Making Dreams Come True - Nicaragua Winter Term 2012

Doing Business in Nicaragua: Microfinance and Social Value Creation course brought life changing experiences to the students who lived it as well as to the Nicaraguan entrepreneurs whose dreams they made come true.

"It takes a village" is a true acknowledgment of all the people involved in the success of the course. We would like to recognize and thank Mr. Hardisty, former advisory board member of the Robert H. Smith School of Business, for his support in making arrangements and connections which greatly enhanced the course, as well as the CIBER program, for its financial support.

The last day in Nicaragua

I have the privilege of writing the last blog of the trip. I sit here in the debriefing session as we give our closing comments to what has been an amazing trip. I think I can safely say that all 11 of us enjoyed and got a lot out of the trip overall.

We all loved the time we spent in San Juan del Sur so much that we wanted to stay just a little longer. After some last minute changes in the schedule, the morning was split between people who went to the pelican pool and people who needed one last visit to the beach. Chelsea, Stephanie, Matt, Dillon and I went to the beach, thanks to Richard from San Juan. Driving through San Juan with Richard, we could really sense the family like atmosphere. Every three houses, as we drove, Richard smiled and waved at some other family member or friend along the way to the beach who he knows. Getting through the forest road to the Hurmosa beach was a feat on its own, but eventually we made it and were lucky enough to have almost the whole beach to ourselves. Although the water was still a little cold all five of us had a great time in and out of the water along the beach. A few hours and a few sun tans later, Richard took us back to the Casa Marina. On the way back, we got out of the jeep to take some pictures of the monkeys in the trees.

Before embarking on the drive back to Managua, we had sandwiches for lunch in Casa Marina. After a nice long drive back to Managua, we stopped in the store Esperanza along the way. There we had one last opportunity to buy some more gifts made by Nicaraguan artisans before we left. They had all sorts of nice ceramic pots and decorative bowls, plates, and jewelry. I couldn’t resist buying a couple more ceramics to bring back home to my friends and family. Following our short visit to Esperanza after some debate we decided to go check out this supposedly very scary zip-line in Managua. Only Chelsea and Dillon decided to try it from the group, but we all watched them excitedly as they each jumped off the platform.

We went to the UAM campus one more time to have dinner at the University. There the provost spoke of his hopes to continue the relationship between UAM and University of Maryland and wants to be able to arrange future joint projects between the two groups. On the way back to Camino Real hotel we stopped at a grocery store so everyone can load up on the cultural food to bring back to their friends and family.

As we pulled into Camino Real I think everyone had some deja vu as we walked into Camino Real remembering the first day of the trip, only 10 days ago, when we were only starting the trip, not knowing what to expect. How far we have come since then and how much we have accomplished. During the debriefing session by the pool, many people added their comments and constructive criticisms about the trip to try to improve the course in the future. As many have stated we were able to make a huge impact in the lives of 4 entrepreneurs and had a great time doing it. I hope this trip has the same continued success in the future that we had.

By Nikita Shenoy:

Hola payasos! I write this blog post as I sit in Dillon, Pratik, Matt, and Amiel’s apartment with the rest of the gang. We’re all reminiscing on the trip, even though it’s still not over! It is the second to last blog post though, so I feel like I have some pressure on me to make this one good! We did have a pretty emotional day though and I think everyone was semi on the verge of tears at least one point in the day.

Let’s start from the beginning though. Everyone started off the day differently as we all met with our groups to finalize our presentations for the day. Dipti, Dillon, and Chelsea went to Roxanna’s store to help out with the final touches of fixing everything up. Apparently it was a very emotional time as Roxanna was overwhelmed with tears at the thought of the impact the three students had on her business. In her own words she stated that without the help of their fundraising she would not have been able to raise the money that they did in even three years of work. This shows how much of a great impact they have had on one woman’s business.

Matt, Sandhya, and Leslie went with Michael Rosh in order to finish up visits with the people that he lends money to. Afterwards they got a great surf lesson at Madera Beach (the beach we went to on Sunday). Without saying, the rest of us were pretty jealous (except me because I can’t swim :o)!

Pratik, Carmen, and Amiel had a pretty eventful morning as well. They went back to Edwin and Ana Cecilia’s store to finish the painting that they have been working on for so long. Edwin told a heartwarming story later about how he asked the group, “You’re in San Juan, don’t you want to go to the beach?” The three responded by saying, “We’re not here to relax on vacation. We’re here to help all of you.” Then they continued to paint the shelves.

Stephanie and I had a great meeting with our entrepreneur Richard yesterday for about five hours, therefore we had a lot to reflect on this morning. We started off with a regular meeting yesterday to teach Richard how to use gmail on his new computer. However, the day turned into a great adventure with his entire family. We first started off taking a simple trip up to the Jesus Christ statue which had us feeling like we were on the top of the world (or at least San Juan del Sur).  

