Archive for the ‘SALTA Peru’ Category

Every year on March 8, the United Nations and women’s groups around the world commemorate International Women’s Day. This holiday first took place in the United States in 1908, and now is celebrated across the world by women in developed and developing countries alike.

This year, Thunderbird for Good looks back on achieving several milestones for women in 2011 and 2012.

Read more »

By Amanda Roberson
MBA Candidate, 2012 

Our Proyecto Salta internships culminated last week with a celebratory gathering of the women entrepreneurs we trained during our three months in Lima. We weren’t quite sure what to expect when planning this event, but we could not have been more pleased with the results.

About half of the 120 women came to the party, an amazing turnout considering their busy schedules and the long distances they had to travel across this massive city to get there. One memorable moment was seeing the group of women we worked with from Manchay, a remote community formed on a dusty mountainside, come walking in a proud pack down the sidewalk to the entrance of the event. They had shed their practical polar fleeces for high heels, suits, makeup and new hairstyles. Giddy after making the journey to San Isidro, they posed for multiple photo shoots before entering the building and many more once they were inside. 

But perhaps the greatest highlight was hearing the women share their experiences with Proyecto Salta as they formed a circle and took turns introducing themselves. Although their businesses vary from small corner stores to costume shops to pharmacies, they share many things in common. They all find innovative ways to balance the demands of being mothers, wives and entrepreneurs. They all started with small businesses and have hopes of seeing them grow.

Without being prompted to do so, they explained how they are applying what they learned through their Proyecto Salta training in their businesses. The now infamous flujo de caja, or basic cash flow statement we taught them to manage their income and expenses, was a recurring theme. Many of them had never kept any type of accounting records, and they now view the flujo de caja as a powerful tool to gain control of their finances and ensure that their businesses are profitable. 

The circle activity took on the feel of group therapy at times as the women talked about the lack of support they receive from family, friends and neighbors. Machismo is alive and well in this culture, they said, and many people do not want to see women entrepreneurs succeed. With the universal goal of changing this stigma, the women then began to network among themselves. We interns stood back, watched and smiled they wasted no time making strategic connections. Milka, a seamstress, is going to make specialty dresses for Tania, who owns a formal clothing store. Marizol, an accountant, is going to help Tina continue to manage her debt while she helps Maria to formalize the newest part of her shoe business. Haydee found out about opportunities to pursue her dream of learning to make silver artisan jewelry. These are just a few of the connections made as energy and empowerment resonated throughout the group.

After many hugs and kisses, a few tears and a frenzy of photos, we said goodbye to our empresarias. As I leave Peru, I know that I will not forget any of the 24 women with whom I worked. I will remember their faces, their stories, their struggles and their successes. They inspire me enormously, just as they inspire each other.

By Emily Winans, MBA Candidate, 2012

Each day we spend on the road, we have the opportunity to experience the dramatically different worlds that exist in Peru. At times, I find myself needing to adjust back to the surroundings of the neighborhood in which I live at the end of the day.

The majority of the SALTA Interns live in Miraflores, a city along the coast that offers a variety of luxuries and pleasant ways to spend free time. Perfectly landscaped parks overlooking the water are frequented by families and couples who like to stroll along the path and take in the view. There are endless opportunities to enjoy the Peru’s rich culinary arts with views of the ocean or surrounded by a pleasantly decorated atmosphere. We live near a grocery store called Vivanda that is more expensive than a street market, but is clean, has a wide selection of products, and an interior that reminds me of AJ’s Fine Foods in Arizona.

By comparison, the areas where we work have more trash on the ground, poorer infrastructure, and have a more disorganized feeling about them. Some areas don’t even have addresses. The majority of the homes have water and electricity, but not without an occasional break in service. Some homes further out into the outskirts of Lima have outhouses. In general, the homes have a dark drafty feeling to them. Homes are made of brick or wood and during the winter months tend to be very cold. Some homes do not have roofs or are not completely enclosed.

The Gini coefficient is a measurement of the income inequality of a country’s population. A high number indicates that a larger portion of the income is being taken by a small group. A Gini coeficient over 50 indicates a serious problem with inequality. Peru has a Gini Coefficient of 52. By comparison, the Gini coefficient of Nordic countries is around 25 or 26 and of the United States is 41. According to the World Bank statistics, 34.8% of Peru’s population lives in poverty. We experience what life is like for the majority of Lima’s residents when we work in districts like San Juan de Lurigancho which has a population of 591,213 or San Martin de Porres with a population of 385,759.  A smaller portion of the population, 88,344, lives in Miraflores.

