My apologies for the long gap between blog posts. We've had a jam-packed schedule since Tuesday visiting FMSD clients, delivering presentations and traveling to the branch office in Cartagena. I've got some down time right now to try to catch up. I'd like to use this post to tell you a little more about the Fundación Mario Santo Domingo (FMSD) and introduce you to one of their clients.
FMSD is a private nonprofit organization dedicated to developing programs for the poorest sections of the Colombian population. Mr. Mario Santo Domingo is on the Forbes 150 list having made his wealth primarily in the beverage distribution business in Central and South America. The Santo Domingo family has donated a significant portion of their wealth to improving the lives of their fellow Colombians. In 1985, FMSD started its microcredit program, providing capital to small business owners and aspiring homeowners. Today, the microfinance program employs 135 people and provides loans to at least 12,000 small business owners and homeowners who lack access to traditional, formal financial service providers.
Let's consider some interesting facts about the economic environment in Colombia. There is a painfully visible income disparity between the rich and the poor in Colombia. 80% of the population lives at or below the average annual income level of $3,300 (about $9/day) - herein lies FMSD's target market. The average loan size distributed by FMSD is $1200 or about 35% of their clients annual income. As profit-seeking institutions, the larger, traditional banks do not/cannot participate in the microenterprise market. FMSD steps in to fill this need.
All this week, we have been visiting FMSD clients at their places of business to observe how they operate and inquire about the opportunities having access to credit has opened for them. Here is FMSD client Shani Escobar and her story:
Shani makes and sells handicrafts in the manner she learned as a young child, which is when she first dreamed of opening an art business. She started her training with ceramics, working with them for two years before moving on to new techniques with “country wood” and, ultimately, paint on canvas. She continued taking short classes to improve her art and currently works in the style of Britto, a Brazilian artist, making necklaces that go well with her other beautiful accessories. One lucky family member of mine will be the lucky recipient of one said necklace. For the "bling" lovers among us, Shani also designs these awesomely extravagant Blackberry cases.
Shani's story is just one of many very cool testimonials on the importance of credit in the underserved markets of both developed and developing countries. I look forward to sharing many more with you. Next blog, pictures of the 4 gringos at the beach, a brief Shakira introspective and a look at the FMSD housing projects.
Hasta luego,
Adam
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