PUM’s private sector development support to SMEs worldwide

The following results of PUMs impact are based on findings from PRIME. PRIME is a research partnership between Wageningen Economic Research, Erasmus School of Economics, PUM and the Centre for the Promotion of Imports from Developing Countries (CBI). PRIME uses and assesses quantitative analysis of administrative data and online surveys with the qualitative analysis of interviews held with PUM beneficiaries, experts and stakeholders in five countries: Peru, Bolivia, Uganda, Bangladesh and Indonesia. While the countries focussed on as part of the Argidius partnership were not included in this PRIME research scope, the findings resonate with the experience in Central America.

In the report

Impact numbers

<h3>Key findings</h3>
<ul>
<li>The results show that PUM has contributed to one or more changes in knowledge and business practices for 90% of the businesses they support. PUM’s contributions were most significant in three areas: ​ 
<ul>
<li>efficient ways of organising the business, ​</li>
<li>leading, planning and organising the business, and ​</li>
<li>ideas about new products and services.​</li>
</ul>
</li>
<li>PUM’s contribution to better practices has helped to improve SMEs’ performance. ​ 
<ul>
<li>Typically, a company’s sales increased by about €11,000 (34%) following PUM support compared to sales before PUM support. ​</li>
<li>The effect of PUM’s support on employment varies according to the focus of the missions. ​ 
<ul>
<li>Missions that focus on efficient ways of organising the business increase employment in the business by 33%, while​</li>
<li>Missions that focus on financial management reduce employment by 18%. However, missions that focus on financial management target companies that have financial problems and have to cut costs.​</li>
</ul>
</li>
<li>"The right kind of expert, at the right time, can speed up the overall development of the firm." ​
<ul>
<li>The effectiveness of the support depends to a large extent on the qualities of the expert, the timing of the mission, and the communication between the expert and the SME manager. PUM’s interventions are not always successful in boosting a firm’s performances.​</li>
</ul>
</li>
<li>The presence of strong business support organisations (BSOs) was identified as an important enabler.</li>
</ul>
</li>
</ul>

Text

2.1.22 Car Mechanic In Garage PUM Llantas Y Servicios Copyright Stuart Freedman

Assessing the impact of PUM’s expert technical assistance to SMEs in five countries, using PRIME data (2018).

PUM’s private sector development support to SMEs worldwide | Argidius

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