Despite the recognition of the role of micro and small businesses in the global economy, they still face multiple challenges, among them are limited access to finance.
It is particularly problematic for established businesses that require €5,000 to €50,000 for their development. Another challenge for these companies is to strengthen their management skills, in particular financial and accounting management and those related to market access. The lack of basic accounting and financial statements is often another major barrier to accessing finance.
Faced with this situation, some actors in Central America are developing innovative solutions for entrepreneurs, based on a financing offer combined with support on product development, market access and management.
ADA will use the virtual Midi de la microfinance platform to share the experiences of its partners who promote youth entrepreneurship within the framework of its Young Entrepreneurs Sustainable Funding Initiative (YES FI) programme, namely:
- Alterna (Guatemala), which launched impact investment programme "Catalyzer", allowing young entrepreneurs to access financing ranging from €5 to €50,000 and whose repayment is based on the evolution of their turnover ;
- Fundación Cacao (El Salvador), an association of business angel investors created jointly with the INSERT/YAWAL incubator in El Salvador. Together, these two actors are developing a support and financing mechanism that combines the concepts of guarantee, loan and equity for the benefit of small businesses with a high social impact.
This event is moderated by Carla Palomares, Acting Head of technical support for microfinance institutions at ADA, and includes speakers - Manfred Bauer, Director of Cultivation at Alterna (Guatemala) - Fernando Morán, Founder of Fundación Cacao (El Salvador)