Entrepreneurship Policy El Salvador

SUPPORT MECHANISM:

Conceptual homologation of entrepreneurship in institutions

Focus of ecosystem institutions on dynamic entrepreneurship

Mayor communication and articulation between member institutions of the council

It has elevated the capacities of the institutions for the attention to the enterprise

 

 

For the five-year period 2014-2019 El Salvador, an educated, productive and secure country of the Government of El Salvador, establishes a strategic projection of support for the emergence of new companies, creating new jobs through the entrepreneurial and equitable development of the territories, in Which also establishes that talents, capacities and productive enterprises and local services that generate jobs, as well as entrepreneurial skills, should be strengthened.

National Law for the Promotion and Protection of Micro and Small Enterprises, which incorporates a series of articles related to entrepreneurship has allowed to promote and position the enterprise and generates commitments and responsibilities to the institutions of the country, among the mandates are identified:

Art. 5.- The Central Government and the Municipalities will support the new enterprises and existing MSEs, encouraging private investment, promoting an offer of business services and financial services in conditions of gender equity, aimed at improving The levels of organization, administration, production, productive and commercial articulation.

Attributions of the Governing Body

Art. 8.- The Ministry of Economy, for the purposes of this Law, shall have the following attributions:

E) Encourage the participation of women in the MYPE sector to strengthen their enterprises and enterprises, make their contribution to the national economy visible and promote their access to decision-making in the areas of representation;

Functions of the Executing Body

Art. 10.- In order to execute and implement the National Policies of Promotion, Development and Competitiveness of the MYPE, CONAMYPE will have the following functions:

(I) To define, formulate, promote, implement and coordinate programs and instruments for the promotion of entrepreneurship and the creation of enterprises, which will promote the economic autonomy of women;

Programs and Instruments

Article 39. Programs and instruments for the promotion and development of MSEs are the following: training, technical assistance, innovation, quality and technological development, financing, risk capital, guarantee programs , Marketing, information, associativity, productive linkages, formalization tools, programs and tools for the promotion of enterprises and enterprises led by women, export promotion programs, fiscal incentives and Municipal and others that are developed for the benefit of the sector.

 

In addition in the law of PROMOTION TO PRODUCTION it is established that:

Art. 6.- The Ministry of Economy and other Public Sector institutions involved in the scope of their competencies, will elaborate the production strengthening programs, considering the objectives and criteria established in this Law.

Art. 9.- The programs will comprise the following areas:

A) Quality and productivity increase;

B) Innovation and technology;

C) Financing and co-financing for the development of productive activities;

D) Trade facilitation;

E) Promotion and internationalization of companies;

F) Productive chains and supplier development;

G) Generation of a culture of entrepreneurship;

H) Business intelligence;

I) Negotiation, administration and use of commercial treaties;

J) Attraction of investments;

K) Sustainable development;

L) Cleaner production and energy efficiency.

Art. 10.- The resources allocated to the Integral System by the Ministry of Economy, should be oriented to attend activities in: quality and productivity; Cleaner production and energy efficiency; Productive chains with value and associativity focus; Innovation and technology; Market development; And innovative entrepreneurship; And may be implemented under co-financing schemes, or in any other activity that may be necessary and considered by the Committee.

All these laws and policies are part of a comprehensive response that emphasizes the need for transformation and increase of production, economic growth and the generation and dignification of employment and social improvement for the population.

The Law gives a legal backing to promote the National Entrepreneurship Policy, it is complemented by other legal instruments and will be revitalized through the Business Production Promotion System, defined in the Culture of Entrepreneurship and Productive Linkages, oriented towards the development Of innovation and quality, productive linkages in strategic sub-sectors and the institutionality related to the areas of citizen security, legal and business climate.

The national policy of entrepreneurship has the purpose of making El Salvador an entrepreneurial country, in which all the players that are in the entrepreneurship chain participate, from schools, technical institutes and higher education, investors, the industrial sector And agroindustrial, local governments, private and government institutions to support the emergence of new companies, and that provoking the best articulation between the different programs and institutions and with the rest of public policies that stimulate the productive activities we walk towards the bet of converting Ventures in highly competitive, innovative and sustainable companies; This will only be possible if all the actors are committed to this strategic country vision To achieve this purpose strategic axes have been integrated that allow to generate favorable conditions and environment for the promotion of entrepreneurship

IMPLEMENTING AGENCIES:

CONSEJO ASESOR DE EMPRENDIMIENTO

 

RESULTS:

The results have been generated by the participants from their entry into the training program and their departure from the start-up in a period of approximately 9 months.

  • The national entrepreneurship program YOUTH EMPLOYMENT AND FEMALE ENTREPRENEURSHIP has generated the following indicators
  • Enterprises formed 1750
  • Start-ups in operation 1172
  • Reported sales 2 million 400 thousand
  • Jobs generated 2131
CHALLENGES + LESSONS TO DATE:

The entrepreneurial ecosystem must find a route to achieve greater articulation, this implies integrating a value chain model to generate greater impact, it is also important to generate a process of reflection towards the identification and specialization of the instruments in the different links of the Chain of services. We must also promote greater homologation and effectual methodologies that promote innovation and technological development as two ways for the new generation of dynamic companies that allows us to transform our economies. 

