Paper

Bridging The Gap Between Equity and Impact: A Subsector Approach to Export Promotion in Ecuador

Highlighting export opportunities for micro and small scale enterprises

This paper describes a project that identified ways to increase the contribution of micro and small-scale enterprises (MSEs) to the export sector.

USAID and other development agencies have emphasized export promotion as an approach to development. Export promotion programs usually ignore MSEs because of their assumption that MSEs cannot and do not export. USAID/Ecuador, in partnership with three other organizations, participated in a project in 1992 that examined opportunities for greater MSE contribution in the export of ceramics, wood products and leather garments from Ecuador.

The project sought to bridge the gap between growth and equity considerations that USAID/Ecuador felt existed in its export promotion programming. It demonstrated that:

  • MSEs do engage, at least indirectly in export activities;
  • MSE participation in exports is more prevalent in some sub-sectors than others;
  • USAID/Ecuador could achieve equity and impact by helping MSE and export sectors grow together;
  • Simultaneous growth of MSE and exports would help USAID/Ecuador correct weaknesses in traditional export promotion projects;
  • USAID/Ecuador could achieve greater impact with alternative approaches and broaden opportunities for the poor to participate in export growth.