1. +
Fondo
Esperanza
(Hope Fund)
Bernadette Martinez
Business & Society
2. Overview
Microfinance 101
Fondo Esperanza, I
Overview Fondo
Esperanza, II
Financial Profile
Feedback
Microfinance 101 Financial Profile
What is it & how it works Operation Finances
Funding Sources
Fondo Esperanza, Part I Repayment
Introduction
Mission & Vision
Feedback
Fondo Esperanza, Part II Strengths
Qualifications&Services Recommendations
Who is Served Concerns
Credit Plans
Project Outcomes
3. Overview
Microfinance 101
Fondo Esperanza, I
Microfinance 101 Fondo
Esperanza, II
Financial Profile
Feedback
Microfinance - financial services 1 Chilean peso .002114 = $USD
provided to low-income persons
living or those who do not have 1000 Chilean pesos = $2(USD)
access to traditional banking
services. 1000(CLP) = $2(USD) = 1 Starbucks
Services are rendered in form (Some Chileans live under $2USD per day)
of microloans or microcredit.
Micro – small or micro sum of Significant role against
money issued to the borrow. poverty, but not used as the
$25USD up to $130USD sole strategy for ending world
poverty.
4. Overview
Microfinance 101
Fondo Esperanza, I
Fondo Esperanza Fondo
Esperanza, II
Financial Profile
Feedback
Chilean non-profit organization who provides microfinance services to
low-income persons living in vulnerable communities.
Mission – Support entrepreneurial men and women in vulnerable
sectors of Chilean society by servicing financial and training services
and networks, with the purpose of helping them improve their own life
conditions, their families and communities.
Entrepreneurship
Financial Services Training Services Network Services
Microfinance Personal Development Community Building
Microlending Family Development
Microcredit
5. Overview
Microfinance 101
Fondo Esperanza, I
Fondo Esperanza, II Fondo
Esperanza, II
Financial Profile
Feedback
FE Process Flow Village Bank Formation
Jointly &
Formation, Village Groups of 18 to
severally liable
Bank 25 persons
co-guarantors
Entrepreneur Credit Plan Individual
(cycle) credits
School
4
monthly/weekly
Microfinance payments
6. Overview
Microfinance 101
Fondo Esperanza, I
Fondo Esperanza, II Fondo
Esperanza, II
Financial Profile
Feedback
FE’s Entrepreneurs Business Types
28%Sales
63%Retail
& Man.
87% 13%
9%
Services
7. Overview
Microfinance 101
Fondo Esperanza, I
Fondo Esperanza, II Fondo
Esperanza, II
Financial Profile
Feedback
Credit Plans
First loan $55(USD)
After 3 months, second loan $85(USD) issued after first loan repaid
After 6 months, third loan $130(USD) issued after second loan
repaid, completes & receives 20 educational sessions certificate.
Project Outcomes, 2009-2010
20% 40% 91%
Increase Increase Feel safer
in in in their
profits per capita communities
9. Overview
Fondo Esperanza, I
Microfinance 101
Feedback Fondo
Esperanza, II
Financial Profile
Feedback
Strengths
1. Web site content
2. Social media networking usage
3. Entrepreneurial School educational plan
Recommendations
1. Emergency response education
2. Project evaluation plan
3. Coordination and collaboration strategic plan
Concerns
1. Project limitations, can not service in rural locations due to quality
channels of transportation
Good morning,My name is Bernadette Martinez and the venture I will be sharing with you all is Fondo Esperanza.
Before I move forward with the presentation, this is a brief overview what I will be discussing.First, Microfinance 101, what is microfinance, its history, how to works and its significance.Second, is an introduction of Fondo Esperanza (FE), their mission and their purpose.Third, FE, Part II – is where I will guide you in the sub-level of the non-profit organization in terms of services, objectives and outcomes.Next, FE’s Financial Profile I will refer to how the organization operates in terms of funding.Lastly, is the Feedback in the form of strengths, recommendations and concerns.
