Youth Entrepreneurship in Practice - A Comparative Case Study Analysis PDF

YOUTH ENTREPRENEURSHIP IN PRACTICE: A COMPARATIVE CASE STUDY
ANALYSIS
A thesis submitted to the Kent State

University Honors College in partial
fulfillment of the requirements for
University Honors
By
Michaela Kline
May 2015
TABLE OF CONTENTS
LIST OF FIGURES vi
LIST OF TABLES vii
LIST OF MAPS xi
ACKNOWLEDGEMENTS xi
CHAPTER I: INTRODUCTION 1
Youth Entrepreneurship as a Solution 4
Methodology 7
Case Selection Process 10
Geographical Context of the Case Studies 14
CHAPTER II: YOUTH ENTREPRENEURSHIP AS A PROGRAM DESIGN 18
The AMIGOS Program Design 27
CHAPTER III: MICROENTERPRISE DEVELOPMENT IN ACTION 37
Host Communities: Settings, Challenges, and Opportunities 37
Case Analysis: San Diego 48
Case Analysis: San Luis 53
Case Analysis: Taxoloma 61
Case Analysis: Salatilin 66
CHAPTER IV: CONCLUSIONS 73
Conclusions: San Diego 73
Conclusions: San Luis 79
ii
Conclusions: Taxoloma 84
Conclusions: Salatilin 89
Points of Departure 94
BIBLIOGRAPHY 102
iii
LIST OF FIGURES
Figure 1: Flow Chart of a Microenterprise 36
Figure 2: Logo and Slogan for San Luis 58
iv
LIST OF TABLES
Table 1: San Diego—Expected Profit After Five Years 52
Table 2: San Luis—Budget Request 58
v
Table 3: San Luis—Monthly Earnings 59
Table 4: San Luis—Total Expected Earnings 60
Time # Scarves Sold # Hats Sold # Coats Sold Net Income
1 month 12 16 8 $11
3 months 36 48 24 $815
6 months 78 102 51 $1,878
1 year 174 222 111 $4,254
3 years 522 666 333 $12,762
vi
Table 5: Taxoloma—Expected Earnings Per Cycle 64
vii
Table 6: San Luis—Fixed Costs 71 Table 7: San Luis—Initial Costs 71
Table 8: San Luis—Monthly Profits 72
viii
LIST OF MAPS
Map 1: Ecuador and its Provinces1
Map 2: Cotopaxi and its Cantons2
1
Map of Ecuador and Its Provinces. Digital Image. Penny in Paradise. Web.
http://pennyinparadise.com/ecuador/
2
Map of the Cantons. Digital Image. Academic. Web. http://fr.academic.ru/dic.nsf/frwiki/1380185
ix
ACKNOWLEDGMENTS
I would like to express my sincere appreciation for all those who helped and
encouraged me in this process throughout this past year. The content and inspiration for
this thesis would not exist without AMIGOS—the youth development program that made
me who I am today. Over the years, I have been truly inspired by my role models who
have worked tirelessly for the organization, making significant strides in the effectiveness
of the program. I would like to especially acknowledge and thank my mentor and friend,
Erin Griffard, who initially envisioned the potential of a youth entrepreneurship program
within the context of AMIGOS. Thank you for sharing your passion and for your
continuing support. I would also like to thank Marta Ascherio, the Regional Director in
Ecuador, who not only supported the entrepreneurship program, but also supported me in
writing this thesis. This project would not have been possible had it not been for the
collaboration with our partner agencies in Cotopaxi—FEPP and Plan International—as
well as the inspirational and helpful community members and youth who graciously
agreed to provide their insights and feedback.
Special thanks is owed to my committee members, Dr. Gabriella Paar-Jakli, Dr.
Sara Newman, and Professor Matthew Shank. I appreciate all your patience and
feedback, and I am inspired by the desire each of you has for instilling creative thought
x
among your students. I would like to thank the Honors College for giving me this
opportunity, especially Vicki Bocchicchio for helping me through the administrative
process.
I am forever indebted to my thesis advisor, Dr. Julie Mazzei, whose edits and
constructive feedback of my numerous drafts pushed me to think critically and improve
the way I express myself through writing. I am consistently in awe of your diligence,
intelligence, and your ability to transfer your passion to all those who are fortunate
enough to be in your presence.
Finally, I would like to thank my friends and family for their moral support, with
a special mention to my mother, whose love and endless encouragement continues to
drive me to be the best version of myself.
xi
“In times of change, learners inherit the earth, while the learned find themselves
beautifully equipped to deal with a world that no longer exists.”
-Eric Hoffer
xii
CHAPTER I: INTRODUCTION
The sun had already tucked behind the mountains in the west, with the only
discernible proof of the Sierra’s existence emanating from the dimly lit houses in the
distance. The scent of fire flooded the countryside as potatoes boiled and tea simmered.
As the temperature steadily fell, the townspeople covered their bronzed skin in wool-knit
layers, exclaiming the ubiquitous local phrase, ai chai chai—Kichwa for “how cold!”
Small footsteps raced across the dirt road, trailed by faint discourse and laughter from
women carrying hefty sacs of yarn flung over their firm shoulders.
The older women wrapped in brightly colored shawls, accompanied by their knee-
length skirts and fedoras, followed at a brisk pace, while the younger women, in their
more contemporary attire, illuminated the path with the light of their cell phones. The
children were the first to arrive to the locked doors of the community hall, eagerly
waiting for the adults to relieve them from the bitter cold. Soon enough, the women
entered and gathered themselves around the only table positioned at the front of the room.
The children sat next to them on the long wooden benches and without any delay, the
women began to distribute skeins of colored yarn and pairs of wooden needles to all
those present.
