Product Innovation with a Local Business

Maria runs her business with Lourdes and Jennifer off a main street in the city of El Progreso

Cositas is a small store in El Progreso, Yoro that sells materials and accessories for jewelry making. Just a few blocks from our El Progreso Branch Office and the central plaza, Maria, Lourdes and Jennifer work together to offer products and classes related to the making of jewelry. The three women’s expertise in training and design made them an ideal partner for our Product Innovation Workshops supported by Women’s Empowerment. Their knowledge and ability to work effectively with our clients resulted in a demand to bring them back for a second workshop in October after offering the first one in September.

I was thrilled to have been greeted by Lourdes and Jennifer immediately after arriving to their city!

In December during a visit with clients in the El Progreso and Choloma zones, I had been hoping to catch up with the women as well. As my luck would have it, the hotel I would be staying at is located right across the street from their business! Before I had even finished checking in, Lourdes had already spotted me and stopped over to greet me. While chatting with her and Jennifer I learned that upon the request of several of our clients, they had made the trip down to Intibucá to offer more of their jewelry making materials.

Trusting their expertise from my experience with them at the previous workshop, my visit to them had a second motive: getting a gift for someone I know who is interested in making jewelry. While Lourdes attended to other customers, Jennifer helped me out in bringing out the colors and styles that would best suit my friend and even sending me off with a couple different earring designs based on the beads I had bought as inspiration.

Many clients already had several pieces of jewelry ready to sell before the two day workshop had ended!

Just like with my friend, the making of jewelry gives our clients an additional source of income. Most clients who I spoke with seemed to plan on utilizing their new skill as a supplement to the businesses in which they have always invested loans. From women selling vegetables in the market to others selling cosmetics, these women already were identifying how they would get started making sales. And thanks to a new innovation developed out of the workshops by our Manager of Operations, they were able to get started right away.

One client’s young daughter proudly shows off her mother’s new products!

The first workshop had inspired Oscar to create a new product: the Always Enterprising Loan! Many clients had been eager to get to work with their new skills but hadn’t been prepared to make material purchases at the workshop. For the second workshop in October, we tested this new product with great success. Clients were thrilled to be able to get started right away and several even spent their downtime between the workshop days working with the material purchased with the loan to produce the jewelry.

While the loans gave our clients a small investment to start up their businesses, many had already run out of the necessary materials less than two months after the workshop had been held! On their return trip down to Intibucá, the women made sales to 10-12 of our clients—more than one third of those in attendance! The funding provided by Women’s Empowerment and the relationship created between Adelante and Cositas creates a dynamic network in which three organizations organized around women can support each other’s mission. Maria, Jennifer and Lourdes’ friendly and instructive manner with our clients, combined with their excitement for our own program makes future work with them something to look forward to.

On her visit to Intibucá for the workshop, a few hours from home, Jennifer got a chance to do a little sightseeing of her own!

Young Motherhood in Cortés, Honduras

Young mothers like this one use Adelante loans to invest in their businesses and provide for their families.

When meeting someone here for the first time, two of the first questions that are typically asked of me are if I’m married and if I have children. Back in New York, I would be shocked to be asked these questions but here in Honduras, it’s more of the norm for a 22 year old woman like myself to already have children. Amongst our client demographic, the rates are higher than the national averages. According to a report by the Guttmacher Institute, one half of 20-24 year old women give birth by the age of 20, with higher proportions among the least educated (70%), poorest (64%), and those living in rural areas (60%)[1].

With girls and young women becoming mothers at such young ages, marriage–whether formal or informal–also comes into play at an earlier age. However, these unions are not necessarily created out of a desire to build a family together but rather out of economic convenience. When talking with clients about their goals, I’ve heard more than once a woman who lives in a house owned by her husband tell me that she hopes to own her own home in the future, where she can raise her children. These women see greater independence and self-sufficiency as important factors in offering their children a path to a better life.

Karla with her two youngest children, Antonio and Jennifer.

Karla is a young 24 year old mother who lives with her husband in his home in the department of Cortés. She is the mother of three children: an 8 year old boy who lives with his father nearby, and her three year old son and one year old daughter who live with her and her husband. In order to care for her children while making a living for herself, she sells lotions, jewelry and clothing at home. Karla has been selling lotions for about a year and a half but held several jobs before being able to start her own business.