 

KEY ADVISOR(S) OR LEADER(S):

Samuel Salazar – FUSADES PROINNOVA

Andrea Perez – El Salvador Chamber of Commerce CAMARASAL

Rodrigo Bustos – PLAN INTERNATIONAL

Oscar Ventura – BANDESAL

Graciela Salgado – MINED

Ricardo Monterroza – JUNIOR ACHIEVEMENT

Claudia Lozano -  University Matias Delgado -  CEMPRENDE

Luis Martinez – University Francisco Gavidia

NOTES + ADDITIONAL CONTEXT:

Entrepreneurship Advisory Council

The creation of an entity called the Advisory Council of Entrepreneurship, which was installed by executive agreement as of the date of presentation of the policy (August 2014) and was initially integrated by institutions that are part of the national ecosystem, currently participating in 35 Institutions; Has taken over the implementation of the National Entrepreneurship Policy, supports and facilitates cooperation and articulation efforts among the member institutions of the Advisory Council. In order to make the work of the CAE more dynamic, technical panels have been organized according to the work axes of the Policy, which are shaped by the participation of the institutions that make it according to the role and commitments they will assume.

2. Territorial Committees of Entrepreneurship

The National Entrepreneurship Policy privileges the articulated and coordinated action of many actors who play a role in the process of entrepreneurial development and creation of companies, which allows the generation of systemic conditions to support successful entrepreneurs. This coordination and articulation of actors with the aim of developing entrepreneurship in the country in particular is what we call the "Territorial Entrepreneurial Ecosystem".

At the territorial level, the PNE focuses on the integration of dialogue spaces for the promotion of entrepreneurship, through the Territorial Committees of Entrepreneurship. To date, 9 Committees have been set up, involving 89 institutions from each of the regions where There is a regional office of CONAMYPE; It is intended to achieve the articulation of territorial efforts at the national level.

3. The national entrepreneurship program "Juventud Emprende":

This program is based on Lean Start Up methodology that emphasizes a formative process, strengthens the characteristics of the entrepreneur and analyzes their environment for the discovery of customers and the efficient introduction of products and services.

"Youth Entrepreneurship 2015, 2016 and 2017" has been implemented especially for young people offering a space for the creation of business ideas to develop entrepreneurial and entrepreneurial capacities.

The Juventud Emprende program has been carried out through five components:

1. Promotion of the entrepreneurial culture from a national perspective, integral and interinstitutional.

2. Strengthening the national entrepreneurship ecosystem.

3. Encourage the creation of sustainable enterprises.

4. Management to strengthen institutional capacities in El Salvador.

5. Creation and development of entrepreneurial support networks.

In this sense, with this program, a total of 603 entrepreneurial initiatives have been accompanied in the elaboration of its business model. Of these, 41% belong to women.

Of this total, $ 610,000 was funded by seed capital funds with donor resources and government funds. The program provided young people with technical assistance to start their businesses, entrepreneurship training, network development, and financing management For their undertakings.

CONAMYPE collaborates in the program for the start-up of the company, it is here that defines a start-up or start-up business structure in which the business project has already defined its economic activity and a value proposition of the services or products Towards a defined market.

4. Country Brand

CONAMYPE, together with the institutions that make up the "Advisory Council for Entrepreneurship" (CAE), on November 18, 2015, the official launch of the country brand "El Salvador Emprende" was launched with the launch of this brand to promote entrepreneurial characteristics And the action of taking on men, women, young people, girls and boys, to contribute to development and make El Salvador an entrepreneurial country.

This brand is a pioneer and seeks to be maintained and strengthened through the use of CAE institutions and the representativeness it reaches with entrepreneurs.

The creation of this country brand, reflects the articulated commitment of public-private institutions-academia, to position entrepreneurship from teaching classrooms, to the creation of tools and tools for the strengthening and competitiveness of national entrepreneurs

5. Global Entrepreneurship Week:

Organized worldwide by the Kauffman Foundation. FUSADES has been designated the host (HOST) organizer in the country to promote different activities framed in the week that is organized each November. Since 2015, the Entrepreneurship Advisory Council has been made up of different institutions in the country that work to promote entrepreneurial initiatives.

The objective of promoting entrepreneurial culture, fostering innovation and creativity in the world. Its objective is to promote entrepreneurship as a development force through activities that inspire, connect and inform all the actors of the entrepreneurial ecosystem. During the week of celebration to the enterprise more than 50 activities are carried out throughout the country. You were developed in La Union, Santa Ana, Ahuachapán, San Miguel, Sonsonate and the largest number of events in San Salvador.

