Good Practices and Innovations in Public Governance 2003-2011

The Impact of the UNPSA on InnovATION in Government
Giving Citizens a “key” to Their Own Business: the Economic
Development Bank (EDB), The Commonwealth of Puerto Rico
With “La llave para tu negocio”, the EDB has provided new entrepreneurs with a “key
to realize their dreams”. This initiative has strengthened Puerto Rico’s economy by
providing new entrepreneurs with up to 100% funding for their project up to $50M,
without any initial deposit or guarantee with a fixed interest rate for ten years. It
has also created over 1,000 businesses increasing employment rates. For companies
that were already doing well at the local level, but wanted to export their
goods, the EDB has provided them with a new opportunity to become more competitive
internationally.
As a result of being one of the finalists of the 2008 UNPSA Programme, the EDB has
become more prone to innovation and has registered an increase in the morale of its
staff. Moreover, the EDB has further innovated its programmes and services. For
example, it has launched a new programme, which goes beyond the mission of the
Bank, entitled: “The Other Side of Our Bank”. As part of this programme, the EDB is
seeking to collaborate with other government agencies, including the Puerto Rican
Industrial Development Company (PRIDCO), to promote companies based on technology,
and it has widened the spectrum of industries it serves.
In addition, the EDB has highlighted that this initiative has opened up new ways of doing
business, and that it is presently seeking to promote community development through
entrepreneurship. In fact, the EDB has created new avenues to sponsor corporate responsibility
programs. First, it is creating the first Microfinance Institution in Puerto Rico, a
public – private capital investment program to finance micro entrepreneurs who are not
able to access traditional banks or even the programs of the EDB. This new programme
is aimed at financing products and services of the disadvantaged, an economic sector of
the Island, which needs to have a particular approach in order to prosper. Therefore, EDB
intends to enable the poor to become positive agents of change in their own lives. This
initiative is supported by “Puerto Rico Emprende”, an EDB program, which promotes
collaboration among NGOs, the public and private sectors working together with one
mission and vision: to amplify and link the distribution channels of the private sector by
supporting entrepreneurship through programs that offer technical support (NGOs), mentorship
(Private and Public) and financing (Microfinance Institution) to new entrepreneurs.
This Programme aims at transforming the community where entrepreneurs work,
but at the same time, it intends to guarantee that the products and services that companies
receive are of high quality. The case studies EDB is working on currently are in the following
economic sectors: agriculture, tourism, manufacturing and services.
The EDB is also bringing together the government, private sector and universities to
strengthen an entrepreneurial culture by providing potential entrepreneurs with technical
knowledge, funding and mentorship. By 30 June 2008, the EDB has managed
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