December 19, 2018
Sales de Jujuy (SDJ) is nurturing sustainable socio-economic development by providing Community Microcredits, assisting local entrepreneurs implement their small business ideas. The Community Microcredits Program was created in 2017 as part of SDJ’s Shared Value strategy. It is important to note that the purpose of the Community Microcredit Program is to support ventures that are not related to mining, to assist in the comprehensive growth and development of local economies.
To begin the evaluation process of potential community microcredit beneficiaries, SDJ held workshops in 10 local communities (Olaroz, Susques, Coranzuli, San Juan, El Toro, Catua, Puesto Sey, Pastos Chicos, Jama & Huancar). From these workshops 64 business plans were presented to SDJ for evaluation, with 24 successfully meeting SDJ’s investment evaluation criteria. Distribution of Community Microcredit beneficiaries are outlined below:
The 64 business plans were evaluated on the following criteria:
- Personal Entrepreneurial Skills – (40%)
- Potential of the Business Idea – (35%)
- Technical and Economic Feasibility of Implementation – (25%).
The workshops were held over 5 months throughout 10 communities within the Susques municipality, with over 135 residents participating. Entrepreneurs who had already started small businesses also participated, with an interest in improving their services and profitability.
At the conclusion of the evaluation process, the decision was made to finance some business plans through the implementation of another tool, the “Inclusive Business Program”. Within this program SDJ offers small no-interest loans, with the sole guarantee of approval by the community. After selecting the 24 recipients, SDJ worked with entrepreneurs to agree on payment plans, further training and technical assistance for their businesses.
“We are acting as an instrument of support for the improvement and development of new businesses, allowing local residents to generate personal benefits, as well as for their community. We are very proud of what we have achieved so far” Dr. Silvia Rodríguez, SDJ’s Shared Value Manager commented.
24 no-interest loans were awarded between October and December 2017 with a follow-up stage then commencing. The follow-up stage facilitated training challenges for each entrepreneur in the areas of finance, credit operation and supply chains.
To date, 13 of the 24 loans have been fully repaid; with the remaining 11 currently being finalised. Among the small businesses financed there is a bakery, hardware store, ice-cream and sandwich shop, quinoa production, dining hall, grocery store and a metal workshop.
Over the past decade, SDJ’s community investment strategy has been centred on the five pillars of their Shared Value strategy: Education, Empowerment, Transparency, Production and Natural Resources, and Health. In everything SDJ does, they seek to find ways to enhance their contribution to society through numerous beneficial programs and initiatives. Click to learn more about SDJ’s Shared Value strategy.
Sales de Jujuy’s Community Microcredit Recipients [pictured above]