La Financiera Nica: Microfinance Growth Strategy in Rural Nicaragua, Managua, Nicaragua
This document profiles the market survey that the microfinance company 'La Financiera Nic' (Nica) undertook in rural Nicaragua.
The document states that:
- Nica had the following four objectives:
- Secure new capital by attracting new shareholders;
- Lower the cost of capital for portfolio growth by offering savings accounts;
- Attain lending technology from a foreign consulting entity;
- Allow original donors to eventually recoup a portion of their original donation.
- Nica offered individual loans to three sectors: commerce, service and production.
The document describes Nicaragua's internal political conflict and the resultant economic decline.
It goes on to present the results of a market survey that Nica undertook in Jinotega, Nicaragua. The survey found that:
- The supply of finance was competitive with a wide range of financial institutions such as non-government organizations (NGOs), commercial banks, cooperatives, and government-subsidized programs;
- The demand for finance came mainly from small and microenterprises;
- Client credit preferences were varied, ranging from training classes, flexibility in repayments, low interest rates, etc;
- The break-even projection for opening a new branch was optimistic.
The document then studies the market characteristics of Jinotega, focusing on:
- The seasonality of coffee production and economic activity;
- The lack of infrastructure;
- Sector concentration in retail, small businesses and agriculture;
- The importance of coffee production for the economy.
The document concludes by providing a country-profile of Nicaragua.