Productive Chain Week to Promote Commercial Links

San José, August 21, 2017. Productive Chain Week 2017 will be held on August 21, 23 and 25; it seeks to establish commercial links and promote commercial linkage opportunities for micro, small and medium enterprises (MSMEs).

It will be a space in which MSMEs will have the opportunity to establish commercial links with large companies based on their procurement needs and, thus, access new suppliers of services, inputs and raw materials, among others. The companies include: Pozuelo, Dos Pinos, Hospital Cima, Holcim Costa Rica, Boston Scientific and Bayer.

The activity is organized by the Ministry of Economy, Industry and Commerce (MEIC), which has among its priorities to improve access to markets for micro, small and medium enterprises through the articulation of technical, business and financial instruments that increase their productivity and enable them to establish linkages that improve their access to markets and make them more competitive, innovative and sustainable. This initiative has the support of the Central American Bank for Economic Integration (CABEI) and the Initiative for the Development of Business Ideas and Acceleration of Central America MSMEs (DINAMICA).

According to the latest SME status report, these make up 93% of the national business park, 70% of which are micro-enterprises. In addition, SMEs generate approximately 31% of employment at a national level; of this total, 38% is generated by the services sector and 32% by the commercial sector. Some of the results that emerge from this study are: the need to work on the formalization of our companies, improve access to credit and financing and have effective execution of productive linkage programs.

Minister of Economy, Geannina Dinarte, stated that, “The MEIC has been working to consolidate a new promotional model based on productive articulation, which implies a shift to a demand-driven paradigm, where vertical (SME/tractor) and horizontal (SME/SME) linkages involve significant challenges, in which the State must bring supply closer to demand, implement supplier development programs, develop new businesses to strengthen marketing capacities and possibilities and seek the option of financing instruments in order to concretize business generation. In this sense, the MEIC has created the department of productive chains, with which it has conducted business rounds or meetings in different areas of the country and has been supporting entrepreneurs that seek supplier development. Finally, the MEIC has succeeded in establishing this strategic alliance with CABEI and the European Union in order to facilitate access to resources that may further enable business consolidation."

During the three days and the six bonding sessions that make up Productive Chain Week 2017, the participating MSMEs will be able to know the requirements that must be met to be able to carry out business with the tractor companies (buyers), understand the need to generate chain processes and know the importance of promoting dynamic entrepreneurship.

CABEI Director for Costa Rica, Alberto Cortés Ramos, stated that strengthening productive linkages is a priority for CABEI in Costa Rica and noted the importance of this type of activities, which are in line with the Bank's mission to promote economic integration and the economic and social development of its member countries. CABEI is committed to promoting entrepreneurship, innovation and responsible financing.

Mr. Cortés added that, “CABEI is promoting strategic infrastructure initiatives in support of economic activity in its member countries, fostering the mobilization of capital for the benefit of investment towards the productive sectors and supporting the processes of modernization and strengthening of State institutions so that they can attend to these issues. In addition, CABEI’s Initiative for the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA), has promoted, improved and streamlined innovation and commercial and productive links and articulations between medium and small companies in order for them to improve their levels of competitiveness in markets and comply efficiently with the quality standards of different industries."

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). Its main objective is to strengthen the MSME business ecosystem, especially for new, young and/or innovative MSMEs. This approach also includes strengthening of the financial sector at a regional level to promote adequate access to financial services for these MSMEs.
In order to achieve these objectives, the DINAMICA Initiative has EUR50 million in reimbursable resources from the Government of Germany through KfW and CABEI, which are channeled as loans to MSMEs in the region through CABEI’s network of intermediary financial institutions.

At the inauguration of Productive Chain Week 2017, European Union Ambassador, Pelayo Castro, stated that, “Likewise, through DINAMICA, the European Union has provided non-reimbursable resources amounting to EUR3.8 million, reaffirming its commitment to Costa Rican and the region’s SMEs as the main players in Central America's employment and development."