I’m sure many of you know of or heard of the term microfinance, but I will like to start by introducing this valuable concept to you all first then mend it to the another critical piece and in the end, seam these pieces together.Microfinance. Microfinance is a term used to describe financial services provided to low-income persons living in vulnerable areas AND/OR those who do not have access to traditional banking services.Microfinance services also come in an assortment of sub-services as in savings, microlending, microloans, microcredit and insurance. It is important to distinguish, in the context of microfinance, hence micro, lenders distribute a small or “micro” sum of money to the borrower, that is in comparison to a loan for a house in the US, is considerably less. For numerical example, an average microloan can range from $25USD up to $130USD. To illustrate this further, EXPLAIN CURRENCY COMPARISION & REALITY EXAMPLE (living under $2USD per day).I would like to stress that microfinance is and does assist persons from their current living conditions, but it is not the sole key tool to end the battle against poverty.
Now that you have a bases of microfinance and its primary function for those in vulnerable areas around the world, the second critical piece is Fondo Esperanza (FE).FE, in English translation is HOPE FUND. FE is a microfinance institution. It is a non-profit organization, since 1966, that provides micro-finance services and social development to Chilean residents who live below the poverty level, but inspire to be entrepreneurs in their home country of Chile. As of date, FE has been and still is the sole advocatorserving Chile’s under served communities.SUMMARIZE: FE’s mission.How FE supports the entrepreneurial spirit is by three pillars: financial services, training services and network services.Financial Services encompasses: microfinance, microlending and microcredit.Training Services address personal development that is directed to the entrepreneur and family development.Network Services addresses the tools needed for strengthen their home community.
FE’s process flow is:the formation, Village Bank (will speak in depth in a few moments)Entrepreneur School (educate, train and empower)MicrofinanceVillage Bank formation- Starts with forming 18 to 25 persons within the same community, which all are liable for one another, jointly.Next, individual credits are issued, but concurrent with the required classes at the Entrepreneur School.Credit plan (cycle) begins, which I will mention in slide 8.Re-payment will begin promptly provided by the training and schooling each entrepreneur receives.
Demographics: FE’s clients do consist of females and males. Their largest demographic are female, rating at 87% and mostly single (with at least 2.3 children), while males make up 13%. 54% did not complete high school 45% of females are head of their household. Business Types:The business types FE currently supports is classified into three areas: retail, services and manufacture and sales. Retail entrepreneurs are the largest with 63%, that is composed of small shops at bazaars, vendors (fruit stands) at farmer’s markets and street vendors.Manufacture and sales entrepreneurs are 28%, with occupations in pastry baking, clothes making, handcrafts, weaving, textiles, to name a few. Lastly, service entrepreneurs take 9% with fields in hair dressing and plumbingRevisit pictures of entrepreneurs from cover and final slide.
So, the first service FE provides to their clients is the microfinance. Administering the micro funds is organized in a sequence plan or what FE refers to as a “credit plan” or cycles.The credit “cycle” plan begins with FE issuing the first loan to the entrepreneur in the sum of $55USD. After the first three months and the first loan is repaid to the lender, a second loan is issued with an dollar increase to the entrepreneur in the sum of $85USD. Once the entrepreneur has reached six months, it is projected the loan sum is increased to $130USD and the entrepreneur has completed 20 educational sessions from FE’s Entrepreneurship School.FE’s Project Outcomes for 2009–2010 – mention each outcome and how it is interconnected with modules learned from the Entrepreneurship School.
Review FE’s 3-year financial profile starting with 2009, detailing each factor: clients served, loans issued, risk%, and rate of re-payment. Highlight the increase in numbers for each factor per year. And the rate to re-pay is consistent.Project Operational Funding – shared the four benefactors FE uses in order to maintain their operations and services.Operation - clients’ re-payment transaction and interest. Loans – come from a US non-profit, called KIVA. It is creating loans via donor’s out-of-pocket, more or less like a person is the lender, but all communications are done by KIVA communications.Donations - assortment of benefactors including but not limited to individuals, companies (L’Oreal and JP Morgan), multi-national enterprises, and many non-profit organizations, locally and internationally. Subsidies
Share finding based on research findings.
Closing.Introduce three entrepreneurs shown and their market type.
