Midterm Evaluation of the ASEPADE Component of the Small Business II Project, Honduras

This paper presents midterm evaluation of the National Industrialist Association Small and Micro Business (ANDI/PYME) component of the Small Business II (SB II) Project. It:

• Measures the rate of progress achieved in comparison with project targets;
• Finds that the institutional capacity of Honduran PVOs was much lower than anticipated, resulting in PYME's efforts being directed at fewer institutions and taking longer. The absence of linkage in PYME's case between institutional strengthening and provision of funds for the credit programme is viewed as a project design flaw;
• Recommends that:
  • Membership in the PYME (Pequena y Micro Empresa [Small and Micro enterprise Program]) committee be expanded to include the executive director of ANDI and a representative of the private voluntary organizations (PVOs);
  • The approval process for PVO subprojects be streamlined and shortened;
  • PYME should concentrate more efforts on promotion and public education instead of marketing;
  • Training programs for both the beneficiaries and the PVOs be strengthened.