IN EL SALVADOR...

• Over 2 million people live in poverty

• 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

 

ENLACE'S COMMUNITY ECONOMIC DEVELOPMENT (CED) PROGRAM 

ENLACE'S CED program has two primary components:

AGRICULTURAL ASSISTANCE

ENLACE works primarily in rural and semi-rural areas where hunger is one of the most pressing needs. The primary aims of the CED program are to increase agricultural production, improve the quality of food products, increase access to food, and reduce malnutrition and micronutrient deficiencies. Upon meeting the primary nutritional needs of a family, the program aims to strengthen the capacity of farmers to generate income through agricultural activities and to improve markets for agricultural products. 

click here to learn more about ENLACE's agricultural assistance and the home garden strategy...

MICRO-ENTERPRISE DEVELOPMENT 

Since 1996, ENLACE has helped to start or expand over 3,000 small businesses by providing credit and training to micro-entrepreneurs and farmers. Over the last five years, the program has maintained an excellent loan repayment rate of 99% and has been able to circulate over 1,200 loans for a total amount of $1,457,000. Such success is attributed to the hard work of the entrepreneurs who have received credit and training from ENLACE.

In 2000, ENLACE helped start a credit union called CREDATEC. CREDATEC is a limited liability corporation registered in El Salvador. CREDATEC was created to manage all financial and capital assistance to micro-entrepreneurs. ENLACE has established a trust fund in CREDATEC to on-lend to qualifying micro-entrepreneurs. An independent credit union provides the appropriate legal structure needed while also separating credit and financial decisions and operations from ENLACE, the local church and community associations. (SEE BELOW FOR SPECIFIC CLIENT PROFILES) 

Click here to read the complete Community Economic Development Program Profile

GENERAL INFORMATION ABOUT EL SALVADOR AND THE MICRO-CREDIT STRATEGY
El Salvador, with a population  of 6.1 million, is one of the poorest countries in the western hemisphere. Approximately 34% live below the poverty line. In rural areas where most people rely on small-scale farming to survive, 19% of the rural population lives on less than $1 per day and 24% live on less than $2 per day.
ENLACE's Community Economic Development program (CED) provides small-scale entrepreneurs and farmers training, technical assistance, financing, and links to markets to start or expand business ventures at the individual, community and regional levels.
Economic, environmental and social challenges are interdependent, complex and ever-changing. ENLACE recognizes that each community has different resources, knowledge, experiences and access to markets. Therefore, ENLACE trains church and community leaders to identify local resources and markets to generate economic opportunities at the individual, community and regional level. The program also works to link economic initiatives to other critical issues in the community such as housing, health, and education.
 

The CED program is an integral and important component of ENLACE’s community transformation approach. Since 1993, ENLACE has trained and resourced church and community leaders to alleviate spiritual and material poverty in El Salvador. The CED program is one of ENLACE's four main programs which include Church and Community, Housing and Infrastructure, and Healthy Communities.

 

CLIENT PROFILES 

 

MAURICIO JESUS LOPEZ LOPEZ

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

Mauricio 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.

To see some testimonies click here:

Lorena


Dolores
http://www.youtube.com/watch?v=a5jhayYWFyM

Ana Ruth
http://www.youtube.com/watch?v=h7NrE_liiL0

 

 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 repaid on 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 repaid on 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 repaid on 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 repaid on time: 11
  • Average monthly sales: $4,200
  • Average monthly income: $600

 

 

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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