Then we took a trip to Richard’s past, present, and (hopeful) future. We visited his entire extended family in the house that he grew up in. It was great to see where exactly he started off – which actually was in very small, modest stone house where they used old spray cans for candles and did not even have a stove to cook on. He showed us all of the items he bought for his mother after making enough money which was really great to see.

We also took a trip to his current house and the house that he plans on building soon as their future home. Visiting all these places of Richard’s history really gave us a great appreciation for what we are doing here in Nicaragua. Before coming to Nicaragua I had a hard time imagining what kind of impact a couple of students could have on one person in the span of two or three days. After hearing Richard’s story and meeting his entire family we really saw what kind of an impact we could have. He came from almost nothing and established his name throughout San Juan del Sur. I think what we realized yesterday was that our impact would not just be on one person – it would be on his entire family and extended family. This makes every single effort and every cent of money that we spent on coming on this trip completely worth it.

After everyone presented on their respective entrepreneurs today it was quite the emotional moment as all the professors went around describing how important this trip was and how great it was that there was a quadruple impact on this trip. The professors/librarians, the UMD students, the UAM students, and the entrepreneurs all benefited from this trip in a tremendous way. I think everyone got a bit teary eyed at this moment as it was only a subtle joke here and there that made everyone keep from becoming emotional from all of the amazing speeches of the afternoon.  

We ended the night with a great dinner at Jane’s beautiful house. The professors had conversation and dinner inside while all the students continued our craziness in the backyard sharing stories, games, and laughter. I think it’s amazing to see how close all of us got throughout this trip. I was speaking with someone yesterday about our first trip together to Washington D.C. to visit the Nicaraguan ambassador and how we all barely knew each other. However, just after one week of close quarters, late nights, and waiting three hours for each dinner I feel like I know each and everyone of these people and I am so excited for the road ahead. 

Mon., Jan. 16

Richard, taxi service owner, with Stephanie, his new laptop, UAM student Richard and  Nikita.  You can view Richard's facebook page advertising his taxi service.

Pratik, Amiel, and Carmen in Ana Cecelia's newly moved grocery store, shelves painted by the students, goods arranged and the store ready for business!

Roger from UAM, Dipti, Roxanna, Dillon, and Chelsea in Roxanna's new clothing  store - new racks and mannequins purchased with the group's donations (Thank you donors!!)

Carmen, UAM student Richard, Edwin and Ana Cecelia and the entrepreneurs workshop

Leslie, Sandhya, entrepreneurs Leonel and Marguerite and UAM student Josue at the workshop

Sun., Jan. 15

Infinity Pool at Pelican Eyes resort near Hotel Villa Isabella

On a tour of Lee and Rachel Greenberg's eco friently house made from shipping containers

Stephanie, Dillon, Leslie, Nikita by tire restraining wall - made with recovered materials

Beautiful view from the Greenberg's home

It's Another Beautiful Day

It is another beautiful day in San Juan Del Sur and we all took some time this morning to get our beauty sleep. After a delicious breakfast catered by Roxanna, many of us met Rachel at Villa Isabella for a tour of her unique home. The house was positioned on top of a mountain and, since we are all young and in great shape, we opted to catch a ride in one of the trucks and arrive in style. Shipping crates made up the frame of the home, leaving space for a beautiful patio and pool, and recycled tires were stacked, creating a rubber band like wall, high against the steep hillside they had dug to make a sturdy foundation for their dream home. While the design was interesting, the sustainability was incredibly impressive. The roof boasted a solar powered hot water heater, while every window air conditioner had solar panels pointed away from the hillside. A rain collection system was set up to funnel water from the roof down into underground water barrels where it could be stored in case the well ever stopped functioning or became strained as more people move into the area. The coating on the containers served as an exceptional insulation and kept the inside relatively cool, while breezes swept through the industrial looking windows. Unfortunately, the monkeys that frequent their trees where not around to greet us, but the view from the roof was stunning enough.

The groups split up to work with their respective entrepreneurs after each grabbing a variety of local dishes at restaurants or supermarkets nearby. My group in particular met with Michael Roche, who backs a micro finance company and takes a trip down to meet with the family running the operation and those who have borrowed money each year. During the house calls to his clients, we were able to get a better sense of the town. While the many brightly colored buildings stand out the most, the simple houses with dirt floors, tin roofs and genuine people also made an impression. No matter what their financial situation, everyone is proud of what they have and somewhat unlike in America, they take great pride in themselves, being always presentable even for a small outing.

We also were able to experience the extreme hills and the hazards even seemingly paved roads present. Michael drove a little, red sedan right up the side of a hill that looked as though it went straight up and would tip us over if we ever made it to the top. However, tipping over was not what proved an issue, the fact that a giant hole and the end of the pavement was waiting at the peak took us by surprise as we strained the engine and hoped rather loudly that we would make it. The view from the top was breathtaking, as you stood opposite the Jesus statue and looked out over the whole of San Juan Del Sur.

