Microfinance Week in Review- Week Ending July 30
Some of the week’s news in the microfinance, green business initiatives and the small business sector:
- With Squeeze on Credit, Microlending Blossoms - New York Times
- Tiny Loans Propel Big Dreams - Miami Herald
- Fashion Meets Microfinance – Going NYC
- Green Ideas that Made Millions- Earth 911
- Microlending is No Longer Just for The Developing World- Business Insider
ACCION USA borrower becomes “Small Business of the Year”
Ever since my first day at ACCION USA, I have been dying to get the chance to get in the field to meet some of our clients in person. After all, our borrowers are the reason and inspiration for everything I do daily at ACCION USA. Finally, I was got the chance to go visit our client Carmen Ledesma, and I was more than thrilled.
I headed to Queens to visit her at her salon and esthetician school, and when I arrived she was busy running around helping students and greeting customers. She told me not to worry, she was used to it and was always busy. Lately, Carmen had been working harder than ever, but her efforts were paying off—she had just learned that she was going to receive “The Small Business of the Year Award” from New York City’s Mayor Michael Bloomberg at Gracie Mansion.
When things calmed down for Carmen, we sat down to chat about her and her business. Before 2003, Carmen was running a successful salon when she recognized a new business opportunity. Frequently, aestheticians and hairdressers with licenses from their home countries would visit her salon inquiring about how to obtain a license in New York. Originally from Paraguay, Carmen was compelled to help women new to the U.S. find work. So, she decided to start her own aesthetician school, focusing on the Latin community and holding classes in Spanish.
Carmen says most of her business was built thanks to her loans with ACCION USA (we know her hard work had a lot to do with it), she recalls that before her first loan she only had two hair dressers on staff, and now she has nine. She also employs two doctors, one aesthetician and four class instructors.
Still, achieving this success does not mean that Carmen is ready to take a vacation! Instead, she is ready to continue growing her business by opening a second school in Astoria, Queens.
And about her well-deserved award: she says that it was completely unexpected, but she does admit this makes her really happy and she dedicates it completely to her whole staff and everyone who was so perseverant about succeeding in this wonderful project—including ACCION USA!
Microfinance Week In Review- Week Ending July 23
Some of the week’s news in the microfinance, green business initiatives and the small business sector:
- The World Most Inspiring Women- Forbes
- Entrepreneurs Flock to Pet-Chicken Market- Wall Street Journal
- The Wrong Fix for Small Business Lending- CNN
- Five Simple Steps to an Environmental Management Plan- ACCION USA
New Summer Survey Under Way!
“A life is not important except in the impact it has on other lives.” – Jackie Robinson
We hear this philosophy often, and I believe it to be true. Think back to all those who have shaped your life, your thoughts, and your decisions: teachers and family, friends and mentors, coaches, neighbors, and pastors. Sometimes, short, one-time experiences can be just as impactful.
That is the hope of ACCION USA’s financial education team. We aim to build lasting relationships with program participants, and often we do; individuals will attend a webinar, we’ll then invite them a speed coaching event, and they will eventually apply for a business loan. Many times, though, we have only an hour – the length of a webinar or community workshop – to impact someone’s life.
Samuel Adams founder Jim Koch (right) offers business advice to a Boston business owner at a recent financial education event.
With that understanding, ACCION USA recently developed and launched our first-ever financial education longitudinal impact survey. We’ve gathered the names and contact information of financial education participants over the past year and half and are, through the end of July, surveying them on the quality, outcomes, and long-term impact of our financial education events.
Thus far, the results are very positive. Participants – even those from as far back as January 2009 – remember the events, remember what they learned, and can explain how the event content has since shaped their financial decisions. I’m personally interviewing speed coaching participants, and nearly all remember specific business advice they received! One man explained a coach’s advice to simplify his business logo, and another woman gushed about a coach’s suggestions to reach new clients with her niche business.
Currently, we gather feedback at the end of each financial education event; it helps us understand the event’s immediate effect on participants. But this longitudinal survey will be even more helpful by reporting the event’s long-lasting effects. Does a woman now have a habit of making a budget? Did she review her credit report for the first time and dispute an error? Did she improve her credit score, qualifying herself for a small business loan?
Above all, the survey results will help ACCION USA learn what we are doing well and how we can change our programs to more effectively serve entrepreneurs.
Stay tuned for the full survey report in August!
