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equipping churches to transform communities

COMMUNITY ECONOMIC DEVELOPMENT PROGRAM PROFILE 2012

AR 2011


PROGRAM OVERVIEW El Salvador, located in Central America with a population of 6.1 million, is one of the poorest countries in the western hemisphere. Approximately 34% live below the poverty line. In rural areas where most people rely on small-scale farming to survive, 19% of the rural population lives on less than $1 per day and 24% live on less than $2 per day. ENLACE's Community Economic Development program (CED) provides small-scale entrepreneurs and farmers training, technical assistance, financing, and links to markets to start or expand business ventures at the individual, community and regional levels. Economic, environmental and social challenges are interdependent, complex and ever-changing. ENLACE recognizes that each community has different resources, knowledge, experiences and access to markets. Therefore, ENLACE trains church and community leaders to identify local resources and markets to generate economic opportunities at the individual, community and regional level. The program also works to link economic initiatives to other critical issues in the community such as housing, health, and education. The CED program is an integral and important component of ENLACE’s community transformation approach. Since 1993, ENLACE has trained and resourced church and community leaders to alleviate spiritual and material poverty in El Salvador. The CED program is one of ENLACE's four main programs which include Church and Community, Housing and Infrastructure, and Healthy Communities.

KEYS TO CED SUCCESS HOLISTIC MULTI - SECTOR MULTI - LEVEL

ENLACE’S EIGHT CORE OUTCOMES ENLACE equips church and community leaders to develop programs and projects that target eight community transformation outcomes. Five of the eight outcomes are directly affected by the implementation of CED projects.

#1 DEVELOP LEADER CHURCHES * #2 BUILD THE ORGANIZATIONAL CAPACITY OF COMMUNITY ASSOCIATIONS * #3 ERADICATE EXTREME HUNGER AND POVERTY * #4 IMPROVE ENROLLMENT RATES AND INCREASE ACCESS TO EDUCATION #5 ASSURE LOCAL ENVIRONMENTAL SUSTAINABILITY AND BOLSTER COMMUNITY HEALTH * #6 IMPROVE INFANT AND MATERNAL HEALTH * #7 PREVENT THE SPREAD OF INFECTIOUS AND VIRAL DISEASES #8 STRENGTHEN COMMUNITY INFRASTRUCTURE *Outcomes directly affected by CED program


PROGRAM SERVICES The CED program has two primary components: agricultural assistance and micro-enterprise development.

AGRICULTURAL ASSISTANCE ENLACE works primarily in rural and semi-rural areas where hunger is one of the most pressing needs. The primary aims of the CED program are to increase agricultural production, improve the quality of food products, increase access to food, and reduce malnutrition and micronutrient deficiencies. Upon meeting the primary nutritional needs of a family, the program aims to strengthen the capacity of farmers to generate income through agricultural activities and to improve markets for agricultural products. Agricultural assistance is provided within three stages:

Stage 1: Increase Agricultural Productivity and Caloric Food Security In this stage, ENLACE works with church and community leaders to select the types of products they would like to grow to increase their caloric intake such as vegetables, fruits, fish and poultry. The program also trains farmers in soil preparation techniques, effective seed planting, the making of organic pesticides and fertilizers, harvesting crops, and seed selection and storage.

Stage 2: Crop Diversity and Increased Income During the second stage, ENLACE encourages farmers to diversify their production of vegetables, fruits, fish and poultry both to reduce malnourishment as well as to generate income with high-value, cash crops. ENLACE works with local leaders to identify which crops are consumed locally or have a strong local or regional market. At this stage, the CED program assists farmers to improve their stock of seeds and provides additional technical assistance. The program also develops and strengthens local farmer associations and provides credit when needed.

Stage 3: Strengthening Organizational Capacity and Expanding Markets In the third stage, ENLACE further strengthens local farmer associations and committees to build relationships and networks outside of the community with public and private entities to increase production and expand into regional or national markets. ENLACE provides coaching and in some cases start-up/venture capital to expand social enterprises or business ventures.

Monitoring and Evaluation ENLACE tracks and evaluates the following indicators: Production levels for each crop Income generated from the sale of crops Caloric and nutritional intake Level of food security Health-related growth measurements (height, weight, etc.)


