Banco Adopem encourages entrepreneurship among the youth in Dominican Republic

More than 50,000 people approached Banco Adopem for the first time in 2017. BBVA Microfinance Foundation’s Dominican institution disbursed microcredits to these entrepreneurs, to help them invest in their businesses and prosper, as was shared in the presentation of the Foundation’s Social Performance Report in Santo Domingo. Almost half of them are young people, aged 30 and below, who resort to develop a small business to overcome the country’s youth unemployment, which has risen up to 24.9%, according to official data from the Observatorio Político Dominicano.

Ananias Pimentel decided to undertake this project when she adhered to the microfranchising of Adopem, in collaboration with the Inter-American Development Bank and Nestlé. She asked for a loan amounting to DOP 9,000 (around 160 euros) and started selling Nestlé products with a team of five women under her charge. By the end of 2017, 522 women like Ananias have accessed loans; 766, have availed of other services such as savings, remittances and microinsurance; 578 have received management training related to this business model and 2,900 have been trained in sales. “Now, I’m leading a team of 15 people and each month, I sell around 13,000 pesos (more than 2,250 euros)”, shared Ananias, during the presentation.

“The report statistically documents that our success depends on the success of our clients”

“There are many factors that affect Banco Adopem’s success”, confirmed Mercedes Canalda de Beras-Goico, executive president of the MFI. She adds, “but a more attentive reading of the report reveals that there are mainly three factors: first, selecting clients who are focused on their moral solvency, on their payment capacity and their potential; second, the adequate support that we give clients during key moments in their lives to help them build entrepreneurial success, and third, the accompaniment that we give them during their growth process, combined with advice and constant training”. She also highlighted that, “The report statistically documents that our success depends on the success of our clients”.

To encourage saving among the younger ones, Banco Adopem offers te MIA Children’s Savings Account, which also includes financial training that helps them plan for their children’s future, as per objective. 77% of these accounts are opened by mothers, mainly for their daughters. Furthermore, the institution also offers the Educa-T student loan for those who want to access higher education. By the end of 2017, almost 900 loans have been disbursed.

390,000 Dominicans, mostly women, prosper with Banco Adopem’s support

According to the director of BBVA Microfinance Foundation’s Impact Assessment and Strategic Development Stephanie G. Van Gool, “almost 70% of the entrepreneurs we serve who are younger than 30 years old are women, 42% live in rural areas and more than half possess primary education at best”.

Moreover, 90% of the youth served by Banco Adopem are economically vulnerable. This turns savings into a tool to prevent unforeseen shocks in the future. “29% of the savers are younger than 30 years old, presenting an average balance of USD 197 in their accounts”, shared Stephanie G. Van Gool during the presentation.