Then came dinner time when we went out for what promised to be a delicious meal; however, we became considerably grouchy, grumpy and impatient when the food took two hours and we were not offered refills on our drinks during that time. While threats of writing bad restaurant reviews and canceling our orders were tossed around the table as viable options, we ended up staying put because we're from Maryland and we finish what we start. Never say die....Even when you are starving and have an empty glass.

Another day in San Juan del Sur :D

Hola amigos! If you’ve been a loyal reader of this blog and have kept track of what we’ve been doing here in Nicaragua, you’d have realized that we have been balancing work and play, and today was no exception.

I woke up this morning and found myself feeling a bit sad. Ever since Pratik told me that he woke up a few days ago and realized our trip was already half over, I can’t help but feel that every new morning means one step closer to our departure. My fellow students and I have become quite comfortable here in San Juan del Sur. The sunny sky, the warm air, and the cool breeze that comes from the bay…it’s going to be hard readjusting to the cold, nipping weather back in Maryland (especially during the daily 15 minute walk from La Plata to Van Munching). I begin the day by stepping out onto the balcony of our condominium to appreciate the beautiful weather, and the beautiful view of the bay in the morning. After showering and cleaning up, I head down to breakfast. As I come down the stairs, I am greeted by three smiling face; Leslie, Roger and Josue are already seated at a table eating their breakfast. I order the typical Nicaraguan breakfast of rice, beans, eggs, and toast and scarf them down. The other students and I are convinced our stomachs have expanded after being stuffed during the first couple days on this trip. I estimate that I’m going to go back home 5 pounds heavier than when I left.

Pratik, Dillon, Chelsea, Stephanie, and Carmen spend the morning at the site of Cecilia’s new store where they help paint the banister, walls, and shelves. Every time I see them applying a new coat of fresh, white paint, I can’t help thinking of Tom Sawyer. After Leslie and I pay them a visit to see their progress, we walk back to the hotel to meet back up with Sandhya and prepare for our meeting at 12pm. Last night, we promised to train Lionel, his wife Margarita, and her sister Maria Teresa to use the laptop we plan to give them. While we wait, I break out the copy of The Hunger Games given to me by Jane. She was kind enough to lend me a copy after seeing me reading it in Susan’s book store. I’ve only been able to read for short periods of time, but I’m still hooked on it. Around 12:10, Margarita and Maria Teresa arrive, accompanied by Michael Roche, who gave them a ride. Together, we sit down and begin to teach them the basics of Microsoft Excel, the program they will use to keep track of their loans and to keep Michael updated on their progress. I find it quite incredible how fast they learn the working of the program. I’m used to struggling for hours trying to teach my parents how to use technology, but within a matter of minutes, Maria Teresa and Margarita are creating multiple sheets, each properly formatted and filled with the necessary formulas. My team has good foresight and also gives them a flash drive so they can back up their records. I can only imagine how distraught they’d be if for some reason they lost all their records and had no extra copies.

After finishing with our entrepreneurs, we all meet back up in Casa Marina. Richard has kindly offered to pick us up in his van and drive us all to Madera Beach. And yes, this is an actual beach, unlike the “beach” that is actually a bay in San Juan del Sur. We all pack into the van, stop by Villa Isabella to pick up some bag lunches, and then drive off to the beach. After being bounced around during the bumpy ride to the beach, we arrive and are ecstatic at the site of the sand and waves. We make camp on the beach and enjoy the lunches packed for us. After we’re all done eating, we test out the waters. Some of us quickly realize the water is too chilly for their liking and head back to tan in the sun and play kickball but Stephanie, Rinaldo, and I remain in the water to body board and play in the waves. Unfortunately, about half an hour later, we realize we’ve made a big mistake…we neglected the movement of the tides and have positioned our belongings too close to the water. Many of our belongings get soaked, but we reposition our belongings and try to make the best of the time we have left. Some of us venture off to climb some big rocks we can see off in the distance. Personally, I don’t understand the allure of large rocks, but I’m not judging. Hey, if you like looking/climbing big rocks, all power to you. Instead, I stay to play in the water and chill on the beach (which gave me more time to read my book!!!).

At 5, the group hops back in the van and we drive back to San Juan del Sur to get ready for dinner. We eat at an Italian restaurant owned by a nice lady who came to Nicaragua 14 years ago. After dinner, we have a brief conversation with her where she tells us how she came to be in Nicaragua. She had originally been on sabbatical and had planned to backpack all the way to Africa. But after coming to Nicaragua and meeting her future husband, she decided to settle down here. This is a very typical story you hear from those who live in Nicaragua who are foreigners. Sometime about this country, maybe the weather or the kind people, makes them want to stay here. I often wonder if I will ever have a chance to come back to Nicaragua and visit the people we’re currently interacting with. Thoughts like that make me cherish more and more the time I’m spending here.

