Peru – Greening the MSME sector in a time of political instability

Libélula has worked to support Peru's green MSME sector by building a community of entrepreneurs and facilitating dialogues with financial institutions and government bodies. Despite frequent government turnover that has stalled various initiatives, Libélula contributed to the passage of the Collective Benefit Enterprise Law (BIC Law) and helped the Ministry of Production develop a circular economy map. The organization emphasizes that collective social demand and community backing are essential to maintaining a green agenda across changing administrations.

• Micro, small, and medium enterprises (MSMEs) are critical to the Peruvian economy, representing 96% of all enterprises and 84% of the workforce, yet they face high vulnerability with approximately 50% failing in their first year. Green MSMEs are even more precarious due to the higher costs associated with sustainable products.
• Political instability in Peru since 2016, characterized by corruption scandals and rapid presidential turnover, has made it difficult to cement green economy changes, often causing initiatives to stall when power struggles occur.
• Libélula has implemented several tools to support local green enterprises (LGEs), including an online directory for green MSMEs, the first Contextual Financial Analysis (CFA) in Peru, and green enterprise platforms in Arequipa and Piura to improve access to finance.
• Libélula played a key role in the 2021 passage of the Collective Benefit Enterprise Law (BIC Law) by helping collect necessary signatures; the law allows for a certification scheme to identify enterprises generating positive social and environmental value.
• Libélula has successfully influenced national government bodies, including helping the Ministry of Production create a circular economy map and proposing a green enterprise directory to the Ministry of Environment.

APA

Khan, Z. (2025). Peru – Greening the MSME sector in a time of political instability. Green Economy Coalition. https://www.greeneconomycoalition.org/news-and-resources/peru-greening-the-msme-sector-in-a-time-of-political-instability

Chicago

Khan, Zaiza. Peru – Greening the MSME sector in a time of political instability. Green Economy Coalition, 2025. https://www.greeneconomycoalition.org/news-and-resources/peru-greening-the-msme-sector-in-a-time-of-political-instability.

Wikipedia

{{cite report |last1=Khan |first1=Zaiza |title=Peru – Greening the MSME sector in a time of political instability |publisher=Green Economy Coalition |date=28 May 2025 |url=https://www.greeneconomycoalition.org/news-and-resources/peru-greening-the-msme-sector-in-a-time-of-political-instability |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{khan2025peru, author = {Khan, Zaiza}, title = {{Peru – Greening the MSME sector in a time of political instability}}, institution = {Green Economy Coalition}, year = {2025}, month = may, url = {https://www.greeneconomycoalition.org/news-and-resources/peru-greening-the-msme-sector-in-a-time-of-political-instability}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }