Corona Foundation: Enterprise Development Fund Foundation: Sustainability and Microcredit

 This is an original MFMI resource

Author: Rojas, Edgar Alonso; Sanz, Luis
Publication Date: 2004
Publisher / Source: INCAE Business School
Length: 35 Pages
File Type: PDF
Language: English
Country: Colombia
Topics: Financial Performance, Organizational Development, Social Enterprise
Keywords: NGO, entrepreneur, training, financial sustainability, Colombia

Notes: Comes with technical note

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Abstract

The Enterprise Development Fund Foundation (FDE for its name in Spanish: Fundaci?n Fondo de Desarrollo Empresarial), was a Corona Foundation program dedicated to improving small-scale company competitiveness and sustainability in the country. It used its consulting and training programs directly to create companies, to provide credit guidance and to support communities. In 2003, the FDE held 51 workshops where 1,201 entrepreneurs were trained. In total, these participants worked on 534 business ideas. FDE subsidized up to 76% of each entrepreneur?s training cost for the programs. One of the main obstacles faced by entrepreneurs was the lack of resources, and consequently, access to lines of credit that would make it possible for them to start their business. In 2003, the FDE contributed to the creation of 206 companies. Some 100 of them needed credit to begin operations; however, only 15 had access to a line of credit. Some of the reasons why it was believed that the entrepreneurs had not applied for a loan were: that they were not eligible for credit, they did not have any guarantees (co-signer) to provide backing to the loan, that they had a history of poor credit management, and that they were afraid to associate with financial institutions.