First of all, we would like to thank you again for your generous donations to the project "Micro - credits for Baru Island young entrepreneurs".
The following is a brief summary of the progress of the project, you have supported:
1. On June 2014 we invited all the interested people in participating in the project (young entrepreneurs between 18 and 25 years old) to a meeting in our office in Santa Ana, Baru Island, in which we told them about the project and its terms and conditions.
2. 4 young entrepreneurs interested in the project, returned the completed forms, and provided the documents they were asked for. Only 2 had a positive report in the risk management centers.
3. They both (Ana and Juan), were trained in preparing their business plan.
4. On June 26 the Foundation team visited the candidate’s homes and businesses to verify the information provided.
5. On July 16, the second credit committee was held, in which 2 new credits were approved:
Beneficiary’s age Business Credit (COP) Term Monthly fee
21 Variety store $2.000.000 24 months $101.012
25 Snorkeling equipment rental $1.000.000 12 months $91.252
6. On July 18, the selected beneficiaries received the money of the credits approved and signed the commitment letter to observe the project’s rules.
7. The Foundation team has visited every month the 2 new beneficiaries. During those visits, we have verified that:
8. They have received 4 advice visits in topics such us: basic accounting principles, inventory management, marketing and sales record.
9. Regarding one of our first beneficiaries (Victor), we are pleased to inform that he paid for the whole credit in order to apply to a bigger one, to buy a boat he needed for his business. After studying his request, the project committee decided to grant him a new credit for COP $5.000.000.
In the coming days we will continue to:
Thanks to all of you, to your constant support, the project has really impacted our beneficiaries’ life.
For us in the Hernan Echavarria Foundation, it has been a great opportunity to learn from them. Their desire to succeed and to improve their quality of life, are an incentive for us to keep working.
We invite you to continue to work with us in order to achieve our total funding goal of $10,490.
We will continue to post regular reports to keep you informed on the project progress.
Ana Milena Ordosgoitia M. and the Hernan Echavarria Olozaga Foundation team
Our sixth report will consist on Ana’s story, one of our credit beneficiaries. We would like to tell you about her, her life, how and why she started her business, how the project you have supported have impacted her life and her business and what are her plans going forward.
Ana was born on September 2 1993. She is now 21 years old.
Her parents Blas and Francia are both native and merchandisers. As she says, she knew she wanted to be a merchandiser too, because of her mother, who was always selling things because she did not want to depend on anybody, she wanted to have enough money for her needs.
Ana is the third of six children. She graduated from school and she is studying to be a Hotel Receptionist.
She is married to Jose, who works at “Playa Blanca” the nearest beach to Santa Ana, the town were they live with their 2 years old son.
¿When, how and why did the business started?
Ana has always liked to sell things. When she still lived with her parents, she helped her mom.
When she decided to move in with Jose, she noticed that in the neighborhood there weren’t much stores so she decided to start her business. She wanted to have a “Variety Store” but didn’t have enough money to do it, so she started to sell ice and “bolis” (frozen juices) and she saved the money she needed to buy her first showcase.
At this point, Ana didn’t have her parents support, who were angry at her because she had left the house. On the other side, Jose, her husband, thought the business wasn’t a good idea, because of its location.
Despite all that, Ana decided to go on. So she had her new showcase but not money at all to buy goods to fill it. In the meantime, she started selling by catalogs. Her dad now, as he saw her persistence helped her to buy on credit in one of the stores were he bought in Cartagena for his business, and her husband gave her $400.000 to buy more merchandise.
The sales got better and better every day and her clients kept asking for other products. She reinvested all the store incomes in the business as Jose supported the house and encourage her to study.
As her business grew stronger, Ana realized she needed to invest in it. She heard through the public speakers of the town about the project “Micro - credits for Baru Island young entrepreneurs”. She didn’t understand much about it so she went to the meeting called by the Hernan Echavarria Foundation to have more information and decided to apply.
The Project’s impact
Ana received a $2.000.000 loan, on July 2014.
