|
PROGRAM PRESENTATION Founded to Serve: Project CIC offers support to creative and motivated individuals with the desire to overcome poverty. Objective: CIC´s goal is to provide microcredit, business-skills training and financial assessment to entrepreneurs in order to strengthen their micro businesses. Beginnings: CIC was founded in 2003; on August 7 which is the annual commemoration of Saint Cayetano, the Patron Saint of Labor (one of CIC´s main goals is to improve labor opportunities as a way to overcome poverty). CIC holds the weekly meetings with its entrepreneurs in San Cayetano Church in the neighborhood of Jose Leon Suarez, in the province of Buenos Aires. Although CIC has no religious affiliation, working from San Cayetano Church allows CIC to meet with its entrepreneurs in a safe place, nearby to their homes and businesses, with the goal of serving them in their neighborhood. From San Cayetano, CIC serves entrepreneurs from the villas miserias of Villa Hidalgo and Villa Carcova, and the surrounding areas. Guiding Principle: Project CIC (stands for Training (Capacitacion in Spanish) + Innovation + Credit) is based on the idea that microcredit is a productive business-enhancing tool when it is complemented by training and innovation. Credit provides capital which helps businesses to grow, and when combined with training and innovation, becomes sustainable in the long term. Affiliations: CIC does not have any religious or political affiliation; its goal is to provide economic opportunity to urban entrepreneurs in Buenos Aires and to enhance their social and economic well-being. Quick facts: To date CIC has provided more than 1,000 microloans, from $450 to $2000 pesos, approximately equivalent to $150 to $700 USD. The loans have a 30 percent annual interest rate and are repaid in 17 weekly quotas. CIC's active loan portfolio is approximately $100,000 USD. |
|
VISION AND MISSION Today many of the urban areas of Buenos Aires, ARGENTINA are deeply impoverished and since the 1950s have been faced with significant obstacles to economic and social development. As a result to increasing marginalization and poverty shantytowns or villas miserias were established. Residents of the villas are among the most underprivileged sectors of the population, comprised of persons coming primarily from the inland areas of Argentina and from neighboring countries of Bolivia, Paraguay, and Peru. The precarious nature of the villas has drastically deteriorated over time and is due in a large part to economic policies that today are recognized as damaging and ineffective in promoting economic development and social equality. As just one response of many to this challenging situation, the mission of FUNDVIS is to provide assistance to impoverished families through a microcredit program dedicated to fortifying micro-businesses and small family-run enterprises in the villas miserias. |
|
OBJETIVES OF CIC 1. To provide Microloans, along with technical and financial assistance, to entrepreneurs for their micro businesses. The microloans are considered productive credits, for the acquisition of capital, materials, merchandise, tools, machinery, etc. with the goal of initiating or expanding a profitable micro business. 2. To encourage each entrepreneur's potential for Innovation and serious and responsible work, which contributes to the success of the project, reinforces work ethic, and develops the creative capacity of the entrepreneurs, their families, and their communities. 3. To provide training in business-skills and project management, which are considered essential elements in initiating and/or improving a sustainable and thriving micro business. 4. Our long-term goal is to increase the number of entrepreneurs we are able to assist. In order to accomplish this we are currently working to increase our loan capital through donations, grants, and other sources of funding. FUNDVIS aims to encourage each entrepreneur to discover his or her potential capacity for creativity and self-realization. As such, FUNDVIS's strives to carry out the belief that microcredit (according to Profesor Mohammed Yunus, founder of Grameen Bank) is a social right that every person deserves. How We Work Eligibility requirements for a microloan: 1. Form a group of five small business owners (cannot be family members). 2. Have a functioning micro business or the willingness and desire to begin one, according to each person's possibilities, preferences and skills. 3. Live in the province of San Martin, Buenos Aires. 4. Attend at least six weekly group meetings, led by CIC's Field Operators. This allows new group members to understand how Program CIC works and provides group members the opportunity to discuss their microbusinesses. 5. No guarantee or collateral is required to be eligible for a loan. It is only necessary to form a group of five responsible persons, with whom the possibility of subsequent loan renewals depends on timely loan repayment by each group member. How the micro credit program works: Currently, individual credits range from 450$ to 2000$ pesos (equivalent $150-$700 USD). Repayments are made over a period of 4 months in 17 weekly quotas of 25$ to 40$ pesos, depending on the loan amount. On an annual basis, credits are available from 1350$ pesos to 4000$ pesos. The credits carry an interest rate of 30 percent annual. In comparison, the annual interest rate for a personal loan offered by the major commercial providers in Argentina averages 40 percent. The amount of credit loaned is in accordance with the needs of the microbusiness and the ability to meet weekly repayment quotas. The credit is expected to be repaid via income generated by the micro business. Credits are renewable immediately, given the previous credit has been entirely repaid in a timely manner. |
|
TEAM Project Coordinator: Dra. Prof. María L. Fago Fontana Project Manager: Amy Molden Donation Director: Maria Mattiello Field Workers: Verónica Álvarez, Olga Jerez, Lena Vallejo, Ernesto Lautz, Gerardo Papierri |
|
RESULTS ACHIEVED 1. Datos Financieros La Tabla 1 resume datos del proyecto CIC a través de cinco años y medios de gestión cumplidos: 7 de Agosto del 2003 a 31 de Diciembre de 2007. 1. Quick facts Graph 1 reflects the data in table 1, shown by year. A Total amount loaned by FUNDVIS B Total amount loaned C Total amount un recuperable |
