USAID/Haiti has had success supporting high-potential MSMEs with advisory services and matching grants, as well as in strengthening high-potential value chains, most recently with its Leveraging Effective Applications of Direct investment (LEAD) and the Local Enterprise Value chain Enhancement (LEVE)
But the Mission is interested in exploring existing and new market-led and cost-effective ways of supporting these enterprises, and to gather data to help determine which of these is most efficient and cost-effective.
Haitian Micro, Small and Medium Enterprises (MSME) are critical to Haiti’s economy.
Not only do Haitian MSMEs account for over 80% of current Haitian employment.
But more importantly, it is from within the MSME community that Haiti’s future success stories will emerge – the enterprises which generate growth, create jobs and lead Haiti to a modern, more prosperous economy.
But Haiti remains a challenging environment.
The public and private resources available in the US to identify and support high-potential MSMEs are not available at the same level in Haiti.
Access to venture capital is rare and mentoring and business advisory services are limited.
As a result, many high-potential MSMEs in Haiti lack the modern business systems and skills needed to grow and expand – with significant opportunity cost to the Haitian economy.
New solutions are needed which can cost-effectively identify and strengthen support high-potential MSMEs to access capital and markets, which could include, but are not limited to:
Support in identifying and addressing systemic challenges constraining MSME growth and financing in Haiti including enabling environment challenges around contract enforcement, loan collateral, licenses, tax administration and property rights.
Establishing a network of performance -based business advisory services providers and specialized industry expertise Formation of or support to angel or venture funds or facilities to nurture and finance high-potential MSMEs Formation or support of an incubator or accelerator Establishment of an e-learning platform and/or Fintech strategies and instruments Support for the Center for Investment Facilitation and/or engagement with the diaspora to leverage skills and funding Support to develop and expand competent advisory services capacity within Haiti (potentially through a university or technical school) Incentives and risk mitigation strategies to encourage Haitian finance providers to extend MSME financing Fintech and other web-based matchmaking and crowd sourcing platforms to raise capital.
Other solutions/approaches have been used as well to best identify and promote high-potential MSMEs around the world.
The purpose of this BAA is to test and pilot these solutions (or combinations thereof) and to gather data to determine which will be most effective and efficient in accomplishing this.