The development of MSMEs, a national and international objective

By Mayora IP

The Ministry of Economy of Guatemala has developed a network of business support programs to develop micro, small and medium-sized enterprises (MSMEs) throughout the country, as they represent the majority of the businesses in Guatemala.

The network has been expanding in the last five years though national and internacional public support, mainly directed at research funding, competitiveness and innovation funding. Since 2018 around 7,900 businessmen in the MSMEs sector have been benefited: 2,700 were trained in business models, 3,100 trained in innovation culture and 210 were legally authorized to operate in a transition from the black market.

Among the most successful programs is One Village One Product (OVOP), a Japan International Cooperation Agency (JICA) model on which people in a village decide on a single product that is unique to their area. Its goal focuses on the elimination of poverty in developing countries, as well as the development gap that exists between urban and rural areas. It combines both the theoretical and practical aspects of local development, with the aim of cultivating leaders that can improve community capacity in their countries.

This is achieved by facilitating training that equips participants with the ability to build cooperation between local citizens, the private sector, and the government. The training programs consist of lectures and discussions about community capacity development, the role of local government in stimulating local industry, the question of how to reassess and effectively use local resources, and case studies.