Rural entrepreneurship: two sides of the coin
In times of increasing economic insecurity, entrepreneurs have fought against their circumstances to create businesses, modernise industries and create new sources of jobs and incomes.
But what makes the rural entrepreneur different? They may face various challenges, ranging from communication to healthcare, but this also translates into opportunities for innovation and ingenuity. From women creating homemade sanitary towels in India to grassroots enterprises in Uganda building fuel efficient stoves, there are countless examples of rural entrepreneurs meeting the needs of their communities in a sustainable way.
Here in Nicaragua, youth entrepreneurship in rural communities is increasingly seen as a sustainable means of developing local economies. Nicaragua- the second poorest country in Latin America- faces high levels of unemployment, in particular among the youth. Rural communities have traditionally depended on agriculture to sustain livelihoods, however Nicaragua is heavily affected by climate change. As a result, gaining skills and knowledge in business development can put rural entrepreneurs at an advantage when considering their options for income generation.
In our conversations with local entrepreneurs we met two women, Gonzalina Aguilar and Yelba Maria, who represent two sides of entrepreneurship in the community. Gonzalina has been running her own store for a number of years, whilst Yelba, who lives near a baseball pitch, is just starting to develop a business idea. Over a hot, sunny afternoon, we sat down with both to understand their thoughts on what makes a successful rural entrepreneur.
Motivation
Gonzalina is a friendly mother with a successful pulperia, or general store for the community. As her children grew up, she found herself increasingly unable to afford basic expenses such as health and education. Sensing no other option, she began making and selling products, such as coffee and coconut bread, to fund these essential items. On the other hand, Yelba Maria wants to make the most of her current situation: she lives next to the community’s baseball field. Every Sunday, the field is a hub for players and their families, especially during the leagues. Yelba Maria began selling enchiladas and juices on hot Sunday afternoons to great success.
Support
When Gonzalina began her business she took on all aspects herself, working long hours as a sole founder. However, as her children grew up, they became increasingly involved with the business and became her primary source of support. Fortunately, Yelba Maria can count on the support of her husband and two sons, as is evident from their animated discussions with us; emotional and mental support from her family is key.
Idea Development
Gonzalina began her business selling gasoline, coconut bread and coffee; with time and accumulated savings she was able to open her own store from her home. She even purchased an electric mill, making her store the only location in the community to make corn flour for the ubiquitous tortillas seen in every home. Yelba Maria, who is in the process of establishing her business, is analysing the demand for her products and considering the option of opening her own store. At the moment, the products she sells on Sundays are well received and sell out. However, she is looking for other products which she could sell in the long term in a more stable manner.
Finance
For Gonazalina, rising inventory prices and narrowing profit margins meant that the business could not cover all her needs. For this reason she sought a personal loan to cover essential spending, so that she could continue to run the business. However, she notes that it is important to be able to repay loans in order to avoid charges. On the other hand, Yelba has not yet sought financing for her business. She has concerns around bank charges and any implications of repayments.
Perseverance
When we asked Gonzalina what her advice was to young entrepreneurs in her community, she said that they must have a lot of perseverance. She told us that starting a business was not easy, and not always profitable but with a lot of perseverance they could eventually succeed. This advice is also helpful for Yelba, who is just beginning her journey as an entrepreneur, and we hope she will have the perseverance to convert her opportunity and excellent location into a successful business.
The stories of these two women indicate that there are many avenues which can be explored when starting and developing your own business in rural communities, meeting community needs in a sustainable way here in Nicaragua.
Originally published at raleighinternational.org. This post was written as part of a government-funded entrepreneurship programme- ICS Entrepreneur and has been edited.