 

6. Work Plan of the Entrepreneurship Advisory Council

This plan of work for 2016 - 2018 oriented to the implementation of the National Policy of Entrepreneurship (PNE) at national level, marks a series of activities outlined by the CAE institutions and allows to implement articulately the policy of entrepreneurship

7. National Forum of Entrepreneurship

CONAMYPE, together with the institutions and organizations that are members of the Advisory Board of Entrepreneurship (CAE), have installed the development of a National Forum of Entrepreneurship on an annual basis, which by 2016 was called "Towards the articulation of Entrepreneurship Ecosystems". This forum is set up with the objective of the activity was to generate a space for dialogue and consultation with institutions of the national and territorial scope, public sector institutions, private and academia in relation to current affairs in public policy of entrepreneurship

In addition, strategic actions were carried out aimed at the homologation of efforts in the national and territorial scope in the area of development and development of the enterprise. Similarly, territorial committees of entrepreneurship and the CAE, as instances of dialogue and articulation of efforts, are institutionalized. The PNE, orients its action towards the creation of innovative enterprises, with potential of rapid growth and that generate added value to the economy.

8. Entrepreneurship Program for returnees

With the implementation of this program, it seeks to take advantage of the skills and work experiences acquired from Salvadoran returnees, in different areas, such as: construction, gardening, mechanics, food and beverages, among others.

The people who apply to this program, receive the services of CONAMYPE to implement and develop their business idea, through the Local Economic Development Centers (CRDEL) of San Salvador and San Miguel. Among the benefits the returnees received are: designing and developing their business model, obtaining seed capital, business clinics, mentoring, business and financial ties, designing and developing their business model. In July 2016 seed capital was given to 63 returnees entrepreneurs who culminated a training process in several productive areas.

The main objective of this initiative is to strengthen the effective integration of returnees into the country's social and economic development. The participants of the program received a contribution of 1,500 dollars that will be used to launch their business initiatives in their communities of origin; In the departments of La Libertad, San Salvador, Chalatenango, Santa Ana, Sonsonate, La Paz, Usulután, San Miguel, La Unión, Cuscatlán and Morazán.

9. National Youth Program with All

It is a government strategy which is framed by the "Plan El Salvador Seguro" which was launched in February 2016. CONAMYPE executes in the productive insertion component as the first phase began work in the first 10 municipalities with the highest rate of violence , And later will work 16 municipalities being a total of 26 municipalities intervened.

10. Methodological transfer processes

  •  Training on Support Systems for CAE members | YABT, OAS, MASHAV, Israeli Embassy, UFG, CONAMYPE | 36 trained technicians.
  • Training in Entrepreneurship in 2-stroke and Entrepreneurship Spirit for CAE members | SEBRAE Brazil, CENPROMYPE, UJMD, CONAMYPE | 32 trained technicians
  • Training Program Starting with my Business - PDP | UNDP / PDP, MINED, CONAMYPE | 30 trained technicians

11.  Homologation of concept of ENTREPRENEURSHIP and incorporation into the educational system

With the participation of MINED has begun the process of Incorporation of CULTURE ENTREPRENEURS in curriculum of Education Third Cycle through MINED, this process has been made in alliance with YOUTH ENTREPRENEURS, PLAN, ILO, MINED, CONAMYPE.

The Proposal of the new formal Education Curriculum:

  • Technical education
  •  Entrepreneurial Education
  • Vocational orientation
  • Application of academic concepts
  •  Currently MINED implements this approach of Entrepreneurial Culture in the educational system: SEAMOS PRODUCTIVOS PROGRAM with results of 122 technical media centers and 6 offices MEGATEC Implementation of the entrepreneurial culture in Bachilleratos and MEGATEC with an investment in training, technical assistance and educational materials) USD $ 1,258,907.00 (GOES - EU); Seed capital: UDS $ 401,373.79

 12. Financing Instruments

Creation of access mechanism for entrepreneurial financing according to the needs of women entrepreneurs through the programs that CONAMYPE executes with microfinance partners associated with FEDECACES

The access mechanisms for entrepreneurs in BANDESAL were strengthened through BANCA EMPRENDES and Banco Hipotecario with the line for entrepreneurs / es.

The El Salvador Emprende Dynamic Entrepreneurs Fund was created during 2016, with 363 proposals for business models, of which 89 initiatives were able to move to the project defense stage and selecting 36 innovative projects with a capital seed investment of 200 One thousand dollars

In addition, under the youth program, a seed capital fund in the amount of $ 250,000 is undertaken and coordinated with the violence prevention funds, for which it has supported 107 business projects this year.

The National Policy of Entrepreneurship in three years of validity, has already generated important results:

Under the National Entrepreneurship Program YOUTH EMPRENDE: 800 young entrepreneurs have been trained in entrepreneurship methodologies and designing their business models, 532 have managed to start their businesses, of which 72% are ventures by opportunity

In the women entrepreneurship program, 825 women have been accompanied by entrepreneurial training and have implemented their business models a total of 640 of which 75% are entrepreneurship opportunities. 

CURATED BY

El Salvador
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