Corporacion Multi Inversiones issued the following announcement on Jan. 6.
Shortly after the pandemic was declared, it was clear that it would bring winners and losers among the different sectors of the region's economies. Food, in general, was among the winners, but some distribution channels benefited more than others.
In the case of CMI Alimentos' chicken product sales microfranchises in Guatemala, called La Casa de Pollo Rey, sales grew by 8% year-on-year in the second quarter of 2020. This growth is even more relevant when it is taken into account the increase in unemployment and the fall in income generated by the COVID crisis.
A combination of factors contributed to this result, among which stands out being small neighborhood stores that benefited from the mobility restrictions decreed and being recognized for their high hygiene standards, reinforced by the COVID-19 prevention measures adopted quickly with support from CMI. 70% of these 850 Guatemalan microfranchises are managed by women. As part of a survey carried out the last week of November to 600 of these microfranchises, 43% of them stated that the COVID-19 crisis created opportunities for improvement for their businesses, particularly in terms of increased sales in general (70%) and home sales in particular (16%). But, as the drop in sales since July shows, to take advantage of these opportunities these microentrepreneurs still face limitations.
IDB Invest has been working with CMI Alimentos for more than two years to support the strengthening of these microentrepreneurs or “Allies” as they are known, who constitute an important distribution channel for the company's Livestock Industry sector, even more relevant than the supermarket channel.
As part of this joint effort, this month we are launching an Allied training project that will be delivered entirely digitally. In particular, it will seek to strengthen the business management skills of microentrepreneurs, as well as their soft skills and empowerment. The strategy and the training material will be developed with the support of the consulting firm FUNDES, which will explore whether there are knowledge gaps by gender and will adjust the materials accordingly.
An in-depth diagnosis
To understand the needs and challenges for these microentrepreneurs to grow, in 2018, IDB Invest and CMI Alimentos conducted a survey of 200 Allies (75% women) and 100 clients. The diagnostic work was completed with a focus group with 40 women led by IDB Invest in 2019. This work allowed characterizing these microentrepreneurs, who on average are 37 years old, and the vast majority had a previous own business (63%), they have bank account (70%) and at least one employee (67%).
57% of those surveyed acknowledged that they had never received training related to business management - and among the topics of interest they mentioned marketing, accounting, customer service and the development of business plans. These issues are among the most difficult for small businesses to adopt in developing countries. More than 90% of the Allies have a smartphone and 60% said they prefer WhatsApp as a method to receive information that helps the business. These elements, added to the restrictions imposed by the COVID crisis, convinced us of the opportunity to develop a totally virtual training model, which will include a digital platform with general modules and also personalized sessions with specialized technicians in various topics.
The importance of a rigorous evaluation
A recent report highlights the importance of scaling interventions in the area of training micro and small entrepreneurs in a cost-effective way, and how the use of digital technologies and online training has great potential, especially in the current scenario marked by COVID- 19.
However, they also highlight that there is little evidence on its effectiveness. IDB Invest will implement an impact evaluation - which will include a group of trained microentrepreneurs and a control group - that will make it possible to measure the effectiveness of the Allies' training strategy through digital means.
This is very relevant for CMI Alimentos, which, based on the results, will be able to decide whether to scale up the intervention not only in Guatemala, but also in other Central American countries where it operates with similar microfranchise schemes.
The case of the CMI Alimentos Allies is an excellent example of how IDB Invest can support our clients in shaping more inclusive value chains, turning the challenges brought by COVID-19 into opportunities.
Original source: http://www.cmi.co/es/item/712-aliados-de-cmi-alimento-estrategia-de-formacion-digital-para-microempresarias-en-guatemala
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