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FTT: 2 Micro-entrepreneur Success Stories

Loïc Linard — Mon, 28 Jun 2010 14:48:34 +0000

Accompanied by FIE Gran Poder employees, we spent a day in a number of underprivileged districts of Buenos Aires, where we met two micro-entrepreneurs.

Mr. Pedro David Zoran, baker, married and father of 4.

When Pedro and his family arrived in Buenos Aires in 1989, he was absolutely determined to find a better life in Argentina. “We were Bolivian immigrants with a strong desire to get by in life”. He quickly realised that the people in his community, although settled in Argentina, needed some reminders of Bolivian life. One particular product his fellow countrymen missed was Bolivian bread. He seized the opportunity with his wife and together they set up a small bakery. “At first we only had one traditional brick oven and we produced a very small amount of bread”. Gradually the business developed, and after 4 years the family bakery was able to produce different types of bread and in larger quantities.

However, that was not enough for Pedro; he had bigger ideas and wanted to invest in an industrial oven, but he didn’t have the necessary capital to make such an investment. “We approached FIE and they agreed to provide the financing to help us buy both an oven and raw materials, and from then on, we really began to expand: rather than using 10 kilos of flour per day we were using 100 kilos!”

Once the brick oven had been replaced by the traditional oven, Pedro’s business took off quickly. Their premises became a little tight on space and so with the help of FIE he decided to extend his bakery. Then he decided his house was too small to accommodate his 4 children, so he borrowed again to build another floor. Next, he invested in other machines to industrialise his production facilities: he bought freezers to stock raw materials, and a van to sell his merchandise, all thanks once again to microcredit and FIE’s support. “Today, thanks to God and to the bakery, three of my children are studying medicine.”

Ms Yolan Silva, grocery store manager, single with no children.

Having trained to be a nurse, Yolan immigrated to Argentina from Peru as she could not find any work. Unfortunately, once she arrived in Buenos Aires her situation did not improve and she had difficulty in making ends meet. She was forced to find a second job in order finance her needs but she was adamant she did not want to work for anyone else. So she transformed a part of her house into a small grocery store and launched her business with a capital investment of 280 pesos (about €55). One of her friends told her about a Bolivian company that was offering loans to businesses in the district. “I told them straight away that I did not have any Argentinean papers but they were nevertheless very amenable and they came to take a look at my grocery store”.

Yolan received a microcredit, and over time a relationship was established between the Peruvian shopkeeper and the MFI: “I would pay back one loan and take out another. Like that, my business could develop”. She extended her shop and bought scales, fridges and freezers.

“I’m a survivor against all odds – my life has turned around completely”, she tells us. “None of it has been easy, every day I worked and worked… Money isn’t just handed to you on a plate – you have to pay it back. But after each loan I could see the changes it brought, and I continued to turn my life around.” Yolan has a lot of character and her desire to be independent gives her the strength to continue working.

It’s clear to us that the shopkeeper has a lot of respect for FIE – not only because of the financial aid it has provided but also for all the advice that the loan officer has given her. Yolan often brings neighbours to the MFI branch so that they too can learn exactly how useful microfinance can be: “Sometimes I even act as guarantor for my friends”.

She will have finished paying off her current loan by next November and will then take out another, this time for 10,000 pesos (€2,000). “I’m going to build another floor on top of my shop and rent out rooms. And when it gets to the point that I can’t work anymore, I’ll hire someone else, keep an eye on him or her from this chair and live off the rent from my rooms!”

6 billion Others – climate change special

Galdric Pons — Tue, 08 Dec 2009 15:00:09 +0000

The “6 billion Others” project team from the GoodPlanet Foundation, chaired by Yann Arthus-Bertrand, is on the move again. Following the major exhibition last January in the Grand Palais in Paris, it is continuing on its way – and that’s not counting a little surprise in early December for internet users who liked the exhibition or for those were not able to make it! More about that soon.

Olivier Blond, journalist on the GoodPlanet environmental information portal goodplanet.info and on-site project leader, presents this new video-based perspective:

“At the Copenhagen summit, where the top representatives of nearly 200 countries will be trying to define the international framework for the fight against global warming for the years ahead, we will be presenting a new video in the “6 billion Others” project series, with 600 new eye-witness accounts in 17 countries intended to make people aware of the human repercussions of climate change. This project, known as “6 billion Others. Climate Voices”, represents an appeal on the part of those whose lives have already been turned upside down by climate change, but is also a warning from the scientific community.”

This is the video teaser, pending the release of the official 52-minute version on the GoodPlanet website on 8 December, which was also shown at Lyons during the Lyons Festival of Lights: (also available on YouTube)

6 billion Others. Climate voices – Teaser from Goodplanet on Vimeo.

