1. Microfinance and Financial Inclusion in Nicaragua
Empowering female microentrepreneurs to create a budget and open a savings account

2. Nicaragua
Population: 5.9 million
2nd least developed in Western Hemisphere
GDP per capita: $3,000
Development Issues
Poverty
Underemployment
Child Labor
Underdeveloped Infrastructure

3. Sister Maura Clarke Center for Comprehensive Education and Empowerment
Est. 1992
Revolving Fund
Est. 1996: 30 participants and U$ 20,000.00
As of 2010: 595 participants and U$ 434,941.26
78 % women
2 % illiterate
81 % urban

4. Sustainable Development

5. Reality Check
Goal: Learn about the accounting and saving habits of 27 female microentrepreneurs
Method: One-on-one interviews

6. Reality Check
Lessons Learned
Most calculate earnings
Few calculate expenses
Very few make budgets
Obstacles to saving
Distrust of banks
Uncertain of requirements
Prefer to have money on hand
Belief that any saving is currently impossible

7. Capacitaciones (Empowerment)
Goal 1 - Increase organization and prepare to make a budget by systematically calculating earnings and expenses
Instructional material: Basic accounting spreadsheet

8. Capacitaciones (Empowerment)
Goal 2 - Increase capacity for long-term planning, establish priorities and begin to think about saving by creating a detailed budget
Instructional material: Locally relevant budget template based on interviews

9. Capacitaciones (Empowerment)
Goal 3 - Increase financial security by opening and maintaining a savings account
Instructional material: Step-by-step guide to saving including
Opening an account
Managing a debit card
Avoiding fees and fines

10. Capacitaciones (Empowerment)
Goal 4: The participants continue to meet after an initial follow up meeting, forming a sustainable support network

11. Capacitaciones (Empowerment)
Results
Most began systematically calculating their expenses
Many planned to create a budget for the month of August
Very few created a savings plan
Almost no one opened a savings account
The women decided not to continue meeting

12. Capacitaciones (Empowerment)
Conclusions
Saving habits did not change due to
Prioritization of growth over stability
Belief that saving is impossible in economic tough times

13. Future Vision
Long term: End financial exclusion by ensuring that Central Americans currently living on less than $2 a day have access to microcredit and microsavings
Summer 2012: Research or field work in the area of developmental economics