MSME Regional Dialogue Boosts Cooperation
The authorities responsible for supporting Micro,
Small, and Medium Enterprises (MSMEs) in the Americas, representing
99% of the region’s businesses, exchanged experiences and identified
potential areas for regional cooperation for the fourth time in the
framework of OAS. The
IV Inter-American Dialogue of High Authorities of MSMEs held
April 16-17 in Washington, DC facilitated a rich exchange that
concluded with a call to continue and strengthen this forum to
address common challenges.
At the inauguration, the Secretary General of the
OAS, José Miguel Insulza, stressed that despite representing the
region’s grand majority of businesses and two thirds of jobs, MSMEs
generally have low levels of participation in the national income
and exports, with an estimated 10% of MSMEs exporting in the region.
Insulza stated that “it is clear that micro, small and medium
enterprises are an instrumental piece in the search for equitable
economic growth; but also it is clear that we have much work to do
in order to benefit from their potential in generating productive
employment and innovative products and services with global reach”
What should the center of our policies and programs be in order
to move us in the right direction? asked Insulza, inviting the
authorities to reflect on the opportunity for cooperation presented
at the dialogue. Insulza further stressed that “it is very fortunate
that you all are gathered here, to contribute to a fruitful
dialogue, based on the various issues that have to be considered to
answer this question, in your own countries and collectively as a
region.”
Executive Secretary for Integral Development of the OAS, Sherry
Tross, affirmed that “the reality is that MSMEs represent the
backbone of inclusive economic growth of the region”. Tross
highlighted some initiatives in place to drive the continuous
improvement of smaller businesses, including the creation of
“entrepreneurship ecosystems that power innovation and technology to
increase competitiveness”. In this train of thought, Professor
Daniel Isenberg, Director and Founder of the Babson Entrepreneurship
Ecosystem Project, set the tone of the dialogue with introduction
key note address on entrepreneurship ecosystems during the opening.
The dialogue continued with a rich agenda that permitted vice
ministers and executive directors of institutions supporting MSMES
to share their country’s experience, and learn about the results of
initiatives and recent studies undertaken by recognized
organizations and universities. Some of the renowned speakers
included specialists from the Inter-American Development Bank (IDB),
the Economic Commission for Latin America and the Caribbean (ECLAC),
the Development Bank of Latin America (CAF), the World Bank, and the
Center for the Promotion of Micro and Small Enterprises
(CENPROMYPE), as well as professors from the University of
California-Berkeley, Duke University, Monterrey Tech, the University
of California-San Diego, Babson College and others.
In response to countries’ interest to create follow-up mechanisms
to facilitate the implementation of initiatives resulting from the
Dialogue, and support the process of preparing for upcoming
meetings, it was proposed to establish working groups. The groups
will be led by countries with the assistance of the OAS-SEDI and
other relevant actors, and focus their work on: strengthening
institutions that support MSMEs; innovation and internationalization
of SMEs; and micro enterprises, taking into account the needs of
female entrepreneurs. The content, membership, and operation
modalities of this follow-up mechanism will be defined in
coordination with Member States.
Member states also agreed to continue convening the Dialogue every
two years with the support of international and regional
organizations working in the field, as well as academics and other
actors. In this regard, the Mexican Government offered to host the
next edition of the Inter-American Dialogue of High Authorities of
Small and Medium Enterprises in 2017.
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El Salvador’s
Recognition to the OAS has roots in Inter-American Dialogue
 At the beginning of the
IV Inter-American Dialogue of High Authorities of MSMEs, the
government of
El Salvador awarded a special recognition to the OAS and to
Secretary General Insulza for supporting the strengthening of
the country’s MSME sector. In particular, the Salvadorian
government praised the support of the Organization in the
adaptation and implementation of the Small Business Development
Center (SBDC) model of the United States in El Salvador.
El Salvador’s success
story begins in a dialogue like this, in which Central American
and Caribbean countries learned of the United States SBDC model
and appealed to the OAS to explore further cooperation. These
Centers promote growth, innovation, productivity, and
competitiveness of small enterprises through improvements in
management, access to capital, technology and markets; a
public-private partnership that guarantees sustainability, that
is recognized as one of the most successful programs assisting
SMEs in the United States.
The OAS facilitated the
initial cooperation between the United States and Central
America with the support of the Regional Center of MSME
Promotion (CENPROMYPE), beginning with the project in El
Salvador. After adapting the model to its own realities, the
country has now improved its capacity to assist MSMEs. The
results reported in 2014 are compelling: 12 centers, 80
advisors, 3,197 clients, 5,830 jobs created, and $19 million in
sales. The Development Centers for Micro and Small Enterprises,
created by the Ministry of Economics through the National
Commission for Micro and Small Enterprises, now have local
partners and national funding to support their operations.
The program has
spread to other Central American countries with similar results.
Now, the SBDC model is being adopted in 5 Caribbean countries,
in collaboration with the Caribbean Export developing agency,
the University of Texas in San Antonio, with financing from the
U.S. Government through the U.S. Mission to the OAS. To date, 19
countries in the Americas are adapting the model to the needs of
its micro, small, and medium enterprise sector.
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