Guatemalan Mother Wins Victory Over Poverty and a Future
for Her Children
It used to be very difficult for Candelaria and her children to get by. “There was no work, no way to earn a living,” she said. Then a Save the Children program helped her to increase her income and her social status. The result? More earnings to convert into food, health care and other essential benefits for her children.
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Candelaria and her six children live in a small community in El Quiche, an area in the central highlands of Guatemala that is considered to be the poorest region in the country. The area was severely affected by 30 years of internal conflict, and the predominantly Mayan population continues to face economic and cultural discrimination.
In the past, Candelaria’s family survived on corn and beans alone, eating as little as possible to make it last. Although Candelaria knew how to sew and had been making and selling Mayan women’s blouses since she was 15, she could not get ahead of her expenses, and her weekly income of $6.50 just was not enough.
Then Candelaria became a client of the local microenterprise program, Fondo Microempresarial, established by Save the Children to increase the incomes of rural women. Instead of paying moneylenders 10 percent interest per month on loans to buy materials for her blouse business, as she had been doing, she was able to access credit at a reasonable rate with a group-guaranteed loan of $70. Candelaria has paid off two loans now, and is working on her third. Her household income has quadrupled to more than $30 per week.
Today, her family can afford to buy more wholesome foods. She also spends more money on clothes for her children. After these expenses, Candelaria reinvests the remaining income in her business. She says she is glad that her children will have better opportunities, and a better life, than she did.
Candelaria’s story is being repeated across Guatemala and around the world because Save the Children uses a proven formula for success. In poor communities, entrepreneurial women form groups and agree to guarantee each other’s loans, thereby eliminating the need for collateral required by formal lending institutions. Each member is eligible for a small initial loan, and, as their businesses expand, loans gradually increase in size as needed.
