Walking Alongside

What makes a business development NGO any different from any other microfinance lending organization?

It’s the story, just like this one, behind each loan payment.  Whereas a lending organization focuses on collecting loans within the given time period, business development implies a long-term investment and a commitment to walk beside each businessperson, whether a loan is involved or not.  That commitment involves visits, phone calls, light conversations about family and the tough questions about what is really happening in the business.  It’s an enriching and fulfilling relationship, but at the same time requires a strong connection in order to honestly discuss what is best for the business and the owner.

A week ago I had the privilege of visiting Roger, a jewelry maker who participated in business training with our local partner PCD-Ecuador, received a loan, and formally started his jewelry business fulltime in November.  Roger comes from a family of jewelers and previously worked for a major jewelry manufacturer, but he wanted to have his own business to work with his wife and brother to carry on the family tradition.  With a loan from Partners Worldwide, Roger purchased the necessary machinery and now spends his days creating his own jewelry instead of simply following the designs created by his employer. 

Starting his business has been a joy for Roger, but it comes with many questions.  “Should I invest in additional machinery now or wait until a later point?  How can I increase sales?  Should I purchase an island in a mall to sell my products or continue selling through intermediaries?”  These are questions that Roger must answer, but he is not alone in searching for the best response.  Every month, Roger calls his business mentor in the US to share his questions and evaluate options with an experienced Christian businessman.  At the same time, local representatives visit Roger and review his financial statements. 

Through this ongoing communication, Roger is not alone as he takes the first strides in his business but has other Christian businesspeople walking alongside him every step of the way.  That is what makes Partners Worldwide and our local partner, PCD-Ecuador, business development NGOs—the constant commitment to the businessperson.

Check out an earlier story on Roger’s business on the Partners Worldwide website.

And look for more stories on businesses and a bike trail in Ecuador later this week.

Feliz Año Nuevo y Adios al Año Viejo

Translation: Happy New Year and Goodbye to the Old Year

In the United States, we have traditions of getting together with friends on New Year’s Eve, maybe attending a midnight service, alternatively watching the ball drop in Time Square, and probably singing “Auld Lang Syne” and toasting to the New Year quite soon after midnight.

In Ecuador there are traditions as well, and I’d like to introduce a few that I participated in this past weekend to say goodbye to the old year and welcome in 2011.

On the afternoon of December 31^st, I took a trip down to one of the main streets in Quito, which is lined each year by floats that poke fun of events in the past year.  Since I don’t understand all the political jabs, it was more interesting for me to see the creativity put into the design of these larger-than-life figures.

A character on one of these floats is called un año viejo, or in English, an “old year.”  They represent all the good and the bad that happened in the past 12 months, and at midnight on New Year’s, they are all set on fire, representing that both the old year and the people and events that marked that year have ended.  That idea of getting rid of the past and starting out fresh is a reminder for me of the command in Ephesians 4 to “put off your old self” and “to be made new in the attitudes of your minds.”  When I first heard about the tradition of burning the “old year,” I thought it would be an insult to be the one represented and burned, but my friends explained to me that it’s actually a very good thing to be the effigy used for the año viejo.  In a sense, being burned as the año viejo gives the person a new opportunity to put off the problems of the old self and be made new as the new year begins afresh.

On a less philosophical note, Ecuador also has a unique tradition of the viudas or “widows” of the año viejo, who stop cars asking for money for the “funeral expenses” of the dead año viejo.  In reality, these are usually young boys who dress in black with skirts and sometimes a wig.  Everyone knows that if you drive around Quito on the 31^st, you need to have a lot of change to make it past the makeshift barricades that these viudas set up.  I’m not sure the history or significance of this, but I suppose it’s entertaining and a good way for these kids to get a little extra pocket change.