Almost immediately, the women resumed knitting whichever hat or scarf they
were in the process of creating, shifting their hands effortlessly back and forth in an
admirable fashion. The younger children focused intently on the garment before them,
being careful not to drop a stich. The ongoing discussions were paused when Blanca, the
1
twenty-one year old leader of the group, took a roll call of those in attendance. She
checked off a box for each corresponding name, with previous marks indicating those
present for the former sessions that occurred semiweekly. Flipping the page of her
notebook, she announced the totals from the previous weekend.
“Great work, everyone. This past Saturday, we sold six of scarves and two hats at
the market,” Blanca proclaimed enthusiastically to the group. Applause broke out from
some while a couple others quickly punched in the numbers on their cell phones to
calculate the total profit.
One of the younger girls proudly announced, “With the scarves, we made $30.00
and with the hats, we made $10.00.” The positive reception from the crowd grew as
everyone quickly added the results in their head.
“That’s right,” Blanca confirmed. “$40.00 from just a couple hours of selling. I
think we could sell even more next week.”
The update sparked a renewed fervor among the group that gave rise to an
animated conversation on how to foster increased profits. The younger girls displayed
various models of scarves from catalogs they had picked up in the city, calling attention
to the contemporary styles that were in high demand. Some of the women looked closely
at the details in the pictures, deciphering the complexities of the knit structure. Others
deliberated the possibility of expanding their market for potential buyers by selling on
more days and in other locales.
“On Thursdays we could sell in Mulalillo and on Saturdays we could have some
people sell at the market in Salcedo and others sell at the market in Ambato,” announced
2
Señora Inés, one of the leaders who helped unite the women and youth in the combined
effort. Some of the younger members of the group, who were still learning how to knit,
volunteered to sell the items at the markets. Clearly pleased with their newfound
responsibilities, the youth began to make signs to display at the regional marketplaces for
the small business called “Tejidos Carmalitas.”
This recounts a noteworthy night in which local youth and women in a small
community in rural Ecuador collaborated to continue the process of creating a small
business, also known locally as a microempresa. The launching of this microenterprise is
particularly significant in its incorporation of youth—a sector of society whose potential
is far too often overlooked. After examining and interpreting the successes and
challenges of this microenterprise and others, youth entrepreneurship program designers
can incorporate this information to implement a similar process in other communities, in
which local youth are trained and provided the necessary tools to launch a
microenterprise in their own community.
The purpose of this undergraduate thesis is to examine the strategy of utilizing
youth entrepreneurship as a development tool and determine what factors are conducive
to an effective youth entrepreneurship program. Using four specific case studies of
microenterprises that were created and established by local youth and community leaders
in rural communities in Cotopaxi, Ecuador, the thesis attempts to identify advantageous
factors that led to a more successful youth-reliant microenterprise, as well as identify
some of the challenges that arose in attempting to initiate a microenterprise in a particular
setting.
3
Youth Entrepreneurship as a Solution
In recent years, the developing world has witnessed a surge in youth population
growth that has reached unprecedented levels. Of the world’s 1.5 billion youth aged 15-
24 years old, a staggering 1.3 billion reside in developing countries. The steady increase
of growth of this age group has significant consequences in developing areas of the
world. The growing number of youth places enormous pressure on governments in many
developing countries to address the increasing demand for jobs, education, and other
economic opportunities. Today, “youth make up 25 percent of the working population,
but 47 percent of the unemployed.”3 This is an immense portion of the population whose
potential is untapped in part because there are not enough available economic
opportunities. This is especially concerning because the “youngest in age are more
affected by poverty and by the negative consequences of poverty.”4 This harrowing
reality results in unemployed youth who are more susceptible to the vicious cycle of
poverty that far too often contributes to lack of education and an increase in violence, as
well as involvement with drugs and crime.5
3
Wolfowitz, Paul. World Development Report 2007 Development and the next Generation. Washington
(D.C.): World Bank, 2006. Print, (99).
4
"Adolescent Participation in Latin America and the Caribbean." What Works: Finding Their Voice:
Engaging Adolescents in Meaningful Participation Strategies (2010). UNICEF, Regional Office for Latin
America and the Caribbean. Web. http://www.unicef.org/adolescence/files/What-Works-Finding-thier-
voice-English.pdf, (7) (hereafter: UNICEF, “Adolescent Participation in Latin America and the
Caribbean”).
5
Ibid, (11); "Youth Microenterprise and Livelihoods: State of the Field--Lessons from the 2007 Global
Youth Microenterprise Conference." Global Youth Microenterprise Conference (2007). Making Cents
International.
Web. http://www.youtheconomicopportunities.org/sites/default/files/sotf/MakingCentsInternationalYouthE
4
Given these challenges, it is imperative that the international development
community invests increased attention to economic opportunities for youth. Progress
must be made quickly as well, “with more than 1.1 billion potential new workers entering
the job market in the years 2012-2020.”6 It is evident that the domestic sector cannot
meet the need for increased employment opportunities for the growing number of youth
entering the job market. Therefore, “innovative and sustainable approaches” are
necessary in order to confront this intricate challenge efficiently and effectively.7 If these
types of approaches are implemented throughout the developing world, young people are
more likely “to lead healthy and productive lives that contribute to socioeconomic
development in their communities.”8
More specifically, informal work and local employment opportunities for youth
can be achieved with a practice that is recognized by various practitioners as “a
promising way for young people to earn a living, build careers, and contribute to
economic growth in their communities.”9 The practice of entrepreneurship can be
epitomized by the motto, “If you can’t find a job, create one,” which may be the only
viable option in markets with limited formal-sector job opportunities. The United Nations
has supported the concept of entrepreneurship as a valuable tool for development for
nterpriseLivelihoodsPublication_2007.pdf (hereafter: Making Cents International, “Youth Microenterprise

and Livelihoods”).
6
"Global Youth: Emerging Trends & Next Steps." Opportunity for Action: Preparing Youth for 21st
Century Livelihoods (2013). International Youth Foundation. Web.
file:///Users/michaelakline/Downloads/Opp4Action_FINAL.PDF (hereafter: International Youth
Foundation, “Global Youth: Emerging Trends & Next Steps”).
7
Making Cents International, “Youth Microenterprise and Livelihoods” (6)
8
Ibid.
9
International Youth Foundation, “Global Youth: Emerging Trends & Next Steps.”
5
decades, citing it as “a powerful driver of sustainable development.” 10 Youth, however,
have only recently been regarded as valuable assets that can incorporate entrepreneurship
into their own lives and communities.
Historically, the dated development mindset viewed youth as “merely recipients
of services or victims.”11 Indeed, youth in certain areas have been perceived as burdens to
society because of their weak economic status and their reputation of being involved with
crime and drugs.12 Rather than being understood as potential assets or investments,
society has labeled youth as part of the problem. Fortunately, in recent years this attitude
has changed and youth are now “viewed positively as contributors to their societies by
members of their communities.”13 This recognition has extended to international policy
changes, including within the International Labor Organization, with one of their five key
policy changes in 2012 calling for “entrepreneurship and self-employment to assist
potential young entrepreneurs.”14 In this manner, providing encouragement and resources
for youth to develop their entrepreneurial skills can enhance their sense of efficacy in
their own communities.
10
“Entrepreneurship for Development.” 67th Session of the United Nations General Assembly. 16 Apr.
2013,
http://www.un.org/en/ga/president/67/letters/pdf/Thematic%20Debate%20on%20Entrepreneurship%20for
%20Development%20-%2016%20April%202013.pdf
11
UNICEF, “Adolescent Participation in Latin America and the Caribbean” (11).
12
13
Ibid.
14
"Global Employment Trends for Youth 2013: A Generation at Risk." (2013). International Labour
Organization. Web. http://www.ilo.org/wcmsp5/groups/public/---dgreports/---
dcomm/documents/publication/wcms_212423.pdf (hereafter: ILO, “Global Employment Trends for Youth
2013).
6
According to Youth Business International, Latin American youth between the
ages of 18 to 24 “consider entrepreneurship as a good career choice.”15 Of all the regions
in the world with the exception of the Middle East and North Africa, both Latin
America’s youth and adults aged 35-64 had the highest combined percentage of those
who perceived entrepreneurship to be a viable career option. With well over 153 million
youth in Latin American and the Caribbean alone, the potential of this demographic
cannot be ignored.16
Methodology
While there is a considerable amount of literature already published on the subject
of youth entrepreneurship, I was able to gain a deeper and more comprehensive
understanding on the subject by acting as a participant-observer in four communities in
rural Ecuador where youth entrepreneurship was implemented as a development tool. By
working as a Project Supervisor for a youth development organization called Amigos de
las Américas, I had the chance to help facilitate and develop sustainable microenterprises
alongside local youth in these rural communities. By having the opportunity to directly
interact with community members, I acted as both a participant and an observer, which
allowed me to gain an understanding of the process as well as the benefits to the
communities.
15
J.Key, M. Herrington, Y. Litovsky, and H. Gale. Generation Entrepreneur? The State of Global Youth
Entrepreneurship (London: Youth Business International and Global entrepreneurship Monitor, 2013)
http://www.youthbusiness.org/wp-content/uploads/2013/09/GenerationEntrepreneur.pdf
16
UNICEF, “Adolescent Participation in Latin America and the Caribbean” (25).
7
My primary research methodology in developing this thesis was qualitative field
research using participant-observation and interviews. Field research allows us to fully
observe youth entrepreneurship in action. The quantifiable study of youth
entrepreneurship can study the economic growth of microenterprises, but it does not
allow for an explanatory study of the dynamic of youth entrepreneurship. Qualitative
field research, on the other hand, can give a more comprehensive perspective than mere
statistics can often provide.17 Qualitative research is best applied “when the research
question requires an understanding of processes, events and relationships in the context
of the social and cultural situation.”18 Because the microenterprises in each community
were established over a period of about six weeks, a qualitative field approach allowed
me to observe the entire process, in addition to gaining “face-to-face knowledge of
individuals and social groups in their natural settings.”19 By conducting research on the
ground and making observations in person, I had the chance to thoroughly study the
process and interact with participants, which allowed me to gather detailed descriptions
and illustrations.
Additionally, field research tends to offer greater validity compared to survey and
experimental measurements because results based on field research tend to be less
superficial and instead offer a more comprehensive understanding of a subject.20 In this
sense, field research captures actual variables that are more easily comparable, rather than
17
Babbie, Earl R. The Practice of Social Research. Belmont, CA: Thomson Wadsworth, 2007. Print (293)
(hereafter: Babbie, The Practice of Social Research 10th Edition).
18
Ebrahim, GJ, “Qualitative Field Research,” n.d., n.p., Web.
http://www.oxfordjournals.org/our_journals/tropej/online/ce_ch14.pdf
19
Ibid.