Tags: Financial Education, impact, Sam Adams, speed coaching, workshop
ACCION USA’s Financial Education Program Mid-Year Results
By Clare Scanlan
After weeks of planning and hundreds of calls made to recruit attendees for ACCION USA’s Show Me the Money financial panel on June 15, we had a great turn out. I originally thought that would be the most rewarding part of the event, but a few weeks later, when I saw Show Me the Money attendee Jerry Bonilla come into the ACCION USA conference room to discuss his $15,000 business loan, I saw the real impact of our financial literacy events—entrepreneurs using what they learned to grow their businesses.
Jerry’s company Nanghost, founded almost seven months ago, provides website development and design, hosting, maintenance, marketing and analysis to over 1000 small businesses. He is using his ACCION USA loan to buy a new server, which will allow him to serve an unlimited number of clients and streamline his systems.
Financial education classes are one of the ways that ACCION USA helps empower business owners with credit knowledge.
There were 12 ACCION USA clients like Jerry that received loans totaling $44,815 during the first half of 2010 as a direct result of our Financial Education Program. Other highlights of our progress from January to June 2010 include:
- 1544 individuals were educated by the AUSA Financial Education Program through 109 one-to-one counseling sessions, 50 workshops, 18 webinars, and 4 speed coaching events
- AUSA developed its online tools with new financial tip sheets, interactive recordkeeping worksheets for the online download center, and an interactive E-learning course on credit
- The 2010 Business Survival Strategies curriculum and presentation were developed, including accompanying articles and handouts
- Miami-based credit coaching sessions were launched, which provide in-depth one-on-one counseling with an AUSA credit coach for a one-time $20 fee
- AUSA’s first longitudinal impact survey was launched in June
Founded in 2001, AUSA’s Financial Education Program continues to grow as the need for financial literacy becomes more and more critical with the changing economic climate.
Clare Scanlan is serving as the Financial Education Intern for ACCION USA during Summer 2010. She is a rising junior at Georgetown University studying Economics and Spanish.
ACCIONista of the Month
I had only been at ACCION USA for one week when the e-mail to nominate Employee of the Month came into my inbox. I had already met a lot of great people but after reading the list of past winners, I noticed that one hard working ACCIONista was missing: Erica Dorn.
Erica, the manager of volunteer partnerships at ACCION USA, had pioneered a volunteer program at AUSA that allowed more than 400 people be part of the microfinance efforts in the United States.
During my first week at AUSA, I had see Erica run around the office welcoming and guiding our new batch of summer interns, on the phone assisting our volunteers, skipping lunch on Tuesday to help raise money by giving donation-based yoga classes and speaking with big passion about ACCION USA’s involvement with Kiva.
It turns out that many other ACCIONistas had seen the infectious personality and passion for our mission that Erica carries and a week later, during our monthly employee meeting, we received the news that Erica had been named Employee of the Month of June.
To learn more about what is like to work in microfinance or volunteerism, check out the fun video interview with Erica.
To Erica,
Great job and Congratulations!
Microfinance Week in Review- Week Ending July 16
Some of the week’s news in the microfinance, green business initiatives and the small business sector:
- Pequeña empresaria logró expandir su negocio con la ayuda de ACCION USA- AOL Latino
- For small businesses, loans are plentiful as long as they’re plastic-backed – CNN
- In New Space Race, Enter the Entrepreneurs- New York Times
- How to spy on the competition- MSNBC.com
Follow Friday for Microfinance
Aaah, Fridays. It’s everyone’s favorite day of the week for its (relatively) laid-back vibe, happy hours, and chances to sneak out early for weekends away. But for us Twitter nerds, it’s also Follow Friday (#FF or #followfriday), and our chance to get recommendations from friends on the latest and greatest Tweeters to follow.
So on this particular Friday, I’d like to take the opportunity to introduce you to some of my fellow ACCION Tweeters. Anyone in microfinance should be sure not to miss thoughts in 140 characters or less from these seasoned experts:
- @CFI_ACCION is the voice of the Center for Financial Inclusion at ACCION International. Follow them to be the first to know about new blogs and commentary from recognized microfinance expert, author, and CFI director Elisabeth Rhyne, as well as news and updates regarding financial inclusion initiatives and client protection in microfinance.
- For the scoop on U.S. microfinance and small business issues, follow me and other ACCIONista Tweeters at @ACCION_USA. You’ll get an insider’s look at our organization, access to client stories, and learn about new job and volunteer opportunities. You can also get local news from other U.S. ACCION affiliates at @ACCIONNM_CO_AZ (New Mexico, Colorado, and Arizona), @ACCIONchicago, and @ACCIONsd (San Diego).
- ACCION International recently joined the Twitterverse at @ACCION_Intl. You’ll get news from the field from ACCION Ambassadors, information on how to support the microfinance cause, and more.
