COMMUNITY ECONOMIC DEVELOPMENT PROGRAM
see the program higlighted in our fall newsletter
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.
leonor, a credit recipient in front of her meat stand at the san martin market. CLICK HERE to see her video testimonial
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 174. From 1999-2005, 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
GOALS
ENLACE has laid out the following goals to continue the success of this program and expand it to many more in this region.
• Foster the creation and expansion of over 300 businesses in FY 2006.
• Increase the loan fund value in FY 2006 by over 50% for a total of $250,000 circulating a total of $350,000.
• Maintain 97% loan repayment in FY 2006.
• Increase the active clients to 500 by FY 2007.
• Train 1000 entrepreneurs in better credit and business practices by 2007.
• Financial sustainability in FY 2007.
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...
