The document discusses the potential and challenges of using entrepreneurship and microfinance to support economic development in coffee farming communities. It provides examples of microfinance programs that have helped small-scale coffee farmers in Mexico, Honduras, and Nicaragua diversify their income by starting small businesses like a coffee nursery, fruit stand, and women's savings group. While microfinance shows promise, the document cautions there are no magic bullets and effective programs require carefully assessing community needs, gaining participation and trust, and planning for potential failures.

1. Entrepreneurship, Microfinance, and
Coffee: Possibilities, Pitfalls, and
Planning
Economic and Community Development, and Peace
Summer Lewis, True Roots Consulting Group
June 9, 2017

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Where I’m Coming From
30 Countries & 6 Continents
Studying and working in the field of
international development for 15 years
 Growing up abroad
 KSU International Service Team
 Fair trade, economic and community
development, agriculture, nonviolence,
and women's leadership—in the US,
Guatemala, Bangladesh, Mexico,
Nicaragua, Honduras, and Peru
 Rotary Peace Fellowship
 Consulting and teaching

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Development & Peace Through a Coffee Lens
Why Coffee?
 Second-most traded commodity after oil
 Accounts for a large share of export
earnings in 50+ countries
 70% is produced by millions of small-scale
farmers and workers
 Consuming countries retain 80% or more
of total coffee earnings
 Has not delivered on promises of
economic development

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Development & Peace Through a Coffee Lens
Coffee in Crisis
 Climate change, extreme weather, low
prices, plagues (coffee leaf rust), and rural
outmigration
 Alternative production (drugs, conflict,
issue of national security)
 Structural violence (poverty, food
insecurity) in coffee-farming communities

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Entrepreneurship, Microfinance, and Coffee
Proven Potential
 The story of La Trinidad (“The Trinity”)
Coffee Cooperative in Oaxaca, Mexico:
microfinance for alternative productive
activities
 The intersection of entrepreneurship,
economic and community development,
peace, and coffee
 Microfinance’s potential to help small-
scale farmers and family members
diversify production and resources

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Entrepreneurship, Microfinance, and Coffee
Other Examples
Francisca in Honduras
Used her microloan to start a coffee nursery with a variety
more resistant to coffee leaf rust, and she sells to other farmers

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Entrepreneurship, Microfinance, and Coffee
Other Examples
Catarina in Guatemala
Used her microloan to start and run a fruit and vegetable stand

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Entrepreneurship, Microfinance, and Coffee
Other Examples
El Privilegio in Nicaragua
Started a “Women in Solidarity Savings Group” 15 years ago
offering microloans and savings program to members; they now
roast, package, and sell their coffee locally

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Possibilities and Pitfalls
No Magic Bullet
 Microfinance critiques and pitfalls:
The Grameen Bank
 Assumptions inherent in economic
development and microfinance
 Imposing development ideas on
others
 Ask and listen: participatory
development
 Communities know best, but need
resources

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Planning an Entrepreneurship/Microfinance Project
Be Strategic from the Start
 Reflect before starting a project;
avoid “the danger of the single story”
 Identify, Investigate, and
Connect project stakeholders and
build trust
 Assess, Define, and Analyze
community needs, problem
definition, SWOT
 Involve participants and create buy-
in; handouts vs. hand ups
 Plan for failure (the “inversion
technique”)

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Conclusion
Just the beginning…
 Food for thought
 This sort of work requires hope, patience, and dare I say, love
 Good intentions are not enough
 Rotary’s impact: from local to global

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Contact
Summer Lewis
True Roots Consulting Group
summer@trueroots.com.mx
www.trueroots.com.mx