When we asked her about how the project has impacted her business and her life, she textually said:
“ This credit has been one of the best things that have happened to me this year, because my business grew, I bought a larger cabinet, could start buying by dozens (I previously bought 3 or 4 units of each product because I couldn’t afford to buy more) so I could buy cheaper and earn more on each product. Besides, I could attend my customers orders and now, I don’t only sell in my house (where the store is located), I also sell door to door products like sheets, towels and kitchen implements".
She told us the sales have increased. In those good days she has sold $150.000 and in a bad day about $30.000 to $40.000.
She saves around $300.000 weekly to invest in the business.
Ana feels happy for what she has reached and she is grateful for all the support she have received from her parents and form her husband.
What are her plans going forward
Ana dreams on having a larger space for her business (today she has her business in her living room) and on selling other products such us clothes. But her main goal is for her son to "(...) have a good education and to be a good human being”.
Thanks to all of you, to your constant support, the project has really impacted Ana and her family’s life.
For us in the Hernan Echavarria Foundation, it has been a great opportunity to learn from her. Her desire to succeed is an incentive for us to keep working.
Ana Milena Ordosgoitia M. and the Hernán Echavarría Olózaga Foundation team
Paige is GlobalGiving's Champion for Customer Bliss in our office in Washington, DC. During a trip to Colombia, she had the chance to visit some of GlobalGiving's projects. Here is her postcard from the field.
What one thinks of when hearing “Baru” and visiting Cartagena is generally turquoise waters and powdery, white sand beaches. However, there is another side to this tropical paradise, and it isn’t as simple as a coco loco on Playa Blanca.
I was picked up by the Hernan Echavarria Foundation’s fearless leader Ana in Cartagena, and we started making our way south of the city to Isla Baru. Recently made more accessible thanks to a bridge and paved road, the island is beautiful and rugged, but due to it’s previously remote nature, quite rural. This is where the foundation comes in! On top of the microloan program that is the focus of their GlobalGiving project, the Hernan Echavarria Foundation has a deep and broad portfolio of projects on Isla Baru including the creation of a entrepreneur’s school, an elderly community center, a road refurbishing advocacy program, traveling health care workers to offer free consultations, and much more. However this trip was focused on the impressive work that’s being done with their youth micro-loan program.
Bouncing down some dirt roads we came to Hernan Echavarria Fondation’s offices in the heart of the town of Santa Ana on Isla Baru. Their offices are clean, open, and welcoming for the community members wandering down the main road past it. Ana and I chatted in their recreational/multi-purpose room where trainings and workshops for the local mirco-loan recipients are held and munched on dangerously delicious cheese empanadas. After brainstorming about how GlobalGiving can further help their work we went out to visit some of the loan grantees!
First was a stop with Ana, a bright, smiling young woman who has a convenience stop in the town out of her home. “We chose her because she’s smart and organized! Everything is always perfectly in order.” Ana is training to be a receptionist in Cartagena, so on top of selling standard wares in her shop, she also takes orders for those unable to make the (costly) trek to Cartagena. When asked if she’d be closing the shop after completing her studies as a receoptionist she giggled and said no. She loved having her shop and she wanted to continue to expand and grow.
The second grantee I met was a woman who was on her second round of a loan working as a tailor in the town. Her home was crowded with kids and family and was also clean and well kept. We saw her workshop in the back of the building which housed her two sewing tables, a work table, and a series of screen printing patterns. Gina radiated confidence and assurance. She was indeed the queen of her castle. When I asked what the most important lesson was she had learned through the loan program, she said without hesitation, “Independence. I was able to move into my own home, have my own business, and now I’m teaching my daughter the importance of independence.”
And there lay the unexpected, but equally important windfall bonus to the microloan program on Isla Baru. Not only were young entrepreneurs (both men and women) creating new lives as business owners, but young women were becoming empowered.
Our fifth report will consist on Victor’s story, one of our credit beneficiaries. We would like to tell you about him, his life, how and why he started his business, how the project you have supported have impacted his life and his business and what are his plans going forward.
