Connecting Women-Led Small Growing Businesses to Private and Public Procurement Opportunities Lessons Learned from Central America MAY 2015

Small growing businesses face challenges to access private and public procurement opportunities Business Solutions to PovertyTechnoServe | 2 Access to information and networks Where do I learn about procurement opportunities? How do I understand what success looks like as a regular supplier? How can I connect with other SGBs to bundle our offer? Technical and financial readiness Do my products and services meet the buyer’s volume and quality requirements? Are my business’s finances, accounting and management systems in order? How do I understand and negotiate the terms of a contract? How do I access the financing I need to fulfill the order? Government efficiency and transparency Is the procurement bidding process fair? Will my business receive timely payments for goods and services? What are the financial or reputational risks to supplying the government?

ITE prepares women-led SGBs to access new private and public markets and grow sustainably Business Solutions to PovertyTechnoServe | 3 Skills building through on-site advisory on marketing, product development, accounting, and good gender practices Connections to peers, mentors, and potential buyers through an online learning and networking platform and in- person workshops Support in identifying the financing need, building relationships with financial institutions, and preparing paperwork

Business Solutions to Poverty Technoserve | small growing businesses supported 39% led by women* $780k in finance mobilized to women-led businesses $16.8M incremental revenues to date 22% average increase in revenues per business *Women-led businesses are defined as businesses with a woman owner; businesses with a female senior manager; or family businesses with a woman in a key decision-making role Impulsa Tu Empresa is benefitting women-led small growing businesses across Central America 356 new jobs created

Public procurement from women-led SGBs drives sustainable local economic growth Business Solutions to PovertyTechnoServe | 5

Access to information and networks TechnoServe Offer workshops on business registration and contract bidding Host business roundtables Provide financial education (e.g. cost accounting) Offer flexible online learning and networking platforms Partner with local women’s entrepreneurship networks to form SGB teaming agreements Support women-led start-ups in high- growth sectors like ICT Consult with women-led SGBs to better understand their strengths and challenges Hire SGB procurement point persons and/or specialists to recruit and coach SGB suppliers Publish clear selection criteria and requirements for suppliers Set-up online procurement platforms to facilitate information Advertise opportunities through women’s entrepreneurship networks Business Solutions to PovertyTechnoServe | 6 By expanding their business networks, women entrepreneurs are more likely to hear of procurement opportunities and connect with others who have been through the process.

Technical and financial readiness TechnoServe Help SGBs upgrade their products and services and meet procurement quality standards through market research and sales plan development Connect SGBs to growth finance or working capital through finance and accounting workshops and by brokering relationships with financial institutions Promote good gender practices to ensure sustainable growth and attract socially-minded buyers Advise entrepreneurs on contracts Set qualification requirements for procurement contracts according to SGBs’ size and capability e.g. award smaller contracts to several SGBs rather than bundling multiple requirements into a single large contract and offer subcontracting opportunities Establish loan guarantee funds for suppliers to support their growth and act as insurance Level the playing field for SGBs by investing in capacity building programs Business Solutions to PovertyTechnoServe | 7 By building their financial, management, and product development skills, women-led SGBs become ready to take on public procurement contracts with high quality and volume requirements.

Government efficiency and transparency TechnoServe Build entrepreneurs’ cash and inventory management skills for increased resilience and flexibility Lobby for financial institutions to allow factoring to reduce risks in the case of late buyer payments Host workshops on business ethics Set-up in-person meetings with government buyers to increase SGBs’ familiarity and comfort with the procurement process Set and track public targets for buying from women-led SGBs Provide channels (e.g. hotline) for responding to supplier feedback Establish mechanisms to disburse payments on a timely basis (e.g. fast-tracked approvals for contracts under a certain threshold) Release easily searchable data on public procurement spending Business Solutions to PovertyTechnoServe | 8 By investing in capacity building programs and public policies which support women-led SGBs, governments support the engines of job creation

Back-up Business Solutions to PovertyTechnoServe | 9

businesses.” A tale of two businesses: risks and opportunities to participating in public procurement Business Solutions to PovertyTechnoServe | 10 La Hondureñita San Pedro Sula, Honduras Casa Santa Lucía Managua, Nicaragua Supplies tortillas to a regional state hospital Annual or biannual payments pose cash flow challenges, but the size of the contract is appealing “We heard of the opportunity through a contact at the hospital and then went through the regular bidding process. Being a local business was a point in our favor.” Offers catering services to at least 5 government ministries Payments are timely to date and public procurement opportunities are growing “Government institutions are requesting our services more and more often, because of our quality and prices. We don’t compete with other small businesses.”