Sat., Jan 14

Dinner at Calibri with Lily, Zaida, Michael Roche (sponsors Leonel's microfinance operation), Pat, Jane.  In back, Rachel and Lee Greenberg and Sue

Dillon, Chelsea, Stephanie, Pratik, Dipti, Leslie with the restaurant owner

Matt, Amiel, Josue from UAM, Nikita, Carmen, Sandhya

Friday, Jan 13

From Dillon

Hola from la playa in San Juan del Sur! As I type this, I am sitting on the beach and watching the waves crash and the sun set on the horizon. Today was, without question, my favorite day in Nicaragua. We all woke up early today to get a head start. This was difficult for many of us who decided to stay up late last night playing charades, in which the guys handily defeated the girls). After eating a nutritious chocolate chip pancake breakfast in our hotel, Carmen, Amiel, and Sandhya left to paint Cecilia and Edwin’s new store. The rest of us loaded into Jane’s book mobile to bring books to rural school children.  The ride there was like a roller coaster. The streets through the mountainside were bumpy, and we had to cross through a few streams. We had to stop multiple times for cows in the middle of the street and we even got to see monkeys hanging out of a tree. Matt, Pratik, Chelsea, and Stephanie went to one school while Leslie, Dipti, Nikita, Zaida and I went to another.

Upon our arrival, we saw a small building with a basketball court and what looked like the remains of an old swing set. Next thing we knew, there was a group of 20 school children, ages 3-7, coming out to greet us. We wasted no time getting down to business. Leslie used her Spanish skills to read the children Llama Llama Rojo Pajamas. Once she finished that, we went around the room and colored pictures of llamas while the children eagerly checked out books from two large containers. It was rewarding seeing the smiles on each child’s face as he or she picked out a book. In America, many children don’t appreciate a simple book with all of the technology that’s out there. (i.e. http://www.youtube.com/watch?v=sv4Hpz-GI3g)   But in rural Nicaragua, these children acted like we had given them gold. I think this speaks to a greater lesson about the importance of cultural perspective.

Once the children had checked out their books, I noticed that a lot of the boys were going outside behind the building so I decided to follow them out. To my surprise, I found one of the older boys reaching into a hole in the wall and pulling out handfuls of live snails. All the boys proceeded to grab them and quickly slurped the defenseless snails out of their shells. They offered me one but I had to respectfully decline. To distract them from their snail habit, I offered them my camera. It was fun to see how excited they got over taking pictures. I then played tag with the group for the rest of my time there.  By the time we met up with the other group, I was both exhausted and exhilarated. This was definitely an experience that I’ll always remember.

For lunch we stopped at a local seafood joint. Good fish and shrimp dishes with lots of guacamole. After lunch, we finally got to go on our canopy tour. Essentially, it was a series of zip lines on top of a mountain. The ride up the mountain was a bit bumpy to say the least. Once we got to the top of the mountain we had an incredible view of San Juan del Sur. Next thing I knew, I was hooked on to the zip line and speeding down the mountain, hundreds of feet above the ground. It was one of the most exhilarating experiences of my life and I am happy to report that everyone survived.

After zip lining, we went to Dinner at Hotel Villa Isabel. My group’s micro-entrepreneur, Roxana, cooked dinner for everyone. Without question, it was the best dinner we have had in Nicaragua. During the dinner, we all had a chance to speak with our entrepreneur. We met Roxana’s family and made plans to move clothing shelves and racks into her house. When the dinner was over she even gave us a tour of her house so we could take the proper measurements. Our UAM teammate, Roger, is driving back to Managua to pick up our parts tomorrow and we will put them all in her house on Monday. A group of us are looking forward to exploring San Juan del Sur’s nightlife tonight. That’s it for now. Buenos noche y adios! 

Friday, Jan 13

View from the San Juan del Sur beach

Lunch, facing the beautiful beach - Pratick, Nikita, Dillon, Matt, Stephanie, Leslie

Jane's library - students went out this morning  with the bookmobile

Dinner with the entrepreneurs - Pratik and Edwin and Ana Cecelia.  All the entrepreneurs and their families were there for dinner.

Lily, Zaida, Ana Cecelia and Edwin

Thurs., Jan. 12

From Pratik:

Hola! I am currently sitting on the patio of our condominium in San Juan del Sor facing the bay and the mountains. The view from up here is so beautiful and very serene. This is truly the good life. Although, I must say, we had a bit of a disappointment all because of our dear Lily. The entire trip, she had led us to believe that we would be staying right on the beach, and when she realized on the bus that we were only twenty minutes away and that we couldn’t drop out of the trip at this point, she decided to tell us that the beach is actually thirty minutes away from here and that we’re just staying on the bay. It was quite the fun bus ride to hear her break the news to us, but nonetheless, there is no way that I can complain because the view from here is beautiful, the temperature is perfect, the water is so serene, and I’m sure everyone reading this at home is suffering from the cold weather.

