Most of the Colombian clients come into the ADIN solidarity loan program after accessing the “drip/drip” funding available in the informal “loan shark” sector that costs 1% per day. (“Gota a Gota: Una Usuara Sin Control,” El Tiempo, p. 1-4) The fact that they have been able to sustain an enterprise with a very significant cost of funds is a sign that they have a viable enterprise, and the immediate result they experience with ADIN financing is that, freed from such high interest rates, they can capitalize their businesses. They are allowed three cycles of loans of four-six months to demonstrate that they have a viable business operation. Nine basic business training sessions are provided during this time, along with consulting visits by the ADIN staff. The goal is to graduate to an individual loan, which are only for entrepreneurs capable of demonstrating job creation and growth of their business.
The process of finding real entrepreneurs is complex, even with the series of three entrepreneurial training courses for each cycle of financing. During the first cycle, the difference between cash flow and profit is clearly presented, along with the need to distinguish between consumption and investment. Some clients do not have a vision for expansion of their business beyond the first cycle; to continue to provide loans to such clients only creates dependency, which is not a goal of the program. Therefore, only those clients who demonstrate a growing business and responsible management are allowed to continue receiving a second or third loan.
A major effort was made during April to expand the number of new entrants into the program through the presentation of the concept to over 100 pastors. ADIN was allowed an hour of previously scheduled “zone” meetings. We used the first half hour to present the Biblical basis of (1) doing good as a Christian testimony, (2) increasing incomes and creating jobs as way to do good, and (3) the special need, in this type of work, for integrity and honesty. The second half hour was dedicated to the nuts and bolts of how to get church groups involved.
We are excited about this phase, as the initial base for clients was founded on a selective invitation to a meeting in the fall of 2007, and limited the program growth. We now expect to have a better and larger pool of potential entrepreneurs.
The process of finding real entrepreneurs is complex, even with the series of three entrepreneurial training courses for each cycle of financing. During the first cycle, the difference between cash flow and profit is clearly presented, along with the need to distinguish between consumption and investment. Some clients do not have a vision for expansion of their business beyond the first cycle; to continue to provide loans to such clients only creates dependency, which is not a goal of the program. Therefore, only those clients who demonstrate a growing business and responsible management are allowed to continue receiving a second or third loan.
A major effort was made during April to expand the number of new entrants into the program through the presentation of the concept to over 100 pastors. ADIN was allowed an hour of previously scheduled “zone” meetings. We used the first half hour to present the Biblical basis of (1) doing good as a Christian testimony, (2) increasing incomes and creating jobs as way to do good, and (3) the special need, in this type of work, for integrity and honesty. The second half hour was dedicated to the nuts and bolts of how to get church groups involved.
We are excited about this phase, as the initial base for clients was founded on a selective invitation to a meeting in the fall of 2007, and limited the program growth. We now expect to have a better and larger pool of potential entrepreneurs.
(Readers who are interested in more detail can ask for an evaluation paper written about the program - just request this through e-mail from davidbefus@ymail.com)
Home Leave in August
We were initially introduced to our Colombian partners at the AIEC bi-annual convention in July, 2007, and almost 2 years later we are announcing to them a home leave that will begin in August, 2009. We are not sure at this point what this will entail, as we lack the monthly support to continue here, and are actively looking for alternatives. We hope to be able to present more specific information by early June. In the meantime, we are turning all day-to-day responsibilities here over to local counterparts, and preparing them for our departure.