With my host family, we bought and made our own año viejo to burn at midnight.  Since the youngest sister had wanted Germany to win the Soccer World Cup, they made an octopus selecting Spain over Germany out of paper mache and pizza boxes.  Additionally, they bought a sawdust-stuffed representation of Osama Bin Laden for reasons that are beyond my comprehension.  As part of the unique family tradition, the boys in the family jumped over the burning año viejo, resulting in at least one burned toe.  We joined the rest of the city to set off fireworks and light sparklers, and in the end, it looked like fog had rolled in because every street we traveled on the way home was still full of smoke from the años viejos and fireworks.  In this way we welcomed in a new year in Quito, and look forward to great things in the next 362 days!

Business Training Class Graduation

On the first Saturday in December, Partners for Christian Development-Ecuador (PCD-E) held the final class of its third business training course in Quito, Ecuador.  Twelve weeks earlier, the PCD-E training team eagerly awaited the arrival of the first businesspeople at the doors of the classroom.  This Saturday also involved a high level of energy and excitement as the participants completed the last step in this business course and began the first steps in the next part of their story.  For some that might be the start of a new business, and for others the implementation of new ideas to stimulate further growth in an existing business.

After the board president, an Ecuadorian lawyer, gave the final lesson on legal requirements for businesses, the class participants received a call from two members of the Global Business Affiliate (the Ecuador GBA is composed of about 10 US businesspeople).  Along with giving personal congratulations to each of the five businesspeople who were to graduate that day, the GBA members emphasized the importance of pursuing one's plans goals and trusting that with God we can achieve great things.  Everyone was grateful to be able to share time together that transcended the distance between GBA members in the US and the training classes in Ecuador.

After receiving their course certificates, the five graduates and one non-graduating participant were joined by three PCD-E board members for a celebratory lunch prepared by Monica (a successful new restaurant owner already featured in this blog).  Monica shared a part of her story, telling how she was able to grow and learn from hard experiences to become the businesswoman she is today.

As the culmination of 12 weeks of working, learning, and building relationships together, the graduation brought high hopes for future opportunities.  Just as the graduates will take advantage of the opportunities available to them in their businesses, the PCD-E board is looking forward to implementing ideas to improve the fourth business training class.  The team looks forward to starting an even better business training course in March.  Before then, trainings will also begin in the city of Cuenca and the farming community of Las Mercedes (see Las Mercedes story from July!)

More Trainings Please

The plan was always to hold two business courses a year, each comprised of twelve classes on topics such as marketing, production, and accounting.  That was the plan, until Juan Carlos showed up at the very first class.  A street vendor who had not completed high school, Juan Carlos was motivated to take the lessons he learned each Saturday and apply them to his business during the rest of the week.  Instead of persisting as a street vendor, weathering storms, avoiding the authorities, and pushing his cart through crowded sidewalks, Juan Carlos took steps to formalize his business.  His typical location had been on a street corner across from a school, but half a block down the road there was an empty storefront.  Using his own savings instead of taking on a loan, Juan Carlos rented the space and purchased tables, benches, and an awning that announces "The Authentic Cevichochos."  From this space, he now sells cevichochos, a healthy Ecuadorian snack comprised of white chocho beans, ceviche shrimp, toasted corn kernels, plantain chips, and an onion-tomato sauce.

While he was improving his own business, Juan Carlos had a desire to help his fellow cevichocho vendors.  Together with 45 peers he formed an association complete with a uniform and plans to petition the government to allow cevichocho vendors to sell on the streets.  Knowing that his business training had helped him set goals and improve his work, Juan Carlos also began teaching the lessons he received through classes at Partners for Christian Development (PCD) to the rest of the association.  After three classes, he asked the PCD administrative assistant, Edwin, to help him lead the classes.  In this way, the impact of business training is being multiplied, and once-isolated cevichocho vendors are now united, seeking to improve their services, legalize their informal businesses, and save enough to also establish their own storefront restaurants.

