Socioeconomic recovery of micro and small enterprises, agricultural production units and organizations providing social services within the framework of the COVID-19 pandemic


Due to the devastating impact of COVID-19 on Bolivia’s economy, many micro and small enterprises are facing bankruptcy. As they are the backbone of the Bolivian economy and responsible for most of its job creation, employees and the self-employed are seeing huge job losses and rising food insecurity. This project will help preserve jobs and increase the resilience of micro and small enterprises by providing sanitary support measures in the short term, and by promoting alternative and innovative business models in the long-term.

Country/region Topic Period Budget
Bolivia
Health
Employment & economic development
Health education
SME development
20.08.2020 - 30.04.2022
CHF  800’000
Background The number of cases of COVID-19 infection in Bolivia is growing rapidly, reaching 51,000 cases by mid-July. The figures put to test the weaknesess in the diagnostic and care capacity of the Bolivian health system.The complex health situation, coupled with a long political crisis that has been dragging on since the end of 2019, have seriously deteriorated the economy, affecting more than 250,000 jobs, particularly among MSEs (Micro and Small Enterprises). According to information from the Ministry of Productive Development and Plural Economy, MSEs contribute to approx. 83% of employment almost 95% of Bolivia's entrepreneurial base. The impact of the pandemic on the MSEs is directly translating into higher rates of unemployment, the closure of businesses and thus, higher levels of poverty in Bolivian households. MSEs in Bolivia are in particular vulnerable, as most belong to the informal sector, which entails limitations in access of social security and financial services, among others.
Objectives

Overall goal

Greater economic-social inclusion, equity and resilience of vulnerable population groups contribute to productive revitalization with innovation, aimed at poverty reduction.

 

Project objective

Workers in micro and small enterprises, agricultural production units and organizations providing social services in the project intervention area have recovered and/or maintained their jobs and have enhanced their socioeconomic resilience in the face of pandemics such as COVID-19.

Target groups

-    15,220 people from MSEs, agricultural production units and organizations providing social services.

-    30% of MSEs led by women.

Medium-term outcomes

Outcome 1: Selected MSEs, agricultural production units and organizations providing social services have reactivated their socioeconomic activities by implementing biosafety measures in the face of the COVID-19 pandemic.

Outcome 2: Selected MSEs and agricultural production units have recovered their economic activities by adjusting their business models with a gender-sensitive approach and enhancing their resilience to this type of crises.

Results

Expected results:  

-    Selected MSEs, agricultural production units and organizations providing social services have been provided with Personal Protection Equipment (PPE) and other biosafety inputs for the reactivation of their socioeconomic activities. (15,220 people);

-    Selected MSEs, agricultural production units and organizations providing social services properly apply biosafety protocols for developing their socioeconomic activities. (15,220 people);

-    MSEs and agricultural production units use digital tools in response to their needs for digital services, virtual technical assistance and/or access to financial services. (200 MSEs).


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
United Nations Organization (UNO)
  • United Nations Development Programme


Other partners

United Nations Development Program (UNDP)

Other partners:

Development Financial Institutions, SME Banks

Autonomous Municipal Governments

Associations of micro entrepreneurs

Coordination with other projects and actors

SDC projects: The beneficiaries of all projects in the Bolivia portfolio will receive Personal Protection Equipment and biosafety protocols.  Thematic articulation with Promype and Inclusive Markets

Other: Productive Development Bank, Vice Ministry of Micro and Small Enterprises, Financial System Supervisory Authority.

Budget Current phase Swiss budget CHF    800’000 Swiss disbursement to date CHF    790’524