According to “The Puzzle of Latin America Economic Development,” inequality in Latin America began with economies based on commodities such as sugar and policy making that favored the elite over the poor. The book also states that there is 15% excess inequality in Latin America as compared to the rest of the world. The high return generated from scarce limited capital is the source for 1% of the 15%. The fortunate owners of the capital collect the 1% premium. Another 5% can be attributed to the unequal distribution of natural resources. The majority of the excess inequality is the result of the slow growth in numbers of years of education. In Latin America, it is very difficult to move up in economic status. From my experience in Peru, it appears that a major source of the inequality is education. Lower income families cannot afford to pay tuition for a private school for their children. As a result, the children receive a poor education that does not prepare them to compete in the job market with people who have been educated in private schools.

The transition at the end of the day can sometimes be a bit shocking. After visiting women who live in neighborhoods with dirt roads and who warn me of the dangers of the area, I go for a jog in a beautiful coastal park. In the park, I see parents strolling with a nanny dressed in white behind them pushing their kids in a stroller and holding a leash attached to a fluffy dog in a sweater. At times, it feels like a nice escape from the chaotic conditions we experience during the day; however, I always reflect on the women I work with who are fighting the poverty trap every day. When do they feel any kind of an escape?

By Amanda Roberson
MBA Candidate, 2012 

It started out as a regular Saturday. In need of some downtime and hungry for some of Peru’s world-class seafood, four of us Salta interns headed to La Mar Cebichería. One of Lima’s top restaurants, La Mar is a stallion in the culinary stable of Gaston Acurio, the chef responsible for putting Peru on the global food map. Little did we know we would be treated to more than just some delicious cebiche when Gaston showed up at La Mar to watch Peru battle Venezuela for third place in the Americas Cup soccer tournament. 

Not ones to pass up an opportunity, we took the liberty of introducing ourselves. Acurio was interested in hearing more about Proyecto Salta, and he invited us to his table and treated us to pisco cocktails after Peru defeated Venezuela 4-1.

Acurio is not only a natural chef; he is a natural social entrepreneur and an inspiration to the women we work with through Proyecto Salta. Just as he works wonders in the kitchen by calling upon Peruvian lime, seafood and chiles to reach new heights, he also challenges the country’s food industry to be pioneers of social and environmental responsibility. At his cooking school, Instituto Cocina Superior Tenológico Nuevo Pachacútec, he and his staff offer training for aspiring chefs from low-income areas. On his Facebook page (which has almost 420,000 fans), he shares everything from the concoction he whipped up for lunch to his musings that chefs are like soldiers. He recently posted:

 ”We cooks fight our battles always in the land of the kitchen and in everything that it positively influences: agriculture, fishing, nutrition, the environment, fair supply chains, exports, national identity, education, culture, innovation, added value, and the promotion of our work in the world. But from the kitchen. Political offices are for the politicians. Chefs are the soldiers.” 

After training at Cordon Bleu in Paris, where Acurio met his German wife Astrid, the pair opened Astrid y Gaston in Lima in 1994 (http://www.astridygaston.com/web/intro.php). Today, the Astrid y Gaston concept has been replicated in Chile, Colombia, Ecuador, Venezuela, Spain, Mexico and Argentina. Understanding the value of creating a brand, Acurio went on to develop other Peruvian food concepts, each with a different twist. At La Mar, he focuses on cebiche (seafood cooked in fresh lime juice), while his Panchita restaurant showcases the traditional Peruvian kebob, or anticucho. A sandwich shop, juice bar and bakery are among the other brands in Acurio’s portfolio.

As we chatted with Peru’s entrepreneur in chief, he brought up a few of the issues on his mind: how to make sure fishermen get a fair price for their catch, the need for organic farmers markets in Peru and how to train restaurant owners in the best business practices. With his trademark curls and relaxed demeanor, Acurio hasn’t let international fame go to his head. Rather, he remains down to earth as he shoulders the responsibility and opportunity that come along with leading Peru’s food revolution. As he continues to dream up new flavors, he envisions his country achieving economic growth along with social and environmental justice.

The more we chatted with him, we realized that Acurio’s food, although memorable, isn’t what makes him unique. It is his desire to inspire his fellow entrepreneurs and live as proof that talent, natural ingredients and sound business practices are the recipe for positive change.

