MEDA Blog - Stories from the Field

Nicaragua’s Micro-Entrepreneurs Show Savvy Business Skills

b2ap3_thumbnail__Alan-and-Dave-with-MiCredito-CEO-Veronica-Herrera.gifLast week MiCrédito received a visit from a group of representatives from MEDA including President Allan Sauder, Chief Engagement Officer Dave Warren and Senior Project Manager Nick Ramsing. I got the opportunity to spend the day with them visiting MiCrédito’s Granada branch and chatting with clients about their experiences with MiCrédito and the impact of MEDA’s TechnoLinks project. 

Most of my work so far with MiCrédito has been concentrated in the office, so this was a great opportunity to get out into the field to chat with clients and learn about the impact of MiCrédito and MEDA projects. The main thing that struck me is how business-savvy our clients are. The clients that I spoke with were extremely adept at finding ways to provide a unique product or service to make their businesses more competitive.

We spoke with one client who runs a pulperia (convenience store) just outside of Granada near the base of the Mombacho volcano. As there is no medical clinic near her community she had the idea to add a small pharmacy area to her store to provide basic medical supplies so that community members would not have to go all the way into Granada to purchase supplies. No other pulperias in the area are providing these types of products which really helped her differentiate her store and compete with other pulperias in the area.

We visited another client named Don Carlosb2ap3_thumbnail_myself-and-Alan-in-a-carriage-owned-by-one-of-MiCreditos-clients.gif whob2ap3_thumbnail_MiCredito-client-Don-Carlos-with-his-carriage.gif runs a horse-drawn carriage business in Granada. The historic center in Granada is full of horse-drawn carriages catering to the large number of tourists who visit the city. Don Carlos wanted to do something different, so instead of catering to tourists he decided to provide carriages for special events. He proudly showed MEDA President Allan Sauder and me countless photos of beautiful carriages decorated for weddings, quinceañeras (the fifteenth birthday celebrations which are a huge deal in Nicaragua and other Latin American countries – like a sweet sixteen but bigger), and other special events. At the end of the visit Don Carlos gave us his business card – telling us to call him if we ever needed a carriage.     

Another thing that impressed me is that all of the clientsb2ap3_thumbnail_MiCreditos-Granada-staff-during-a-performance-for-our-guests-from-MEDA.gifb2ap3_thumbnail_MiCredito-Esteli-Branch.gif mentioned how much they appreciate how fast MiCrédito is at approving loans. MiCrédito can be so fast because they use mobile credit checks – a technology introduced as part of MEDA’s TechnoLinks project. Using mobile technology credit officers can check the credit ratings of clients in the field without having to return to the office. Most micro-finance banks in Nicaragua take 3-5 days to approve a loan; MiCrédito takes only 1-2 days. Don Carlos was approved for a loan within an hour, making it possible for him to buy a horse for his business which was only available that day. He bought the horse years ago and it is still serving him well today. This speed really sets MiCrédito apart from other MFIs in Nicaragua and enables the bank to better serve its clients.

Overall I was extremely impressed by all of the clients we visited in Granada. It just confirmed for me the importance of the work that MiCrédito and MEDA are doing in Nicaragua. Many micro-entrepreneurs are extremely creative and know their markets very well but they need financial support to make their businesses work. 

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