Bread-making in Soledad de la Cruz

The end of April in Soledad de la Cruz was special not only because we distributed new loans to our two groups there but also because we had a visit from U.S. – PHPG’s directors Isabel and Alex with a future-director-to-be Elsie. To show them their gratitude our clients prepared a bread-making activity for Isabel and Alex. Now we all could survive in Nicaragua knowing how to make our own Nica-style pastry!!!

Our Clients in El Tule, Matagalpa

Sometimes, not so far away from a very center of Matagalpa, you wonder if you are still in town or you mysteriously appeared in a small village. Our clients Alejandra, Herlinda, Juana Josefa and Juana del Socorro from the group “El Regalo de lo Alto” live in a neighborhood full of goats, pigs and hens – all so cute!!!

Juana Josefa passing by Alejandra´s grocery store on her way to sell tortillas

Alejandra is also working… 

Little ZOO in El Tule

Where we work

On our official website you can read that People Helping People Global determines project location based on extreme poverty rates and the project viability within each region. For this reason in 2009 Nicaragua was pinpointed as a region of extreme need due to its statistical ranking as the 2nd most impoverished nation in the western hemisphere after Haiti. The communities where our projects currently operate are located in the departments of Granada and Matagalpa. But where exactly is that? And what places do you have chance to visit when you work as a PHPG’s coordinator?

You would be surprised about the locations because even the poorest Nicaragua’s communities live close to breathtaking natural landmarks. Just like that during our regular payment collections in Granada’s district El Pantanal, you can admire one of the most famous volcanoes in Nicaragua, the Mombacho.

Enmanuel and Juan Carlos working hard in El Pantanal (Mombacho behind)

Other of our projects brings you to the area of 365 Granada Islets which were formed when Mombacho Volcano erupted thousands of years ago throwing huge rocks into Lake Nicaragua.

Meeting with the group of Las Aguilas (left), Petra and Juan Carlos on their way back to Granada from the meeting (right)

Visiting low-income artisan’s communities in San Juan del Oriente gives you an opportunity to stop by the road and enjoy the view over the Lagoon Apoyo.

View over Lagoon Apoyo (left), Ceramics made by one of our client from San Juan del Oriente

And travelling to see our Malacatoya groups is an adventure itself because you have to cross the lake by a boat - explanation is simple there is just no bridge…

Even our motorbike has to cross somehow...

Visit from PHPG

Guest Post from Rebecca Schick, Intern at Soluciones Comunitarias, Summer 2011    

I think I can speak for everyone when I say it was nothing short of a pleasure to hear from Berly Cordero today. We, a group of eight student interns working with Soluciones Comunitarias, were all ears and eyes when learning about the interest-free microfinance loans that Berly administers to local entrepreneurs and business owners in Matagalpa, just twenty minutes away from our home base in San Ramon. Soluciones Comunitarias is an organization that strives to empower entrepreneurs and communities through offering consulting services and access to products such as solar lamps, water filters and eye glasses to improve lives in rural Guatemala and Nicaragua. Our group of eight is currently working on a Financial Literacy and Inclusion project in Norther Nicaragua, so we were naturally enthused to talk finances. Berly shared with us an article that disregarded Microfinance as a sustainable method to support individuals affected by poverty. Although there are countless cases that hold up this argument, there are environments where microfinance can prove to be useful. We discussed with Berly the benefits of eliminating interest, which diminishes the risk of drowning in a cycle of debt. We immensely enjoyed and appreciated the words of wisdom about the culture of finance in rural, developing communities. The insights gained from this discussion will travel with us as we carry out our project and begin working directly with community members. Thanks to all and be sure to check out People Helping People Global, this awesome organization that does microfinance right!

Rain Has Arrived!

The rain recently has helped cool off Granada while we are in the hottest months. All PHPG documents remained in good care as the team stopped to rest and duck in out of the rain.

 

It doesn't look like much but every bit helps!

 Found shelter from the rain inside a client's workshop.

Rains gone for now.