By Amanda Roberson
MBA Candidate, 2012

As Salta interns, we have been working in Manchay, one of Lima’s pueblos jóvenes, or young districts, as they are commonly known. It sprung up in the early 80’s, populated by residents of Peru’s interior who fled as Shining Path guerillas terrorized their villages in the name of bringing about a fundamentalist Maoist revolution (http://www.cfr.org/terrorism/shining-path-tupac-amaru-peru-leftists/p9276). For them, Manchay became a refuge and a new beginning.

Since then, it has grown significantly, although when making our way down dusty roads to visit the women entrepreneurs with whom we work, we see that it is still quite young. Water and electricity are not a given, and many houses are accessible only by long metal yellow stairs that take the place of the road when it ends.

Dina Alvaro, in her early 60s, lives with her family in Manchay and works as an artist, although she would never identify herself as one. During our first visit, she opened up a cabinet in her kitchen and pulled out item after item that she had made by hand: lace tablecloths, paintings on velvet, wool baby blankets, nativity scenes, crochets pillow cases, knit purses and more. She loves to keep her talented hands busy, in fact she feels that she has to.

“Sometimes when I can’t sleep, I get up at 3 or 4 a.m. and start working on something. I always have to be doing something, making something,” she explained. Innovation, creativity and production will never be a problem for Dina. Her problem, she says, is that she does not like to sell. After investing in the materials to make all of her treasures, Dina has a hard time recovering her costs. She’ll often have orders from people who have passed through Manchay thanks to the Catholic church’s heavy involvement there, but business is not steady. Dina’s neighbors live day to day, and her creations are out of their budgets.

After a couple of sessions working with Dina on how to interact with potential clients, calculate her profit margin and keep a basic cash flow statement, we headed to the artisan market of Miraflores, an affluent district of Lima where she could potentially find her target market.
Read more »

by Jacquelyn Hunter

MBA Candidate ‘12

The businesses we work with as Proyecto Salta MBA mentors come in all shapes, sizes and locations.  Some of the businesses are operated directly out of the entrepreneur’s home, while others have multiple store locations. One of the entrepreneurs I work with has a profit of only 80 soles (roughly 25 dollars) per month, while most have sales between 300-1,000 dollars per month. The majority of the entrepreneurs we work with are located in the lower income zones of Lima like San Juan de Lurigancho or Manchay, but I also work with an entrepreneur that lives three blocks away from my apartment in the heart of Miraflores, one of the most popular high income and tourist districts in Lima.

Two of the businesses I worked with during my first month in Lima as a micro-finance mentor were definitely not micro-businesses.  Both of the entrepreneurs, Beatriz and Laura, have businesses that sell over 40,000 soles (roughly 15,000 dollars) per month.  Unfortunately, both of these businesses that are much larger and more complicated share many of the same problems and challenges as the smaller and simpler micro-businesses, such as the lack of an accounting system and formal business training .

Beatriz is the dueña (owner) of an unconventional business for a woman. She rents, sells and repairs construction tools from two store locations, has seven employees and has had her business for twelve years. When I first met Beatriz I was overwhelmed because of the magnitude of her business, the loud welding and drilling noises coming from the workshop, and the constant flow of customers in her store.  Until Beatriz, I had only been working with businesses a fraction of this size. Not only did she sell about 45,000 soles per month, she also wanted to start importing tools and accessories from China.

Laura and her husband own a backpack factory, small warehouse and retail store in a large market. They make thirty different models of mochilas and bolsos (backpacks and bags), have sales of 30-40,000 soles per month, and have eight employees.  Their backpack store is located in Peru’s backpack market, which I toured, that hosts 500 vendors of backpacks all in one location- talk about competition! When I first met Laura and her husband I was surprised when they told me of their plans to travel to China within the next six months to import materials and products. Although I had a great deal I could tell them about China from my recent module abroad in Beijing, I had not anticipated applying my Asia business environment knowledge with the micro-entrepreneurs during the Proyecto Salta internship!

After learning about both businesses, I had a lot of research to do in order to be prepared to help these businesses improve and grow. Most of our Proyecto Salta resources are for businesses in the 25-1,000 dollar per month sales range, but when you are selling over 15,000 dollars per month, like Beatriz and Laura, you need higher level resources.  It was shocking to see that both businesses had no formal accounting system except in the minds of the owners, who are surprisingly good at remembering their sales and costs. Although I was impressed with their memories, I explained that they could only continue the mental accounting system for so long.  Beatriz told me to tell it to her straight, “Jacquelyn- I want your opinion- tell me exactly what I am doing wrong and what I need to improve. I’m so busy all the time and so stressed out that I haven’t even been able to figure out what I’m doing wrong.”  My first words were, “You need an accounting system to improve the management of your finances, business software to manage your clients and contracts, and your workshop needs to be organized and inventoried- how can you find anything when you need it? Ninguna maravilla que seas tan estresada (No wonder you are so stressed out)!”

