Small business, big difference

Widespread unemployment in Nicaragua has prompted many families to operate their own small businesses, but many struggle to succeed. Support and training from Plan is helping hundreds of people to turn their ideas into income.

Women receive business skills training

“The way I operate my store has changed. I’ve put all of the things I learned into practice. Before, I didn’t bother keeping a record of what I bought and sold; I didn’t see any need to do so, since it was all mine anyway. I used to take store money to buy other things. But after receiving the training I learned about all of the errors I was committing. Now I run the store with more responsibility.” -- Zeneyda Lezama, from the rural zone of Rosario

The departments of Chinandega, Masaya and Carazo are diverse zones with rich soils appropriate for cultivation. However, they share a common problem: unemployment. To generate income, many families attempt to start their own enterprises, such as the preparation of tortillas and bread, the selling of ice cream, opening small stores, dressmaking and many others.

These businesses are often formed informally and therefore have no access to formal credit. This prevents them from expanding or diversifying the goods or services supplied. Any money earned is simply used to purchase and pay for more products, with little left over to improve the circumstances of the household.

Many, upon seeing that such endeavours are not very profitable, decide to close their businesses and emigrate, either to the capital or abroad in search of better opportunities.

Plan aims to increase incomes for the families in these communities by supporting the development of non-agricultural enterprises. Training in management of small businesses will be provided to participating families, including basic accounting and credit management. Due to their vulnerability to unemployment, women and young people are considered the main target group of the project.

The activities promoted include:

• Local craft production, including those crafts that are at risk of disappearing (such as embroidery and weaving)
• Drying of fruits and flowers
• Local processing of agricultural products
• Local production of cereals with high nutritious value
• Baking
• Other traditional activities

Participants are selected based on individual needs and feasibility assessments. They are provided with limited support for the purchase of tools and materials, and are given access to small loans once they have gained experience of management so that their businesses can be strengthened and expanded.

Currently, training has been provided to a total of 220 families, mainly represented by women.

“I received the training, and after each class I would share the knowledge with my wife. She’s the one who does the purchasing and knows how much we invest. We divide the work in the house. I take charge of preparing and making the bread, while she does the purchasing and sells the bread in this community and other barrios. My children also help in the baking when they get back from school. After receiving the training, we now keep records and know how much we spend and earn.

“Before the training, I didn’t pay much attention to customers. Now I greet them; I say, ‘Please, come in!’ And whereas I used to give them their bread by hand, now I sell it in plastic bags. Because I’ve improved the quality of attention, our bread is more popular among the people.” -- Felix Manuel Lopez, from the community of La Curva