Micro-retail Development Project
The Micro-retail Development Project was a three-year initiative designed by TechnoServe, in partnership with the U.S. Agency for International Development (USAID) and private sector partner CBC. The project was developed with the goal of improving the livelihoods of micro-retail store owners—both women and men—across El Salvador by enhancing business practices and expanding access to essential goods and services. By strengthening micro-retail businesses, the project aimed to contribute to local economic growth and help reduce migration pressures through sustainable income 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 was conceived as a strategic opportunity to unlock the potential of the micro-retail sector. By improving business practices, facilitating access to finance, and encouraging innovation in product and service offerings, the initiative sought to increase store owner income and promote inclusive economic development. The model also aimed to test scalable, private-sector-driven solutions that could be replicated by other actors in the region.
The Strategy
The project was designed for implementation in key urban centers, including San Salvador, San Miguel, and Santa Ana, and included four integrated components:
Component 1: Access to Knowledge, Skills, and Information
Tailored training programs were intended to help micro-retailers adopt sound business and financial practices, enabling sustainable growth.
Component 2: Access to Finance
The project planned to facilitate loans and financial products to help store owners invest in and expand their businesses.
Component 3: Piloting New Goods and Services
By introducing new products and services based on local demand, the project aimed to support revenue diversification and improve service to communities.
Component 4: Learning, Engaging, and Crowding In
Through peer learning and collaboration, the project sought to build leadership among store owners and encourage the adoption of successful models by other market actors.
Results
Over its implementation period, the project laid a robust foundation for achieving its intended outcome, reaching more than 35,000 micro-retailers with digital business training, achieving more than 80% of the project’s life-of-project target for access to financial and management resources.
