Nearly half of Ecuador’s working-age population is unemployed‚ and many of those with jobs still live in poverty. Although the country experienced modest economic growth in recent years‚ its export base remains narrow, with petroleum, bananas/plantains‚ cut flowers‚ and shrimp accounting for approximately three-quarters of its total export value.

In this environment‚ AED’s Ecuador Local Business Development Program‚ or PRODEL‚ is creating sustainable and growing employment opportunities for low-income farmers and helping small-business entrepreneurs like Nicolás Vélez increase their income and break into the global economy.

“Helping talented entrepreneurs access the training and support they need to build and sustain a business allows their potential to be defined by creativity and drive‚ rather than by a lack of access to knowledge‚ finance‚ or markets‚” said Bonnie Barhyte‚ senior vice president and director of the AED Leadership and Institutional Development Group.

START-UP CHALLENGES
During a trip to Seattle‚ Washington‚ Vélez was inspired by how much the local people loved coffee. When he returned home to Quito‚ Ecuador‚ he founded a small retail coffee shop and‚ subsequently‚ a growing coffee-roasting enterprise. Using what he had on hand—a small roaster and his garage—he started roasting and serving excellent coffee‚ one pound at a time.

Since its establishment in 2006, Café Vélez‚ which focuses on providing high quality Ecuadorian coffee beans‚ has faced a number of challenges. Like many small businesses in Ecuador‚ the company has struggled to compete with larger brands‚ many of which source their products from more recognized powerhouses in the coffee industry‚ such as Colombia.

In addition‚ the small-scale coffee growers in the area were not always able to supply high-quality coffee beans because they often lacked the agricultural skills needed to produce adequate amounts of such beans.

To address the supply issue‚ PRODEL is offering local growers technical assistance in crop production and post-harvest management‚ as well as financing solar dryers‚ improved plant nurseries‚ and quality analysis tools.

LOOKING AT EXPANSION

To improve Vélez’s business‚ AED and its partner‚ ACDI/VOCA‚ are providing him with business training‚ assisting with Web site improvements‚ helping him develop marketing plans and new products‚ and cofinancing his participation in trade fairs and his travel for regional business meetings. “After one year of working with AED’s PRODEL program‚ Café Vélez has established a great reputation in the local marketplace‚ improved its relationships with suppliers‚ increased product quality‚ and doubled its sales in the local Ecuadorian market‚” said Paul Bundick‚ project director in the AED Center for Enterprise and Capacity Development. “Now,” he added‚ “Vélez is looking for markets to expand his business.”

The results are a source of pride for Vélez and his partners. “Through PRODEL‚ we’ve learned a lot‚” Vélez said. “Coffee growing in Ecuador is now taking important steps. Quality and efficiency are up‚ and the benefits are reaching all actors along the value chain. Little by little‚ we’re improving.”

The story of Nicolás Vélez and the coffee farmers is just one example of the program’s success‚ said Bundick. “AED is now partnering with twenty firms in Ecuador and improving the livelihoods of hundreds of small-scale farmers,” he said. “PRODEL’s market-based approach of identifying opportunities for businesses development is planting the seeds for a thriving and stable economy.”

Christian Pennotti is the program manager for the FIELD-Support LWA project in the AED Center for Enterprise and Economic Development.

Learn more at www.microlinks.org/field

 

 

LEADERSHIP AND INSTITUTIONAL
DEVELOPMENT GROUP

• AED Center for Academic Partnerships
• AED Center for Enterprise & Capacity Development
• AED Center for International Exchanges
• AED Center for Leadership Development