Innovaemprende Award Launched with support from the EU, the Government of Germany and CABEI

San Salvador, June 27, 2017- . The Central American Bank for Economic Integration (CABEI), as executing entity of the Initiative for the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA), promotes the Third Edition of the Innovaemprende Award, through which the Ministry of Economy of El Salvador (MINEC) will provide US$350,000 to create 15 new innovative companies.

In order to contribute to the country's sustained economic growth through the promotion of innovative enterprises and the creation of new companies, MINEC, through the Innovation and Quality Department (DICA), the Productive Development Fund (FONDEPRO) and the DINAMICA Initiative, launched the third edition of the Innovaemprende award on June 22.

This year’s incentive includes US$350,000.00 for the creation of at least 15 new innovative companies and support to startup businesses and promote the creation of enterprises that generate new high added-value products or services.

Each winning entrepreneur will be awarded a maximum non-reimbursable co-financing amount of US$22,500 with which they can finance the formalization of their company, as well as operational and investment costs involved in the enterprise’s initial development.

According to the Vice Minister of Commerce and Industry, Merlin Barrera, this competition and other actions developed by the Ministry are contributing to the creation of a favorable environment to develop a more suitable and stimulating innovative entrepreneurial fabric that will lead to the emergence and growth of more entrepreneurs.

The requirements that entrepreneurs must meet to participate are as follows:

a) Be a Salvadoran citizen interested in starting a business that incorporates innovation and technological development as a competitive advantage and that has the capacity to generate quality jobs.

b) Not be related, nor have any employment or contractual links with any of the contest organizers or sponsoring institutions, pursuant to the contest bases.

c) Companies that have been legally incorporated for more than a year or 366 days at the time of registration are not eligible to participate.

The registration period was opened on June 22 and the bases can be downloaded from the website: inovación.gob.sv /innovaemprende. For more information call 2590-5493.

DINAMICA Initiative, an initiative to strengthen the region’s MSMEs

During the launch, the European Union's Cooperation Head, Pierre-Yves Baulain, explained that, "DINAMICA is a tripartite initiative of CABEI as executing entity, the Government of Germany through its KfW Development Bank and the European Union as part of its Latin American Investment Facility (LAIF) program. The Initiative’s main objective is to strengthen the business ecosystem for MSMEs."

This approach also includes strengthening the financial sector at a regional level in order to promote adequate access to financial services for these MSMEs.

In order to achieve these objectives, the DINAMICA Initiative has (1) a EUR5 million in reimbursable resources from Germany through its KfW Development Bank and CABEI, which are channeled as loans to regional MSMEs through CABEI’s network of intermediary financial institutions. In addition, it has (2) a EUR3.8 million donation from the European Union for technical assistance and training of the Dynamic Business Development Centers, MSMEs affiliated to these centers and CABEI’s network of intermediary financial institutions.

The initiative is executed in the following Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.