Borrower Profile Series: Damaris

Guest Post from PHPG Volunteer, Paige Cohn.

Damaris started selling shoes after finishing her Agronomy degree.  Even though she had an education, being pregnant kept her from working, as not many people are willing to hire pregnant women.   She first began selling clothes, but sustained significant losses, and decided it was not profitable.  She saw an opportunity when her sister-in-law convinced her to visit Masaya; she considered selling the sandals that she found in the market .  Damaris started with a 2000C$ loan, and invested in the cheapest pair of sandals (pictured below), buying 33 pairs.

A smart business woman, she was  eventually able to form relationships directly with the workshops that make the shoes, cutting out the middle man and increasing her profits.  Damaris, now sells multiple styles of shoe and has a loyal customer base. 

What’s the hardest part of getting started?  According to Damaris, it’s getting started and getting customers.  But as she soon told us, once she established a clientele it became much easier.

Borrower Profile : Iriz

Guest Post from PHPG Volunteer, Paige Cohn.

In order to pay for her transportation to and from her university, Iriz began her own business selling Avon and clothes.  She was well placed to do this, as she could sell to her classmates and grow her business through word-of-mouth at her school.  However, this was not Iriz’ first time being self-employed.  Since the age of 14 she had been helping her Aunt sell clothing. She would sell to her classmates and  split the profits with her Aunt.  After her son was born,  she needed money to support him and to make sure she finished university.  Iriz enrolled in school to study accounting, and since then has used her education to keep her own accounting books for her business.  Iriz just graduated from university this year. She wants a good life for her son, and hopes to find a salaried job in addition to her own business to help provide that for him.

Borrower Profile Series, Gloria

Guest Post from PHPG Volunteer: Paige Cohn

Gloria, is the matriarch of her medley family.  For most of her life she’s been a single mom of 3 of her own children and the 3 more she adopted, left to support them on her own.  In order to feed her family, she ventured into the world of self-employment.  She been a cook, a seamstress, a farmer, but her most important role is being a Mother.  After her own children were grown and married, she found 3 little girls on her doorstep, abandoned by their parents.  Gloria took these three girls in, adopted them as her own, and is currently working to send them to school.     

Gloria has always been a self-starter.  Having to be self-reliant for most of her life, she feels lucky with the success that she has had in her life.  Whatever she makes, she sells. Her compassion and hard work ethic is something she has instilled in her children, as she encourages them to continue to study, hoping she can buy them the materials they need to complete their education.  After we finished with the interview, Gloria sent us home with a bag full of mangoes and bananas out of her backyard.

Gloria hopes that eventually she’ll be able to save for her retirement, so that she can support herself when she can’t work, forever being the autonomous, self-sufficient matriarch she has always been.  

Before and After

In a week's time one of our clients created a pair of beautiful ceramic topped tables. When we are making our social visits or simply collecting loans our clients are proud to show off what they have built. The loans provided to these small business owners cover a wide variety of goods and services. This is just but one example of the work our loan recipients do everyday.

New Beginnings

The best students from this sewing workshop in Matagalpa will have the opportunity for a PHPG loan!

The non-profit Rayo de Sol arranged for the workshop for women from the impoverished, Tule neighborhood of Matagalpa. 

The students will launch a business venture with their new skills and capital from PHPG.  It will be an opportunity to build better lives for themselves and for their families.

Workshops at the Finca!

PHPG just fineshed two weeks of workshops at Finca Aurora, a coffee farm in Matagalpa. PHPG partnerned with Project Alianza to bring the workshop to this remote region of Matagalpa. It is part of our continuing commitment to social and economic development.

Women and men working on private farms are often ignored by non-profits and service providers, despite great need.  For most of the participants, this was their first time participating in a workshop.

Creating a web! Getting to know each other.

Learning about decision making in business and in life.

A few late comers to the class. 

Discussing negotiation strategies.

Workshop facilitators Martha and Berly.