Today was actually one of my favorite days of the trip so far, and I’m glad I get to blog about it. We started our day with a bike tour of Grenada (what better way to start the day?) We were originally supposed to leave in the morning for the tour at 9:30, but by the time our tour guide Frank got all the bikes out and lowered almost every single person’s seat, it was about 10:30. However, in retrospect, I have to say thank god we only started at 10:30. The sun was beating down quite hard and it’s definitely not the easiest thing to bike around Grenada while being mindful of all the traffic. We were all pretty tired by the end. The tour was really awesome though….we hadn’t really gotten a chance to truly check out the city and all that it has to offer, so riding a bike around was definitely a great way to get to know Grenada better. First, we biked to the lake (which I had no idea existed before we biked there) and the view there was absolutely beautiful. We biked with the lake to our left for quite some time, and it was just awesome to look left from time to time and see the water and mountains in the distance. We also got to see a lot more of the local life in Grenada, saw a lot of animals on the streets, and got honked at by probably thirty or forty vehicles which I can assure you gets quite annoying. Our tour guide’s name was Frank and he was definitely a really cool and good tour guide. I learned that there are actually 365 tiny islands in Grenada, and he took us out by one of them. He told us a great story about fisherman going out in the night to catch fish. He said that they go out around 1 or 2 AM and use only the moon and the stars as light. Hearing these kinds of stories really got to me because I think it’s great how simple of lives some of these people live. Coming from college park where there are so many lights and I can never lay outside and even see the stars because of this light pollution, it was awesome to hear a story like this and was very eye-opening. After stopping at this little island (and taking hundreds of pictures of course) we biked to some other spots in the city. The most intense part of the biking was definitely the fact that we were on some very busy, narrow, and crowded roads at some point. It was fun to coordinate the traffic and bike safely around the city while seeing the different sights. We finally got back at 12:30 exhausted but very pleased with the trip. As I stated, before this bike trip we really hadn’t gotten the chance to explore the city and see what Grenada was like, so it was definitely a good experience.

We were supposed to leave soon after getting back, so we grabbed lunch at Tip Top which is one of the most prominent fast food chains here in Nicaragua. They were all about fried chicken and French fries, but it was really good and the food felt really good after the long bike ride. After eating lunch, we got on the bus and headed to Juan Polina’s pottery store. This might have been my favorite visit of the entire trip so far. When we walked in to the store, we headed to the back where much of his family was located. His brother in law was sitting at the potter’s wheel. When we first entered, he was simply holding a piece of clay and molding it with his hands and was running the wheel with his legs. The next thing I knew, he was magically shaping the clay into a tall pot. Five minutes later, it was solidified and was being passed around to touch. I was so amazed by how quickly he did it and the fact that he seemed to have just put shape into this piece of clay magically. Juan Polina talked to us about all the different things that go into making his various pots, and he showed us pots at different stages in the process similar to how people do it on cooking shows. A lot of the stuff he told us about was so interesting, such as the fact that he uses his children’s hair to make the paintbrushes he uses, and also that he uses a toothbrush to flick water onto his pots. Before going to Juan Polina’s store today, I had been wondering what makes him one of the best known artisans in Nicaragua, but after this presentation I believe that it is pretty clear what separates him from artisans in the area. He pays such meticulous attention to detail (as evidenced by his paintbrush story) and he has a very good model running in his house currently. I think it helps him that it is a completely family run business, as everyone who was in his shop either making the pots or painting is a member of his family. Both his wife and he produce the pots, and his wife handles all the transactions. After his presentation to all of us, I’m pretty sure every single one of us bought one of his items because there were just so many great items.

After visiting with Juan Polina, we stopped briefly at a furniture store before taking off for San Juan del Sor. Almost the entire group slept on the bus ride there, and so Dillon and I were busy taking pictures of people at their finest. Let’s just say….we are not an attractive group of sleepers. After checking into Jane’s hotel, we headed out for dinner at El Timon. It was a really authentic experience as they had native dances and performances throughout the night before opening up the dance floor to everyone. We all did a little bit of dancing with Zaida, Pat, and Edwin before the night was over. Overall, today was a really fun day. I felt like I really saw some of Nicaragua today, and my eyes were really opened by the presentation that Juan Polina gave. Hope you all enjoyed reading about our day!

Wed., Jan. 11

From Sandhya:

The focus of today’s activities revolved around developing our business plans and pitching our suggestions and research for a panel of workers from Opportunity International, an international microfinance group that works with Nicaraguan artisans through its Ojala program. We closed the evening with a group question-answer session with seasoned Central American journalist and Boston-native Tim Rogers.

We spent about an hour working with our Universidad Americana matchups, perfecting our presentations for Opportunity International . Mildred, a local OI employee was available during this hour to talk to the groups and answer any of our Nicaragua-specific questions. I had a particularly nice time talking with her, learning about how different the Caribbean and Pacific coasts were. I was especially astounded to hear that the fastest way to access the predominantly tribal and Afro-Caribbean coast was by air or sea, given the poor condition of the inland roads and the density of the jungle towards the Caribbean coast.

