Extension of our Microfinance Pilot Project

Due to the successful running of the two original ASOLs and to the high demand for participation from other people in the communities, we have decided to extend our pilot project to give approximately another 24 people in the area the opportunity to benefit from a microfinance scheme, as well as to offer our two initial groups the option of entering a second cycle of the project, with the opportunity of receiving higher loans.

In May we started talking to people in Santa Isabél, Unión Perú and Santa Crúz de Huachipa, to see who was interested in forming a new group. By the end of the month we had already formed two new groups, one in Santa Crúz de Huachipa and another in Santa Isabél.

Approved funding for the extension of our project by the Austrian Embassy in Lima

We are very pleased to announce that our application for funding from the Austrian Embassy in Lima for our extension of the Microfinance Project in Alto Peru has been approved. At a meeting with the Ambassador, Dr. Andreas Melán, and with Mrs. Karin Eckert, responsible for cultural issues and international cooperation, which took place at the end of May, we were told that the Embassy was happy to provide funding to our project and cover the remaining budget.

We would like to take this opportunity to sincerely thank the Austrian Embassy in Lima, Education World 86, as well as our other donors for allowing us to carry out our work!

New Training Sessions

As previously mentioned, we have decided to carry out the next training courses on entrepreneurship ourselves. Throughout April and May we have been creating a syllabus together with INCUBA Networks, using their manual as a basis to create one that has been greatly adapted to the requirements of the people in Alto Perú.

As we are strongly emphasizing the notion that a microfinance project is not only about the loans themselves, and recognizing that a training programme will develop a strong group atmosphere and a good relationship with the loan officers, we have designed four initial sessions which are compulsory for participants in order to receive a (or their next) loan.

Syllabus:

Session 1:
Understanding the environment and recognizing one’s own qualities as an entrepreneur

Session 2:
Brainstorming various business ideas, out of which three are selected to be put through an internal and external filter, in order to see which business idea is most viable. At the end of the session the participants decide what business they would like to invest their loan in.

Session 3:
Analyzing the market and the four Ps of the chosen business idea.

Session 4:
Bugdet (and breakdown of what the loan will be invested in)

The two new ASOLS:

ASOL “Las Triunfadoras” (Santa Isabél) and ASOL “Karin” (Santa Crúz de Huachipa)

After receiving an introductory session on what the Microfinance project consists of, the two newly formed groups, “Las Triunfadoras”, consisting of seven women and one young man, and “Karin”, which consists of six women, began with our four–session training course. The classes were very beneficial, both to the individual members of the team to support and guide them with their business ideas, as well as for the strengthening of the group dynamics and the relationship with the loan officer. By the end of the four sessions there had been a clear change in the level of comfort and trust between the group members.

The loan officers of each group then went to visit each person individually to fill in a questionnaire and discuss their business idea and the investment of the loan. Each case was then discussed at the office before the papers were prepared for the disbursements.

The disbursement of ASOL “Karin” took place on 7th June in Santa Crúz. Mrs. Karin Eckert from the Austrian Embassy took this opportunity to visit our project on site. She had the opportunity to meet the women, visit one of their sewing workshops and participate at the disbursement meeting. The group decided to name their ASOL after her, as a thank you for providing the funding required for the project.

The disbursement of ASOL “Las Triunfadoras” was held the following day (8th June) and was celebrated with soft drinks and cake. Group photos were taken and the members stayed longer to chat.

ASOLs “Sagrado Corazon de Jesus” and “Unidos para el Desarrollo”

Our two ASOLs which started in December last year have completed their fifth and sixth repayment meeting (on 11th May and 11th June respectively), and have herewith completed their first lending cycle. Although we have had two women with difficulties repaying the fifth loan, they have all managed to repay the whole amount by the end of the loan period. The repayment rates of the two groups have therefore been 100 % for the first cycle.

Almost all group members have been showing much interest in continuing with the project and were eager to receive the second cycle of the loans, in which they are entitled to a maximum of 800 PEN (around 280 USD) – depending on their repayment capacity.

Sagrado Corazon de Jesus has completed their four training sessions and have had their disbursement on 21st June. They are 11 members – all nine who have participated in the old cycle plus two new members (who have been accepted by all group members, but are, according to SOLAC rules, only entitled to a maximum loan of 400 PEN).

Unidos para el Desarrollo insisted on completing their initial classes before 11th June and therefore had their disbursement on the same day as the last repayment meeting. The ASOL consists of nine people in this second cycle – two members have left and a new participant has joined. The loan portfolio of this group is 4,450 PEN (approx 1,565 USD).