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!
Why We Do This: Greg’s Microfinance Success Story
Elements of financial education appear throughout the lending process. From teaching individuals about the high costs of payday loans to showing business owners how to separate their personal and business finances, ACCION USA equips and empowers entrepreneurs with the education to achieve their financial goals.
Every so often, one of those days comes along that brings you back to the roots of what you do. It’s that client, that partner, that sale or proposal – that something that stands out and reinforces your daily work. It’s what causes you to go home with a smile on your face.
I’m fortunate to work in a place where these days come frequently – weekly, not quarterly. At ACCION USA, our success comes from our clients, and you’ve probably seen our many client success stories. Read one, and you’ll see the power of matching a microloan with the entrepreneurial spirit. It’s exciting, and it’s inspiring.
What you might not see, though, is the added value of financial education – an element of ACCION USA’s service portfolio that makes us unique among microfinance organizations. Elements of our financial education program are weaved into each and every client success story. Whether the client attended a legal counseling workshop, used our online budgeting worksheet, or received a half-hour of technical assistance from a loan consultant, financial education is ever-present in our work.
One of our most recent success stories is a true testament to this service.
Greg’s journey with ACCION USA began in February 2009. He owns an answering service business and needed a loan to keep up with his growing list of clientele. When a damaged credit history and low credit score meant that he didn’t qualify for a loan, Greg demonstrated two characteristics that entrepreneurs tend to possess: persistence and a desire to learn. He contacted our Boston office, determined to understand how he could improve his credit history.
That call was the first of many. Throughout the next year, my colleague Melissa led Greg through the process of improving his score. With her guidance, Greg took control of his debt, improved his credit score over 60 points, and regularly called to check in with Melissa. And his hard work paid off: last month, Greg was approved for a loan.
Greg is proof that financial education can give hard-working, determined individuals the boost they need to realize their entrepreneurial dreams. And all I’m left to say is congratulations. Congratulations to Greg on his persistence and drive to grow his business. Congratulations to Melissa for her dedication.
And congratulations to all of ACCION USA’s supporters for helping connect them. You make this all possible.
Tags: accion usa, client, Financial Education, microfinance, microloan, service, small business, success story, technical assistance, value added, workshop
Why I Love New York and Microfinance
From Elizabeth Bueno in New York:
Although I grew up in Queens and currently live in Brooklyn, the Bronx can feel like a world away. I find this interesting, since when I was a child I would dream of going to India or another far off country to somehow help humanity. My family never understood why I would want to go to India when I come from Colombia, a country that also suffers from deep poverty and even an internal civil war. What I’ve learned, especially living in New York, is that you don’t have to go very far to make a contribution to this world. My visit to an ACCION USA client, Leopoldina, was a reminder of that fact.
As the Kiva Intern at ACCION USA, one of my duties is to visit our clients to capture video and stories to post to the Kiva Web site. After a 50-minute subway ride, I came out from underground to the ecstatic rhythm of salsa music blasting from several cars. The smell of fried food mixed with incense burning from the local restaurant to provide a rapid awakening. I followed my Google Map and made the long walk to Leopoldina’s apartment in the public housing buildings.
Leopoldina knew that I would be making a visit to capture a video for the Kiva.org website. She greeted me very warmly and professionally. In her kitchen she had laid out a black cloth that beautifully displayed her gold jewelry. It was such an energetic environment; there were loud noises and medical equipment strewn around the house. She got right down to business and explained her hard, yet inspiring path to entrepreneurship.
Leopoldina was a factory worker. Because she is the mother of a special needs daughter, she left to be a housekeeper since it would allow her flexible hours. Only later did she decide to start up her own home-based jewelry business, using a small business loan from ACCION USA to purchase her first batch of inventory. In her eight years in business, she has become very skilled at selling. Leopoldina explained that selling her jewelry is therapeutic and lifts her spirits during difficult days. I was amazed by her knowledge of the art of sales. She beamed self-reliance.
As I sat at Leopoldina’s kitchen table, I could hear the moaning sounds of her daughter in the other room, and the neighbor’s shouting. But the sound that truly resonated was the strength and determination that I heard from Leopdoldina’s voice. “Me encanta Nueva York, mucho!” ’I love New York,’ she said. I felt a deep reminder for why I love New York, a city where immigrants like she and I can meet by happenstance and realize that we are both living our dreams.
Leopoldina from ACCION USA on Vimeo.
Elizabeth Bueno is the Kiva Coordinator Intern; take a look at the video she captured of Leopoldina during her interview for the Kiva.org website.
Delicious Caribbean Dishes, As Seen Online!