My group did a general overview of microfinance, covering the basic types of loans, lending systems, benefits and downfalls of the systems and need assessment. The need assessment and loan screening process is the most difficult part of issuing micro loans, in my opinion. The definition of poverty varies so much from country to country; its seems almost oxymoronic to try and create a quantifiable system of measuring poverty when true poverty is not only measured by materiality and infrastructure but by the spirit of a community and the perception of “need.”

Our second presentation was on how OI could improve its operation in the US. Amiel, Carmen and Pratik went further and actually identified a successful business model, Ten Thousand Villages, which had the same type of supplier and consumer base. One of their suggestions, which definitely appealed to me as a supply chain major, was a shift in shipping patterns and inventory management. To mirror Ten Thousand Villages, the group suggested that OI reduce the number of shipments it makes to its American retailers and increase the size of its shipments. This would save shipping costs and reduce the time spent collecting and tallying inventory before it was shipped abroad. The group also suggested cause-based marketing that would appeal to consumers’ social consciousness. To implement this strategy, they suggested featuring one artisan/community on OI’s outlets’ websites every week. Simultaneously, the group suggested featuring a certain product at a markdown. By providing a detailed description of where the product had come from and who has made it, the advertisement campaign would have a more personable and intimate appeal.

The third presentation to OI was by Dillon, Dipti and Chelsea. The group talked about creating a solid business plan and identified forces and considerations OI would have to make as it expanded its network and Nicaragua. The main take-away points from this business plan were to create a 3-5 year outlook into the future in which the artisans could factor in the effects of their investments and project cash flows. I also thought their application of the four main forces of marketing (product, price, place, distribution)to the artisans’ business structure was important; a nuance of these individually operated small businesses is that they can price-discriminate so easily and a mark-up or a mark-down can be applied within seconds of meeting a customer. The group also touched on defining success through timelines, measurable goals, strategic alliances and sales forecasts. Some of the risks that should be factored into any business plan are the political, legal, environmental and demographic forces of a region.

The final group presentation for Opportunity International was by Stephanie and Nikita. The girls talked about a client growth assessment tool to identify current and future growth opportunities. The questionnaire for current growth opportunities would consider the history of the business, the time period and timeline for production, the creativity capacity of the artisan and how open the business is to change. Mildred from OI found the questionnaire for the business expansion in the future especially important because it would give OI a good picture of what kind of prospects the business owner had for his/her business, beyond what OI thought it could do to help the business.

Time Rogers, a foreign correspondent from the Miami Herald, came in around five to speak to us about his impressions on Daniel Ortega’s inauguration, which he had covered the previous day. I thought it was strange that the prince of Spain should attend the inauguration of a country that is trying to revive its leftist anti-colonial past, especially in the company of Hugo Chavez who is infamous for having publically insulted the former prime minister of Spain. It was funny to hear that Ortega insulted Ahmedinejad, perhaps his most high-profile guest, by suggesting that Israel should give up its nuclear weapons in exchange for Iran ending its nuclear programs and changing its stance towards Israel. Mr. Rogers then accompanied us to dinner at the Garden Cafe. I ended the night exploring the main square of Granada a bit, and managed to bargain 75 Córdobas off of a bracelet and a pair of earrings. 

Thurs., Jan. 12

Juan Paulino's pottery studio, with Zaida translating

It's a family business, with his brother in law (above), wife and other relatives working as well

Matt at the pottery shop

At the pottery shop

Dillon and Chelsea are checking out which chairs are most comfortable at the furniture factory

Dancers at dinner at El Timon

Tues., Jan. 10 - Managua/Grenada

From Stephanie Chon:

Hola mis amigos!

Today marked a significant occasion in Nicaragua's long history of political turmoil. Nicaragua celebrated the inauguration of their President, Daniel Ortega, or as we like to call him, Danny. Iranian President Mahmoud Ahmadinejad and Venezuelan President Hugo Chavez, two of the most infamous leaders in the world, joined in on the celebrations here in Nicaragua. Unfortunately, due to the large rallies and possible dangers that could result from Ortega's inauguration, we decided to change our travel plans and leave the country's capital of Managua sooner than we had originally planned. We were unable to witness any major events in Managua because of the possibility that we may have not been able leave the area.

We started our day off with a visit to the Universidad Americana (UAM), which is the school that our Nicaraguan peers attend. We listened to a presentation given by Ricardo Terán Terán, the co-founder and managing partner of Agora Partnerships. Agora is a non-profit organization that invests human, social, and financial capital to accelerate the growth of high-impact entrepreneurs in the developing world. The organization works with small and growing businesses (SGB), which are commercially viable businesses, typically with 5-250 employees and strong potential for growth. It was really fascinating to learn about Agora since they are not a micro-financing organization, but still deal with entrepreneurs that impact underdeveloped communities.