Víctor was born on 1990; His parents separated when he was 1 year old.
His mother then worked as a cook on a farm. After 6 years, she met Victor’s stepdad and his 2 brothers and sister were born.
His mother and stepfather raised him, both of which are merchandisers. His stepfather works selling seafood cocktails at the beach and his mother sells food at the beach.
Victor is single; he lives with his parents, one brother and one sister.
He went to school at Luis Felipe Cabrera’s institution in Barú, were he finished tenth grade. When he was in eight grade he studied in the night because his mother was sick and his family needed him to support them, so he started working with an uncle. He didn’t graduate because the school haven’t open eleventh grade in the night.
When Victor was born, he had a disease on one eye. At the age of eighteen he had surgery. He recovered a little vision but he was told he couldn’t run or have too much physical activity. This has been difficult for him because he loved playing soccer.
The business started when his stepdad went to work for a short time to Margarita Island (in Venezuela), selling handcrafts. When he came back with his savings he bought one refrigerator.
One of his mom’s cousins that worked selling fish wanted to help them; she lent them fish so that they could start.
Then, his mother saved her own capital and started buying fish for the family business.
On the other hand, Victor started working with an uncle, that taught him how to make seafood cocktails. As we said before, he started working when his mother got sick and the family needed to improve their income.
After a while, Victor became independent (selling cocktails at the beach) and started selling fish and seafood with her mother at home.
After two years he realized he needed to invest in his business in order to grow it.
Then, he heard about our project and he decided to apply for credit in order to buy a new refrigerator and more products to sell.
The Project’s impact
Victor received a $2.500.000 loan, which he invested in a refrigerator and in fish and seafood.
When we asked him about how the project has impacted him, he textually said:
“Everything has been good. Counseling has taught me how to increase the money. I learned to handle expenses. Before, we took out a lot of money to pay for services. Today we have a bike, two wheelbarrows, one boat and so we have been reducing expenses”.
Victor told us, during the assessments he realized that he was paying for a lot of services in order to sell his products. He paid for the transportation of the products from the port to their house. This is why they (he and his parents) bought two wheelbarrows. He used to pay about $50.000 to go to Cartagena to buy fish. Since they (he and his parents) bought the motorcycle, they are saving $30.000. He used to pay for the transportation of the fish and the seafood to the beach. Now they (his parents and him) have their own little boat.
When we asked him about the impact of the project in their lives, he textually answered:
“It has taught us to be organized and save money. Also to be responsible.”
What are his plans going forward
"I want my family to succeed and to become professionals. I want to be a professional; I'm waiting for the night school".
Thanks to all of you, to your constant support, the project has really impacted Victor and his family’s life.
For us in the Hernán Echavarría Foundation, it has been a great opportunity to learn from him and his family. His desire to succeed and to improve his quality of life, are an incentive for us to keep working.
Ana Milena Ordosgoitia M. and the Hernán Echavarría Olózaga Foundation team
As we continue to work towards improving quality of life of Colombian vulnerable people, we would like to briefly tell you about the progress of the project Micro - credits for Baru Island young entrepreneurs, you have supported:
1. On January 30, the team visited the credit beneficiaries for the second advisory meeting, which was about fixed, and variable costs.
We recommended all the beneficiaries, to keep accounting records (purchases and sales) and to determine their salaries in order to have a better control of their costs.
2. On February 18, the team visited the credit beneficiaries for the third advisory meeting in order to help them define the contribution margin and the breakeven point of their businesses.
The team gave them a chart to help them determine their products costs.
3. On March 31, the team visited the credits beneficiaries for the fourth advisory meeting and worked with them in the balance sheet of their businesses.
All the beneficiaries have paid on time their monthly fee and their businesses are working well.
They have employed at least one person and their average income is of $300.000 COP.
They all have to keep on putting into practice what they learn at the advisory meetings.
We would like to finish by thanking you again for your generous donations we have continued to receive during this year.
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