20
Babbie, The Practice of Social Research 10th Edition, (293)
8
relying on available quantitative measures that tend to approximate variables. Due to the
high validity of field research and the depth of knowledge this type of research allows,
this methodology served as the foundation for my data collection.21
In addition to participant-observation, I also relied on interviews with various
community members of the four communities as a means of further understanding the
decisions made in the process of creating a microenterprise. Qualitative interviews were
most appropriate to this research, as opposed to surveys or questionnaires, because I
wanted the respondents to feel comfortable discussing or expanding on any topic relating
to the microenterprise, rather than limit their responses with pre-established questions. By
conducting each interview like a conversation, I was able to “pursue topics proposed by
the respondent,”22 which allowed me to gain an even broader perspective that was not
just limited to my original questions. I also conducted these interviews near the end of my
stay in Ecuador, after about three months of being immersed there, which allowed me to
establish rapport after having multiple, prior conversations with community members.
Throughout the course of three days, I interviewed eleven community members
using a general interview guide approach, which “ensure[s] that the same general areas of
information are collected from each interviewee” while still allowing “a degree of
21
While the validity of participant-observation research is high in this case, it is important to note that
some challenges exist with this type of research. For instance, the participant-observer risks conducting
“theory worship,” in which the researcher overemphasizes some evidence and consequently neglects other
evidence. Additionally, this type of field research involves a closeness and personal connection to the
subjects, which has the potential to create biases and a sense of loyalty that may interfere with presenting
accurate evidence.
22
9
freedom and adaptability in getting information from the interviewee.”23 Unlike
quantitative data research, which relies on random and standardized methods of choosing
participants, “subject selection in qualitative research is purposeful; participants are
selected who can best inform the research questions and enhance understanding of the
phenomenon under study.”24 With this in mind, I selected participants who were directly
involved in the decision-making process of the microenterprises or those who played a
significant role in the implementation of the microenterprise. Participants consisted of
youth and community leaders who served a critical role in the process.
Case Selection Process
I designed my research as a comparative case study in order to “facilitate
exploration of a phenomenon within its context”25 and “focus attention on one or few
instances of some social phenomenon.”26 I had two objectives in employing case studies
for my research. The first was to gather descriptive information about each community
related to setting and demographics to describe the process of creating a microenterprise
23
Turner, Daniel W., III. "Qualitative Interview Design: A Practical Guide for Novice Investigators." The
Weekly Qualitative Report 3.2 (2010): 7-13. Nova Southeastern University, 11 Jan. 2010. Web.
http://www.nova.edu/ssss/QR/WQR/qid.pdf
24
Sargeant, Joan. "Selecting Participants." National Center for Biotechnology Information. U.S. National
Library of Medicine, 31 Aug. 2005. Web. 11 Oct. 2014.
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3312514/
25
Baxter, Pamela and Jack, Susan, “Qualitative Case Study Methodology: Study Design and
Implementation for Novice Researchers.” The Qualitative Report Volume 13 Number 4 December 2008
544-559
http://www.nova.edu/ssss/QR/QR13-4/baxter.pdf (hereafter: Baxter, “Qualitative Case Study
Methdology”)
26
10
in each case. The second objective was to gain explanatory insights into the challenges,
opportunities, and decision-making process in launching a microenterprise in each
community.
By conducting multiple case studies, I am able to directly compare outcomes in
the communities under study. By utilizing a cross-case analysis “that involves an
examination of more than one case,”27 I am able to draw conclusions about what factors
yield success and other factors that contribute to more challenges in the process. The
advantage of using multiple case studies is that “the evidence from this type of study is
considered robust and reliable.”28Additionally, using the grounded theory method, I
applied the “bottom up” approach of inductive reasoning in which I used specific
observations from my case studies in order to establish broader generalizations later in
my research.29 Inductive reasoning involves examining the discovered patterns and
developing theories “with no preconceptions”30 which has the advantage of avoiding
biases and false preconceptions. For the convenience of my work as a Project Supervisor
for AMIGOS, the four communities I had contact with were in close proximity to one
another and therefore shared demographic commonalities.
In approaching my interviews, I used two forms of nonprobability sampling:
purposive (judgmental) sampling and snowball sampling. Where probability sampling is
often viewed as more accurate than nonprobability sampling, “Social research is often
27
28
Baxter, “Qualitative Case Study Methodology”
29
“Deduction & Induction.” Research Methods Knowledge Base. Center for Social Research Methods,
http://www.socialresearchmethods.net/kb/dedind.php
30
11
conducted in situations that do not permit the kinds of probability samples used in large-
scale social surveys.”31 Purposive sampling allowed me to select interviewees based on
my own judgment “about which ones [would] be the most useful or representative.”32 I
found this method to be appropriate because I had background knowledge of the
population and I focused my energy on interviewing community leaders and key
participants of each microenterprise because I considered their opinions to be most useful
to my research, as opposed to utilizing probability sampling, or random sampling of the
entire community.33 I also utilized snowball sampling in certain instances in which I
asked some people I interviewed to suggest additional potential interviewees. In this
“process of accumulation,” some subjects suggested other potential subjects based on
their availability and their particular role in the microenterprise.34 While I knew almost
all the leaders in each microenterprise, utilizing snowball sampling led me to subjects that
were known by other community members to have something of particular value to say,
and without the original subject’s recommendation, I may have overlooked the
opportunity.
This thesis is inspired and made possible by the opportunity to work for a non-
profit NGO called Amigos de las Américas (AMIGOS), which is an international
organization that promotes youth leadership, community development, and multicultural
understanding in the Americas. As an international youth development organization,
AMIGOS strives to develop and inspire young leaders through collaborative sustainable
31
32
33
34
12
community development. Young participants from the United States collaborate with
Latin American youth to develop initiatives focusing on themes relating to public health,
environmental sustainability, children’s rights, youth entrepreneurship, creative
expression, and sports and fitness.
