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Rural Micro-enterprise Development Programme

Rural Microenterprise Development Programme



The aim of the programme was to support the development and consolidation of rural microenterprises, to alleviate poverty among the landless people who make up a significant segment of poor rural Colombians.

Although the programme faced several implementation problems because of political violence in some programme areas, the approach to business development as a strategy for poverty reduction was generally successful. The operational strategy of giving microentrepreneurs a leading role in their own business development processes was innovative in Colombia. Activities under the programme empowered microentrepreneurs, improved the effectiveness of demand-driven services and increased the efficiency of investments.

One of the aims of the programme was decentralization, which allowed the involvement of local departmental governments in promoting promising microenterprise initiatives in their regions. The departments also supported rural microenterprises in formulating business plans and cofinanced some projects.

Projects were carried out in 22 departments, covering most of the country and assisting more than 20,000 microentrepreneurs. The programme achieved its objectives of strengthening rural microenterprises, developing rural microcredit, stimulating the market of service providers and generating policy guidelines.

Source: IFAD


Status: Closed

Country

Colombia

Approval Date

11 September 1996

Duration

1996 - 2006

Sector

Credit and Financial Services

Total Project Cost

US$ 25.95 million

IFAD Financing

US$ 16 million

Co-financiers (Domestic)

National Government US$ 9.66 million

Financing terms

Ordinary

Project ID

1100000520


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