How Can Microfinance Help Immigrant Entrepreneurs?
Last month Foulis Peacock from Immpreneur.com dropped by ACCION USA’s New York office to have a conversation with our CEO Paul Quintero about domestic microlending. While microfinance institutions have long played a role in developing economies, the concept and need for microlending services in the United States may be less familiar to many. With immigrant entrepreneurs driving small business growth in urban hubs around the country, domestic microfinance has never been more relevant.
In this video excerpt, Foulis and Paul discuss the special role of domestic microfinance as it relates to immigrant entrepreneurs, or “immpreneuers”.
To watch the full interview with ACCION CEO Paul Quintero click here!
5 Reasons to Buy Local this Holiday Season
This holiday season, we are looking at how social minded holiday shopping can make a positive impact on communities. Of course, we still want to be able to give gifts to our friends and loved ones – but wouldn’t it be nice to give a socially responsible gift by considering where the gift comes from? By making a conscious decision to patronize small businesses you can help to preserve local culture while also making a difference in the economy. ACCION USA works with new and growing microentreprises on a daily basis and realizes the profound role small businesses play in the economic and social fabric of this country. For that reason, we have created a list of 5 reasons to patronize small businesses for this year’s holiday shopping:
1. Improve your local economy
Chances are that the small businesses you are patronizing are owned by someone who lives in your community. This means that the money you spend locally will get filtered back in your local economy. And even if you are buying online, you are still creating a ripple effect through another community.
2. Create Jobs
Over the past two decades, small businesses have generated around 65% of new jobs. If independents regained their 1990 market shares, entrepreneurs could create 200,000 new small businesses, generate about $ 300 billion in revenue in the retail and restaurant sectors, and employ more than 1.6 million American workers.
3. Enrich your Community
Nobody wants to live in a neighborhood that lacks a small business culture. While franchises and national chain stores play a role in the national economy, we all know that small businesses provide an undeniable vibrancy and sentiment vital to community life. Many people believe that small businesses are not just the economic but also the social heartbeat of America.
4. Personalized Experience
Shopping at small local businesses always offers a personal and sincere customer-owner interaction, impossible to replicate with large-scale vendors. Small business shop owners are interested in their clients, know their wants and needs, and are willing to give their customer personal attention to answer questions about their products. Furthermore, a small business owner is passionately and inextricably linked to the success of his or her business, which means they are experts on the product that they create and sell.
5. Original, Handmade Gifts
If you like to give original, handmade gifts, you can’t beat shopping at a locally owned business. Small businesses are commonly thought of as trend setters – paving the way for their larger scale counterparts with an unbridled imagination and vision. Also, small businesses usually do not have to scale their product for a mass market, which ensures high craftsmanship and originality.
To buy local, visit your local store, view our client directory map, or buy online at our Holiday Marketplace: www.accionusa.org/marketplace
Microfinance Harvest Festival; A Night to be Remembered
On November 1 over 100 guests gathered at ACCION USA’s first ever Microfinance Harvest Festival to enjoy homebrewed beer, toe-tapping jazz and food from local small business owners. It was truly a night to be remembered! The event was held at the ING Café in Manhattan and was a glowing success, bringing together microfinance professionals, partners and entrepreneurs to celebrate and to learn more about ACCION USA’s mission to create financial inclusion for all.
Jesse from Brooklyn Taco serving his gourmet tacos!
Guests sampled a range of tasty, locally made dishes supplied by ACCION USA’s clients, from mouth watering Cola and Orange Braised Pork Shoulder Tacos courtesy of Brooklyn Taco to Sweet Plantain and White Cheese Arepas from Arepas Café. Dinner was washed down with either a complimentary Sam Adams beverage or a homebrewed beer sample from the homebrewer tasting competition (congrats to Jason Faulkner with his winning brew, “Lions Mane”!). And finally, no event is complete without dessert! Thanks to The Chocolate Swirl for providing their imaginative and gourmet brownie pops.
ACCION USA CEO Paul Quintero speaks about the impact of domestic microfinance.
To round off the night, ACCION USA’s CEO Paul Quintero spoke about the impact of domestic microfinance and introduced a few clients to share their personal stories about the journey of a small business owner. Underscoring the profound importance of financial inclusion, Jesse Kramer, owner of Brooklyn Taco, explained the challenges of securing financing for his business from a local bank. “As a recent graduate from culinary school with debt from student loans, no bank would take me seriously,” Jesse explained. Jesse’s dream of operating a culinary business that paid tribute to Mexican heritage while still celebrating a hip, modern Brooklyn culture was brought to life with a $5,000 microloan from ACCION USA. With it, Jesse expanded his business to a larger vendor space in the Essex Street Market, where his business continues to thrive.