Since 1965, more than 26,000 participants have lived and worked in thousands of
communities in over seventeen countries throughout Latin America. AMIGOS has made
and continues to make meaningful connections with community leaders and local partner
agency representatives, encouraging and fostering strong local participation that leads to
more sustainable initiatives. AMIGOS offers a contemporary perspective to international
youth development to ensure that the impact in Latin American communities is both
effective and respectful.35 The use of contemporary methods, such as encouraging the
development of youth-led microenterprises, is essential to the program’s success and its
role as leader in international youth development. As a youth-based organization, the
AMIGOS philosophy can be summed up in a few words: “Young people always rise to
the challenge when given the opportunity.”36
I was assigned to work with AMIGOS as a Project Supervisor in Cotopaxi,
Ecuador. As a Project Supervisor, I helped establish contact with community leaders and
local youth in four communities. My main responsibilities as a Project Supervisor
pertained to the direct supervision of nine AMIGOS participants from both the U.S and
Ecuador, in which I supported them in program planning, provided emotional and health
35
Catchafire. Brand Messaging Amigos de las Américas, Sept. 11, 2013. Web.
https://www.catchafire.org/projects/3885/amigos-de-las-americas--brand-messaging/ (hereafter: Amigos de
las Américas, Brand Messaging)
36
Ibid.
13
support, and encouraged them to collaborate with local youth and community leaders in
developing a youth-led microenterprise. Over the course of over two months, I developed
relationships with community members, local youth, and partner agency representatives
and took an active role in supporting the development of each community’s
microenterprise by assisting with problem-solving, purchasing materials, and conducting
training workshops for AMIGOS participants and local youth counterparts.
Geographical Context of the Case Studies
Formally part of the Inca Empire and later ruled under Spanish colonizers,
Ecuador is now home to a culturally diverse population of more than 15 million people.37
The country is recognized for its distinct geography, divided into three distinct terrains:
the coast, the Sierra, and the Amazonian jungles in the east. Within each region is a
unique culture and history that characterizes the diversity in the small South American
country.38 As in most countries, the marginalized groups such as the indigenous and rural
populations are often more impacted by high poverty. In order to address these
disparities, the Ecuadorian government has made efforts to improve its national
development plan aimed at increasing social spending. Nevertheless, the government’s
37
“Ecuador.” The World Factbook. Central Intelligence Agency, 22 June 2014,
https://www.cia.gov/library/publications/the-world-factbook/geos/ec.html (hereafter: CIA Factbook)
38
“Ecuador.” Culture of Ecuador. http://www.everyculture.com/Cr-Ga/Ecuador.html (hereafter: “Culture
of Ecuador”)
14
attempt to eradicate poverty and income inequality has lacked efficiency and
effectiveness in many cases.39
Narrowing in on the specific region of study, the landlocked province of Cotopaxi
is located in the Central-North of Ecuador and receives its name from Volcán Cotopaxi,
one of the highest active volcanoes in the world at over 19,000 ft. Surrounded by the
Andes mountain range and filled with majestic landscapes, some communities are at
extreme altitudes ranging from 10,000 to 14,000 feet.40 Nearly a quarter of the population
self-identifies as indigenous, and in some rural communities, the primary language
spoken is Kichwa.41 In the rural communities in the highlands of Cotopaxi, most families
also practice subsistence agriculture, producing what they need and selling or trading
whatever is left over.42 The Sierra in Cotopaxi is characterized by “tremendous
organizational effervescence” among the indigenous population.43 At the same time,
resources are not evenly distributed to the rural regions and opportunities for youth in
particular tend to be limited. For example, in rural areas within Cotopaxi, the average
years of education is only 6.2 years, while in urban areas the average is 10.9 years.44
Youth in Cotopaxi comprise the majority of the population; those under the age of 24 in
39
CIA Factbook
40
Sergovia, Gabriela. (2012) “Through the Paradise in the Rural Parishes of Cotopaxi.” Universidad de
Especialidades Turisticas, http://hdl.handle.net/123456789/457 (hereafter: Sergovia, “Parishes of
Cotopaxi”)
41
“Resultados del Censo 2010 de población y vivienda en Ecuador—Fascículo Provincial Cotopaxi.”
Instituto Nacional de Estadística y Censos, 2010, http://www.ecuadorencifras.gob.ec/wp-
content/descargas/Manu-lateral/Resultados-provinciales/cotopaxi.pdf (hereafter: INEC, “Resultados del
Censo”)
42
“Culture of Ecuador”
43
Solo De Zaldívar, V. B. (2015), Tempest in the Andes? Part 1: Agrarian Reform and Peasant
Differentiation in Cotopaxi (Ecuador). Journal of Agrarian Change, 15: 89-115. doi: 10.1111/joac.12072;
(hereafter: Zaldívar, “Peasant Differentiation in Cotopaxi), (93)
44
INEC, “Resultados del Censo”
15
the province represent more than 52% of the overall population.45 Furthermore, the youth
population will continue to grow in years to come, with the highest portion of the
population today in the category of 0 to 14 years.46
Cotopaxi consists of seven cantons: Latacunga, La Mana, Pangua, Pujilí, Salcedo,
Saquisilí, and Sigchos. The canton where the case studies were conducted is San Miguel
de Salcedo, which was officially founded in 1919. 47 The indigenous history in the Valley
of Salcedo is rich, with a tradition of “high-technology agriculture” that was established
before A.D. 500.48 Subjected to the Inca invasion in the fifteenth century and later under
Spanish imperial rule for almost five hundred years, indigenous communities were slaves
to “economic indenture and political subservience to autocratic Spanish and mestizo
landholders” until the late twentieth century when agricultural ownership was finally
restored to the indigenous population.49 Historically, the leaders in the Canton of Salcedo
operated in communities in which so called “chiefs” had the primary “political and legal
powers,” including “the management of communal economic production, and the
equitable portioning out of surpluses to the community.”50 This type of structure still
exists today in certain communities in Salcedo, which will later be illustrated in two of
the case studies. It is important to note, however, that political power and influence is
concentrated in the urban areas of Salcedo in the central valley, even though “the
45
INEC, “Resultados del Censo”
46
Ibid.
