El Buen Socio

This Entry has been submitted.

El Buen Socio: Ethical Finance Institution

Mexico City, Mexico
Year Founded:
2012
Organization type: 
hybrid
Project Stage:
Growth
Budget: 
$100,000 - $250,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

Ethical finance institution that promotes sustainable development issuing loans to fund productive projects with a positive social and environmental impact.

About Project

Problem: What problem is this project trying to address?

In rural Mexico there are few sources of income that allow families to have a decent standard of living and preserve the natural resources of their communities. One of the main obstacles faced by producers is the difficulty to obtain financing and to develop productive projects that allow them to improve their quality of life. There are entrepreneurs with innovative projects that can not start or grow their business due to lack of capital.

Solution: What is the proposed solution? Please be specific!

El Buen Socio offers ethical financial services in order to promote projects that have a positive social and environmental impact in rural areas of Mexico. El Buen Socio differs from other microfinancial institutions because its adapts to the entrepreneurs needs: flexible guarantee schemes that take into account the social capital, payment schemes according to business flow, flexible terms to reduce the cost of financing and competitive interest rates. El Buen Socio takes into account issues like social capital, environmental and social impact; elements which are more difficult to measure but with the same value than others.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

El Buen Socio financed Nayely, a 19 years old Popoluca native. Nayely developed a project to set up a community coffee drying facility in one of the most marginalized areas in Veracruz. With her loan, Nayely created jobs and paid 45 coffee farmers a premium over the prices offered by other local buyers, resulting in an estimated 15% of extra income per farmer, above what they would have received by selling their coffee elsewhere on the local market. Nayely no longer has the need to migrate in search of a better job. In March 2014, Nayely finished paying her credit with El Buen Socio and is now in talks to export to Germany.

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

Nine social and ecofriendly projects have been supported in marginalized areas and with a high environmental value in Mexico. Having created 35 jobs; activating the economy of migrant and marginalized areas; supporting vulnerable groups such as women and indigenous groups; preserve 58 acres of forest; promoting sustainable agricultural practices and fair trade.