The Empower Innovation Challenge provides fifteen grants of $80,000 to organizations strengthening micro, small, and medium-sized enterprises (MSMEs) across Central America. Eligible projects must support innovation, business growth, workforce development, and economic resilience in target countries. The program combines funding, capacity-building, and membership in a regional Innovation and Impact Network to scale high-impact solutions.

Empower Innovation Challenge

Overview

The Empower Innovation Challenge supports organizations that help micro, small, and medium-sized enterprises (MSMEs) grow, innovate, and strengthen their role in regional economies. This competitive grant program funds initiatives that expand economic opportunities, foster entrepreneurship, and advance innovation ecosystems in Central America.

Program Goals

The initiative aims to:

• Improve competitiveness of MSMEs

• Strengthen local innovation and entrepreneurial ecosystems

• Promote job creation and workforce development

• Support sector-specific innovation in agriculture, tourism, technology, logistics, and creative industries

• Build long-term economic resilience in emerging regional markets

Why It Matters

MSMEs are the backbone of Central American economies. They generate employment, sustain local supply chains, and drive community-level innovation. However, many small businesses face persistent barriers, including limited financing, inadequate training, and restricted market access.
This program addresses those gaps by offering:

• Direct funding for high-impact projects

• Technical assistance from Tandem Global and industry experts

• Regional collaboration opportunities

• Access to the Innovation and Impact Network, a platform for scaling solutions

Funding Details

• Number of grants: 15

• Grant amount: $80,000 each

• Implementation period: 14 months

• Geographic focus: Belize, Costa Rica, Panama, El Salvador, Guatemala, and Honduras

• Priority sectors:

  • Agriculture, livestock, agribusiness

  • Food and beverage

  • Fishing and aquaculture

  • Tourism

  • Creative services

  • Technology and digital services

  • Light manufacturing and textiles

  • Logistics and supply chain

Projects must directly benefit one or more eligible countries.

Who Is Eligible?

Eligible applicants must be:

• Legally registered organizations

• Civil society organizations, NGOs, non-profits, private universities, or qualifying for-profit entities

• Located in and operating permanently within one of the eligible countries

• Experienced (minimum 3 years) in supporting MSMEs or managing cross-sector collaborations

Eligibility notes

• For-profit entities may apply only if they demonstrate:

  • No economic gain from the grant

  • Any generated revenue directly benefits MSMEs

• All applicants must complete the full online application and provide documentation

• A SAM.gov Unique Entity Identifier (UEI) is required for organizations receiving more than $30,000 in U.S. Government funding

  • Applicants without a UEI may obtain one after selection

How to Apply

Step-by-Step Process

1. Confirm organizational eligibility (experience, legal status, presence in eligible country)

2. Develop a high-impact project concept, ensuring it supports MSMEs in at least one priority sector

3. Prepare required documentation, including legal registration, financial statements, and project justification

4. Complete the online application through the challenge portal

5. Submit the full proposal, including:

   • Problem statement

   • Proposed solution

   • Implementation plan

   • Expected impact

   • Budget breakdown

6. Undergo review by the selection committee

7. If selected, obtain or confirm your UEI number for compliance with U.S. government funding rules

What Strong Applications Demonstrate

• Clear understanding of MSME challenges

• Evidence-based solutions tailored to local markets

• Strong partnerships with community or private-sector stakeholders

• Measurable goals and a realistic 14-month timeline

• Plans for sustainability beyond the grant period

Common Mistakes to Avoid

• Submitting incomplete documentation

• Designing projects that do not directly benefit MSMEs

• Proposing activities outside priority sectors

• Lacking a permanent presence in the target country

• Providing unclear or unrealistic budgets

• Failing to align with U.S. government compliance requirements

Frequently Asked Questions

1. Can a project cover more than one country?
Yes. Projects may benefit multiple eligible countries, as long as the applicant has presence in at least one.

2. Can for-profit companies apply?
Yes, but only if they prove the grant will not generate profit for the organization and that any revenue benefits MSMEs.

3. What types of MSMEs can benefit?
Micro, small, and medium enterprises in priority sectors including agriculture, tourism, technology, and light manufacturing.

4. Is prior experience with innovation programs required?
Not specifically. However, organizations must have three years of experience supporting MSMEs or managing multi-stakeholder projects.

5. When is the UEI required?
A UEI is required only for organizations receiving more than $30,000. If selected, applicants may obtain one afterward.

6. Can universities apply?
Yes. Private universities and nonprofit academic institutions are eligible.

7. What are examples of eligible project activities?
Training programs, business development services, access to finance initiatives, supply chain integration, innovation labs, accelerator programs, and technology adoption support.

Conclusion

The Empower Innovation Challenge offers a strategic opportunity for organizations committed to strengthening MSMEs and accelerating regional economic development. With substantial funding, expert technical assistance, and access to a robust regional network, the program empowers organizations to create sustainable, high-impact solutions that fuel growth across Central America.