Micro-retail Development Project
The Micro-retail Development Project is a three-year initiative funded by USAID and private sector partner CBC, aimed at improving the livelihoods of micro-retail store owners—both women and men—across El Salvador. By enhancing business practices, the project seeks to increase access to essential goods and services within local communities. Through fostering stronger and more resilient micro-retail businesses, this initiative supports local economic growth and helps reduce migration pressures by creating sustainable economic opportunities.
Context
In El Salvador, approximately 70,000 small neighborhood stores are vital to the daily lives of around 1.7 million people. These stores provide groceries, household items, and essential services to low-income families who depend on them for their everyday needs. Nearly 200,000 families rely on the income generated by these micro-retailers, yet many micro-retailers face significant challenges. Market pressures, poor business practices, and limited access to financing threaten the sustainability and growth of these businesses. In a country with limited economic opportunities, the continued operation and expansion of these stores are crucial— not only for the economic well-being of store owners and their families but also for the broader community, as these stores serve as reliable hubs for essential goods and services.
Opportunity
The Micro-retail Development Project offers a unique opportunity to boost economic prospects in El Salvador by increasing the incomes of micro-retailers and improving community access to essential goods and services. Supported by USAID, CBC, and TechnoServe, this initiative aims to reduce migration by strengthening local economies and promoting sustainable development. Additionally, the project seeks to demonstrate scalable, private sector-driven models that generate lasting economic and social benefits across the country.
The Strategy
The Micro-retail Development Project is designed to stimulate inclusive growth among micro-retailers in key urban centers such as San Salvador, San Miguel, and Santa Ana. By leveraging innovative private sector-driven shared value models, the project aims to set a precedent for CBC and other private sector entities to replicate and scale, ultimately generating sustainable economic and social benefits across El Salvador. To achieve these objectives, the project is structured around four key components:
Component 1: Access to Knowledge, Skills, and Information
This component focuses on equipping micro-retailers the knowledge, skills, and information needed to improve their business operations. Through training programs and resources, they will be guided to adopt good business and financial practices, ensuring long-term sustainability and growth.
Component 2: Access to Finance
This component acknowledges the importance of financial support by facilitating access to loans and other financial resources for micro retailers. By improving access to finance, the project aims to enable these micro retailers to invest in their businesses, thereby leading to increased revenue and stability.
Component 3: Piloting New Goods and Services
To diversify income streams and address community needs, this component will pilot the introduction of new goods and services tailored to local customer demands. By expanding their l product and service offerings, micro-retailers can generate additional revenue and better serve their communities
Component 4: Learning, Engaging, and Crowding In
This component highlights the value of continuous learning and engagement. By fostering a culture of knowledge-sharing and collaboration, the project will encourage micro-retailers to assume new leadership roles within their communities, thereby contributing to the overall resilience and growth of the micro-retail sector.
Anticipated Results
The project will:
- Provide 44,000 micro-retailers with access to financial and management resources.
- Facilitate loans for 10,500 micro retailers to support and expand their businesses.
- Train 1,800 micro-retailers in business management skills, with a focus on empowering women, who will represent 50% of the beneficiaries.
- Improve access to new goods and services for 15,000 community members.
