Social Entrepreneurship
LMDF aims to stimulate entrepreneurship with a particular focus on the most excluded. The Fund is particularly interested in social entrepreneurs, those who not only aim to start a successful business, but hope to contribute to social development by doing so. SabiPLUS in El Salvador are a group of female entrepreneurs with such an aim. They have been supported by AMC, a microfinance institution (MFI) with which LMDF works.
After attending a course about producing personal care products from natural herbs, twelve women from Morazán in El Salvador became interested in starting a business. This led to the launch of SabiPLUS, also known as ‘Women in harmony with nature’, in 2013. However, it soon became clear that the women needed to know much more than the basics of creating products. They had to have a sales strategy, a business plan and resolutions to all sorts of logistical problems, from finding a suitable location to sourcing bottles, labels and machinery. The organisation they had initially worked with was no longer able to help them. Faced with these challenges, only 5 of the women decided to go ahead with the project.
The first year was tough. Initially the women had no support and could not find an organisation that would provide a loan. Each member had to use part of their family income to purchase material and equipment, but family incomes were minimal and it was a real challenge to meet the expenses and stay solvent. The women realised that they could not continue like this. Fortunately, AMC paid the team a visit, and seeing the business’ potential and the women’s passion, suggested that they participate in a programme designed for female entrepreneurs. They went on to receive not only a loan, but training in topics from business innovation, through to product costs and customer services. The women continue to participate in further workshops to learn more about natural cleaning products with the hope of diversifying the product line.
Yet challenges still remain. One of the main ones is accounting and billing, something the women are not used to doing. Nonetheless they are confident that, with the support of AMC, they will be able to resolve these issues and they even hope in future to expand beyond the territories of Morazán.
