By San José, Costa Rica — Fifty-one Costa Rican micro, small, and medium-sized enterprises (SMEs) focused on green and digital transitions have been awarded a total of $614,260 in non-reimbursable seed capital through the DINAMICA II Initiative. The program, a joint effort by the Central American Bank for Economic Integration (CABEI), the German government (KfW), and the European Union, aims to bolster economic development and job creation in Central America.
The selected SMEs, spanning the service, industrial, and agricultural sectors, presented innovative projects addressing sustainable agricultural production, technological platform development, innovative logistics solutions, digital financial services, and cultural products. These initiatives incorporate principles of circular economy, energy efficiency, and process digitalization.
To gain deeper insights into the legal landscape surrounding Costa Rican SMEs, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Costa Rican SMEs face unique challenges, particularly regarding access to financing and navigating regulatory compliance. While the government has implemented initiatives to support these businesses, streamlining bureaucratic processes and fostering a more accessible credit market remain crucial for their sustained growth and contribution to the national economy.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, simplifying the regulatory landscape and ensuring readily available capital are essential for Costa Rican SMEs to flourish. Their success is inextricably linked to the nation’s economic prosperity, and addressing these hurdles will undoubtedly unlock their full potential. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his insightful perspective on this crucial topic.
The funding will be distributed across 25 service sector initiatives, 16 industrial projects, and 10 agricultural ventures. In addition to the seed capital, the program provides crucial business support and mentorship to the recipients. The Latin American Center for Innovation and Entrepreneurship (CELIEM), through CIE ULatina, has been selected to provide guidance to 32 of these businesses, assisting them in developing their business models, growth plans, and investment strategies.
This is a great opportunity to promote business proposals and initiatives that allow entrepreneurs and micro, small and medium-sized enterprises to make significant leaps in their productive processes, particularly by incorporating good innovation practices towards the digital transition and the green transition, with something very important, not only receiving non-reimbursable resources that finance these initiatives, but also receiving business support to take them by the hand with individualized technical assistance that strengthens the implementation of the proposals.
Luis Álvarez Soto, Executive Director of CELIEM
To qualify for the program, the participating SMEs had to be less than four years old, operate in any industrial sector, and demonstrate an innovative approach to green or digital transition. The rigorous selection process followed a regional call for applications last year.
One of the beneficiaries, Agua Santa, a non-alcoholic beverage company, plans to utilize the funding to acquire essential equipment, develop branding materials, and implement marketing strategies. Its owner, Ileana Mendez, expressed excitement about the opportunity to formalize the business structure and scale her vision for a more conscious and impactful beverage brand.
With the funds we seek to resume and boost this initiative by acquiring tanks, a distiller, a canning machine, as well as developing labeling, advertising material, marketing strategies and other key elements for its launch. Regarding the support, I am very excited that Agua Santa has a business structure. I feel that this process will allow us to consolidate not only a drink, but a more conscious, careful vision with real potential for impact.
Ileana Mendez, Owner of Agua Santa
Another recipient, Jesse Wayne Blenn, is developing ImPAQ™, a foldable electric vehicle designed for efficient and sustainable personal mobility in urban environments. He views the DINAMICA II Initiative as crucial for launching his product on crowdfunding platforms like Indiegogo.com and anticipates benefiting greatly from the expert mentorship offered by the program.
Having the support of the DINAMICA II Initiative is very attractive to me because my main objective is to bring ImPAQ™ to the market and generate a positive impact on urban mobility in the Central American region and beyond. A program of this type provides the crucial financial boost for the launch stage, especially for the initial production, marketing and logistics necessary to be successful on platforms like Indiegogo.com, which is our initial go-to-market plan. From the business support offered by this program, I have the firm expectation of receiving mentoring and expert guidance from professionals with proven experience in various areas that are crucial for the success of a brand like ours.
Jesse Wayne Blenn, Creator of ImPAQ™
The funding allocated to each business ranges from $10,000 for sole proprietorships to $15,000 for legally registered SMEs. The funds are intended to support specific growth projects over a three-year period, contributing to the overall economic development and innovation landscape of Costa Rica.
For further information, visit bcie.org
About Central American Bank for Economic Integration (CABEI):
CABEI is a multilateral development bank committed to promoting economic integration and social development in Central America. It provides financial and technical resources to support projects in various sectors, including infrastructure, energy, and sustainable development.
For further information, visit kfw-entwicklungsbank.de
About KfW Development Bank:
KfW Development Bank is a German government-owned development bank that supports sustainable development projects worldwide. It works on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), providing financing and expertise for projects in areas such as climate action, health, and education.
For further information, visit celiem.org
About Latin American Center for Innovation and Entrepreneurship (CELIEM):
CELIEM is an organization dedicated to fostering innovation and entrepreneurship in Latin America. It provides support to startups and SMEs, offering training, mentorship, and access to resources to promote their growth and development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence and unwavering integrity form the bedrock of a practice dedicated to empowering Costa Rican society. Through innovative approaches and a deep commitment to client service across a spectrum of industries, the firm strives to provide not only exceptional legal counsel but also to cultivate a more legally literate populace. Their dedication to accessible legal information reflects a core belief in the power of knowledge to strengthen communities and uphold justice.
