Agros Blog

The following was written by Rebecca Craig, Agros International Student Worker in the Communications Department:

Earlier this month I attended the Bottom Billions/Bottom Line conference presented by Seattle Pacific University. The conference examined methods of poverty alleviation and welcomed business and international development leaders from around the world as speakers. Among them was opening speaker Collin Timms, an enthusiastic entrepreneur with great commitment to poverty alleviation in India. As a founder and the current chair of Guardian Bank – a microfinance institution that has experienced great success with its programs targeted at women – he had much to say about the impact that micro-enterprise loans can have on rural women. As I was listening to Timms describe the significance this program holds for women and their communities, I became encouraged by the number of commonalities between his experiences and those of Agros’ Women’s Community Banks.

Agros uses microenterprise loans for women as an integral and hugely powerful component of our development model, often through the formation of Women’s Community Banks. The banks are typically made up of twelve to twenty women, who provide a support system for each other and mutual responsibility for repayment. Each member receives a six-month loan to provide startup capital for her business such as textiles, baking, and small animal husbandry with pigs, rabbits, goats, or chickens. Hearing Timms, a likeminded individual in our field, reiterate much of our success really inspired me to take a deeper look at why this program is so special and how it affects the women in Agros villages.

Women’s Community Banks are particularly powerful for a number of reasons. Most often the women we work with have not had prior access to credit, nor have they had the opportunity to try their hand at income generating activities. Being stuck in the ruthless cycle of generational poverty often means struggling to survive rather than striving to thrive. However, Agros breaks this cycle and within the context of land stability allows women the opportunity to create small businesses. These community banks allow women to forge their own path out of poverty, and to use what they are good at and passionate about for the support of their family.

Another powerful aspect of these Community Banks is that they allow women to dream! This is usually not a viable option whilst caught in the cycle of poverty.  But these women have the work ethic and desire to provide important supplementary income for their families; all they need is the training, capacity building, and start up finances to make their dreams a reality. Magdalena, a participant of the Women’s Community Bank in La Esperanza, El Salvador, is a great example of this: she used a loan and training to cultivate a bean crop and, with her profits, she bought a refrigerator in order to further her business.

“I can sell frozen chocolate bananas and other sweets. My dream is to start a chicken project and use my refrigerator to store chickens I’ve prepared for sale. I’ve already made a budget and calculated that I would make a profit.”

One of the reasons that Agros has integrated Women’s Community Banks into all five of the countries it works in is where the profit ultimately ends up. Timms reiterated this aspect of women’s small businesses by saying, “We find that the money made from these women’s microenterprise projects goes directly toward the family: toward better nutrition, better education for their children, and better lives overall.”  This reinvestment is important because it provides economic, educational, and health benefits for generations to come. This additional revenue also supplies a more diversified income for the family.

Additionally Agros has found that women make for a great investment; our repayment rates have been consistently at our set targets since beginning to program. This is due the intentional communal aspect of the banks, which build personal confidence as well as economic stability: ensuring greater success for both lenders and borrowers. Timms commented on how powerful this dynamic can be: “By creating groups for these loans, the women draw off each other’s strengths, and help to balance out one another’s weakness.” Looking to the example of La Esperanza, another member, Dora, highlights this phenomenon.

“We take care of each other since we can see who is really paying back their loan and want to be able to keep working together.  I hope that other women are encouraged and start their own bank as well.”

Through a partnership with Agros, the women of La Esperanza’s Community Bank have the opportunity to channel personal passions and ambitions toward their journey out of poverty. However, this is not an individual journey, it is one the women take together. This communal aspect is of the upmost importance to Agros as we work to break the cycle of generational poverty for entire communities through hard work alongside, and dedication to, one another.