financial products for entrepreneurs and MSMEs in the early stages, with a registration website and training, among others. In addition, three Business Development Centers conducted market studies and business fairs and enhanced the services they offer entrepreneurs through technical assistance received through the DINAMICA initiative.
In the region
The initiative has also enabled the delivery of 11,123 loans in the region, benefiting 21,662 employees. Of these, 59% are men and 41% are women, who play a fundamental role in the economy and contribute, together with the institution, to promoting the well-being of the region.