It’s personal stories of determination and entrepreneurial spirit like Jesse’s that bring tremendous meaning to ACCION USA’s work to support small business owners and job creation. We thank Jesse for his tireless work as a microentrepeneur and all of the guests and volunteers who made the Microfinance Harvest Festival an evening to be remembered!
Pictures have been posted to our Facebook page – check them out and tag yourself too!
Why Microfinance Is Important To Me
By Alexandra Mills
In college I went on spring break service trips to a village in Nicaragua two years in a row, each time hoping not only to gain a personal learning experience but also to make a lasting impact on the people there. When I was there last year I met an amazing woman named Francesca who has a small bread making business out of her home. She sold it to everyone in the town and would walk a few miles every day to sell it in the larger community of Somotillo. I remember Francesca saying that she could sell much more bread if she had another oven built, but she couldn’t afford it.
After coming back to the United States, I heard about microlending in a class and started thinking back to Francesca. I researched more into the world of microfinance and found Kiva.org. I was absolutely amazed with the fact that while I was finishing my senior year at Eckerd College in Florida, I could be lending to people just like Francesca anywhere in the world, including Somotillo. I realized that this would make a much larger impact than going there for a week every year. That’s when I knew I wanted to be involved on a larger scale.
Having been fortunate enough to travel to developing countries like China, Guatemala, and Nicaragua, it never crossed my mind that microfinance could benefit citizens of the United States. Since the start of my internship at Accion USA, I’ve learned that microfinance institutions in the United States are helping create opportunities for people in this struggling economy. I’ve realized that there are entrepreneurs like Francesca here in the US–in New York City, even on my block– who need the same financial assistance than people abroad. Some of these people have come thousands of miles from countries far and wide to live the “American dream”, but I can’t imagine how difficult that must be when most traditional financial institutions offer little or no support.
Accion USA works right here in our backyard and the mission is not to lift people out of poverty as much as it is to help small businesses thrive. I’ve been noticing how many jobs in the United States we’ve been helping create by giving small business loans. Every day, as I continue to learn the ins-and-outs of microfinance in the US, I pass by our clients in the streets of New York City and it reminds me why the mission of microfinance is so important to me.
Alexandra Mills is the Kiva Coordinator Intern at ACCION USA. She is a graduate of Eckerd College in St. Petersburg, FL.
Look No Further… Volunteers Bring Microfinance Books to Your Fingertips
This blog post and its content are brought to you by the Microfinance Council of New York.
Bookstore at the Microfinance USA Conference
A huge pat on the back to all of the Microfinance Council volunteers who contributed to the Microfinance Annotated Bibliography, which was launched at the Microfinance USA Conference in May! The Bibliography compiles summaries of over 30 articles and books about domestic and international microfinance. It serves as a free resource for anyone who wants to simplify their approach to research or reading about microfinance. The Council thanks its dedicated volunteers and the Public Policy Committee– this project is on-going and anyone interested in contributing can reach out to the Chair of the Public Policy Committee to learn how to be involved (please see the website for contact information: www.accionusa.org/microfinancecouncil).
The bibliography can be found at the Microfinance USA Website (www.microfinanceusaconference.org/bookstore/) and the ACCION USA Microfinance Council site (http://www.accionusa.org/Uploads/FileManager/mfusa-bibliography.pdf)
Celebrate National Small Business Week – Anne Mironchik
ACCION USA is celebrating National Small Business Week by spotlighting some of our clients and their businesses.
Talk about sticking with something you love – Anne Mironchik has been playing music for over 30 years! After graduating from the Manhattan School of Music in 1988, Anne started
teaching music to help support herself as she pursued her music career. She recently released a new album entitled Cookin in the Kitchen which includes her original work as well as the jazz standard “Laura” by Johnny Mercer. She was selected as a finalist with the UniSong International, which dubbed the demo version of Cookin’ in the Kitchen “…a juggernaut of a song!”
Anne runs her own production company, through which she released her most recent album. Anne’s loan from ACCION USA helped her with the production of this album. She also provides consulting and administrative assistance to two companies on a regular basis. Anne has recently started studying with jazz piano great, Mike Longo, and has really started to work on becoming a mature, accomplished jazz performer.
Celebrate small business week and check out Anne’s website to check out her music. Also don’t miss the chance to meet Anne Mironchik during the client tour at the 2011 Microfinance USA Conference on May 23 and 24th!
