What is a Business Owner Worth? - Nicaragua Internship Summer 2009

How much do you make in a year? It’s a question that is more acceptable in Central America than in the United States, but its response is often quite different. Whereas a North American often knows her salary at least in general terms, in Central America that often is not necessarily true.

In a recent meeting of over twenty-five bakery owners and workers, the question was posed, “How many of you pay yourself a salary?” Not a single hand was raise, and it took further questions to learn that at least one woman set aside money each period for her own expenses, to pay her workers, and to save up for future investments in the bakery.

However, this raises the question of what an owner of a business is worth. How much should a bakery owner pay himself? How much of the profits should go to the owner, how much should be reinvested in the company, and how much should be directed toward other things? While these decisions may be some of the first made by someone starting a business in the US, many of the bakeries represented in the meeting had been in existence over ten or twenty years. During that time, funds are allocated as need arises instead of through careful planning. Some owners may choose to reinvest almost everything in the business while others are generous with their personal spending. In either case, the line between personal and business expenses is blurred.

To help business owners take control of their finances, Business Professionals Network (BPN) teaches them to track their finances. While the focus is on the business costs, expenses, and income, owners are also encouraged to do the same with their personal finances. By making a personal budget, a businessperson can determine what salary is necessary to cover his expenses, and what should be left for the company.

In the end, what is an owner worth? She is worth a salary that covers her expenses but that still leaves profits to reinvest in the company and protect it from shortages. An owner who manages the company well should not be keeping every dime of profit, but should also have a salary that allows freedom to enjoy life.

All in the Family - Nicaragua Internship Summer 2009

"What do you want to be when you grow up?" It is a question that most North American children learn to keep a ready answer for. And thanks to adequate school systems, scholarships, and many support systems, children who work hard often have a good chance to achieve their goal to be a doctor, pilot, or even an astronaut.

In Nicaragua, opportunities are fewer and while children still dream great dreams, their future career might depend heavily on the work their father and/or mother does. For this reason, businesses in Nicaragua often are a family affair. Children from a young age may begin helping in the family business to learn a trade and expand the capacity of the company. With a successful business parents will be able to better support their children and even send them to college. Also, an expanding business may provide employment to cousins, nieces, and nephews so that they may also add to their family income.

After working many years as a cashier, Susan* lost her job and needed a new source of income. She first tried selling cosmetics and then switched to natural drinks. She grew this business into a small carry-out restaurant run from her house. As business expanded, she needed more help, and now she is able to employ her two sisters.

In another family, the father has a mechanic shop. His sons are reaching the age when they can begin working, so he is training them in mechanics. However, it is his wife who keeps the financial records for the business. In this way, the business depends not only on the father's work but on the contributions of many family members.

In Nicaragua, a successful business has the potential to support not only a business person, but an extended family, meaning opportunities for children to get a higher education and for families to improve their standard of living.

*Name changed

What is your Vision? - Nicaragua Internship Summer 2009

This past Wednesday, seven business owners met in the office of Business Professionals Network for a workshop on how to fill out a business plan. As they started going through the documents, one of the first questions posed was, "What is your vision? What is the vision you have for your business in the future?"

As I listened to the facilitator, I was asking myself, "What is my vision for my life?" While I think I have a good idea what it is, I find it helpful to take the time on occasion to pose this question not only in my personal life, but also in the things that surround me--work, church, relationships, and even hobbies.

Living in Nicaragua this summer, I'm also asking myself another question about vision--"What is a Christian vision of development in this country?" What I see and hear daily is a mixture of hope for the good work that is being done right along side of systems and situations that are unjust and unacceptable. The work I am doing is only having a small effect, but I hope it can play a role in moving toward the development in Nicaragua that I and many others can envision.

Sometimes, it seems too ambitious to imagine that the garbage on the streets could be gone, that the sick could receive the needed medical attention, that all children would be in school instead of selling water and candy on the streets. But that is when I turn back to the statement about vision in Habakkuk 2:2-3. God's vision of complete restoration may seem slow, but it is guaranteed. So too, the vision for restoration in developing countries may seem slow, but with God in our work, we should not lose heart.

And the LORD answered me:
"Write the vision;
make it plain upon tablets,
so he may run who reads it.
For still the vision awaits its time;
it hastens to the end -- it will not lie.
If it seem slow, wait for it;
it will surely come, it will not delay. (Hab 2:2-3 NIV)

A Day in Catarina - Nicaragua Internship Summer 2009

The natural beauty of Central America always takes my breath away. Coming from the slightly hilly Midwest, the mountains, valleys, volcanoes, and lagoons of Nicaragua dwarf any hill or sand dune I've ever climbed in Michigan. Yesterday I was once again amazed by the view from a mountainside overlooking a lagoon with a lake farther on that disappeared into the horizon. With binoculars we could see the contours of the forests on the surrounding hills, and between the lagoon and lake the roofs of a town were just distinguishable.

It is within these stunning surroundings that 5.5 million residents of Nicaragua live. However, what often draws my attention away from the natural beauty is the stark contrast between this beauty and the situations in which many residents of Managua live. Just today on the way to work we past the fruit and vegetable stands. I had always thought these shelters were used during the day by sellers and then abandoned at night as the people went home. Instead, a co-worker told me that the fruit vendors actually live in the back of those stands, with beds, televisions and all their possessions. I was shocked, but it was one more example of the daily survival of some sectors of Nicaraguan society.

A Great Cloud of Witnesses - Nicaragua Internship Summer 2009

The past ten days have been a time of great change in my life. From finishing exams for my third year of college to moving from my college home back to my parents’ house and from saying goodbyes with family and friends to packing a suitcase for three months in Central America, every day has brought an end to one thing and the beginning of the next step in life.

Tomorrow I fly to Managua, Nicaragua to begin a three month internship with Partners Worldwide (PW), a Christian organization committed to using business to transform lives and eradicate poverty. I will be staying with a Nicaraguan host family and working with PW’s partner organization, Red de Profesionales de Negocios (called Business to Business in English). In my work, I will be assisting small- to medium-sized businesses as they go through the application process to join the RPN network and receive training and other forms of assistance.

During these times of transition, I have felt God ministering to me through the people he has placed in my life to walk with me and provide guidance and assistance. Hebrews 12:1-2 begins with this concept, saying that “…since we are surrounded by such a great cloud of witnesses, let us throw off everything that hinders…and run with perseverance the race marked out for us….” While the witnesses referred to are the heroes of faith in Hebrews 11, I also am reminded of the heroes of faith in my life today that run this race with me and encourage me along the way. Even as I switch locations geographically, I will still be surrounded by this cloud of Christian witnesses in Nicaragua. My first full day in the country will be spent in worship with Nicaraguan Christians who share this same faith. Borders can separate us physically, but the great cloud of God’s witnesses is united through the Spirit around the world. And so we join together, wherever we are, to “fix our eyes on Jesus, the author and perfecter of our faith…” (Hebrews 12:2).