Meeting with 4 micro entrepreneurs in Manila and the surrounding region:

•    Mrs. Amor Tan, manager of a crushed ice business:

Ms. Tan’s story is a striking example of the success of microfinance. In 2001 she borrowed 6,000 pesos (€ 100) from Proximity to develop a small business in crushed ice, which she sells to markets in the south of Manila.
Faced with growing demand for delivering ice to these markets, she and her husband took out loans for 7,200 pesos (€ 130) in 2002 and 20,000 pesos (€ 340) in 2003. They are currently repaying their eighth Proximity loan!
The Tan family has good business sense, and in 2003 they decided to improve their system for distributing their product to the markets. They borrowed 122,000 pesos (about € 2,000) to buy a delivery truck. They then purchased a van in 2004 with a loan of 214,000 pesos (more than € 3,500) from the foundation.
Business was good, and the Tans hired 5 people to work in the crushed ice warehouse and to deliver the ice to the Manila markets. With money that they had saved, they bought a small warehouse to secure their business. Sales increased from 12,600 pesos in 2001 to 78,000 pesos in 2008!
And they didn’t stop there! Between 2006 and 2008, they purchased land and a 60 m² house with a loan of 203,000 pesos. Thanks to their financial stability, they were able to send two children to school right up to university level.
Today they have a savings account with Proximity and an account with Metrobank (a Philippine bank) where they have a balance of more than 400 €.

•    José Martinez, Tricycle Driver:

Jose Martinez contacted Proximity the first time with the aim of obtaining enough money to buy a house and to save on the cost of rental housing. It should be understood that rents in Manila are extremely expensive, so becoming a property owner is an improvement both in terms of money and stability.
The second loan taken out by Mr. Martinez was for 157,000 pesos (about € 2,500) and allowed him to buy a second tricycle. To obtain the loan, he put up both the tricycle that he purchased with the loan and the one that he already owned as collateral.
The Martinez family is now able to rent out one of their vehicles and accumulate additional rental income: between 6,000 and 7,000 pesos per month. The impact of this is significant: their family income has increased by 25%.
Although he had no prior loan experience before taking out his first loan from Proximity, José Martinez had no problem in repaying his loan. Better still, he even managed to repay the second loan ahead of schedule.
In addition, using money that they had saved, the Martinez family has improved their living conditions by expanding their home.

•    Teodora Nolido, pig breeder and vegetable seller:

She began in 1999 with a loan of 3,000 pesos (50 euros), followed by a loan of 5,000 pesos (80 euros) the following year. Her husband does not work, so she’s the one who manages the family business. Her three children attend school. “My business is good now compared to what it was before. I breed pigs and I grow some vegetables. It really helps my family”. If she needs extra money for her daughters’ schooling, she withdraws money from her savings account with NWTF. She pays money each week for the “microinsurance package”, which includes both health insurance and life insurance. She is also the head of the customer centre for her village, which includes fifty members. To prepare for this, she took courses in organizing meetings, preparing an agenda, etc. … but has unfortunately received no financial education (this program is still in the pilot phase at NWTF). “I would like to take this kind of course”, she confides.

•    Angelica Begasa, grocery store manager:

Before the NWTF loan officer came to her village, Angelica and her family grew rice. The MFI’s proposal appealed to her, and she wanted to take out an initial loan of 12,000 pesos (€ 200) to open a grocery in the village. After discussions with the NWTF branch manager, the final loan amount was 18,000 pesos (€ 300).
Before taking out her second loan, Angelica talked with the loan officer about a new project: she wanted to buy land and sublet it. She received a loan of 25,000 pesos (about € 420) to invest in the purchase of a farm, fields and machinery as well as in expanding her store.
The amount of her loans has increased gradually in line with her improved standard of living. Microfinance made it possible for her to engage in several different activities, and today she is considering taking out a third loan from the MFI to buy a tricycle (a motorcycle + sidecar taxi).
In addition to her loan repayments, Angelica pays 22 pesos (30 centimes) per week for the “microinsurance package”.
Our microentrepreneur is very confident about the future and very pleased to be involved with NWTF: her quarterly revenues grew from 2,000 pesos (€ 40) to 15,000 pesos (€ 230). But she warns: “If you don’t have a good business idea, don’t take out a microfinance loan!”