Development and Incubation of Rural Micro-enterprises.

By its very nature, industrial development in Latin America over the
last three decades has created a gap between large companies and their
smaller, informal sector counterparts. The gap widens despite the fact
that both groups rely on the same pool of human resources. The gap does
not account for the value of small and medium-sized businesses in
generating employment and creating technological innovation. The gap can
be attributed, however, to unequal access to capital. Small and medium
sized enterprises are less informed and less organized in terms of
obtaining credit where credit exists or entirely are out of the purview
of credit making organizations.

#### Entrepreneurs and Members of the Community Joining of Efforts. 

The Santiago Chamber of Commerce and Production (CCPS) is a leader among
businesses and entrepreneurs devoted to commerce in Santiago, the second
most important city in the Dominican Republic. It is a private,
800-member organization whose mission is to promote the development and
stability of economic activities in the Dominican Republic, with
particular emphasis on enhancing Santiago\'s well being and progress. To
ensure it meets its mission, CCPS provides a wide range of legal,
informational, relationship management and other services to businesses
and entrepreneurs in the area.

**Micro Enterprise Incubation.**

Since its inauguration in 1914, CCPS has consistently attracted the most
distinguished entrepreneurs and businesses in Santiago. In 1994, the
organization considering tapping into its social capital to help train
micro-entrepreneurs and launched the *"Project for the Development and
Incubation of Microenterprises"* in the Cienfuegos District of Santiago.
Planned as a two-year program, the Program involves strategic alliances
between private sector entities and community organizations.
Specifically, CCPS provides technical and advisory assistance for small
manufactures and entrepreneurs in the region.\
\
In additional to technical assistance, CCPS saw a need to create market
access for these entrepreneurs. As a result, every year CCPS hosts one
of the country\'s most important Business Fairs, Expo CIBAO. The fair
provides an opportunity for representatives of different economic
sectors in the Dominican Republic and abroad to promote their products
and services. The Expo also awards a prize to the most promising micro
entrepreneur in an effort to promote the spirit of entrepreneuralism.

**Center for Youth and Culture.**

Based on its solid reputation as a community development organization,
CCPS encouraged the Center for Youth and Culture (CJC-De la Salle) to
participate in the *"Project for the Development and Incubation of
Microenterprises*." CJC is recognized as a comprehensive education and
community development institution in the Cienfuegos community in
Santiago. A Catholic organization run by the Brothers of La Salle, CJC
is comprised of a Board of Directors and managed by a consultative
meeting of the local neighborhood organizations. Volunteers from the
community of Cienfuegos manage the day-to-day operations of the Center.

For over 18 years, CJC has implemented various community programs to
include: handicraft workshops, a medical services unit, an industrial
machinery workshop, a community library, training of community
advocates, the *Cienfuegos Newspaper*, a community health program,
family assistance, and cultural initiatives. In partnership with CCPS,
CJC has now become a medium for positive change in the local Cienfuegos
community by providing formal links to the local private sector.

##### 

##### Fruits of the Strategic Alliance*.*

Under the *Project for the Development and Incubation of
Microenterprises,* the initial collaboration between CCPS and CJC
resulted in 186 micro entrepreneurs being trained in administrative
management and accounting. Micro entrepreneurs that participated in the
program were able to improve their small businesses. More importantly,
these micro entrepreneurs were now eligible to be considered as
candidates for micro-credit which, in the Dominican Republic, requires
an applicant to have a minimal degree of business training.

With the understanding that technical assistance would not only help the
entrepreneurs improve their business but, more importantly, provide them
with the necessary endorsement to receive credit, CCPS and CJC looked to
further formalize the program. They established a working relationship
among several organizations: the Center to Support Micro and Small
Enterprises (CAMPE) within the Technological Institute of Santo Domingo
(INTEC), the Santiago Development Fund and the Dominican Association for
the Promotion of Women, Inc. (ADOPEM), one of the regions principal
credit organizations. Both CAMPE and ADOPEM brought the combined
technical skills related to growing micro enterprises and providing
access to credit that would allow the micro entrepreneurs of Cienfuegos
to flourish. To date, ADOPEM has made US\$81,152 in loans to thirteen
micro entrepreneurs trained by the project.

