COMMUNITY ECONOMIC DEVELOPMENT PROGRAM

 

ENLACE recognizes that addressing poverty requires developing solutions that can be sustainable long term. Microenterprise has proven to be an effective solution to helping people create income that can be used to pay for the needs of today while investing in the future. Thousands of families throughout El Salvador are starting and expanding small businesses through microenterprise development loans. In places where poverty has beleaguered young and old alike causing a strong sense of fatalism and fear of the future, communities are being transformed by the hard work and perseverance of poor entrepreneurs and their small businesses. Such businesses—often running on a profit of $3 a day—provide economic stability for poor families and serve as catalysts to create new opportunities for education, health care, and in other areas in the community.

 A bakery provides a steady income for a poor family and creates jobs for other community members. A seamstress begins to create a market for her goods and begins to design a workshop to train others in the art. Profit generated from a kiosk helps to insure that a family's children can remain in school. Savings make it possible for a family to treat unexpected illnesses, pay the doctor at a community health clinic and tithe to the local church.

Since 1996, ENLACE has helped to start or expand over 500 small businesses by providing credit and training to micro entrepreneurs. The program started with 14 members in the small community of Bonanza and has grown to 199. From 1999-2009, the program has maintained an excellent loan repayment rate of 97% and has been able to circulate more than 1,350 loans for a total amount of over $1,000,000. Such success is attributed to the hard work of the entrepreneurs and also the credit and training clients receive from ENLACE.

IMPORTANT FACTS

• Over 2 million people live in poverty.

• 45% are poor, having an average annual income of $360.

• 19% are extremely poor, having an average annual income of $180.

• Close to 40% are under or unemployed

• 72% are self-employed

• Only 12% have access to loans

• Only 10% have access to training closer than 10 miles away

 

The Numbers - July 2009

ENLACE currently serves 119 clients with 89 in the area of San Martin. (Visit http://www.enlaceonline.org/las‐delicias/) to read about a community within San Martin served by the program.

 • There are 29 new clients year to date (2009)

 • Loans range from $150 to $1000

 • Average repayment rate: 98%

 

Success story of this year (2009):

MAURICIO JESUS LOPEZ LOPEZ

Mauricio, a credit recipietn in front of his chicken stand at San Martin market.

 

Maricio has been a client since October 2007 and has borrowed 6 loans within that time with an excellent repayment record. When Maricio started with ENLACE he had been struggling to run a small business in the neighborhood where he lived. At that time he did not own a house and was staying in an abandoned house for shelter. Without a stable address there was not a financial institution that would give him credit.

Through ENLACE’s local office in San Martin, Mauricio contacted our credit advisor, Israel, who met with him and visited where he lived. Israel sat down with him to understand how Mauricio could improve his situation. He also approved him for a loan of $200.00 to be repaid in two months.

Mauricio used to loan to invest in products he could sell in the market, vegetables, fruits and chicken. Eventually, Mauricio paid back the loan and reapplied for larger loans to expand his sales, expanding the types of products he could sell. This year Mauricio is averaging over $100.00 a day in sales.

Mauricio also wanted to save towards purchasing his own home. He looked around for houses that were close to his business and once again approached ENLACE to help him with a loan. The house price was $1,200, and he was approved for a loan for 50% of the value. He was able to pay the remainder from his business. He is now in his own home alongside his wife and six‐year‐old daughter.

 Mauricio still has more plans. This year he wants to make expand his house and grow his business further. ENLACE will continue to walk alongside Mauricio and others like him as they grow their businesses and improve the lives of their families.

ENLACE Micro Finance Goals for 2009

  • To maintain a 95% repayment rate
  • To grow towards 200 active clients at the end of the year
  • To grow towards placing $250,000 in micro loans for small business

 

Top 5 performers in 2009

María del Carmen Jovel Corleto

  • María Jovel raises chickens while her husband works as a janitor in the mayor’s office. She works with two other people who prepare the chickens and then sell door to door in San Martin. She has done this for 24 years and is now trying to work with ENLACE to better understand the profits she is making and how she can grow the business.
  • Number of loans with ENLACE paid back in time: 12
  • Average monthly sales: $4,060
  • Average monthly income: $550

 Mauricio Jesús López López

  • Mauricio sells in the local street market selling beef, chicken and vegetables. He’s been in business for 12 years.
  • Number of loans with ENLACE paid back in time: 6
  • Average monthly sales: $3,220
  • Average monthly income: $500

Pedro Elías Sánchez

  • Pedro raises chickens at home and sells them in the local San Martin street market.
  • Number of loans with ENLACE paid back in time: 1
  • Average monthly sales: $1,260
  • Average monthly income: $400

Lorena Carolina Alfaro

  • Lorena runs a bakery from her home selling a variety of sweet breads and mini baguettes. She’s been a baker for 6 years.
  • Number of loans with ENLACE paid back in time: 6
  • Average monthly sales: $700
  • Average monthly income: $300

Samuel Erroa Torres

  • Samuel started with a small business selling vegetables from a stand in the street market in San Martin. He is now a well established vegetable distributor.
  • Number of loans with ENLACE paid back in time: 11
  • Average monthly sales: $4,200
  • Average monthly income: $600

 

OUTCOMES

• Businesses are more profitable.

• Many businesses are growing.

• Household incomes are beginning to stabilize.

• More money is being invested in education, health and home.

 

FUNDING

If you are interested in how you can contribute to ENLACE's “Community Economic Development” program please email us at partner@enlaceonline.org or give online...

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