Global Youth Economic Opportunities Conference
YFS Case Study: Youth Loan Program
This case looks at Fundacion Paraguaya’s three inter‐related programs of microfinance, business education for youth and children, and a self‐sustaining agricultural school and how they impact the lives of the youth they serve.
Author
Claudia Pompa, Fundación ParaguayaAbstract
The work conducted by Fundacion Paraguaya in the field of microfinance, and thereafter in regards to entrepreneurial education, allowed us to identify a neglected target market comprised of young individuals, sons of our customers and students who participated in our education for entrepreneurship program and who showed interest in creating their own micro enterprise, but did not have the chance to have access to loans. In order to satisfy these needs of the market, FP decided to develop of a specific financial product oriented to young micro entrepreneurs between 18 to 29 years old, from urban and rural areas. The product is oriented to young entrepreneurs who have the intention of starting or expanding their micro and small enterprises.
Currently, 60% of the 6700 young individuals with whom we work are in rural areas and 40% are in urban and semi‐urban areas. 40% of them have successfully concluded high school and the majority of the remaining 60% has successfully concluded elementary school. Most of them come from poor families and do not have the chance to enter into the work force due to the lack of opportunities or sufficient training. These young individuals generally decide to start their own business as an alternative to unemployment and poverty.