- Want to help raise money for microfinance? Follow @microbikeACCION and learn how you can pedal against poverty and join a fundraising event in your area. The next event is October 1-3, 2010.
- ACCION communications expert Andy Sprung is always the first to know what the media says about microfinance—you can be the second by following him at @sprungpr
That rounds out the ACCION family of Tweeters—you can easily follow us all through our ACCION Network Twitter list. Who are your favorite microfinance experts to follow?
Tags: follow friday, microfinance, Twitter
Intern (n): NOT JUST The Bottom of The Totem Pole
By Amelie Busch
Students across the country have been participating in internships since the beginning of time—perfecting the art of getting coffee, kicking the printer when it’s down, and running downtown for… more coffee.
Luckily, I’m interning at ACCION USA in New York City, where getting “cawfee” is not the major task of my day. As a new “ACCIONista” I’ve been meeting with our Microfinance Council, attending weekly marketing team meetings, interviewing clients, and uploading client stories to our Kiva page. Later this month, I’ll also have the opportunity to travel to the ACCION USA Boston office for the annual Lending team meeting.
As the Kiva Intern, I’ve spent most of my summer working with our clients and Loan Consultants to get client stories posted on the Kiva Intern, I’ve spent most of my summer working with our clients and Loan Consultants to get client stories posted on the Kiva website. Kiva’s been a great partnership for ACCION USA because it helps us lend to clients who fall just under our requirements. With the financial crisis, it’s been all about assessing our risk while still lending to eligible small businesses.
My favorite day, so far, at ACCION USA was when one of our clients, Jose, came into the office. He was meeting with his loan consultant, Elizabeth, to finalize and disburse his loan. Afterwards, I got to sit down with him and ask him about his business so that I could create his Kiva profile. It was great seeing the loan process come to life and meeting with such an inspirational micro-entrepreneur.
As an intern at ACCION USA, my experience has been eye-opening and rewarding. With the organization moving at 100 mph, like most people do in New York City, everyone plays a big role in keeping our vehicle on target. More information, trust and responsibilities are handed to me on a daily basis. With great employees, grateful clients and a fun working environment, this internship has made me feel far from the ‘bottom of the totem pole.’
Amelie Busch is serving as the Kiva Coordinator Intern for ACCION USA during Summer 2010. She is a rising senior at Elon University, studying Finance and Economics. She has a passion for microfinance and founded the Elon Microfinance Initiative – a student organization designed to promote the outreach and awareness of microfinance.
Tags: accion usa, kiva, kiva.org, microfinance, us microfinance
Coaching Helps Miami Small Business Owners Improve Credit & Stand Up to the Recession
Hopefully, the economy really is picking up. Economic pundits have been going back on forth on whether there was indeed a pulse in our economic recovery. South Florida sure hopes so. The fallout from the recession has left many business owners with blemishes on their credit profiles, and ACCION USA has done our very best to respond.
While ACCION USA has always provided credit tips and education throughout our loan process, we wanted to formalize these services and make them individualized. In February, we launched a ‘Credit Coaching Services’ pilot in Miami. A Credit Coaching session is a chance for a business owner (or future business owner!) to sit down one-on-one with an ACCION USA credit expert to work on solving their specific credit issues and developing strategies for improving their credit profile.
ACCION USA Credit Coach Benjamin Himmelfarb walks a client through his credit report
The truth of the matter is that our current credit reporting system is flawed. For the uninitiated, credit bureau reports can be really hard to read and understand. The laws about consumer rights are complex, and credit companies and collections agencies often take advantage of that fact to break the rules. Alarmingly, almost 50% of credit bureau reports contain errors!
That’s why many clients have found it very useful to review their Equifax, Experian, or Transunion report with a credit expert at ACCION USA.
ACCION USA staff worked with one woman who has owned a family restaurant for 20 years. She had some financial difficulties a few years back and had a legal judgment filed against her by a credit card company. When we reviewed her report, we found that even though the account was closed by the court, the credit card company was still reporting that she was paying late! This was really affecting her credit score and history, but a few phone calls and dispute letters later we were able to make sure the company reported the account as closed. She’s hoping to obtain business financing soon.
Of the folks who participate in a Credit Coaching session, some want to solve credit issues before they apply for business financing. Some have experienced identity fraud and want to clear their name. Some want to figure out how the best way to pay down debt. But everybody leaves with the tools they need.
Remember, there is no such thing as a quick fix for credit problems, but knowledge is power!
If you know a business owner in need of coaching, or would like to sign up for a Credit Coaching session yourself, please contact Benjamin Himmelfarb at: bhimmelfarb@accionusa.org.
Tags: credit coaching, miami