Laos is a country rich in culture, nature, and tourism potential. Yet, as one of the world’s Least Developed Countries, it faces deep-rooted economic challenges. Micro, small and medium-sized enterprises (MSMEs) form the backbone of the Lao economy, making up 99.8% of all businesses. 

Tourism has been steadily increasing, with Laos expecting growth to over 3.2 million international visitors per year. This growth offers a chance for increased income opportunities, but it also brings environmental pressures, especially from single-use plastic waste, energy use, and poor labour standards. At the same time, most MSMEs remain informal and under-resourced. They lack access to green finance, struggle with low capacity, and often don’t meet international standards. Young entrepreneurs, particularly women, face even more barriers, including limited capital and weak support networks.

TUI Futureshapers Laos addresses these challenges by establishing a Small Matching Grants programme. The programme acts as a green financing instrument, offering small grants to MSMEs and young entrepreneurs in the tourism value chain, targeting mainly transportation, food and beverage, handicraft and community-based tourism enterprises. The grants support the development of green products, services, and solutions - especially those that reduce environmental harm and promote sustainable consumption. 

The tourism hotspots of Vientiane Capital, Vientiane Province, Luang Prabang, and Champasak are home to many promising businesses. Over the course of the project, 200 MSMEs and 100 young entrepreneurs in these areas - 50% of whom will be women - will receive technical support. This includes training in sustainable business practices, financial literacy and product development, along with mentoring and access to new markets. MSMEs are also engaged and supported to achieve the EU funded ‘Lasting Laos’ certification, which introduced sustainability certification and promotes green product development. By aligning with this broader initiative, the project ensures that its support is part of a larger, coordinated effort to transform the tourism sector.

The grant programme will award grant to 80 MSMEs and young entrepreneurs. At least 40 of these will be funded directly by the TUI Care Foundation. The grants act as seed funding, helping businesses to test new ideas, improve operations and scale up green solutions. In total, the project supports around 2,000 livelihoods, including employees of the participating businesses.

To strengthen long-term impact, the project also organises an investor familiarisation trip in its third year. This trip brings international investors and mentors to Laos to meet high-potential businesses, explore investment opportunities, and build lasting partnerships. It’s a key step in connecting local entrepreneurs with global networks and future funding.