CREDIT GROUPS FOR GUATEMALA

Savings and Credit groups are vitally important drivers of self-development. World Neighbors has enjoyed a very successful long-term track record in men’s, mixed and women’s savings and credit groups propelling a wide range of entrepreneurial pursuits. The members’ own savings is a key ingredient.

Mayan ethnic groups are 43% of the total Guatemalan population. They have suffered a long history of exclusion. The struggles of women entrepreneurs have been even harder. Our hand up will make a great difference toward their own sustained successes.

Access to secure saving and credit and improved business skills of local entrepreneurs, including women, is indispensable. Instead of astronomically high interest rates charged by people taking advantage of them or even banking services aimed more for urban areas with high interest rates and asset-based guarantees, the people themselves can become their own source of credit. Repayment rates are historically very high within members’ own savings and credit groups.

The goal of this project is to promote and strengthen the culture of cooperation in the organization of indigenous women entrepreneurs, through the implementation and functioning of women-led saving and credit groups that provide small working capital for a variety of income generation activities. Some examples include small scale businesses, commerce, agricultural pursuits, poultry and livestock. The project will also provide local entrepreneurs with much needed technical advice for quality control, productivity; the development of basic financial literacy, business skills and tools for guarantees success and sustainability of their economic development.

Together we can improve the opportunities of Guatemalan rural entrepreneurs to successfully and sustainably improve their family income by organizing, forming and training in support of the formation and operation of savings and credit groups. Including as well a modest amount of seed money, the cost per savings and credit group is $1,200. The intended reach in the Atitlan area is 50 working groups for a total cost of $60,000. It is estimated at the start that one savings and credit group could improve the livelihoods and family income of an average of 10 entrepreneurs (indirect outreach to approximately 3,000 people); providing services that will lead to many successful businesses.