Microfinance and Microenterprise

The creation of sustainable employment is essential for the long-term success of Proyecto Horizonte. By achieving this, we are able to ensure that the children who go through our educational system stay in the area and support ongoing economic development. We believe that the settlement of Mineros San Juan has the potential to become a local sub-center for the poor southern area of Cochabamba. Our efforts to create sustainable employment include the following initiatives:

• We hire as many people locally as possible in all areas of the project.
• Through women’s group Tantakuna we have opened a bakery and an arts and craft workshop.
• We plan to construct a Technologico. This building will have training areas for professional education, a computer room, library, bakery, a market/exposition space and other common areas.
• Training and seminars through ACCION’s Dialogo de Gestiones program. Through cooperation with the consulting companies Perfect Point Partners (PPP) and Educativo-CIOSGE and with the help of our own trainers we teach classes for current and future micro-entrepreneurs.

A logical sequence of these efforts would be to provide microfinance support. However, several aspects speak against a straightforward “standard” microfinance service:

• There are already sufficient Microfinance Institutions (MFIs) covering the area and there is no reason for a project of the scope of Proyecto Horizonte to compete against them.
• Based on our experience the services provided by MFIs are not properly targeted to the needs of a population like Mineros de San Juan: the history of the settlement as being one of the most difficult and dangerous in the region, the low level of education, as well as the strong presence of distractions like alcohol make many lending efforts struggle.

Therefore Proyecto Horizonte has developed a more complete approach to the Microfinance/Microenterprise area. The approach was developed by our management team together Microfinance experts from PPP. The highlights of our approach are:

• A focus is on discovering Microenterprise ideas together with the residents of Ushpa-Ushpa. This effort shall be supported by informational events, professional training, exhibitions and volunteers from various professional backgrounds who visit us (eg. hairdressers, tailors, carpenters).
• A team of experts together with a permanent supply of volunteers will develop business plans for the various ideas and support the realization of these.
• Microloans shall be provided only in a very restrictive manner. For example instead of disbursing cash to the borrower, the purchase of machines/material shall be facilitated directly.
• Long term support shall be provided for the individual venture through the realization of common support functions like establishing an online shop/marketplace and facilitating the collaboration with other NGOs.
• Close collaboration with the other areas of Proyecto Horizonte, specifically Tantakuna.
• Microfinance and Microenterprise at Horizonte shall become a center of competence for successful Microenterprise development in very underdeveloped zones.

We have appointed the Microfinance expert Erica Zambrana to head the area of Microfinance and Microenterprise. She will be supported by a team of volunteers. The target profile for those volunteers is: Business Education (in progress), general Spanish knowledge (for longer term visitors Spanish classes can be organized, however some language knowledge is necessary), motivation to work in a dynamic environment of a unique and very successful developing project, self-starter and team worker, prepared to work in a difficult but safe environment, flexibility.

• Photo gallery

• Beyond Microfinance
  (PDF 2.20Mb.)

• Proyecto Horizonte - Microfinance and Microenterprise
  (PDF 715Kb.)

• We'd love to hear from you, click here to contact us.