On Sunday an authentic Caribbean eatery in Manhattan serves up Bintou’s Famous Pepper Soup and on Monday, try Sauce Arachide (Peanut Butter Stew w/ Beef), each for just ten dollars. Unless you lived near or strolled by ‘New Ivoire Restaurante’, you probably wouldn’t have ever visited the delicious spot… until now! With the help of a volunteer and Yola.com, restaurant owner and ACCION USA client Cheick Cisse has a website that he hopes will bring in some extra business.
ACCION USA has a diverse base of clients ranging from small local restaurants like Cheik’s to small, tech saavy media companies like Maureen’s, Moped Productions. But for many microloan clients at ACCION USA, a business website has often seemed too advanced, too expensive, or even unnecessary. Busy restaurant owners like Cheick simply don’t have time or the extra money to invest in web development.
ACCION USA struck an immediate partnership with Yola when we learned about the free web building tools that they were offering. And we began to think of simple and creative ways to introduce this service to our clients.
Lauren, an ACCION USA volunteer met with Cheick at his restaurant and was able to put together a simple and useful website. “I’m delighted I’ve been able to spend my free time volunteering at ACCION USA. It’s very rewarding to help clients at an organization that works so hard to empower people financially,” she says of the experience.
Now Cheick just needs a lesson on optimizing the searchability of his website on search engines like Google. Have SEO experience and interested in volunteering? Contact Erica Dorn edorn@accionusa.org, but first check out ‘ New Ivoire Restaurant‘ for a true taste of the Caribbean.
Survey Says … Microloans Working
Over 100 ACCION USA clients completed the 2009 MicroTest Client Outcomes Survey.
Despite an extremely challenging environment for small businesses during 2007-2009, the vast majority of ACCION USA clients managed to sustain their businesses, with many creating new jobs. So says a new report made possible by the hard work of two intrepid summer interns (thank you Max and Kathryn!) and the Aspen Institute’s MicroTest Client Outcomes Survey project. You can read the full report here.
To generate the data in the report, ACCION USA surveyed over 100 clients who had received microloans in 2007. We questioned them on number of employees, business contributions to household income, owners’ draw, etc. By comparing responses to those in the clients’ loan applications, we found several important longitudinal results, including:
- Job creation. Client businesses that received loans created or retained on average 2.4 jobs (not counting the owner), predominantly in low- to moderate-income communities.
- Wage increases. The median hourly wage provided by businesses owned by ACCION USA borrowers ($9 an hour) is 24% higher than the federal minimum wage.
- Business survival. 98% of existing businesses were still in business by year-end 2008 (compared to a national average of 70%).
2009 was a year marked by debate about how to measure the impact of microfinance in the developing world. Here in the U.S., MicroTest remains the gold standard for measuring client outcomes, and ACCION USA is pleased to participate in this project. We look forward to teaming up with the Aspen Institute once again in 2010. (And we’re looking for interns to help!)
Tags: Aspen Institute, impact, outcomes, recession
ACCION USA Success Stories in the News: Everardo Branford
A couple blog posts ago, we profiled ACCION USA borrower Everardo, the owner of Branford’s Original Hot Sauce. Well, success stories spread quickly, and Everardo was recently featured on Primer Impacto, a Spanish-language news show airing on Univision.
For those who are fluent speakers or can at least muster up their high-school Spanish, here’s the segment:
http://www.univision.com/content/videoplayer.jhtml?cid=2224075
Microfinance at Work in Boston: Video Success Story Series
Meet Adam Lantheaume, owner and founder of The Boston Shaker Inc., in the second post of our video borrower success story series, brought to you as part of our “Microfinance: It’s Not Charity, It’s a Chance” holiday awareness campaign and fund drive.
Adam is sprucing up the “specialty cocktail” industry by selling imported garnishes, hard to find cocktail bitters, staple barware and cocktail books. The Boston Shaker provides the ingredients and classes to build the ‘know how’ for hosting a cocktail party, or enjoying cocktails from the comfort of home.
How is Adam’s business making a difference?
The Boston Shaker Inc. is working to be ‘economy friendly’. “My business is helping people who, in this soft economy, are starting to do more things themselves at home rather than spending money going out.” Customers of The Boston Shaker are hailing from all over and latching to this idea! “That enthusiasm and the excitement I get from my customers is what keeps me going”, says Adam.
Adam is working hard to start small and expand his business, and opportunities for future employment. Adam recently moved into his own storefront space, after finding an innovative way to share rental space with a local retail store. “It was a really positive experience for both parties. [After sharing space], I better understand my future business goals and now, with my own four walls, I can do a lot more for the community that I’ve been trying to help.”
Encounter with ACCION USA
Adam learned about ACCION USA’s business loans by attending one of our free financial education seminars, The Fundamentals of Running a Successful Small Business. When he was ready, he applied for a small business loan to purchase materials for his classes and attend an annual gathering of the top individuals in his industry. As a recipient of the Samuel Adams Brewing the American Dream Loan Fund at ACCION USA, Adam has taken advantage of the program’s speed coaching events, meeting one on one with experts to gain valuable advice.