Journey to Malacatoya

Recently, Juan Carlos and Joe set off to distribute loans to a group of seven women in the community of Punta de Agua, Malacatoya. Most of the women work in the fields all around the area growing everything from rice to maize. One of our clients Esmeralda also runs a small store and sells raffle tickets to earn her living. Here are a few photos to help tell the story.

 Crossing the river near the community of Punta de Agua.

 It's very flat here! Lots of rice crops in the distance.

 Esmeralda's corner store.

 Esmeralda uses her raffle to augment her income.

The group poses for a picture before we head back to Granada.

One Stop Shop

The sun was out in full force today! On Mondays we split into two teams to tackle the day's goals. Today, we switched things up and headed out as one unit. The extra companionship of the other team helped keep us going in the hot sun. We stepped into the shade of one of our loan recipient's shops to snap a picture or two.

Martha running her corner store.

Martha provides the local community with all the essentials.

Sunny Day in Pantanal

The year has just begun and we are already busy making collections and interviewing clients for new loans. These are some photos of the various things we do on our outings in Pantanal, Granada.

    Collecting loans from one of our clients.

 

Completing an interview (and asking lots of questions!)

Enmanuel, Juan, and newest volunteer Mimi.

Why do we lend?

I recently spoke with Don Daniel, a small business owner, in Matagalpa. He said to me that he had recently gotten approved for a loan with a 38% APR.

 Don Daniel: "It's great deal!"
 Berly: "I think that sounds rather high. Why do you think that's a good deal?"
 Don Daniel: "The other bank would charge me 10%"
 Berly: "Well, 10% is a much better rate. That's a better deal."
 Don Daniel: "They'll charge me 15% per month."
 Berly: "Whoa! Are you sure? 15% PER MONTH? That doesn't sound right."
 Don Daniel: "Yes, that's the standard here in Nicaragua."

Don Daniel's small construction company is pretty successful. His business wouldn't meet the requirements for a PHPG loan because it's too big. His options for credit are limited. The options for PHPG  clients, are even fewer. Many work informally, and as because of this don't have the credit history to apply for a loan. They don't have wealthy friends that can act as guarantors, They don't need to borrow $1,000 they need to borrow $100.  This is why we do the work we do. Access to credit matters. It's an opportunity and a tool that is much harder to have if you're poor.

Borrower Profile - Dalia

Meet Dalia, she's one of PHPG's loan recipients in Matagalpa. This month she received her second loan from PHPG.

Five years ago she started her small store in the city of Matagalpa. At first, she started selling pastries from her home. Dalia had been making cakes and pastries for many years, so this new store was a natural fit for her. She had only one display case for her goods. 

   In her third year in operations a large stationary store on her street closed down. People kept stopping by her store to ask about the stationary store and where they could get supplies.  Dalia saw an opportunity to expand her business. She started selling school supplies and paper goods to fill the void that the large stationary store had left. 

Before she had access to credit from PHPG, her sister lent her some money to widen the entrance to her store. Dalia has slowly added more display cases and new merchandise to her store. Now with her second PHPG loan, she plans to buy more merchandise for the coming school year (The school year starts in January, here in Nicaragua).  She is also planning to add an awning to her store so that she can move a few of her display cases outside, where they will be more visible to passing clients.

Dalia has two sons. The youngest, Alejandro, is in high school. The oldest, Kevin, is in his very first year of college and is studying Civil Engineering. Dalia works so that she can provide a better future for her sons. 

Workshop in Matagalpa!

Today we had our first workshop in Matagalpa! It was a great success! 16 women micro-entrepreneurs joined us to discuss how to improve their businesses. The goal was to think more about their businesses, their costs, profit, and operations. The women were all very active and the discussion was lively. 

Here's a taste of what we discussed:

* The importance of planning
* Steps for a feasibility study
* Analysis of expenses and income
* How to set prices & determine costs per unit.
* How to and why separate business expenses from personal expenses

Group leader Hazell at the board.

Iriz reading out-loud for us.

 Listening intently.

     

Martha at the board.