Vocational Training Team: Honduras
Posted by Tamisan Bencz-Knight
on Nov 04, 2014
A Vocational Training Team is a group of professionals who travel to another country to learn more about their profession or teach local professionals in a particular field.
In April 2014, Donna, Elly, Marcela, and Juan Carlos travelled to Honduras. The Republic of Honduras has a population of about 8 million people. The primary language is Spanish. Exports are coffee, fruit and a growing textile industry. Unfortunately, it is a very poor country. Unemployment is at 25% with 50% of people living below the poverty line.
And this is when I learned about Micro-credits …
Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history. It is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension. In many communities, women lack the highly stable employment histories that traditional lenders tend to require. Many are illiterate, and therefore unable to complete paperwork required to get conventional loans.
Since 2010, Micro-credits have been available in Honduras. There are 25 microcredit organizations, lending to 200,000 borrowers about $400 million dollars.
Fundacion Uniendo America was founded in 1999 by four Rotary clubs. A majority of loans are to women. Women work in groups to cross guarantee the loans. Women are the best poverty fighters. Women break the generational poverty cycle.
Some of the amazing stories:
Elizabeth - Baker
A baker with only a wood burning oven in her home, she received a loan to grow her business. She now has two commercial ovens. Eight people have jobs with her company. Women are working in the family business. Elizabeth is now on her third loan. She borrows and pays back and then grows her business with another loan.
Rosi - Pulperia
A Pulperia is like a corner store. It might be the only store around. She must ensure that things are stocked, needed and appropriate. Thanks to the loan to start her corner store, she was able to pay back the loan, paid for their home and sent their children to school.
Ernesta - Tortilleria
Ernesta makes 800 tortillas a day thanks to the loan. She is able to make a profit of $10 per day. All 4 of her children have gone to university thanks to the family business and now it is a family tradition to become an entrepreneur.