The DINÁMICA II Initiative will provide more than US$5.2 million in seed capital for entrepreneurs and MSMEs in the region
"Article originally published on CABEI's website on 07/05/2024. LACIF contributes to the DINAMICA II Initiative through an investment grant and technical assistance."
As part of the DINÁMICA II Initiative, the Central American Bank for Economic Integration (CABEI), the Government of Germany, through KfW, and the European Union launched today the Regional Seed Capital Program for US$5.2 million, of which US$2.8 million is exclusively for El Salvador, within the framework of the celebration of the DINÁMICA Fair, with the objective of energizing the entrepreneurial and business ecosystem, generating income and new jobs in the Central American region.
The funds of this program are intended for entrepreneurial ventures and MSMEs with growth potential that develop business models and plans focused on the green transition and/or the digital transition. The beneficiary countries are Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic.
The invitation to participate in this program prioritizes the service, industry, and agricultural sectors, encouraging them to start their businesses, make them grow, and ensure their sustainability. Selected projects may obtain up to US$10,000 for entrepreneurial ventures, up to US$15,000 for MSMEs, and up to US$25,000 for MSMEs with high-impact projects. Guidelines for applying and relevant information are available at https://www.bcie.org/novedades/programa-regional-de-capital-semilla.
In order to facilitate the Program application process, Business Development Centers (BDCs) in each country provide advice and support to entrepreneurs and MSMEs in the development of their business models and plans, as well as in the process of starting their operations, consolidation, and growth.
The DINÁMICA Fair convened more than 150 businesspeople, entrepreneurs, BDCs and other allies with the objective of promoting business connections and capacity strengthening.
During the event there were lectures and business workshops on innovation topics and a business forum - Conexión DINÁMICA, in which more than 50 companies from the country participated. In addition, 30 entrepreneurial ventures and MSMEs from 11 of the country's departments had the opportunity to exhibit and market their products at the event, in which 6 Business Development Centers and 4 financial institutions also participated.
DINÁMICA II Initiative
CABEI's DINÁMICA II Initiative, is being implemented in Central America with the collaboration of the German Government, through KfW, and the European Union, with the objective of promoting and strengthening the development of the business and private sector ecosystem, especially for new, young and/or innovative MSMEs.
To date, this initiative has supported more than 2,000 MSMEs in Central America with more than US$52 million in loans, protecting more than 17,000 jobs. In El Salvador, MSMEs have been supported with more than US$12 million in loans; more than 103 micro and small enterprises have been strengthened with non-reimbursable resources from Small Donations.
