Innovation for MSME Development Initiative Request for Proposals

Overview 

The Innovation for MSME Development Initiative (IMDI) funds randomized evaluations of programs and policies related to financing, capacity building, and expanding market access for micro, small, and medium enterprises (MSME) in Indonesia.

IMDI is calling for proposals to evaluate ideas, programs, and policies related to financing, capacity building, and expanding market access for MSMEs in Indonesia. IMDI invites proposals from J-PAL affiliates, J-PAL postdocs, J-PAL Southeast Asia Invited Researchers, and PhD students advised by a J-PAL affiliate or J-PAL Southeast Asia invited researcher for full research projects and pilot grants.

Application Process

There is a two-stage approval process for the research funding:

Step 1: If you are interested in submitting a proposal, please fill out the Expression of Interest (EOI) form. We will inform you within 2 weeks with an invitation to submit a full proposal. EOI form is due January 31st, 2025

Step 2: On receiving a positive response to the EOI form from the IMDI team, please submit the full proposal to [email protected]. All application materials are available to be downloaded below. We aim to share the outcome of our review within 5-6 weeks after submission.  Full Proposal is due February 28th, 2025.

Priority Themes 

IMDI focuses on developing research around four broad themes:

1. Targeting MSMEs with growth potential: Designing cost-effective methods of identifying firms with growth potential to improve targeting of MSME programs. 
2. Increasing financial access for MSMEs: Testing innovative financial products that aim to increase MSMEs' access to credit to grow their business. 
3. Increasing firm management and production capacity: Exploring solutions that would expand the reach of existing capacity-building programs and implement effective tailored training or individualized assistance at scale. 
4. Expanding market access for MSMEs: Designing and testing solutions to support MSMEs use and survive in the digital marketplace, reduce their logistics costs, and integrate MSMEs into the supply chain (e.g., logistic aggregator services, product curation, digital onboarding training, etc.). 

For an extensive list of open questions and evidence gaps related to these themes, as well as a detailed synthesis of existing evidence on MSME programs, please refer to the IMDI White Paper. 

Research Funding Opportunity

For this round, we strongly prefer submissions for full-scale proposals. However, if this is not possible for your project, we are open to considering submissions for a pilot. The period of performance is up to September 2025.

1. Full research projects: These grants are for research projects at a mature level of development with a clear research question. Applicants must demonstrate a commitment from implementing partners, a method of randomization, well-defined instruments, and sample size estimates. Proposals can also be submitted for funding the continuation of research projects that have already started without IMDI funding. The expectation is that these projects will result in a paper publishable and can be scaled-up into an actionable program or policy for Indonesia. 
2. Pilot grants: These grants are for studies with a clear research question, but for which the design and implementation require further testing and pilot data. Pilot proposals should lay out a clear path to future randomized evaluations, the expectation is that these projects will ultimately develop into full-scale randomized evaluations. Proposals can also be submitted for funding the continuation of research projects that have already started without IMDI funding. 

All awarded funding will be managed by J-PAL Southeast Asia.

Eligibility

J-PAL affiliated professors, J-PAL postdocs, J-PAL SEA invited researchers, and PhD students advised by a J-PAL affiliate or J-PAL SEA invited researcher are eligible to apply for the research grant. All proposals may include collaborators outside of this network.

PhD students, with a J-PAL affiliate or J-PAL SEA invited researcher on their thesis committee at their host university are eligible to apply for pilot or full studies. This adviser must provide a letter of support, indicating willingness to remain involved in a supervisory role throughout the project lifetime. In addition, in order to apply for full-scale funding, graduate students must provide documented evidence of successful pilot activities.