After finishing primary school, Karla left school and started working as a nanny at age 12. During her later teenage years she began working in a kitchen and then worked in a factory attaching the tags to garments.  Working from home, Karla is able to work under better conditions while caring for her two young children. With her husband working everyday in a city a 45 minute bus ride away, Karla must be available to look after her children during the day. She says that her husband’s income does not go toward her own expenses, explaining, “He works for himself and to provide what he needs for our children. I have to work so that I can support myself.”

Karla’s Credit Officer Daniel leading an educational lesson on calculating the costs of implementing a new business idea.

Although she was not able to study past primary school, Karla is now learning how to better run her business. When she started with Adelante, she was only selling lotions. The educational lessons provided by her Adelante Credit Officer every two weeks and her sister’s support inspired her to start selling jewelry. When I had met with her in December, she was getting ready to also begin selling clothing after several recent educational lessons have focused on how to implement a new idea into your business for greater earnings.

Oneida stands outside her home where she hopes to one day start a family.

In another assembly in Cortés, I met Oneida who also makes a living selling jewelry. In addition to her business, she also works as a nanny. There, she makes about $25/week (L. 500) for four days of work caring for two children and washing and ironing the family’s clothing. However, unlike Karla and most of our clients, Oneida does not have any children. Although she is married, she explains, “I want to wait to have children until we are able to support them better.” This perspective is not often found among rural poor Honduran women and is even less frequently practiced.

Oneida’s viewpoint shows hope of a change in the minds of Honduran women in relation to motherhood. However, with 40% of adolescent births being unplanned [1], it seems that among young Hondurans, change in action and not just perspective must occur to reduce the high adolescent fertility rate so that young Honduran women are able to improve their own standard of living before having to worry about providing for a family.

[1] “Early Childbearing in Honduras: A Continuing Challenge”. Guttmacher Institute. September 2006, No. 4. http://www.guttmacher.org/pubs/2006/10/13/rib_Honduras_en.pdf

Honduran Emigration

Bety and niece pose at an assembly meeting in Cortes

Parts of this blog appear in our June 2012 newsletter.

Seven years ago, Bety’s husband left her and their newborn son behind in Honduras in order to immigrate illegally to the United States.  Her husband was successful and regularly sends back money to his family.  Bety is one of many Adelante clients who have family members working abroad, primarily in the United States.  Even though Bety has not seen her husband since he left Honduras, the extra income helps ensure a brighter future for their son, now seven years old.

Each year, thousands of Hondurans risk their lives immigrating to the United States.  They are fleeing a country plagued by extreme poverty, inequality, unemployment, and insecurity.  In Honduras, 67% of the population lives below the poverty line(1), and nearly a quarter survive on less than $1.25 (PPP) a day(2).  Facing a worsening national economy, with staggering levels of underemployment, Hondurans have few options available domestically to improve their lives. Given these facts, it is understandable why so many Hondurans perceive working in the United States as the only solution to their poverty.

Mourning the loss of a loved one who died at the Tamaulipas massacre

Most emigrating Hondurans face an arduous journey and are at risk of being intercepted by drug traffickers, kidnappers, thieves and gangs.  Hundreds of migrants have been kidnapped to further enrich criminal networks, often involved in drug crimes, in Mexico and Central America(3).  Many of such kidnappings have violent ends; let us not forget the Tamaulipas massacre in Mexico where 72 migrants were found murdered execution style, 30 of which were Hondurans. Despite the evident risk, it is reported that each day 500 Hondurans leave their country behind in search of a better future(4).  Even if they evade the most dangerous threats during their expedition and arrive safely to their destination, thousands of Honduran migrants are deported every year.  Last year alone, 22,367 Hondurans were deported from the United States(5), and between January and May of this year, already 11,500 have been deported(6).

An Adelante client from Colon, Adelaida, has a story that illustrates why so many Hondurans take the chance.  Adelaida worked just five years in the United States. By working abroad, Adelaida achieved her goal to buy a small piece of land and construct a modest house in her village in Honduras.  Now that she owns a home, Adelaida is satisfied with her earnings as a small business entrepreneur.  She is currently paying off a loan for L 7,000 or $368, and hopes to keep growing her business in order to sustain her standard of living as she grows older.  Income earned abroad plays an important role in driving the Honduran economy.  In 2011, Remittances to Honduras were estimated at over $2.7 billion(7).

