The transition towards more sustainable business models represents an important opportunity to strengthen the competitiveness and resilience of micro, small and medium-sized enterprises (MSMEs) in Mexico. The independent evaluation of the project “Addressing the Consequences of COVID-19: Green Recovery – Innovation, Resilience and Employment in MSMEs, Mexico”, implemented by the German Development Cooperation through GIZ, assesses the results achieved to date and identifies key lessons for future initiatives aimed at promoting green and inclusive businesses.
The evaluation concludes that the project has been broadly successful and highlights its strong relevance and alignment with the priorities of German development cooperation and the needs of beneficiary enterprises. Despite challenges arising from political changes and the temporary stagnation of relations with the main federal counterpart, the project demonstrated considerable adaptability, enabling progress in areas where opportunities for collaboration emerged.
One of the project’s main achievements has been the strengthening of technical capacities among MSMEs to develop and implement green business models. The project successfully linked environmental sustainability with economic benefits for participating enterprises. It also facilitated the adoption of more sustainable practices while enhancing competitiveness and introduced innovative approaches to improving access to finance.
The evaluation further highlights the project’s work with women entrepreneurs in the Bajío region and the role of the Green Fund as a mechanism to promote sustainable investments. Although it is still too early to measure long-term impacts comprehensively, the initiative demonstrates significant potential in areas such as emissions reduction, green finance, and sustainable enterprise development.
As a pilot initiative without a direct predecessor, Green Recovery has generated valuable lessons for future interventions. Key success factors include the quality and flexibility of the implementation team, as well as innovative approaches to capacity development and access to finance. At the same time, the evaluation points to the need to strengthen monitoring systems, improve knowledge management processes, and further consolidate sustainability and communication strategies.
The lessons emerging from this experience provide useful guidance for future programmes supporting MSMEs, demonstrating that the transition towards a green economy can generate environmental, economic, and social benefits when accompanied by effective mechanisms for capacity building, financing, and institutional coordination.
Read the full evaluation report here (in Spanish)