After the presentation ended, we watched a brief video clip created by one of the UAM students about UAM and their international programs. We then got together with our group members from UAM to work on our projects for each of our assigned entrepreneurs. It was really interesting to see the campus layout structure, which was very open to nature.

The next stop was one of Nicaragua’s major banks, Banco LAFISE Central for a tour of their main office and a presentation about their experience in the micro-financing sector. We toured the building, seeing the different offices designated for each department as well as the cafeteria where all the workers can go to eat lunch. We noticed an abundance of art including large paintings and sculptures throughout the building, which are bought from galleries such as Codice: Galeria de Arte Contemporaneo y Artesania Nacional. One thing that really stood out to us was the number of female employees that worked at the bank. There is a great deal of gender equality, with a higher female to male ratio. We then listened to a presentation by a few of the bank employees, including one of the sons of bank owner and president.

In their presentation, they briefly discussed their current charity program with MIT of distributing free computers and setting up Wi-Fi connections for primary schools in extremely impoverished areas of Nicaragua. So far, LAFISE has helped distribute over 22,000 computers throughout Nicaragua and has already seen improvements in drop out rates as well as student attendance rates. They first select the school, Internet in school, and then work with local Internet companies that donate their Internet service to the schools. They then bring teachers to the bank in order to train them on how to use the computers for their teaching programs. After the presentation, LAFISE treated us to a nice lunch. We sat with the President’s son and other employees where we discussed more aspects of the LAFISE bank. At the end of our lunch, the President and owner and the General Manager came to greet all of us, which was actually very surprising. It’s not very often that company CEO’s and bank owners actually make an appearance for groups of students. Before we left, we each received gifts from the bank, which included a hat, a water bottle, and a pen, all branded of course, with the LAFISE name.

Our last stop in Managua before making our way to Grenada was the Masaya Volcano, which is Nicaragua’s first and largest National Park. As soon as we arrived to the volcano, there was a very strong smell of sulfur in the air that made it difficult for everyone to breath. We climbed up the steps to the top of the volcano to better see the depth of the actual crater. There is also a wooden cross at the top of the volcano put there centuries ago by the people to appease the Gods and keep the demons from escaping the volcano. Our friend from UAM said that the volcano is known as “the gates of hell”. We didn’t stay at the volcano for too long because it became too difficult to breathe after awhile. Before we left the Mayasa Volcano, we quickly walked through the museum in the National Park. I thought it was a really interesting contrast to the museums back home in D.C. The museum consisted mostly of pictures and models of the different volcanoes and nature in Nicaragua.

When we finally got to Granada, the difference from Managua was instantly apparent. Just from the cleanliness of the streets and the absence of visible slum housing and the bright and colorfully painted buildings. The city definitely has a historic colonial Spanish charm to it. Our hotel, Hotel Con Corazon is really beautiful with a very cozy and earthy atmosphere and feel to it. There are hammocks hanging in the main as well as a big wooden swing. One of the best aspects of the hotel is that it works with local artisans to help sell their products and they also incorporate artisan products in the hotel décor.

Our dinner in Granada was definitely one of the best experiences so far just from the bonding and memories that we made. We all headed out to the main strip where all the “gringos” go to dine. We ate at El Zaguan, where we were able to enjoy listening to two guitarists playing and singing Spanish songs, while we waited for our meals. The best part of dinner was when we asked the guitarists to serenade Lily with a Spanish love song, Besame Mucho. She was very moved by the song of choice because of the nostalgic feelings and memories.

We had an interesting walk back to the hotel. First, we saw a fairly large dead rat in the middle of the road and then we saw a man passed out in the middle of the square. We were worried that he was unconscious or worse until another concerned passerby came by and noticed that he was snoring. A couple of us had leftover food from the restaurant, which we were planning on giving to any children or people that we thought would eat it. As we were looking for people, we walked by two older women who began shouting at us asking and reaching out for the baggies of food in our hands. After handing them the food, they asked for our bottles of water to drink with the food.

We ended our night on a calm note with everyone just hanging around the hotel. Overall, it was definitely one of the best days we’ve had so far, but we’re all really excited and looking forward to getting to San Juan del Sur in a couple of days.

Pics from Wed., Jan 11

Tim Rogers, political analyst, gave us his views on the  election and  inauguration.

Carmen, Amiel, Pratik, Richard (UAM-CUSE) and Jane working on their Opportunity International presentation

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Big lunch with 16 of us, 7 from Opportunity International and 4 from UAM-CUSE

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Josue (UAM-CUSE) and Leslie presenting

Dillon presenting

Chelsea presenting

Nikita and Stephanie presenting

The UMD, UAM-CUSE and Opportunity International group

Day 2 in Managua- January 9, 2011

Hellooo everyone!