We would also like to mention the recent publication of a book, “2 degrees too high”, which is aimed at “helping everyone grasp the importance of the issues discussed at the summit”. This initiative was essentially “an opportunity to mobilise the foundation around a common goal”.

First stop for our young FTT reporters: Kathmandu

Johan Benichou — Mon, 09 Nov 2009 15:33:55 +0000

In Kathmandu, Nepal, we were able to meet several micro-entrepreneurs. They told us their stories and recounted their experiences.

We met Sarita Tuladhar in the Swoniga Design workshop of her business, which specialises in producing clothing made from Pashmina. With the help of the SMElink programme offered by PlaNet Finance (which includes technical support and training in enterprise management), she has been able to forge relations with a number of international customers. The training allowed her to manage her business more effectively and to pass on her newfound knowledge to her employees. She told us what her objective is: “I currently employ some 30 to 40 people. The more my business grows and develops, the more I will be able to employ local people.”

This year Sarita received the award for best Nepalese micro-entrepreneur from PlaNet Finance.

Bijava Pradhan attended the same training course as Sarita and runs Dream Nepal, a network of agencies that promotes adventure tours in the heart of Nepal, with an emphasis on “eco-tourism”.
“I’ve learned how to sell products and services to businesses, how to reach out to international markets, how to minimise my impact on the environment and how to meet various quality standards”, explained Bijava. He’s now keen to give the same support to his friends, family and staff by sharing his knowledge with them.

Hari Sinchury is engaged in the production of jewelry in silver and today heads up his own company “Sinchury Handcraft”. To start up his business, he borrowed 20,000 rupees (approximately 280 euros) from a women’s cooperative (his mother had to borrow the money for him), and received assistance from his friends and family. Since obtaining the loan, he has been able to grow his business significantly and create jobs for people in difficult situations.
Today, he has sufficient revenue and is able to provide his family with education and healthcare. Hari is much more confident about the future than ever before: “I think I’m a microfinance success story!”

Rekha Aryal set up Shashi’s Sweater Industries (which produces clothes made from Pashmina), 18 years ago. The first year, Rekha borrowed 5,000 rupees (approximately 70 euros) from a women’s cooperative, and then in the second year 50,000 rupees (approximately 700 euros) to develop her business.
The cooperative operates according to a simple and widespread principle: each woman deposits a sum of money each year and if one of them needs a loan, she can borrow from the pool at a low rate of interest. For those who don’t borrow from it, the fund becomes a savings vehicle, as the jointly held sum is augmented by the interest earned on it. There are several hundred thousand cooperatives in Nepal, each with its own system of operation and conditions of membership. Most are for women only. Women who, like Rekha, can say: “I was a housewife before, and today I’m a business woman – that’s quite a difference, wouldn’t you agree?”

This was an enriching experience all round and the legendary Nepalese hospitality more than lived up to its reputation! We’re now off to Pokhara, a 200 km bike ride… We’ll bring you some more interviews soon.

Finance Tout Terrain: and they’re off!

Isabelle Palsky — Fri, 09 Oct 2009 16:14:32 +0000

Fresh out of the Angers Graduate School of Business, ESSCA, Johan Benichou, Benjamin Sierra and Loïc Linard decided to take a year to fulfil a childhood dream: a round-the-world bike adventure!
A sporting challenge which includes a human aspect, as they have decided to meet with some 90 microfinance players: both microfinance institutions (MFI) and beneficiaries of this practice, in particular those in rural locations.
BNP Paribas offered to support this extraordinary adventure, providing not only financial backing but also international expertise in microfinance and assistance in making their project more visible and their approach more credible.

Why focus on microfinance?

“Microfinance offers a range of financial products to all those who are excluded from the traditional or formal banking system. It is particularly aimed at very poor families to help them carry out productive activities that generate an income, therefore allowing them to develop their very small businesses. It includes 4 essential products: microsavings, microinsurance, fund transfers and microcredit. The World Bank recently suggested that microfinance had directly or indirectly benefitted some 500 million of the world’s poorest people”, said Johan.

Loïc, Benjamin and Johan agree: “microfinance is an interesting, current, and indeed, a highly topical subject, much-discussed in southern countries and one that fits in perfectly with our professional objectives… but it is not a subject that gets much media coverage. Therefore we have decided upon this angle of attack: to contribute, in our way, to increasing media coverage and awareness of microfinance. How? By going into the field, with our cameras and our interview guides, and meeting the people who make and receive microfinance loans”.

Follow Loïc, Benjamin and Johan along their journey around the world throughout this year. On this blog you will find a cultural and educational travel diary that is packed with photos, videos and interviews!

The great adventure has already begun: destination Nepal!