47
Sergovia, “Parishes of Cotopaxi”
48
Hamilton, “The Two-Headed Household,” (41)
49
Ibid.
50
16
irrigation networks and potable water supplies depend heavily upon high mountain
sources.”51
In Salcedo, a “feminization of agriculture” is prevalent, in which rural women
work full-time and year-round to manage and operate 80% of the subsistence farms.52
Youth, including children, often work at least part-time to assist their mothers with
chores, such as tending to the animals and peeling potatoes. For both youth and women in
rural communities in Salcedo, nearly all would be considered “stakeholders with little
political-economic power.” In this sense, many lack the opportunities and resources to
become economically competitive in the market economy solely by working on
subsistence farms. For this reason, for both youth and women, “agriculture production
must be supplemented or supported by off-farm wage labor.”53 This could translate to
providing an entrepreneurial outlet for these marginalized groups that can coincide or
complement with their necessary agricultural work.
Within Salcedo, there are five rural parishes, including Antonio José Holguín,
Cusubamba, Mulalillo, Mulliquindil, and Panzaleo.54 The case studies were conducted in
the parish of Mulalillo in four rural communities: San Diego, San Luis, Taxoloma, and
Salatilin. While, or perhaps because, each community, region, and country is uniquely
complex due to differences in histories, economies, and social dynamics, I believe these
case studies can provide a broad insight into how community dynamics and resources (or
51
Hamilton, Sarah. “The Two-Headed Household—Gender and Rural Development in the Ecuadorean
Andes,” University of Pittsburg Press, 1998 (hereafter: Hamilton, “The Two-Headed Household”) (30)
52
Hamilton, “The Two-Headed Household” (145)
53
54
Sergovia, “Parishes of Cotopaxi”
17
lack thereof) serve as critical measures for a successful youth entrepreneurship program
design.
CHAPTER II: YOUTH ENTREPRENEURSHIP AS A PROGRAM DESIGN
The latest statistical findings on the global youth unemployment rates are
unsettling. A staggering 75 million young people are unemployed,55 and while most
development stakeholders are concerned with the youth unemployment rate of 12.6
percent, these findings discount the alarming number of youth who are underemployed,
with 200 million youth throughout the developing world earning less than USD $2 a
day.56 Furthermore, more than 6 million disillusioned youth have given up searching for
employment altogether, putting them at greater risk for prolonged unemployment.57 The
urgent challenge of addressing youth global unemployment is enormous. In order to
avoid further increase in youth unemployment rates while also addressing the backlog of
current unemployment, at least 240 million jobs must be created in the next decade.58
The painful reality of youth unemployment is especially prevalent in developing
regions where “90 per cent of the global youth population lives” and where “quality
55
“International Labour Organisation: Global Employment Trends for Youth 2012.” Journal of Poverty and
Social Justice 20.3 (2012): 323-28. Web. http://www.ilo.org/wcmsp5/groups/public/---dgreports/---
dcomm/documents/publication/wcms_180976.pdf, (hereafter: ILO, Global Employment Trends 2012).
The Youth Employment Crisis: A Call for Action: Resolution and Conclusions of the 101st Session of the
56
International Labour Conference, Geneva, 2012. Geneva: ILO, 2012. International Labour Office. Web.
http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---
relconf/documents/meetingdocument/wcms_185950.pdf
57
ILO, Global Employment Trends
58
Ibid.
18
employment is especially lacking.”59 Youth living in many developing areas throughout
the world are part of what some scholars have coined Generation U—youth who are
“unfulfilled, unincluded, underemployed or underutilized, and underestimated.”60 This
has a substantial economic and social impact on societies in developing areas, negatively
affecting the local economy for both short-term and long-term periods.61 Additionally,
the societal impact is exacerbated by desperate and disenchanted youth who may resort to
criminal activity in order to cope with their limited opportunities.
In Latin America and the Caribbean (LAC) specifically, job growth and poverty
alleviation are especially critical. Recent studies conclude that within the region, half of
the population lives below the poverty line, and due to the global financial crisis “there
are projections of increased poverty.”62 The latest available statistics also show a Gini
Index Value (the most commonly used measure of income inequality) of 48.3, which
designates the LAC region as the most unequal region in the world, with “the largest gap
in income distribution between the richest and the poorest.”63 Income inequality in the
LAC region is entrenched in the long history of “unequal patterns in land tenure, ethnic
discrimination and limited taxation coupled with the more recent effects of privatization
59
Jong, Julie De, and Mansoor Moaddel. "Trends in Values among Saudi Youth: Findings from Values
Surveys." The Journal of the History of Childhood and Youth6.1 (2013): 151-64. Global Employment
Trends for Youth 2013 A Generation at Risk. International Labour Organization. Web.
http://www.ilo.org/wcmsp5/groups/public/---dgreports/---
dcomm/documents/publication/wcms_212423.pdf, (hereafter: ILO, Global Employment Trends 2013).
60
Wright, Robin B. Rock the Casbah: Rage and Rebellion across the Islamic World. New York: Simon &
Schuster, 2011. 91. Print.
