Please describe the goal of your initiative; outline what you are trying to achieve
The Investment Fund improves credit capacity and productive potential of micro-entrepreneurs. ADELSA seeks not only to improve their productive processes but also contribute in strengthening the social capital of the area and the participation of the local financial sector in productive units. In addition, ADELSA will offer property tittle services for an easier productive funding.
Which barrier(s) to financial inclusion does your solution seek to address? (select all applicable)
The lack of affordable financial products tailored to the needs of underserved and excluded communities,, Powerful incentives for financial service providers to move up-market.
If you selected 'other' above, please specify which other barriers to financial inclusion you solution seeks to address:
For which underserved or excluded communities will your solution create access to valuable, affordable, secure and comprehensive financial services?
The loans, given by the Investment Fund, have benefited 203 micro producers (see point 7). With the support requested, we seek to directly benefit 1,050 entrepreneurs in ten years, who have been excluded from the formal financial system. To be more specific, the direct beneficiaries are: 250 micro- agricultural producers with 1 to 7 hectares (property title services) and 800 micro-entrepreneurs with total annual sales of US$ 27,000 and 1 to 8 employees (credit and technical assistance). On the other hand, the activities planned will indirectly benefit Valverde population, through inclusion processes and social cohesion.
Could your solution work in other geographies or regions? If so, where?
Most micro-entrepreneurs and small agricultural producers of Latin America and the Caribe, have huge difficulties to fulfill the formal banking’s requirements. In this sense, an Investment Fund, managed by ADEL and with an allied bank, becomes an alternative to improve the access to funding in ALC. Some ADEL agencies of Republica Dominicana are executing this alternative in their own provinces.
If your solution is dramatically successful, how will things be different in 10 years?
In the past ten years, ADELVA has widened its services coverage and offers, adding property titles to obtain funding. The planned results for the next 10 years are the followings: 1) 800 entrepreneurs turn into banking services consumers, 2) 250 people obtain their property title, 3) ADELVA achieve supporting resources from public, private and international cooperation to increase the Investment Fund. The main idea is to have much more beneficiaries and integrate the funds of companies identified as part of the local value chain.
What will have had to have changed to make this happen?
Adelva creates the Technical Unit of Property Tittle equipped with a topographic station (with highly precision GPS, distance control system, a theodolite and a micro computer) addressed to reduce services costs. The Agency makes agreements with official workers to fasten property title’s process. The Agency also expands its training and technical services to assist beneficiaries, improving their entrepreneur culture and productive technics. ADELVA contributes to introduce activities of the 5th action line of the third specific goal, part of the National Strategy of Development.
What has been the impact of your solution to date?
Since Fund creation, we have received more ?????than credit requests with a total amount of US$ 420,382. ADELVA achieved in positively responded to 203 requests. 41% of the approved credits benefited women. The total amount of given loans are US$ 296,020, with the following distribution: 72.43% Services (142 loans), 10.64% Industry (25 loans) and 16.93% Agriculture (36 credits). This population was able to access formal banking services and sustained more than 170 enterprises, guaranteeing income and jobs for more than 760 families.
What is your projected impact over the next five years?
In 5 years ADELVA will achieve the following outcomes:
1) Strengthen the micro-credit mechanism for micro-enterprises and small agriculture producers of Valverde.
2) A services office to assist micro-entrepreneurs and small agriculture producers in property services, located in Valverde (125 beneficiaries).
3) Over the first year we’ll be operating the strategy to increase the Guarantee Fund up to 300%.
What barriers might hinder the success of your project? How do you plan to overcome them?
Outcome 1) strong storms and hurricanes might hurt the supported productive units. In that case, it will offer a grace period, according to the partial or total damages.
Outcome 2) if property title’s demand is superior to offers, we will make agreements with other companies offering the same service.
Outcome 3) if there is rate instability between dollar and peso, we will transfer part of the fund to a certificate in dollars.
Winning entries present a strong plan for how they will achieve and track growth. Identify your six-month milestone for growing your impact
1) Micro- credit – 12 assisted entrepreneurs. 2) Property title operation – 12 producers starts this operation. 3) Investment Fu
Now think bigger! Identify your 12-month impact milestone
1) Micro- credit – 25 assisted entrepreneurs. 2) Property title operation – 25 producers starts this operation. 3) Investment Fu