|
C I C MICROCREDIT PROGRAM |
|
Entrepreneur Profile Gender: 81% of FUNDVIS entrepreneurs are women and 19% men. Average monthly income: from 150$ to 500$ pesos ($50 to $160 USD) depending on individual's receipt of government subsidies or other part-time work. Education level: semi-literate or illiterate, average level of schooling completed is grade seven. Community: the entrepreneurs live in villas miserias, which are marginalized, highly impoverished communities with few opportunities for formal employment; precarious healthcare; lack of social mobility due to low levels of formal education, and limited resources. Projects: 42 % of entrepreneurs are involved artisan-based projects homemade foodstuffs, shoes, handbags, clothes, and general homemade goods. 58 % are involved commercial projects resale, wholesale, ambulant vendors, sell in local fairs. Additional work activities: many women entrepreneurs also work part-time in sanitation and cleaning, manufacturing, sewing, bakeries, resale, kiosks; while many men entrepreneurs work in factories, farming, transportation, security. |
|
3. Case Studies For another measure of our achievements, please see the case studies of three of our entrepreneurs listed below: * Silvia Cristina Rinaldi * Norberto Esposito Sra. Silvia Cristina Rinaldi A few years ago, Silvia Rinaldi found herself facing a situation in which she did not have anything to feed her children. Lacking any other option, she asked her neighbor for a 1$ peso (equivalent $0.30 USD) to buy yeast to make bread for her children's breakfast. She fed her children, paid back her neighbor 1$ peso, and decided to try her luck at selling her homemade bread door-to-door in her neighborhood. Silvia quickly discovered she was a successful saleswoman; she is warm, friendly, and energetic, and her neighbors raved about her bread and baked goods. She realized she could dedicate herself full-time to her own mini bakery, which seemed like her best option, as she had young children at home, and lacked vision in one eye, making it difficult to find formal employment. Silvia received her first FUNDVIS microloan for 300$ pesos (equivalent $100 USD) in August 2004. She repaid it in weekly quotas of 20$ pesos ($15 USD) and used it to buy a table and materials to sell her baked goods in the weekend neighborhood fair. Currently, she has been selling in the fair for three years, as well as offering home delivery of a wide variety of baked goods: lemon pie, bread pudding, fruit tarts, pizettas, apple cake, and brownies. Having fully repaid on-time four microloans, Silvia is about to receive her fifth loan, with which she plans to buy her own bakery oven to increase her production, as she is currently unable to meet the overwhelmingly strong demand for her goods. Thus far, Silvia has put aside her humble earnings to pay her daughter's school expenses, willingly sacrificing her bakery's growth potential in order to afford her daughter's education. Through the support of FUNDVIS, Silvia is able to realize both dreams: her daughter completing school, plus the expansion of her bakery. Her long-term goal for her business is to rent her own small storefront, as her bakery has outgrown her home production. A true entrepreneur, Silvia has built her business from nothing, starting with 1$ peso and now has built a full-time operation. She is even able to employ her daughter and sister as part-time bakery helpers. When asked how she was able to turn around her situation and put herself on a path to success, Silvia answers, “you have to be a reliable person; I've gotten to where I am today because I keep my word and fulfill my promises. El Sr. Norberto Julián Esposito For over fifteen years Norberto was able to rely on his three butcher shops to support his family. This all changed in 2002 when he suffered a series of heart attacks, which coincided with the 2001 to 2003 economic crisis in Argentina, in which over 50 percent of the population fell below the poverty line. Not being one to let hard times get him down, Norberto came to FUNDVIS for his first loan in 2003 for 400$ pesos. He used this to build on his butcher experience to sell cold cuts in the neighborhood fair. During this time, he also worked as a butcher in a friend's shop, and after a few years of hard work and saving, Norberto was able to start out on his own again. He opened his own mini butcher shop and sold door-to-door, as well as wholesale to grocery stores and mini marts. Currently, Norberto is repaying his fifth micro loan, with which he has been able to increase his offering to include a wide range of products: meats, cheeses, olives, cold cuts, jam, salami, sausage and even pre-made sandwiches and pot roasts. Norberto's son works with him, and together they plan to use their next micro loan to buy a car in order to deliver their products outside their neighborhood. Norberto hopes to keep working with FUNDVIS, as he also plans to use future micro loans to buy a chorizo-making machine and a larger freezer to store more products. When asked what keeps him coming back to FUNDVIS after 5 years, Norberto replies, “to me the best thing about FUNDVIS is the group aspect, we mutually support each other, we all know each other, and this creates confidence amongst ourselves and we make sure not to let each other down.” |
|
COLABORATIONS Ecumenical Church Loan Fund ECLOF Fundacion Grameen Argentina Women's World Banking |
|
HOW TO DONATE FUNDVIS welcomes donations of any kind: donations can be made via cash, check, or credit card. We also welcome any new/used equipment, office supplies, organizations looking to form partnerships or collaborate, students interested in internships in microcredit or economic development, and volunteers. To donate in Argentina Checks can be made payable to: FUNDVIS Credit Card: VISA or MasterCard Via Money Transfer: To donate in the United States Tax-deductible donation with VISA o MASTERCARD For further information, or if you are interested in volunteering or interning, please contact: via phone: Marisa Mattiello (54) 11 4796-1160 via email: Amy Molden a.molden@grameenarg.org.ar |
