December 10, 2023. The Innovation and Associative Entrepreneurship Program (PIEA) has transformed the Costa Rican entrepreneurial landscape. For four years, VIVA Idea, in collaboration with other institutions, has promoted the growth and innovation of MSMEs through training, mentoring and financing programs, benefiting hundreds of entrepreneurs and strengthening the local economy.

The PIEA has been a transformative initiative of the entrepreneurship ecosystem in Costa Rica, of the Development Banking System. VIVA Idea participated in the implementation of this program, together with INCAE Business School, to strengthen associative entrepreneurship ecosystems, increasing the capacity for innovation and entrepreneurship among the key actors of these ecosystems.

Between 2020 and 2024, PIEA has achieved significant results, strengthening the capabilities of MSMEs and generating a positive impact in various regions of Costa Rica. The Innovation and Associative Entrepreneurship Program (PIEA) was implemented by several organizations, in addition to VIVA Idea and INCAE Business School.

From the beginning, PIEA adopted a bottom-up approach to map the needs of the Costa Rican entrepreneurial ecosystem. This approach included local strategies to strengthen the MSME ecosystem, designing capacity building programs and workshops in entrepreneurial ecosystems to identify needs and opportunities. In total, 62 people participated in the Brunca region, 69 in the Huetar Norte region and 51 in the Chorotega region.

The program focused on making ongoing initiatives visible, aligning the entrepreneurial agenda and coordinating key players in the ecosystem, covering areas such as leadership, finance, accounting, marketing, sustainability and strategy. In addition, technology-driven courses were held to meet the specific needs of MSMEs, financial operators and cooperatives.

During the four years, PIEA implemented 20 training programs within the Costa Rican entrepreneurial ecosystem. These programs were designed to improve the entrepreneurial capabilities of MSMEs through customized training, mentoring, and the application of tools such as Lean Assessment, which seeks to estimate the growth potential of these companies.

A highlight of the PIEA was the training of 174 mentors, who played a crucial role in the development of entrepreneurs. In addition, 464 entrepreneurs and 174 MSMEs were trained, benefiting a total of 354 people in the entrepreneurial ecosystem.

The impact of the PIEA was reflected in the financial and operational growth of the participating MSMEs. Thirty-two percent of the companies experienced more than 10% growth in sales, while 24% increased their exports. In addition, 17% of the companies that were not exporting at the beginning of the program began to do so. The program also contributed to a 40% increase in personnel and a 60% increase in the MSMEs’ client portfolio.

In the financial area, institutions such as Gat Sur Alto became operating agencies that distribute funds from second-tier banks, placing ¢398 million in seed capital in 59 projects. Nosara Crece placed ¢52 million in financing. As a result, 79% of the MSMEs reported growth in sales thanks to the financing, and 57% acquired new equipment, while 43% resolved infrastructure needs.

A key feature of the PIEA was the follow-up of beneficiaries using a matrix of indicators provided by the Development Banking System. This monitoring made it possible to evaluate impact and adjust strategies as the program progressed. At the end of PIEA, 94% of the participating MSMEs were still active, which is evidence of the effectiveness of the interventions carried out.

Participant satisfaction was remarkable, with 99% recommending the program to other entrepreneurs. “It has been an enriching and challenging experience, but extremely beneficial. The Lean tools and mentoring have been fundamental to diagnose, analyze and establish an action plan that allows us to take the company to where we project,” commented one beneficiary of the program.

Urs Jäger, executive director of VIVA Idea, highlighted the importance of this program for strengthening the entrepreneurial ecosystem: “PIEA has been a catalyst for change for many MSMEs in Costa Rica. We focus on providing practical tools and close accompaniment, which has allowed entrepreneurs not only to grow, but also to adapt to a constantly changing business environment”.

Luis Cuenca, professor and researcher at INCAE Business School and the VIVA Idea Schmidheiny Chair in Sustainability at INCAE Business School, underscored the impact of the program on the academic and business environment: “The collaboration between INCAE and VIVA Idea in the PIEA has allowed a transfer of knowledge and innovative practices that have benefited numerous entrepreneurs. This program has been a bridge between academic theory and business practice, generating significant value for all involved”.

Jose Valverde, project leader of VIVA Idea, reflected on the achievements: “The success of PIEA lies in its comprehensive and adaptive approach. By mapping ecosystems and designing tailored programs, we have been able to generate a lasting impact on communities and their entrepreneurs. This program has demonstrated that, with the right support, MSMEs can overcome obstacles and reach new levels of success.” Valverde also highlighted the importance of mentoring and continuous follow-up: “Accompanying the entrepreneurs has been crucial to ensure the sustainability and long-term growth of their businesses.

The PIEA not only strengthened the entrepreneurial skills of the participants, but also promoted cohesion and networking within the Costa Rican entrepreneurial ecosystem. The visibility of ongoing initiatives and coordination among key players in the ecosystem were essential aspects that made it possible to align the entrepreneurial agenda and maximize the program’s impact.

Each year an entrepreneurship contest was held in which close to 200 MSMEs participated and were rewarded with a training and acceleration process, in addition to various prizes. To close the program, the fourth entrepreneurship contest was held and awards were given to the first places among the finalists of the fourth year.

The closing day highlighted the enthusiasm and commitment of the entrepreneurs, who presented their innovative projects before a panel of expert judges. The final event was a reflection of the collective effort and dedication of the participants over the years, culminating in a celebration of the entrepreneurial spirit and resilience of Costa Rican MSMEs.

Throughout its four years of implementation, PIEA has left an indelible mark on the Costa Rican entrepreneurial ecosystem. The program’s success is a testament to the power of collaboration and innovation to transform communities and empower entrepreneurs. With a solid foundation and lessons learned, PIEA’s legacy will continue to inspire and guide future efforts in entrepreneurship development in Costa Rica.