Based on this initial partnership, CCPS and CJC were able to quantify
the project impact. They concluded that 84% of the project\'s
beneficiaries enjoyed a significant improvement in their quality of life
as a result of better business management practices. Moreover, 48% of
the micro entrepreneurs trained currently have on-going businesses that
are profitable. It has always been important to CCPS that the
participants see an improvement in their quality of life and develop a
business awareness that helps them manage their small enterprises
better, with a view to stimulating the City\'s commercial sector. Also,
CCPS looks forward to these micro entrepreneurs becoming CCPS members
with first hand experience on how to expand and strengthen the City of
Santiago\'s productive and commercial sector.

Also through its partnership with CCPS, CJC has developed the
institutional capacity to seek out other partnerships and organizational
opportunities. Specifically, CJC established a Community Internet
Services Center with support from the German Technical Cooperation
Agency (GTZ). It has also participated in the Environmental Monitoring
Program coordinated by the Center for Urban and Regional Studies (CEUR).
CJC has also initiated a formal relationship with the U.S. Peace Corps
volunteers who provided advisory assistance on business matters.
Independently, CJC has established the Cienfuegos Association of
Merchants to strengthen the local community\'s negotiating position
vis-à-vis various actors.

**Future of the Project.**

Based on the success of this strategic alliance between CCPS and CJC,
low-income micro entrepreneurs in Cienfuegos have demonstrably improved
their lives and a second project will be implemented with IAF support.
Specifically, the program will train an additional 150 micro
entrepreneurs; offer technical assistance & follow-up from 40 local
university seniors studying business subjects; and provide formal
training by the National Institute of Technical-Professional Training
(INFOTEP). The university students will act as adjuncts of the CCPS as
they practice and transfer the knowledge gained through their college
training. The decision to have students offer technical assistance in
this new phase reflected the need to establish a closer relationship
with the micro entrepreneurs. This new relationship will provide the
micro entrepreneurs with consultation before formal training. CCPS and
CJC realized that in order to really benefit from the formal training,
the entrepreneurs needed one-on-one support so they would have a greater
understanding of the particulars of their own business to apply in the
training.

CCPS and CJC continue to prove their ability to bring efficiency,
empowerment, and sustainability to the Cienfuegos entrepreneurial
community. They understand that the project needed to be adapted to
local conditions. To date, they have encouraged the participation of
other parties, students in this case, to transfer the specific follow-up
and advisory assistance activities for the micro entrepreneurs before
providing the formal training component, CCPS' comparative advantage.

# 

# Relationship with the Inter-American Foundation (IAF)

The CCPS and CJC identified the IAF as potential partner as CCPS
considered how to strengthen its CSR strategy. IAF's significant
experience in bridging the gap between the private sector and community
development organizations led CCPS to propose a partnership.

The total investment for this joint initiative was US\$264,222, of which
CCPS contributed US\$46,202; the IAF contributed US\$50,000 and CJC, the
beneficiaries, and other businesses contributed a total of US\$168,020.
INFOTEP made a significant in-kind contribution in training the micro
entrepreneurs.

# 

# Lessons Learned:

-   The success of a strategic alliance is based on a clear definition
    of roles, an atmosphere of mutual trust, and a transparent system of
    rendering accounts.

-   Civil society plays an important role as interlocutor between the
    business sector and the communities, as it is close to the community
    and can articulate its needs;

-   The success of a CSR project is guaranteed to the extent that its
    actions are directed toward the identified local needs.

***Evaydée Pérez*** *holds a degree in Business Administration and a
Master\'s in International Relations. She is the Executive Director of
Alianza ONG, a Dominican consortium of non-profit organizations that
promote private social investment and corporate social responsibility.*