Small Business Development

In the past two decades, many Microfinance Institutions (MFIs) have emerged to provide much needed savings and small loan services to Ecuadorian communities. In some cases, neighborhood cooperatives borrow from larger banks to tend to these financial needs. Esperanza y Progreso del Valle (EPV) or Hope and Progress of the Valley, is one such cooperative that reinvests a high percentage of its profits back into the community through micro-lending. MPI has benefited greatly from its relationship with EPV, learning much about the Ecuadorian micro-financial field, and has grown to trust in their financial and social purposes.   

In the past, MPI and EPV have worked together to provide small business courses, allowing business owners to strengthen their businesses, with the hope of decreasing overall default rates on loans given by EPV and other local neighborhood cooperatives. Program Directors created a six-week business management course covering entrepreneurial characteristics, the formulation of business ideas, marketing, the creation of a business plan, and financing. Upon completion of the course, participants scripted business plans and were eligible to apply for micro-loans from the co-op. 

After the course, however, it seemed more relevant for MPI to work in the field, reaching out directly to local small businesses. With the help of an Ecuadorian business student, MPI has branched out to

provide free individual consultation and basic accounting services for local small businesses.  MPI works with these businesses to instill many of the same concepts that

were taught in the classroom. With this new approach, MPI works to develop and implement specific, individualized strategies for each of these businesses.  Program Directors personally oversee the execution of practical and sustainable improvements to give local small businesses a better chance at success.