Microfinance Week In Review: Week Ending May 13, 2011
Here is some of the latest news in the microfinance, small business, and green business sectors:
- “Microfinance USA Conference to Ignite Action for Consumer Protection and Increased Microfinance Services in the United States” – San Francisco Chronicle
Confidence among U.S. small companies fell to a seven-month low in April, damped by a deteriorating outlook for the economy, a private survey showed. The National Federation of Independent Business’s optimism index decreased to 91.2, the lowest since September, from 91.9 the prior month, the Washington-based group said today in a statement. Seven of the measure’s 10 components dropped. Read More
- “Small Business Week May 15 through May 21, 2011“ - Press Release
Our country started as an idea, and it took hard-working, dedicated, and visionary patriots to make it a reality. Successful businesses start much the same way — as ideas realized by entrepreneurs who dream of a better world and work until they see it through. From the family businesses that anchor Main Street to the high-tech startups that keep America on the cutting edge, small businesses are the backbone of our economy and the cornerstones of America’s promise. Read More
Microfinance Week in Review: Week Ending May 6, 2011
Large, publicly traded businesses have a vast array of options when they want to capitalize growth. Small businesses? Not so much. In fact, there are only three primary sources of growth capital for a small business: Read More
“Can Business Inspire Consumer Behavior Change?” -The Guardian
Over the last few years, the penny has finally dropped that consumers are not going to change their behaviour when it comes to a more sustainable pattern of consumption. Only about 20% are enthusiastic enough about green issues to put their money where their values are and demand greener products. So what is a green-minded company to do? Should it be brave enough to change itself and trust customers will follow? And how does it reach past that 20% of early adopters to engage the vast majority of customers? Read More
Microfinance Week In Review: Week Ending April 29, 2011
Here is some of the latest news in the microfinance, small business, and green business sectors:
- “Mexico’s Compartamos 1Q Net Profit Rose 14.8% On Higher Fees“ – Wall Street Journal
Mexican microfinance lender Banco Compartamos (COMPART.MX) said Monday its net profit rose 14.8% in the first quarter as the company generated greater income from delinquency fees and a voluntary life-insurance product. Compartamos, which specializes in small loans to individuals and small businesses, reported net profit of 459 million pesos ($39.5 million), or MXN1.10 per share excluding shares repurchased, compared with MXN400 million or MXN0.96 per share in the year-earlier period. Read More
Hear Compartamos CEO Carlos Danel speak on balancing mission, profit, and impact in microfinance at the 2011 Microfinance USA Conference.
- “Micro-lending site Kiva goes green” - Reuters
Kiva, a site that enables person-to-person loans, has just added a new category of green loans to help borrowers move to cleaner and safer forms of energy, green agriculture, transport and recycling. Loans made through Kiva generally go to individuals or entrepreneurs in the developing world, but some do go to people in the U.S. Read More
- “How to Cut Small-Business Operating Costs“ – PC World
Most people expect that running a small business means heading to the bank, hat in hand, asking for a five- or six-figure loan just so they can get through the month. Thanks to modern technology and the Web, however, that’s no longer the case. Savvy business owners know that numerous cheap and free tools work just as well as their expensive, brand-name counterparts. Here’s where to look for business bargains. Read More
Microfinance Week In Review: Week Ending April 7, 2011
Some of the week’s news in the microfinance, green business intiatives and the small business sectors:
- “Microlending Program Focuses on Hospitality Business“ – New York Times
Four years ago, Riccardo Romero could not find a bank to finance his first restaurant, so he ended up opening the Arepas Cafe in Astoria, Queens, with money from friends and a $10,000 loan from Acción, a nonprofit microlender that has seeded small businesses across the country. Riccardo Romero was unable to obtain traditional bank loans to open and expand his restaurant, Arepas Cafe, in Queens. Read More
- “Credit Crunch gives ‘Microlending’ a Boost” - Wall Street Journal
With lending conditions still tighter than they were before the economic downturn, many U.S. consumers are turning to microloans to help them consolidate debt, pay medical bills, start a business or keep one afloat. Read More
- “Make the Next Bailout Serve Small Business” - Bloomberg
TARP did a better job of helping Wall Street firms than it did at solving the problems of small business borrowers. While the TARP panel disbanded on Apr. 3, policy makers should learn from the shortcomings identified in its report to prevent small business from getting hammered again during the next financial crisis. Read More
- “Will SBA’s New Online Tool Boost Small-Buisness Lending?” - AOL Small Business
As part of the Small Business Administration’s newly redesigned website, the agency announced Friday the launch of its online Lender Toolkit, a section of the site intended to give small-business lenders access to more in-depth information and resources on the SBA’s loan programs. According to the SBA, the new site strengthens its collaboration with lending partners in order to make it easier for lenders to provide small businesses with the best loan programs and financing options. Read More