Due to the deep political, economic and social crisis that Venezuela is facing, more than 5.5 million people have left the country, according to the UN platform R4V , and more than 80% have migrated to countries in Latin America and the Caribbean (LAC). The countries that host the majority of Venezuelan migrants are Colombia (more than 1.76 million) and Peru (more than 1.04 million). Furthermore, Brazil is the country with the largest population of Venezuelans with refugee status in the region (more than 40,000).
In addition, the context of COVID-19 has aggravated this crisis. Latin America, which was already experiencing weak economic growth and rising unemployment, is now facing a "deep recession", which will lead to a fall in regional GDP of between 1.8 and 4%. These circumstances create even more vulnerability among migrants, as they work mainly in the informal sector compared to non-foreign workers. Furthermore, migrants are struggling to adapt socially, culturally (facing language barriers) and economically seeking alternatives for income generation. There is an urgent need to implement solutions taking into account the profiles and skills of migrants, the context of their integration, the impact on host communities, as well as the new market needs related to COVID-19.
To tackle these issues, Migraflix proposed a solution where entrepreneurs from migrant and host communities will increase their income by supporting the growth of their businesses and the creation of new ventures.
This project seeks to consolidate and expand MigraLab, an existing program of the Migraflix Organization, which seeks to improve economic and financial inclusion through entrepreneurship and adapt it to the current economic context. MigraLab is an innovative digital platform, based on four pillars: (i) Evaluation of the socioeconomic profile of users who register on the platform and diagnosis of their business, (ii) Development of a data-based system that will suggest an entrepreneurial path personalized, including a personalized online training program to develop hard and soft skills related to the needs and aspirations of the participants, (iii) Connection of the participants with the market through sales channels of the Program's partners, and ( iv) Offer of technical support for the use of digital tools, personalized tutorials with a business plan and access to financial services.
The project beneficiaries will be 2,380 migrants and 1,020 people from host communities for a total of 3,400 beneficiaries, of which 70% will be women. The project will also involve the private sector in the host communities by establishing 12 new partnerships with sales channels in the cities of Sao Paulo, Boa Vista, Bogotá, Lima and 5 new partnerships with financial institutions in these 3 countries. As the main result, the project seeks to increase the income of 600 entrepreneurs (in São Paulo, Boa Vista, Bogotá and Lima) by 15% on average and create 110 new businesses in the four cities where the program plans to operate. In addition, the program will mainly promote the economic and financial inclusion of women, since it is expected that 70% of the entrepreneurs connected to the sales channels through MigraLab will be women.
Location and Focus Area
|Brazil, Colombia, and Peru|
|Entrepreneurship, Economic Growth, and Finance|