Laos Microenterprise Supported by USAID

Laos Microenterprise, a five-year activity funded by the United States Agency for International Development (USAID), strengthened the competitiveness of agricultural microenterprises in the Lao People’s Democratic Republic. Laos has been experiencing strong economic growth in the past decade, with GDP growth averaging 7.8 percent annually, driven primarily by large hydropower and mining projects. To make this economic development more sustainable and inclusive, the Government of Laos is focusing its efforts on improving the business environment to promote more diverse and broad-based private sector investment, especially at smaller scales.

Microenterprises, particularly in the agricultural sector, remain uncompetitive and largely unengaged within the domestic and regional economies. Laos Microenterprise used a comprehensive approach to spur enterprise competitiveness along targeted value chains by expanding access to and adoption of business skills, modern technologies and practices, finance, market linkages, and public-private dialogues.

Project Objectives

Improved entrepreneurial knowledge and skills
Improved value chain infrastructure & access to markets
Increased access to improved technology and innovation
Reduced business operation costs

Project Activities and Approaches

Trained in business skills for farmers and businesses
Supported start-up entrepreneurs to offer technology-based services to farmers in their communities through improved skills and matching grants
Supported businesses to expand through improved skills and increased investment (with support from grants)

Project Results

$2.48 million investment ($0.8 million from USAID) in expanding value chain infrastructure
36,000 farming and other businesses reached
11,000 women’s income increased through improved handicraft equipment and market linkage
6,000 farmers now paying for technology-based services
6,400 farmers linked to markets through longer-term relationships
11,340 farmers trained; 82% are still using 1 or more tools they were trained on (2+ years on)
4,090 men have taken on 60 – 90 minutes of tasks previously done by women in their family