Both businesses had the goal of expanding to new markets and increasing sales.  They had the capacity but needed help with planning and marketing.  Before I could help them make expansion plans, they needed help getting organized. I told them that the last thing they want is to grow their business more “desorganizada”.

I really don’t know how Beatriz’s business had grown so large in its current state, but I do know I would be stressed out too if it was my business. So much of Beatriz’s time was spent trying to manage the day-to-day chaos of the business, she had no time for her family or growing the business. I told Beatriz if she wants to be successful and less stressed she needs to make an investment of time- one week to focus on cleaning, organizing, and setting up a business management system in order to create new and organized processes that will allow her business to grow profitably over the next 10 years.
Read more »

By Marcela Cubas Ramacciotti

Las semanas han pasado en un “abrir y cerrar de ojos” y  ya estamos a la mitad de nuestro proyecto, en el cual muchos somos los favorecidos: las mujeres, los organismos involucrados y nosotros también, sin duda.

En mi caso particular, esta enriquecedora experiencia me ha dado una base mucho más sólida para afirmar que el gran desafío que Perú  aún afronta es el tema de la educación. Al sumergirnos en la realidad de los barrios más marginados de la capital pudimos corroborar, tal y como los índices socio- económicos indican, que el Perú es uno de los países con niveles de educación más bajos en Latinoamérica y el Mundo.

Es por ello que nuestra labor es de suma importancia para el Perú y para  aquellas mujeres que luchan por mejorar su calidad de vida. Estas mujeres, en su mayoría, no poseen estudios de secundaria ni mucho menos han tenido acceso a educación en gestión empresarial, sin embargo se las han agenciado para poder llevar adelante pequeños negocios, que son fuente de su sustento económico.

 Fue así que, con el propósito de mejorar las bases en manejo de negocios para estas mujeres, un grupo de T-birds  viajamos desde Arizona- EEUU hasta Lima- Perú, transportando los conocimientos que adquirimos en el MBA y brindando “herramientas” útiles a una comunidad deseosa por recibir asesoramiento en temas de educación empresarial.

Durante el transcurso de estos meses estaremos entrenando un total de 120 mujeres, dándoles asesoría personalizada en sus centros de trabajo, resolviendo sus dudas, motivándolas a seguir superándose y haciendo un análisis detallado de cada uno de sus negocios.

Gracias a Proyecto Salta hemos aprendido sobre las necesidades de las mujeres limeñas y nos sentimos privilegiados de poder participar en un programa que nos permite  conocer “a priori” la realidad de la población Peruana.

By Emily Winans

Juntas are an informal way for people to get “large” sums of money in Peru.  Several of the entrepreneurs we work with organize juntas and many others participate in them.  For some, it seems to be a way to save money when they do not have a lot of willpower to do it on their own.  For others, it is essentially a loan that is paid back without interest.  The basic concept of a junta is that you pay a certain quantity daily, weekly, or monthly.  When it is your turn, you get the entire amount invested.  Everyone puts in the same amount. 

There are three kinds of juntas.  The first kind is similar to a lottery.  Let’s say the junta requires a weekly payment of 100 Soles (the local currency) for 10 weeks.    Over a period of 10 weeks your contribution will be 1000 Soles.  Each week everyone in the junta gets together for a drawing.  The person who is selected at random, collects their 1000 Soles that week.  If it is the first week, the person will continue to pay the 100 Soles per week for the following 9 weeks.  For that person the junta acts more like a loan.

There is also a fixed number system.  Each person in the junta is given a number by the person who organizes it.  The organizer, of course, gets number one.  If it is, for example, a daily junta of one Sol for 30 days, each person will collect the thirty Soles in number order.  If your friend is the organizer, you can probably get one of the lower numbers.  You can swap numbers with someone for the right price if you need the cash sooner than someone else.

 The third type of junta is primarily based on need.  Each week, people in the junta write down the percentage loss they are willing to take on the total amount based on their current need for cash.  The person who notes the largest discount takes the cash.

