Share Your Story
Brochures - Ours and Others
About RAGM
Join Us
Our Publications
Microcredit Publications
Board of Directors
Project & Field Journaling
RAGM Bylaws
Contact Us
Global Publications
If you can't read numbers, can you manage money?5 days ago
Imagine a World Without Poverty39 days ago
RI Breakout - How to Build Sustainable Communities Through Microfinance39 days ago
John Hatch, FINCA Founder to speak at RI Convention41 days ago
Coffee Co-Op in Honduras 48 days ago
Community Foundations Essential to Achieving SDGs, Report Argues48 days ago
RESULTS Canada New Exec Director Chris Dendys125 days ago
New Year's Message from Bill Fitzsimmons182 days ago
Short History of a Rotary Microcredit Program186 days ago
Visit us on Facebook
Honduras Impact Story
Category: Microcredit | By SDR, 21-Jul-2017 | Viewed 714  Comments 0 | Source Jannalee Anderson - HECD July 2017 Report
Jannalee Anderson

Jannalee Anderson is a prodigious writer,

skilled team builder and has a huge heart for the people of Honduras. She has penned a comprehensive July 2017 report and a shortened 5 page format for the general audience. This article is an extract from that report - on the Small to Medium Enterprise Loan technique used in longer served  microcredit based communities:

The Small to Medium Enterprise (SME) Product Line

HECD Phase 4 has raised funds designated towards the Santa Barbara SME loan portfolio. This is filling a critical need in Honduras and we thank you for it!

What follows is a combination of the SME updates in both the December report and this July
report. This provides context in case the December report cannot be referenced or in the case
the Appendix is a stand-alone, removed from the longer July narrative.

IDH Loan Officer and Client

SME loans:

At the upper end of the client continuum,Institute of Development in Honduras (IDH) has identified an "unattended market". "Small-SME" (small and medium enterprise) clients, locally known as "Micropyme" clients, who are the backbone of many developing-country economies. These clients have a business already and need a slightly larger loan to grow it. Their loans average $5K USD and are typically too large to qualify for traditional microfinance loan, but too small to qualify for a loan from a national bank - thus, they are left "unattended". 

IDH recognizes the value in serving these clients: first of all, larger loans (relatively-speaking) help IDH maintain its sustainability, and secondly, while not everyone is an entrepreneur, everyone does still want to work, and helping grow SME businesses promotes growth and generates jobs. SME's fill the economy's "missing middle" and are crucial to providing jobs for others in their communities. As more jobs are created, more income is made, the community's purchasing power increases, other spin-off businesses are created due to demand, and the whole community prospers in the long-run. The Chinese Proverb that says, "a rising tide lifts all boats" is a great visual as IDH grows this segment of the market.

Mario Amador - SME Coordinator at IDH
While IDH has been quietly serving this target audience for a couple of years, it is prioritizing the growth of this segment throughout 2017 and 2018. 

Mario Amador

(pictured to the right) heads up IDH's SME Initiative and we met with him in person when we were there in April.

As of this spring, IDH has 927 SME clients and ten SME loan officers. By the end of 2018, they plan to have 20 SME loan officers - with at least one at each branch location. SME  clients generate jobs and each of IDH's SME clients have 3-6 employees. An average SME loan is $5K USD, for a 30-month period, and statistically creates 5 jobs over that time. IDH's CEO said that in an SME-driven community, where SME loans are available, it is possible to create 100% employment in a country where 50% unemployment is the norm. 

This is truly transformational.

The shorter July 2017 report on the HECD progress in Honduras is available here:

The full HECD July 2017 report is available from Jannalee Anderson: (janderson@opportunityinternational.ca)
To post a comment, you must be a member and Login.
This blog represents the opinion of the writer only. It does not necessarily represent the view or opinion of this organisation. We make no warranty of the accuracy, validity, or source of the content on this web page or any of the blogs presented on this web site. Similarly, the comments to blogs on this web site and this page do not necessarily represent the view or opinion of this organisation.
Service Projects
Social Development
Top Writers
© Design Copyright 2018 Neurosmith Software.