Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Marta Bekerman --The Next Generation of Innovations: A Medley of Products, Services & Programs Paving the Way in Microfinance
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THE NEW GENERATION OF
INNOVATIONS IN MICROFINANCE
Marta Bekerman
• Senior Researcher and Full Professor of the
University of Buenos Aires
• President Asociación Civil AVANZAR por el
Desarrollo Humano
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• Need to develop innovative proyects to face
social exclusion.
• The end of poverty cannot be seen as an
automatic result of the market forces.
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• Problems faced by the subsistance microenterprises
• Brief presentation of the Asociación AVANZAR
• Activities developed under the programme “Vos Podes
AVANZAR”
• Results
• Some reflections.
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Problems face by
microenterprises
Free entry of competitors
Demand limitations
Low levels of production
Lack of finance
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• Lack or accounting registration that could show the inflow and outflow of
money and other type of actives
• Lack of promotion and comercialization strategies
• Lack of knowledge about the rol and existance of their competitors
• Non existance of a bussines plan to be able to carry out a more efficient
management and folow its evolution in time
• Progresiva disacumulation of capital as a consequence of not taking into
account the depreciation of fix capital as one of the business costs
MAIN OBSTACLES IN THE SHORT RUN
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• Insuficient determination of some fix costs
including their own salaries.
• Uncertainty and lack of information dont
allow them for an optimum resources
asignation. They adjust their activity just to
get some level of subsistance
MAIN OBSTACLES IN THE SHORT RUN
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• Low level of investment that limits their possibilites of
expansion just to simple capital reproduction
• No invesment in new fix capital (machinery) even, in many
cases, su replace amortized capital.
• Lack of diversification of products and of innovation as a
strategy to improve the insertion in the markets.
• No development of economes of scale because of very low
levels of production
MAIN OBSTACLES IN THE LONG RUN
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NO INVESTMENT
FREE ENTRY OF COMPETITORS
LIMITS OF DEMAND
PRODUCTION LOWER THAN AN OPTIMUM LEVEL
NO INVESTMENT
REPRODUCTION OF SUBSISTANCE BEHAVIORS
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Growt of
microenterprises en
Latin América
As viable alternatives for
people that are out of
the working market
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“ 93% of the
microenterprises dont
reach the second year
of life”
Source : Asociación Argentina para
el Desarrollo de la Pequeña y
Mediana Empresa
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•PROBLEMS LINK TO MARKET FAILURES OR
MARKET EFFICIENCY. Lack of acces to the
market credit. Needs public regulation
•FOR EQUITY REASONS. Needs aditional
things
WHY MICROFINANCE PROJECTS?
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• Is better not to do it because is negative for
the sustentability of the IMF
• Microfinance can be potenciated by training
to get a qualitative improvement in the quality
of life of the microentrepreneurs
WHY TRAINING ? DEBATE ABOUT THE ROLE OF
TRAINING IN MICROCREDITS PROGRAMMES
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The training procees allows …
To improve the
quality and
solvency
To make stronger
the relationship
between the
institution and the
entrepreneur
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• IT WAS CREATED 15 YEARS AGO BY PROFESSORS
AND RESARCHERS OF THE UNIVERSITY OF BUENOS
AIRES.
• Its objective is to contribute to the development of
capabilities and the improvemement in the level of
living of people of with poor resources, throw the
acces to credit, training and social interaction.
THE AVANZAR ASOCIATION
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¿Which is the
contribuition of Avanzar
in this context?
Microcredits Training,
Tutorials and
Articulations
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• Ciudad Oculta
• Los Piletones y Villas Aledañas
• Fatima
• Villa 20
• Carrillo
• Barrio de Soldati
SHANTY TOWNS WHERE AVANZAR
WORKS
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• OBJECTIVES
• a) To sensibilize 1.000 emprendedores;
• b) To train 500 emprendedores in entrepreneurial
managment.
• c) To offer technical assistance to the
emprendedores, taking into account their
particular needs.
• d) To articulate the microentreprises through the
development of value chains.
PROGRAMME VOS PODES AVANZAR
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-Sensibilization to promote the incorporation of the
microempresarios to the programme.