On a Wednesday afternoon, Edwin and I stopped in to check on Juan Carlos, plan the last class of the business course, and enjoy some authentic cevichochos.  Just inside the doorway stands the street cart that used to be the entirety of Juan Carlos' business.  Now the cart is accompanied by a stove where his assistant prepares typical fried pork and a display case filled with beverages and tuna, which can turn a roadside snack of cevichochos into a sit-down meal.  As we conversed with Juan Carlos, he shared that the association had started a savings fund and already was giving out its first loan to improve another cevichocho business.  Not only has he improved his own business, but Juan Carlos is also inspiring others to do the same.  Furthermore, he is not finished receiving training.  Juan Carlos recently enrolled in night classes so that he can finally achieve his high school diploma.

Anticipation

Saturday morning at 9am Quito time, our many hours of preparatory work will culminate in the inauguration of a new business training class for micro and small business owners in Quito.  Over the past weeks we have worked to secure a classroom in a central location; promote the course in four churches; confirm participants; and print flyers, sign up sheets, and hundreds of pages of course booklets.  We have been praying for God's blessing and looking for opportunities to invite more people to participate, both as facilitators leading the classes and as participants deepening their knowledge of business fundamentals from a biblical basis.

July Training Graduation

As I sit in the office and listen to the printer hum through one sheet after of tomorrow's homework, I can feel the potential that this course holds.  Tomorrow will mark the end of promotional work, but it is just the start of 12 weeks of classes.  On the eve of the start, we don't know who will come, what types of businesses they will have, or in what areas their businesses can grow, but those details will be part of a new phase of work and learning.

It strikes me as ironic that the focus of the training is to elaborate a Business Plan.  After all our planning for this class, the point of our work will be to teach others to plan.  It's not always a message that we want to hear.  It would be much easier if we could show up tomorrow and everything would magically be ready, without any investment of our time.  In the same way, I'm sure the business owners would agree that there would be less stress and fewer sleepless nights if the product line rolled on without supervision, the accounts always balanced themselves, and the product sold wildly without any advertising.

However, if we had not gone through the process of preparing for this course, we would not have learned some of the lessons along the way.  We would not have met some of the people who are now supporting the course, and I would not know the board members as well.  In short, the course holds more value for the work we have invested in it, and the anticipation of all these weeks will make the beginning of the course that much more fulfilling.

I hope that taking this course and planning for their businesses will have a similar value for the businesspeople who participate.  Spending 3 hours each Saturday morning in a course for 12 weeks won't always be appealing at 8am after a late Friday night, but hopefully what the course participants learn while preparing their business plans will have a lasting impact on the way they do business.

Unfortunately, a business plan is sometimes seen as a necessary evil on the path to a loan, quickly forgotten as soon as the financing is achieved.  "I already know everything I need to know about business; just give me the money" is a sentiment far too often expressed.  Yet without planning, we are not ready to take major steps in life and flourish in both the opportunities and the challenges.  Planning does not avoid difficulties, but it prepares us to persevere.  What's more, the anticipation involved in planning shows us the importance of what we are doing and teaches us to delight in achieving our goals.

As I listed to music play over the continuing hum of the printer and look out at the mountains and valleys of Quito, I know that this stage of planning is drawing to an end, but there are others to come.  We are planning goals for this year as an organization--to improve trainings and to give follow up assistance and to make strategic alliances with other organizations.  Each thing will come with its due time, and until then we will keep working hard and anticipating the results.

Monica's Restaurant

Crossing a busy avenue in the industrial sector of Quito, Ecuador, I ducked into a blue-green building where the rattle of dishes above the gentle melody of Spanish music announced the preparation of meals for the lunchtime rush.  Monica called out her greeting as she carried a tray of soup to patrons in the upper dining area, and a waitress soon brought me a sweet yellow fruit drink called naranjilla.  When business slowed down and Monica could join me to talk, she explained that in the five weeks since she opened this restaurant, sales had grown from fifteen lunches per day to around eighty on the day I visited.  Motioning with her hand like a rocked in takeoff, she beamed with delight at the growth in the business but also recognized the challenges ahead of her.