61
ILO, Global Employment Trends 2013
62
UNICEF, “Adolescent Participation in Latin America and the Caribbean” (1)
63
Ortiz, Isabel, and Matthew Cummins. "Social and Economic Policy Working Paper." Global Inequality:
Beyond the Bottom Billion (2011): 26-27. UNICEF. Web.
http://www.unicef.org/socialpolicy/files/Global_Inequality.pdf
19
and liberalization beginning in the early 1990s.”64 Youth in the region are noticeably on
the lower end of the income inequality spectrum, with a 15% youth unemployment rate,
which has a direct correlation to “rising violent crime and fraying social cohesion.”65
Youth between the ages of 12 and 25 are both the largest perpetrators and victims of
violence and only a third of the youth population are full-time students. Twenty million
youth in the region are neither employed nor enrolled in school, resulting in what some
refer to as the Generation ni/ni (ni estudian, ni trabajan—neither study nor work). In a
region that is expected to have “the largest number of young people in its history by
2020,” and with numerous “barriers to labor market entry specific to young people”,
including lack of skills and experience, it is imperative that efforts are made to increase
opportunities for youth in the LAC region.66
While the overwhelming task of finding a single solution to the world’s youth
unemployment predicament is arguably impossible, 185 members states of the
International Labour Organization met to develop five key policy areas to address the
youth unemployment crisis. The fourth policy area decided upon by government officials
and experts in employment is “entrepreneurship and self-employment to assist potential
young entrepreneurs.”67 Because marginalized groups, especially in the developing
world, often do not have access to credit for enterprise and business development due to
“the absence of collateral that [marginalized groups] can offer conventional financial
64
Ibid.
65
Salazar-Xirinachs, José Manuel. "Generation Ni/Ni: Latin America's Lost Youth | Americas
Quarterly." Americas Quarterly. Americas Society and Council of the Americas, Spring 2012. Web. 27
Feb. 2015. http://www.americasquarterly.org/salazar
66
Ibid.
67
ILO, Global Employment Trends 2013, (6-7)
20
institutions,” it is essential that development organizations at both the national and local
level assist in allowing marginalized groups to overcome structural barriers.68 One
method development programs have implemented to assist marginalized groups in
overcoming these barriers is entrepreneurial training and microenterprise development.
Although many development organizations and governments have caught on to
the trend of enterprise and microfinance development, this is traditionally aimed at adults.
Some lenders view youth as a “high-risk group” and are skeptical of their potential due to
“their lack of collateral and business experience,” and therefore refrain from investing in
youth.69 However, it was not long ago that skepticism around “whether or not the poor
and women were viable credit risks” dominated the discourse within microfinance
organizations. The international community should recognize the success among other
marginalized groups and have confidence that programs aimed at youth are necessary and
will be equally if not more effective.
Youth entrepreneurship programs are arguably the most necessary in terms of
providing assistance to a marginalized group because young people are disadvantaged in
a number of ways compared to adults. For example, a larger portion of youth face greater
difficulty in accessing “resources such as capital”—a critical component to launching a
microenterprise. When youth do receive capital or seed funding to develop a
microenterprise, it is considerably less compared to capital allocated to adults.
Additionally, youth tend to lack resources, skills, knowledge, savings, business networks,
68
Weiss, John. “Micro-finance and Poverty Reduction in Asia.” Poverty Targeting in Asia. Cheltenham,
UK: Edward Elgar, 2005. 251. Print
69
ILO, “Global Employment Trends for Youth 2013 (68)
21
and experience, which are necessary to increase the market value or inventory of the
product or service, to obtain business contacts, and to expand their market outside of their
immediate community.70 For these reasons, youth are in greater need of assistance and
learning opportunities to develop the skills and expertise necessary to launch a successful
microenterprise. In a successful youth entrepreneurship program, support services and
access to capital are equally important to incorporate in addition to entrepreneurial
training and education.
Not only is youth entrepreneurship development necessary, but it is also offers
many potential benefits. Beyond the potential employment opportunities and increased
capital, the process of launching a microenterprise allows youth to develop a number of
both hard and soft skills that can have a lasting impact on the future employability and
character of youth. Additionally, entrepreneurial development gives youth the
“opportunity to contribute productively to society,” which can foster “civic responsibility
and social justice.”71 When youth become involved in their communities, they will begin
to see themselves as crucial stakeholders and it is likely that other community members
will respect them and want to engage them in more community matters in the future.
Moreover, youth involved in social enterprises, in particular, may witness the benefits
provided to the community as a whole, which can therefore nurture a strong sense of
social justice. In addition, higher youth employment and enterprise opportunities
70
Ibid; Chigunta, Francis. Youth Entrepreneurship: Meeting the Key Policy Challenges. Rep. Oxford
University, England, 2012. Print
22
“reduce[s] the likelihood that young people will engage in harmful activities.”72 For all of
these reasons, youth entrepreneurship is a sustainable method that allows young people to
overcome barriers and obstacles that further enables them to “take steps toward
effectively discontinuing the vicious cycle of poverty that repeats generation after
generation.”73
The definition of “youth” varies across organizations, with some experts placing
additional emphasis on adolescents and children while others limit the category to a more
matured population. The International Labour Organization typically refers to youth
between the ages of 15 to 24 while Youth Business International defines youth between
18 to 35 years old.74 Some organizations, on the other hand, stress adolescence as a
“crucial period for encouraging even greater participation” in community initiatives
because adolescence is such a vital period in human development in which “profound
cognitive development” occurs and “thoughts, ideas, and concepts [are] developed.”75
During adolescence, which UNICEF defines as ages 10 to 19, youth begin to transition
into active citizens in which they learn their role and rights in society.76 During this
critical developmental period, skill-building in entrepreneurship can serve as an outlet for
youth as well as provide positive focus and reinforcement in the lives of young
individuals. UNICEF extends civic participation to every child in the Convention on the
72
73
Ibid.