-Training worshops to improve their capabilities :
-In managment, costs registration and sales.
-In specific activities: textils, hairdressing, computing
, -Tutoriál work oriented to improve their business situation.
-Articulations with enterprises to expand their demanda.
PROGRAMME ACTIVITIES
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• Improvements in the field of registration, comercialization,
organization and monterary diferentiation between the business
and home expenses.
• An improvement in the position of the institution regarding its
image and prestige in the areas and the a fidelization of the
loaners.
• The articulations made possible to incorporate innovative working
experiences as well as new relations with enterprises of the formal
market.
• Not always it resulted in the elimination of poverty , but certainly in
an improvement in the quality of living and a reduction of the
vulnerability.
Main programme efects
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Logros del programa
Fortalecimiento de los proyectos:
aumento de los activos y mejora
en gestión, control de costos y
ventas
Bases para futuros vínculos
asociativos y de cooperación
Creación de una significativa red
de emprendedores
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It is very important that the trainers and tutors
could adapt to the each microentrepreneur
condition
Very strong impact of the tutorial work. It allows to
reach an estrategic view wich goes much further
than the every day answer.
The tutors should not offer all the solutions but
facilitate the undrestanding of the problems and
offer different alternativas to solve them.
SOME REFLECTIONS
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In some productive chains, such us textiles, the
demand conditions put clear limits to go further
than basic fabrication in spite of the fact that they
show potencial condicions to offer better quality and
design.
The promotion of articulations should be link to a
strategy of formalization of the economic circuits to
reach a more equitative distribution of the benefits.
SOME REFLECTIONS
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A NEW PROGRAMME OF E-COMMERCE FOR THE
MICROENTREPRENEURS IS BEING DEVELOPED.
IT INCLUDES:
A digital alfabetization project for the youth of the areas
involved,.
The implementation of internet nodos where the
microentrepreneurs will be able to came to learn about the
new technologies and introduce their products in e-commerce.
Development of a logistic infraestructure for the delivery of
the oriduct to the buyers.
THE NEXT STEPS
Principales problemas de las microempresas: baja inversión, libre entrada de competidores, limitación de la demanda, producción inferior a la óptima, falta de financiación.
En América Latina, las microempresas se han convertido en una alternativa para elevar la calidad de vida de las personas que están fuera del mercado de trabajo.
Sin embargo, los datos en nuestro país ponen de manifiesto las dificultades para sacar adelante los emprendimientos, en parte por la falta de recursos pero, en mayor medida, por las deficiencias en materia de producción, comercialización y, sobre todo, gestión. Es fácil imaginar cómo estas carencias se acentúan en el caso de los emprendimientos de subsistencia de los barrios de emergencia del sur de BsAs en los que trabajamos.
Ventajas de la capacitación: 1) Microempresarios más capacitados para gestionar sus negocios pueden incrementar sus ingresos, pagar sus créditos y mejorar la calidad de sus emprendimientos; 2) Genera una relación más profunda de compromiso y lealtad con la institución, lo que nos permite establecer nuevos programas.
Queremos ampliar las macetas, para que la semilla que hay en todas las personas pueda desplegar todo su potencial.
En este contexto, Avanzar ha puesto en marcha, con el apoyo del BID, el programa “Vos podés avanzar”, para el desarrollo de capacidad empresarial en microempresas de subsistencia; tiene el propósito de sumar los beneficios de la capacitación de los emprendedores a nuestra experiencia previa en la gestión de microcréditos. La idea central es que la capacitación es un elemento clave no ya para conseguir una adecuada respuesta al crédito sino, sobre todo, para apoyar la viabilidad y sostenibilidad de los proyectos.
Uno de los grandes logros ha sido el impacto cualitativo que ha tenido el programa en cuanto a la mejora de la confianza de los emprendedores. Gracias a las capacitaciones, las tutorías y las articulaciones no sólo se les ha ayudado a mejorar la gestión de sus proyectos, sino también a dar el salto desde la producción a la venta en condiciones justas de sus productos, aprendiendo a utilizar criterios comerciales y a tratar con los clientes.