 Juntas are even used to purchase vehicles!  The Association of Professional Taxi Drivers organizes a junta that lasts for three years.  One-hundred participants enter the junta with a $25 sign-up fee and $45 per week.  The organizer is an individual with access to a line of credit or savings that can be used to purchase vehicles.  In the first week, the organizer will earn $7,000, which is combined with the individual’s line of credit or personal savings to purchase five vehicles.  During the first week, the five vehicles are given out through a lottery system.  Once a person has a vehicle, they must pay $85 per week instead of $45.  The taxi drivers benefit from the junta because the cost to rent a car is so high.  Taxi drivers who do not own their own vehicle pay about $120 per week to rent.  It is somewhat similar to a rent to own payment plan. 

 The list goes on in terms of variations of juntas.  They are commonly used by entrepreneurs with businesses of all sizes to access capital in Peru.

By Jacquelyn Hunter
MBA Candidate, 2012

Our first day of work as Proyecto Salta MBA Interns in Lima started with an orientation at the office in San Isidro.  While reviewing the important information we would need in order to start our work the next day, we discussed our schedule for the first week.  We would each be working with eight women entrepreneurs for the first month of the project, each with their own unique business.  My first group would include a variety of businesses such as bodegas, a manufacturer of backpacks, and an evening gown designer.  The only business I wasn’t quite sure about was my first appointment, an entrepreneur that was listed as having a “cubre-artefactos” business.  “Hmmmm,” I thought, “what exactly is a cubre-artefacto?”

The direct translation of cubre-artefacto is appliance cover, but unfortunately I didn’t have too much experience with the appliance cover industry.  I have never owned an appliance cover and probably never will, or so I thought.   But thinking back to my experience living in Belize as a Peace Corps volunteer, I did recall seeing some people covering important appliances or electronics in their homes, such as a microwave or stereo, with decorative fabric in order to protect it from the dusty dirt roads in the village. Usually the appliance covers used in Belize were old scraps of fabric that were draped over the appliance, but little did I know that with some creativity and quality craftsmanship a beautiful and funky appliance cover could be just what people need to spruce up their homes while at the same time gaining functional benefits such as protection from dust and damage.

Miriam is an artist, as I could tell from her passion for designing new products and her creatively painted one room home in San Juan de Lurigancho. Mariam learned to sew about 15 years ago and has developed her own products of appliance covers, furniture covers, dolls, curtains, and home accessories.  My favorite products are the pig and duck-in-a-dress blender covers (called “la chanchita” and “la patita”) and the matching kitchen towel holders.  Miriam has a small operation of three sewing machines that she bought with a micro-finance loan and she sells about 850 soles (roughly 300 dollars) worth of her products per month through direct sales to customers and selling her products at three local stores.  Miriam told me her products sell quickly and market stall owners in Lima Centro market had offered to sell her products, but that alone it was difficult for her to produce a large enough quantity to be able to sell in those markets.  Miriam’s dream is to build a workshop and store for her products by constructing a second floor on her home.  In order to build the workshop, she will need to pay off her current loan, increase her sales and take an additional loan to pay for the building supplies.  Miriam’s husband is very supportive and is willing to build the workshop for her if she is able grow her business and support the investment.
Read more »

By Amanda Roberson
MBA Candidate, 2012 

“If you want to be happy, you don’t have to go out and search for happiness … just look for it, and you will find it in yourself.” This pearl of wisdom is among many Maria Frisancho wants to share with her fellow Peruvian women entrepreneurs. The owner of a successful children’s shoe business in a downtown Lima market, she started with little and grew her enterprise through relentless hard work and constant faith in her abilities. During our final Salta training session together, we sat at a table in the market’s cafeteria and she told me her story in hopes of inspiring others.

Like many Limeños (inhabitants of Lima), Maria’s family is from what Peruvians call the provinces, essentially the rest of the country outside of the capital. They moved to Lima when Maria was young. The oldest of nine children, Maria helped her parents and watched them run a meat business. Although she always had a latent entrepreneurial spirit, the meat business didn’t call out to her.

“I didn’t like to get my hands dirty,” she said. “What I liked was reading. I was always reading some kind of literature.” 

After finishing primary and secondary school, Maria’s studious nature led her to secretarial school, where she trained to be a legal secretary in hopes of later becoming a lawyer. She wanted to be able to protect her mother, who remarried a man who became abusive, she explained. Maria’s plan was cut short when she got married and had two children. Then along came the shoe business out of happenstance. Maria’s brother had a stall selling shoes in downtown Lima, and one day he asked her to help out. Immediately, the business grabbed her. 

“I didn’t know that I had it in me to sell,” she said. “I never knew that I had all that energy saved up inside of me.”
Read more »