So we had another great day in Nicaragua. The day started off with breakfast in the hotel with the students from Universidad Americana who are working with us on our projects. There are 3 of them, Roger, Richard, and Josue, who are all business majors at the University here. It was great getting to know them and hearing their unique stories. I think everyone was very excited to finally meet the students we had been hearing about for so long. What was even better was that all 3 of them had crazy stories; from living in Sri Lanka to being a US Marine Corp stationed in Iraq.

We spent the next few hours working on our presentations for Opportunity International as well as discussing what we can do for entrepreneurs we are working with. This was very helpful for my group because Roger (who was paired up with us) had a lot of information on what doing business in Nicaragua is like. He had a lot of insight into the legal and cultural differences between doing business here that we would have never thought about. Also, he had met Roxanna, the woman we are consulting for in San Juan. He was able to give us a lot more information as well as show us pictures of Roxanna’s business.

After all the groups wrapped up, we headed to the Hilton for lunch. Lunch was buffet style and we got to further get to know our group as well as bond with the Nicaraguan students. My favorite part about the lunch was the delicious chocolate dessert.

After lunch we headed to the Frontera bookstore to hear from a number of speakers in the microfinance field. First, two speakers from Esperanza Accion spoke about the work they did in Nicaragua. One of them was an American women with a lot of interest in helping the poor in the country and the other was a local Nicaraguan who has always been involved in volunteer work. The organization is very small and works with/lends money to artisans all over Nicaragua. Something unique about the organization is that there is 0% interest on the loans that are given out. This was the first time I had heard of a microfinance organization that requires its clients to pay back solely the principal amount. Also, the company conducts all sorts of training for the entrepreneurs to help them grow and create successful businesses. Examples of training programs include how to calculate fair prices, how to market and how to save. In addition, EA also exports products for artisans to customers abroad as well as sells some products at a store in Managua. Another aspect of technical assistance that they provide is advice on what sorts of products to sell and how to adjust the artisan’s products to meet market needs.

Next, Jaun Paulino (an adorable Nicaraguan man, known for his excellent pottery), spoke to us about what being an artisan is like. Juan Paulino took advantage of all the great programs EA offers and has made himself a successful entrepreneur. He spoke about how important it is to learn and make changes based on what you learn. He also talked about how important it is to alter products for different customers; (he started making décor with cats just because an American woman had told him to). He was an extremely nice man and I am looking forward to visiting his pottery factory to see more of his work.

After that, David, the Executive Director of Opportunity International (the microfinance organization we are presenting to) spoke to us about his organization. He is a graduate of University of Alabama who knew he wanted to live in Central/South America post graduation. OI is an asset based organization that focuses on not only lending money out, but community development. OI is split into two different parts- Nicaworks and Ojala. Nicaworks is the lending aspect of OI while Ojala has programs to support the entrepreneurs OI works with.

OI focuses on “co-investment” so both parties (OI and the small business owner) have a stake in the business. Some themes that came up a lot in David’s presentation were relationship building and sustainability. He stressed the importance of getting to know the people and working with people who you can truly trust. OI does a background check on the entrepreneurs, makes sure everything is coexistent as well as sets collateral before letting anyone borrow money. Another point that was stressed was sustaibility. In order to create lasting change, the first step to change is community buy in. Without the community truly believing in a cause, any efforts from outside sources will not last. We learned a lot more from David and his passion for the mission of OI was evident. One of his projects that I was especially interested was a school he is starting in Nicaragua. The school is for high school students and teaches the students the typical high school curriculum as well as a trade. For example, some students are going to be learning how to farm so wen they come out of high school they already have internship experience under their belt. In addition, the school is going to sell the products of the students so it is completely self sustainable. All of the money made from sales goes right back into the school. I thought this was a very cool idea and should be started in developing areas all over the world.

The next stop was the chocolate factory. Mombotombo chocolate is a luxury brand of Nicaraguan chocolate that is made in a small factory in Managua. We had the chance to get a tour of the facility (in our fancy blue hairnets) as well as learn what the process to making fine chocolate is. The best part about it was the FREE SAMPLES. The taste of the chocolate was pretty interesting. I usually don’t enjoy dark chocolate very much but the orange flavored chocolate I had was delicious.

From the chocolate factory we headed to the restaurant we were eating dinner at. We got there early so decided to spend some time walking around the area and checking out the streets of Managua by foot.

The dinner was probably my favorite meal so far. There was so much delicious, authentic Nicaraguan food served on one large plate, for 3-4 people to share. I had rice, beans, plantains, friend cheese, tortillas and a very yummy corn soup like dish. I personally ate so much that I was entirely too full to try the fantastic looking desserts. The restaurant was Nicaraguan themed with waitresses in authentic dresses and a guitarist playing Spanish music for us at dinner. During dinner we also got to witness street dancers. Children, some dressed in giant masks, danced and acted out funny scenes while others played music in the background. The dining experience was very memorable.

After we got back to the hotel, some of us students along with Zaida and Lily sat around the pool and chatted while annoying the great weather. It was a fun time. I cant believe we’ve only been here for 2 days! I cant wait for Granada tomorrow!!!