AGRICULTURAL ASSISTANCE 2010

AGRICULTURAL ASSISTANCE 2011

AGRICULTURAL ASSISTANCE 2012

161 HOME GARDENS

240 HOME GARDENS

430 HOME GARDENS

18 TILAPIA PONDS

24 TILAPIA PONDS

65 TILAPIA PONDS

18 POULTRY ENDEAVORS

18 POULTRY ENDEAVORS

20 POULTRY ENDEAVORS

1,182 PEOPLE BENEFITED

1,692 PEOPLE BENEFITED

3,180 PEOPLE BENEFITED

197 FARMERS TRAINED

282 FARMERS TRAINED

530 FARMERS TRAINED

9 FARMER GROUPS STARTED IN 7 COMMUNITIES

12 FARMER GROUPS STARTED IN 10 COMMUNITIES

21 FARMER GROUPS STARTED IN 19 COMMUNITIES

Participants learn how to make their own organic fertilizer and pesticides to reduce the costs of production and improve the health of the soil

“Despite their financial limitations, they are motivated...Together they have raised their own funds to buy start-up materials and distribute them...They're so thankful for the support that we are giving.” Alejandro Perez, ENLACE Agronomist

“These projects have increased our self-esteem ...and the way we relate to one another. We’re all more united.” -Lilian Arevalo caring for her tilapia pond


MICRO-ENTERPRISE DEVELOPMENT Since 1996, ENLACE has helped to start or expand over 3,000 small businesses by providing credit and training to micro-entrepreneurs and farmers. Over the last five years, the program has maintained an excellent loan repayment rate of 99% and has been able to circulate over 1,200 loans for a total amount of $1,457,000. Such success is attributed to the hard work of the entrepreneurs who have received credit and training from ENLACE. In 2000, ENLACE helped start a credit union called CREDATEC. CREDATEC is a limited liability corporation registered in El Salvador. CREDATEC was created to manage all financial and capital assistance to micro-entrepreneurs. ENLACE has established a trust fund in CREDATEC to on-lend to qualifying micro-entrepreneurs. An independent credit union provides the appropriate legal structure needed while also separating credit and financial decisions and operations from ENLACE, the local church and community associations. ENLACE’s micro-enterprise development assistance includes two components:

Loans ENLACE recognizes that for an economic opportunity to succeed loan amount and terms need to fit the business’ needs. Too little or too much credit with difficult repayment periods will hinder growth of a business. Therefore, ENLACE performs detailed studies of both the prospective client’s businesses and household income and expenses. Through helping them construct a balance sheet, income statement and cash flow statement, we can determine their businesses’ capacity to incur debt and how best to finance their activities. We also evaluate their household income and expenses to understand the real amount they can afford to pay, how often and at what terms. The loans are disbursed to the client and their repayments collected at local banks. In addition, all clients are required and/or encouraged to contribute to a savings account. Clients often use loans to diversify the products they sell

Business Training and Coaching ENLACE also provides training and coaching to clients who desire and are able to grow their businesses. Clients who qualify will receive coaching on how to improve their businesses and/or other economic activities. We believe that coaching is just as important as the actual loan and emphasize its importance to our members.


Monitoring and Evaluation ENLACE uses the loan application process to track the impact of the loan on a business and household. We track the following indicators: Impact on household wealth and investment Health Education Housing Food Business Indicators Profit Return on investment Sales Inventory Fixed asset formation Number of employees Ownership of store

Low-interest loans and training give entrepreneurs the help they need to start or expand their businesses

MICRO-ENTERPRISE DEVELOPMENT 2010

MICRO-ENTERPRISE DEVELOPMENT 2011

MICRO-ENTERPRISE DEVELOPMENT 2012

199 LOANS

282 LOANS

300 LOANS

$241,570 TOTAL AMOUNT OF LOANS CIRCULATED

$300,528 TOTAL AMOUNT OF LOANS CIRCULATED

$387,500 TOTAL AMOUNT OF LOANS CIRCULATED

99% LOAN REPAYMENT RATE

99% LOAN REPAYMENT RATE

99% LOAN REPAYMENT RATE

“When you are taught how to manage your resources well, you can live without troubles.” -Carlos Cruz Pastor, Pig Farmer and Credit Recipient Panchimalco


2015 VISION

MICRO-ENTERPRISE DEVELOPMENT 2015

AGRICULTURAL ASSISTANCE 2015

585 LOANS

1,350 HOME GARDENS

$515,762 TOTAL AMOUNT OF LOANS CIRCULATED

300 TILAPIA PONDS

99% LOAN REPAYMENT RATE 200 PEOPLE TRAINED AND COACHED

70 POULTRY ENDEAVORS 10,350 PEOPLE BENEFITED 4,300 FARMERS TRAINED 50 FARMER GROUP STARTED IN 37 COMMUNITIES

In addition to their loan payments, loan recipients also contribute to a savings account so they can work off of their own capital when the loan is repaid

“These projects have changed our lives ...[They] help to alleviate economic problems and provide great enjoyment! I’m happy and eager to continue. There’s no way I’m turning back!” -Pastor Felix Amaya

equipping churches to transform communities

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