Adelante client, Mirtila

Since Adelante targets poor, rural women, narratives of emigration, remittances, and long distance marriages are not uncommon.  An Adelante client from Choluteca, Mirtila, has another familiar story.  Twelve years ago, Mirtila’s husband embarked on his trip to the United States, leaving behind Mirtila to care for their three young children.  Mirtilia’s husband never sent money back to his family and presumably has started a new life in the United States.  A young mother, Mirtila was left to raise her children with the help of her extended family.  Thankfully, Mirtila never intended to depend solely on remittances, she had already invested in a small business venture.

Mirtila is what Adelante calls an AA client, which means she has an excellent repayment record, invests in her small business diligently and attends assembly meetings consistently.  She is currently paying off L 25,000 or $1,316 in loans from Adelante, including a group loan, an individual loan and a home improvement loan. She explains, ¨What I like most about Adelante is that they offer their best clients excellent opportunities, for example, there are no other institutions that will give their clients three loans at the same time.¨  Microfinance has allowed Mirtila to seek out a livelihood in Honduras that ensures an income to support her family.

Even though Adelante has many clients who receive income from abroad, these hard-working entrepreneurs are not dependent on their remittances.  Bety, who is fortunate to have a husband who frequently sends money back, contends that her micro business has helped her to achieve an improved quality of life.  Before becoming a client, Bety worked on a banana plantation spraying chemicals.  Today, Bety has a micro enterprise selling merchandise outside of a textile factory, she asserts, ¨Now my work is better, I earn more with my small business and I do not have to work so hard.¨  Whether or not they receive the added boost of remittances, Adelante clients, like Bety, Adelaida, and Mirtila, are using the opportunity afforded by microloans in order to invest in small businesses and improve their overall standard of living.

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(1) Source: ECLAC, Social Panorama of Latin America 2011.

(2) Source: UNDP, Human Development Report 2011.

(3) Centro de Derrechos Humanos Miguel Austin Pro Juarez A.C. Cuaderno sobre Secuestro de Migrantes.  December 2011.

(4) Source: La Prensa Hn. ¨Cada dia se van 500 mojados a EE.UU.¨ www.laprensa.hn February 7 2010.

(5) Source: La Prensa Hn. ¨Baja cifra deportados de EUA.¨ www.laprensa.hn January 3 2012.

(6) Source: La Prensa Hn. ¨Ya suman 11,500 los deportados¨ www.laprensa.hn May 29 2012.

(7) Source: La Prensa Hn.  ¨Aumento de remesas ha side de $41 million¨  www.laprensa.hn. December 26 2011.

A Little Success Brings A Lot of Relief

Continuation from Newsletter starts at 3rd paragraph, please scroll down. 

Alma is a devoted mother and client with the Adelante Foundation from the department of Cortes. Alma withdrew her first loan for only $169.00 nearly three years ago, but has since grown her micro business so significantly that she recently took out her fifth loan for $526.00.  A wife and mother of three, Alma’s improved income ensures her children’s education and medical needs, and supports better living conditions for the entire family.

Before receiving microloans, Alma worked in a textile factory most of her adult life.  Today, she sells merchandise outside the textile factory where she used to be employed. Alma has a goal, she explains, ¨I would like to have my own space, rent a storefront so I do not have to travel to sell my merchandise¨.  Having her own micro enterprise has allowed Alma to better care for her disabled 15 year old son, who was born with a cephalic disorder, which is a congenital condition that affects brain development.  In the past, Alma was unsure if she would be able to afford the care her son needs and send her two daughters to school. Since becoming a client with the Adelante Foundation, Alma does not worry as much because she has the income to support each of her three children.