Cheers to that!
Check out The Boston Shaker for your holiday shopping needs.
Microfinance at Work in Miami: Local Success Story Video Series
ACCION USA’s “Microfinance: It’s Not Charity, It’s a Chance” awareness and holiday fundraising campaign launched earlier this month and has since won critical acclaim. Thanks to everyone who has helped spread the word by sharing our video on Twitter, Facebook, email, and more. With nearly $3,000 raised, we’re at a steady pace to reach our final goal of $10,000 by the end of the year!
As part of the campaign, Main Street Microfinance will be bringing you video blogs of donors and borrowers from across the United States to inspire others to join the cause. Check out our first client video interview, from Miami, Florida:
Meet Everardo, owner of Branford’s Originals Hot Sauce. Using family recipes from his native Panama, Everardo concocts a wide variety of unique hot sauces and barbeque sauces (try the best selling Roasted Garlic sauce to add tangy spice to your grilled chicken.)
With a small business loan from ACCION USA, Everardo was able to expand his business and he now carries 10 sauces. You can find his sauces in Sedano’s Supermarkets and Whole Foods throughout Florida. If you’re outside the state, pick up a gift basket on the Branford’s website for the spicy food lover on your holiday gift list.
Thanks to Benjy Himmelfarb in Miami for the interview and video footage!
The Story of Tanto Dulce Cafe
Monica's drawing of her cafe, Tanto Dulce
When ACCION USA borrower Monica Gonzalez designed the interior of her new Harlem café, she did so from a hospital bed. Monica was recovering from major emergency surgery in the months before the opening of Tanto Dulce (“So Sweet” in English), a dream which had been years in the making.
Eight years ago, Monica moved to the U.S. from Venezuela, where she had worked as a lawyer, in order to give her children better opportunities. Not knowing English, she found it difficult to secure a legal job, so she turned to her hobby: baking. After an apprenticeship and classes where she learned to make classic Italian desserts, Monica opened up a wholesale basement space from which she sold to local food trucks serving the Hispanic community.
ACCION USA gave Monica a loan to open up a storefront on Broadway in Harlem. However, she started having stomach problems around the same time. When they became too painful to ignore, she saw a doctor, who told her she would need to have surgery immediately. As her family and friends were completing the move into the Tanto Dulce space, Monica directed their efforts from her hospital recovery room, drawing pictures like the one above.
Monica’s unassuming demeanor hides a fierce entrepreneurial drive that is evidenced by her perseverance. In addition to continuing to sell wholesale goods from the basement space, she is taking more classes to broaden her cooking repertoire so that she can open a wine bar one day.
On a recent visit, I found the tiny café full of both students and local patrons, all enjoying their late-morning snacks and coffees as studying as reggaeton radio music softly played in the background.
Check out a behind-the-scenes video here on our YouTube page!
Tags: baking, cafe, microcredit, pastry, small business, success stories, us microfinance, venezuela
Back to School, Back to Small Business
Patsy and her daughter, Yanique, at Expressions Education Center
With the end of summer upon us, our minds turn to fall, when kids (and some adults) return to school and the rest of us return to work from our late-summer vacations. Patsy and Yanique, of Expressions Education Center, have already been thinking about and preparing for back-to-school season for the last few months. As they wrap up their summer camp session, they are registering elementary-school students for the fall term of their after-school tutoring program.
Patsy, a native of Jamaica and a teacher by trade, started Expressions out of her Brooklyn home fifteen years ago when she saw that her students needed more one-on-one help with their schoolwork. Soon after, Patsy’s business grew to occupy a building in Flatbush, and her daughter Yanique joined to help her mother develop business strategy. They hired additional teachers to meet their community’s growing interest.
Having no luck with local banks, Patsy had to rely on expensive credit cards to finance her initial business investment. She received a loan from ACCION USA last year in order to make some renovations required by the city government, and used part of the loan to begin paying down her expensive debt. For small business owners like Patsy, who have to rely on credit cards for large investments, ACCION USA provides one of the only low-cost options available.
Patsy and Yanique’s business is much more than just an after-school day care center for kids with working parents. They have created a fun environment for holistic academic and nutritional learning that kids are excited to come to after school. Patsy and Yanique have even begun expanding their music class options from piano and flute to more unique instruments like trumpets and drums. They also plan to continue their popular baking contests – in addition to being a good way to teach kids the valuable lesson of how to follow directions, there aren’t any complaints about consuming the resulting sweets.
For the Fall schedule, check out the events page of Expressions’ website!
Tags: education, expressions, success story