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A Second Chance

Written by: Grameen Foundation

Article Overview: Beatriz's story - Honduras

A Second Chance

Through our support of microfinance institutions around the globe, Grameen Foundation is helping prove that microloans are an effective strategy to alleviating poverty. While many programs target impoverished women with families, read below to see the inspiring story of how one program in Honduras is helping to bring some of the elderly poor above the poverty line as well.

Life in Honduras is difficult for the poor, and especially for the elderly poor. Without social security or retirement programs, many older Hondurans must rely heavily on the support of their children to survive. Take the case of Beatriz Canaca Pavon. As a 76 year-old widow living in the town of Ceibita Way in Honduras, she lives alone in a house made of salvaged material and scrap wood, which lacks a bathroom or running water. She has no electricity and no appliances, has no furniture and cooks with firewood. Just one year ago her most valuable possessions were her 20 chickens. Beatriz was forced to survive off her chickens and the occasional 100 to 400 lempiras ($6 - 25) that her children would give her each month out of their meager incomes.

Beatriz, however, does have a skill - she only lacked the capital to put that skill to use. Well known in her community for her baking, Beatriz uses her comal (clay firewood oven) to bake delicious breads and other snack items. When she heard about a local microfinance institution, however, she saw the opportunity to use her skills to earn additional income. With a 500 lempira ($33) loan from Adelante, Beatriz became one of their oldest clients. She bought pans, an oven mitt and baking ingredients in order to make baked goods to sell.

Like other microcredit organizations, Adelante requires that their clients join solidarity groups of five women before becoming eligible for taking a loan for their individual businesses. Beatriz joined Adelante with four other women in her village, who have collectively introduced baked goods, clothes, snacks and vegetables to the local market. Now the village of Ceibita Way has two solidarity groups, or ten businesses, and the villagers no longer have to travel to the city to buy most items, as they are available from Adelante-financed businesses. This is especially important for the residents of Ceibita Way, because in order to get to the main road and catch a bus, one must walk more than an hour.

In the photo above, you can see Beatriz reviewing her business plan with Adelante credit officer, Cesar Baharona. Cesar, who has been with Adelante for over a year, says that the women of Beatriz's solidarity group are "some of the oldest women clients Adelante have - the youngest woman is 50. But Beatriz and her group members are eager to start businesses and start earning money. It's never too late to start pursuing your dreams." For people like Beatriz, this is a refreshing statement to hear.

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Article Tags: additional income, baked goods, baking ingredients, chickens, delicious breads, firewood, five women, grameen foundation, hondurans, incomes, inspiring story, lempira, microfinance institutions, pavon, possessions, poverty line, retirement programs, running water, scrap wood, solidarity groups



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