The Vecinas Unidas (United Neighbors) Bank of Esperanza is located in Aguas Buenas a small rural community on the Samaná Peninsula in the Dominican Republic. Many of the members, such as Miguel, have been successful with their micro-businesses thus far.
Miguel is a 37-year-old man married with four children. He runs a small Internet café out of his home. He has four computers and one laptop with Internet access as well as a printer and a photocopier. Miguel also sells office supplies here. The Internet café is open every day and he charges 30 pesos per hour to use the computer (about $0.73 USD).
According to Miguel, the loans from Esperanza have allowed him to purchase the necessary supplies to start his business up and maintain it. The training, which Esperanza gives to all of their associates, has also helped Miguel understand the importance of adapting to the clients needs. Miguel hopes that his Internet café continues to grow and that his clientele expands.
Microfinance is a banking service which exists to serve the material poor in emerging economies. Through this lending process, loans are distributed to entrepreneurs for investment in their business.
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