Alma’s small business success did not occur overnight but rather she nurtured her venture over time. Alma began her micro business when she still worked in the textile factory, selling inexpensive items to her co-workers.  Once Alma was able to take out microloans from the Adelante Foundation, she made the decision to dedicate herself exclusively to her micro enterprise.  Over the course of her loan cycles, Alma expanded her product inventory from undergarments and earrings to a whole variety of merchandise, such as clothes, jewelry, cosmetics, sandals and more. Alma remembers that constructing a new bathroom was one of the first goals she was able to achieve through saving income generated by her small business.

Alma’s eldest daughter will soon receive a secondary school diploma, and the youngest is eager to finish primary school and keep up her education.  The transportation costs alone for Alma’s eldest to attend school is almost $50 per week, and Alma comments that there are always expenses for school supplies.  For this reason, Alma is already planning for her youngest daughter’s secondary school education, an important investment that will provide her daughter with greater opportunities. Alma plans to keep growing her small business through microcredit in order to continue achieving her goals and improving her family’s overall quality of life.

Overcoming Obstacles in Cortes

My journey to visit all of the departments where the Adelante Foundation operates brought me to the department of Cortes.  This coastal department is home to the economic hub of Honduras, the sprawling city of San Pedro Sula. The bulk of the country’s Gross Domestic Product is generated in San Pedro Sula and the surrounding area.  San Pedro Sula’s growth began in the early 20^th century with the arrival of the banana companies, especially following the development of a rail line that linked nearby ports to the emergent city.  Today, industry rather than agriculture has materialized as the most salient feature of San Pedro Sula, aided by its close proximity to Puerto Cortes, the principal port of not only Honduras but also Central America.

The branch office in El Progreso, located in the department of Yoro, serves the Adelante Foundation clients around Choloma, Cortes.  Choloma is a large municipality that has grown and become more urbanized due to its location only 30 minutes by bus from San Pedro Sula.  Traveling between San Pedro Sula and Choloma, as I did when I recently visited the area, one hardly notices where San Pedro Sula ends and where Choloma begins.  Nonetheless, as I leave the centre of Choloma to visit the communities on the periphery, the urban landscape fades.  As I pass livestock and corn fields on the back of a motorcycle, it’s hard to believe I am traveling in the shadow of a metropolis.

Marina Cruz Rivera

Meeting clients of the Adelante Foundation around Choloma is illustrative of the challenges women in Cortes face in spite of residing in the country’s most prosperous department.  In the community of San Jose de Boqueron, I spoke with Marina Cruz Rivera who discussed candidly the tough economic situation she is confronting with her family.  Marina has four children ages 15 to 25, and her eldest is the single mother of four young children.  Recently, Marina’s husband fell ill and has not been able to work, so Marina and her two eldest children are responsible for supporting the entire household. Thankfully, Marina is on her seventh loan cycle with the Adelante Foundation, and has a well-established micro enterprise selling clothes, shoes and various other products. In addition to earning income in order to support the basic needs of her family, Marina’s 15 year old daughter wants to go to secondary school and attain a diploma in tourism. Marina is planning to work hard in order to make this impressive goal a reality for her daughter.  If she succeeds, Marina’s daughter will be the first of her children to complete secondary school.

Santos Ramirez

In the community of Brisas de la Bueso, which is near Choloma, Cortes, I talked with another woman who also spoke openly about the challenges of sending her children to secondary school.  Santos Ramirez is on her fifth loan cycle with the Adelante Foundation, and has a micro business selling undergarments and sandals. Santos admits that she has encountered many obstacles in her life, including educating her children.  Each of her children have attended primary school, but at this point only one of her children has received a secondary school certificate.  The cost of transportation, food, and school supplies was too much for her to afford in the past. Santos’ children are grown and live away from home, except for her two youngest, ages 8 and 15 years old. She explains that even though she was unable to give the opportunity of education to her older children, she hopes to send her two youngest to secondary school with income earned from her micro enterprise.

Despite the region’s economic prowess, the department of Cortes is not excluded from the poverty that permeates daily life for many Hondurans.  The Adelante Foundation alleviates poverty by providing non-collateralized loans to women in rural areas so that they can invest in small businesses, and in turn earn more income.  Visiting communities in Cortes, I witnessed how microfinance is enhancing the opportunities available to women and their families.  I look forward to returning to Cortes in order to learn more about how the clients of the Adelante Foundation are overcoming adversity and improving their lives through hard work and discipline.