September 11, 2011
 
As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.
 
During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 
 
Kiva's new risk rating system, which now includes half stars, has enabled us to display Emprender's risk rating with a higher level of granularity. As a result, Emprender's risk rating will now be displayed as 3.5 stars instead of 4 stars. 
 
We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.
 
Emprender has been informed of the change in the display of their rating on Kiva's website.

Original Partner Description

EMPRENDER is an MFI (Microfinance Institution) set up as a non-profit organization that provides financial services to micro-entrepreneurs in Bolivia’s towns and rural areas. EMPRENDER is committed to the advancement of underprivileged people and the promotion of a more fair and just society. Using its ownership equity, EMPRENDER works for the economic advancement of its micro-entrepreneurs: people who lack access to traditional bank loans and other conventional types of credit.

EMPRENDER began operating in 1999 with a flagship program located in Chasquipampa, 35 km outside the city of La Paz. Its goals were to put into practice a business plan and coherent operating methods suitable for small businesses and to achieve success. It would focus more on serving clients in remote areas. EMPRENDER knows the importance of having its offices physically present and prepared to serve the towns and rural areas.

Since 2000, it expanded to the cities of El Alto Santa Cruz and Cochabamba.

EMPRENDER currently operates with a fourteen-office network; five offices in La Paz, four in Santa Cruz (one in El Torno and three in Santa Cruz), one in El Alto, and four in Cochabamba (one in Colcapirhua, one in Sacaba and two in the city of Cochabamba).

OUR VISION

To become a key instrument in the development process of small-business owners in our country’s towns and rural areas, promoting the generation of income and jobs, improving the quality of life in the small-business sector, and as an institution becoming a permanent fixture in the area.

EMPRENDER offers TEN services

1. Solidarity Loan

A solidarity loan is granted to groups of micro-entrepreneurs who have been in business for more than 6 months, and have been reviewed and approved by the Loan Officer. The members of Solidarity Group support each other in any eventuality and, as a result of this mutual support, they become each other’s primary surety for future loans. Punctual clients receive regular sums of money depending on their ability to repay the amount, the payment due date, and installments that increase over time. The loan is usually used for working capital.

2. Village Banks or Entreneurship Banks


This is a comprehensive loan service intended for a larger group of people than the Solidarity Loan with a focus on entrepreneurship giving priority to helping female small-business owners generate income. This service also includes a saving component which looks to teach group members about the social and economic value of saving.

3. Rural Loan

This is designed for farmers located in rural areas of Bolivia. It can only be used for agricultural production and is currently offered in two of Emprender's branches.

4. Individual Loan

This is a service for existing clients who have worked in a group. This loan is granted to clients who have participated in the solidarity group, have a good credit history, prove to be able to make payments and who have good growth potential. This loan is also granted to new clients that have been recommended by a former client. In general, this service is geared towards small-business owners with additional surety and who are in a better financial position.

5. Housing Loan

Emprender created this product to enable clients to repair, remodel, or conduct basic home construction.

6. Student Loan

This product looks to cover college students' expenses to access higher education.

7. Water access & Sanitation Loan

In cooperation with the Fundacion SODIS, Emprender has created a product which looks to provide water access to its borrowers. This credit will fund the following: acquisition of water running and ecological toilets, water filters, water tanks and connection to the municipality water pipeline system.

8. Opportunity Loan

This is for clients who need immediate liquidity due to the rapidly changing nature of their business.

9. Cheap/Fast Loan

This product is intended for clients who require a quick inflow of cash. The amount is limited to 1,000 USD. Disbursments usually occur the same day of request

10. Campaign Loan

This credit is reserved for individual clients or village bank clients who have an opportunity for their business that they cannot pass up. This usually occur at specific points during the year mainly at christmas.



Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 9, 2008 Oct 12, 2005
Total Loans $5,705,475 $539,779,750
Amount of Raised Inactive Loans $0 $395,825
Number Of Raised Inactive Loans 0 277
Amount of Paying Back Loans $821,675 $111,481,150
Number Of Paying Back Loans 628 115,292
Amount of Ended Loans $4,883,800 $427,902,775
Number Of Ended Loans 4,359 549,684
Delinquency Rate 1.08% 3.29%
Amount In Arrears $4,758 $2,384,778
Outstanding Portfolio $441,051 $72,582,749
Number of Loans Delinquent 18 10,606
Default Rate 0.47% 1.01%
Amount of Ended Loans Defaulted $22,857 $4,334,868
Amount of Ended Loans $4,883,800 $427,902,775
Number Of Ended Loans Defaulted 61 14,050
Currency Exchange Loss Rate 0.00% 0.06%
Amount of Currency Exchange Loss $0 $298,028
Refund Rate 0.22% 0.82%
Amount of Refunded Loans $12,300 $4,417,000
Number Of Refunded Loans 14 4,864

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 66.84% 74.09%
Average Loan Size $546 $417
Average Individual Loan Size $826 $656
Average Group Loan Size $3,077 $1,813
Average Number Of Entrepreneurs Per Group 8.8 8
Average GDP Per Capita (PPP) in Local Country $2,817 $3,463
Average Loan Size / GDP Per Capita (PPP) 19.37% 12.05%
Average Time To Fund A Loan 9.78 days 5.29 days
Average Dollars Raised Per Day Per Loan $55.80 $78.90
  Average Loan Term 9.74 months 10.05 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,343 268,948
  Journaling Rate 27.83% 42.09%
  Average Number Of Comments Per Journal 0.04 0.09
  Average Number Of Recommendations Per Journal 1.74 2.06

Kiva HelpBorrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Portfolio Yield 33.50% 23.60% 34.93%
  Profitability (Return on Assets) 1.7% 2.4% -1.11%
  Average Loan Size (% of Per Capita Income) 27.00% 121.10% 42.70%

Kiva HelpCountry Fast Facts

Field Partner Staff

Angelica Bolaños Bernal
Omar Choque Tolino
Francisco Loza Murguia
Ramiro Quispe Chipana
Christian Rivera Villarroel
Elder Salazar Peredo
Cintia Troche Espinoza
Jose Luis Villarroel