Microfinance
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. MPIE has benefited greatly from its relationship with EPV, and has grown to trust in their financial and social purposes. Through increasing access to courses aimed at improving administrative and operational efficiency we support EPV´s effort to increase their access to more affordable credit and better management practices, strengthening local institutions.
An additional approach has been to train local business owner and potential business owners to more efficiently and effectively run their businesses. This effort includes teaching record keeping, inventory management and basic administrative tactics. Through our partnership with the Centro de Inovación y Desarollo Empresarial (CIDE), we enroll loan candidates in a 2 week intensive small business class, covering entrepreneurial characteristics, the formulation of business ideas, marketing, the creation of a business plan, and financing. So far, 20 members of the community have graduated from this course. Upon completion, course participants script business plans and apply for micro-loans from the co-op. This course enables individuals to turn business ideas into reality. MPI is also now in the process of being certified to train small business class instructors, allowing greater access to these business courses in the community.
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