Starting and Improving Business through VisionFund loans in Honduras

In one of the most remote communities in western Honduras, Cololaca, Lempira, the economy is based on agriculture and there are no other sources of income for the families who reside there. Faced with this situation, Juan and his wife Rosalina decided to start their own business. "My dream was to have my business in our community because we have to travel long distances to buy the things that we do not produce." 

With their savings and financial support of extended family, Juan and Rosalina started a small grocery store in their community. In the beginning, they had few products to offer, which sparked Juan's desire to improve the business. "The first approach with VisionFund was through a friend, he told me that they made loans. I went to VisionFund and they approved it, as long as it was for our business and my own food. We took out an initial loan of 20,000 lempiras (US $828) to strengthen the business," said Juan. 

In March 2020, as a preventive measure against the COVID-19 pandemic, the Honduran government decreed an absolute curfew. "There were not many sales because of COVID-19, because of the restrictions we had no means of transportation, and we could not stock up," said Juan. 

In addition to the COVID-19 pandemic, the community of Cololaca was affected by tropical storms Eta and Iota. "What affected us was transportation and electricity, the access road to the community was also ruined, no cars or buses could pass. In good weather it was excellent with up to 40 people coming to buy, now in bad weather it is only 10 people," Juan lamented. 

In Cololaca there are other businesses besides Juan and Rosalina’s store, but they are far away. "Friendship and good service make customers prefer us, we treat them well.” 

Today, Juan and Rosalina look to the future with hope: "We feel we have been recovering. VisionFund has a lower rate, we are grateful because they have supported us now and other times in the past.”