A better Climate for business
Private enterprise council campaigns to cut bureaucracy

A focus on small businesses is key to the development of the private sector

Among the Honduran government’s leading priorities, shared by CAFTA, is support for the indigenous private sector. It is a policy that underpins broader efforts to promote social and economic growth throughout the region.
Norman Garcia, Minister of Industry and Commerce, believes the Central American trade pact will allow local companies access to new markets and open up possibilities for partnering foreign enterprises, creating a better climate for business. “Not only will it foster investment from our own investors, but also from foreign companies,” he says.

The Honduran Council of Private Enterprise, known locally as COHEP, is the representative organization for the private sector. Its 10,000 members come from all parts of the economy, from tourism to textiles, representing some 85% of the workforce. Jacobo Regalado, President of COHEP, says the council campaigns for a better deal for the private sector, including slashing red tape and improving the working environment. A key part of the development of the private sector is the increasing focus on small businesses. He says the CAFTA initiative adds momentum. “Since we started with CAFTA there has been a great deal of Central American integration in the private sector. We have been working together – for the first time we have many Central American federations providing different products.”

The Foundation for the Investment & Development of Exports (FIDE), an agency originally derived from USAID that promotes inward investment from offices in the U.S. and Asia, also supports private sector growth. Vilma Sierra de Fonseca, Executive President, says this includes fostering links between small firms with larger, experienced export companies. Improving technology transfer and quality standards is also vital. “FIDE is very focused on eliminating barriers,” she says.