Located near many factories, Monica has a large lunchtime customer base, but she also has many competitors.  With seven other restaurants within a few blocks, the price of a lunch is fixed, but Monica distinguishes her restaurant by the high quality and exceptional flavor of her cooking along with the inclusion of a small dessert in the price of a meal.  As business grows, she hopes to contract another worker to work in the evenings so that she can stay open late and offer empanadas, a cheese- or plantain-filled bread that is a popular snack as people return home from work.

These aspirations to grow and improve her very own restaurant are the fruit of many yeas of preparation for Monica.  Only a few years ago, Monica lived in the eastern jungle region of Ecuador and was a teacher with no intentions of working in the food industry.  However, a series of events forced her and her husband to move to Quito.  As they started off with nothing, she found that her cooking could be a source of income to help provide for her two young daughters.  Monica had grown up around her mother's restaurant in the eastern jungle, so she turned her knowledge of food preparation into an informal business, catering for events and serving lunch to nearby construction workers in her home.  Nonetheless, Monica had bigger dreams.  Through business training from Partners Worldwide's local affiliate, Partners for Christian Development, Monica learned the management skills needed to complement her cooking and open a restaurant.  A loan from Partners Worldwide was the final step to fulfill this goal, allowing Monica to purchase an existing restaurant and make it her own.

Although it has only been a few weeks since the business opened, the impact in Monica's life is obvious as soon as one meets her.  "I feel strong." Monica says, lifting her arms and smiling broadly.  "This is my very own business and I make the decisions.  It makes me feel useful and fulfilled, and it is going to have a great impact on my family and community."

Monica is one of four businesspeople who received loans in July after completing a 12-week business training class and writing a business plan.  I look forward to following the progress of their businesses and seeing them achieve the goals they have set out.


Coming soon: The Economic Context of Ecuador: Why we do what we do.

Snapshots of Life in Ecuador

Over the past month, I have seen a glimpse of the beauty of Ecuador.  From the snow-capped volcano Cotopaxi that greets me in the morning on clear days to the fish markets that characterize coastal towns like Manta, Ecuador is at once filled with the sleeping peace of ancient peaks alongside the bustle of commerce and barter that fill each new morning.

Quito is ringed by volcanoes, and during my first weekend in Ecuador I had the opportunity to take a cable car and then hike to a point at the base of Pichincha.  Reaching an elevation of over 4,100 meters, I climbed to the highest point I have ever visited, and the view of the city and the surrounding farmland was majestic.

The day before that, I took a quick ride to the middle of the world...er...the equator.  They call it the mitad del mundo here to distinguish from the name of the country.  As I stood with one foot in the Southern Hemisphere and one in the Northern Hemisphere, it struck me how far I had traveled.  Michigan is halfway between the equator and the North Pole, and I had crossed the 45th parallel several times.  Yet suddenly I found myself at that geographical landmark that I had previously only known as a line on a world map.

Besides the natural wonders of Ecuador, I am always intrigued by the daily life here.  When I was on the Pacific Coast to visit Las Mercedes, we visited a fish market where one could purchase anything from sharks to $800 tuna to shellfish.









Gaviota birds swooped down to steal fish as they were carried from the motorboats to the shore, and pelicans did their own fishing in the distance.














Competing with the calls of fish sellers was the constant hum of chainsaws and hammers at the shipyard a few meters down the beach.









 Back in Quito, there is a part of the city called La Ronda, which comes alive at nightfall with all the charm of the colonial era.  Over the rofs of the ancient buildings gleams the clock tower of the cathedral, and down the twisting cobblestone road one can purchase traditional drinks and appetizers from the doorways of shops.  These are just a flavor of the rich culture and geography of Ecuador, and I look forward to experiencing more of this country in the coming months.

Next up: Monica's Restaurant