“Generation Entrepreneur? The State of Global Youth Entrepreneurship” (2013) Youth Business
74
International. Web. http://www.youthbusiness.org/wp-

content/uploads/2013/09/GenerationEntrepreneur.pdf; ILO, “Global Employment Trends for Youth 2013
75
76
Ibid.
23
Rights of a Child (1989) as it recognizes children’s right “to form and express
opinions…to participate in decision-making processes and influence solutions, to
intervene in the process of social change in the building of democracy.”77 Therefore,
youth participation (including adolescents and children) is internationally recognized “as
an integral element in a community’s life,” which is why incorporating youth of all ages
into community initiatives such as a microenterprise is fundamental to community
sustainable development.
The simple and sustainable nature of microenterprise development allows for the
process to be easily incorporated and adapted in various environments, leading to the
recent surge in investment among the international development community.
Development organizations and governments at both the local and federal level
contribute to enterprise development in “the process of assisting individuals and entities
that aim to make a profit by selling goods or services in the marketplace.”78 Assistance
usually comes in the form of providing capital to launch the enterprise while also offering
training and education in skills that would improve or expand the business.79 Typically,
successful entrepreneurship practices involve identifying market opportunities, which
requires community and regional market research before a decision is made regarding a
specific idea.80
Santos, Pais, M. (2000) “Child Participation and the Convention on the Rights of a Child,” MA: Harvard
77
Center for Population and Development Studies, Harvard University

78
24
Within the past 25 years, development organizations have supported groups of
individuals who have limited access to capital wishing to start a small business known as
a microenterprise.81 Microenterprises are normally managed and run by a small number
of employees and most tend to specialize “in providing goods or services for their local
areas.”82 While microenterprise development was historically adopted as “a tool for
poverty alleviation and local economic development,” recent studies also conclude that
the process has the potential for long-term job creation.83 While long-term outcomes are
still under study, in the case of many organizations involved in microenterprise
development, short-term monetary outcomes can at least guarantee the lack of financial
risk involved for the group responsible for launching the microenterprise. When
recipients of a seed fund do not have to provide collateral, development organizations and
governments avoid putting them at greater financial risk if the microenterprise is not as
profitable as was expected. The simplicity in this model is displayed in Figure 1. The
initial capital, or start-up money, is provided by an external source such as a nonprofit or
local government organization. This can range from a few hundred dollars to a few
thousand dollars. The seed fund is used exclusively for initial investment in the small
business, which includes purchasing necessary materials, hiring employees, and
contributing to a marketing plan. At this point, the group can launch the microenterprise
and begin selling their product or service. As profit is generated, a portion is allocated
81
Edgcomb, Elaine and Thetford, Tamra. “Microenterprise Development as Job Creation.” Big Ideas for
Jobs. Web. http://fieldus.org/Publications/jobcreation.pdf (hereafter: Edgcomb, “Microenterprise
Development as Job Creation”)
82
“Microenterprise Definition.” Investopedia. 10 July 2007. Web.
http://www.investopedia.com/terms/m/microenterprise.asp
83
Edgcomb, “Microenterprise Development as Job Creation”
25
into reinvesting in the microenterprise by continuing to buy more materials and pay
employees, for example. The net profit gain results in excess profit that can be used a
variety of ways, including using the extra revenue to “scale up” or expand the
microenterprise by investing in improved materials or services, or more sophisticated
technology that allows for greater production. Leaders of the microenterprise can also
choose to divide the profit among those involved to financially benefit individual
participants. My own experience indicates that in community-based or social
microenterprises, profit is commonly used to invest in community development projects
or initiatives.
This simple and sustainable method can and should be encouraged among the
international development community in order to address the global youth unemployment
crisis. Many youth development organizations are already taking a lead in promoting
entrepreneurship opportunities to youth worldwide. The International Youth Foundation,
for example, recently developed a curriculum and training course “designed to empower
aspiring young entrepreneurs by introducing them to the basic principles needed to
successfully launch, lead, and scale up microenterprises.”84 Estimates indicate that one in
five young people “has the potential to become an entrepreneur,” but a recent philosophy
attempts to include and inspire the other eighty percent of young people in an
“entrepreneurship for all” approach. This method is based on the notion that all young
people should have entrepreneurial training if we are at all serious about improving the
84
“Entrepreneurship Training—Build Your Business.” International Youth Foundation, n.d. Web.
http://library.iyfnet.org/sites/default/files/library/BYB_FactSheet.pdf
26
global youth unemployment crisis.85 Every young person pursuing an improved
livelihood or aspiring to positively contribute to his or her community will benefit
immensely from having an entrepreneurial mindset. In order to thrive in today’s job
market, one must be able to problem solve, take risks, and display leadership skills and
self-confidence—all of which are skills developed in a successful youth entrepreneurship
program design.
The AMIGOS Program Design
AMIGOS is an excellent example of a youth development program that
implements contemporary methods into the core program design in order to be as
effective as possible when working to develop initiatives abroad at a grassroots
community level. It is clear that program methods have evolved in an effort to
incorporate the latest research on successful youth development along with the insights
and realizations the organization has gained over the course of more than 50 years
working in Latin America.
AMIGOS participants from both the United States and Latin America are divided
into partnerships of two or three and assigned to live and work in a community for the
duration of the program. Summer programs range from four to nine weeks and
participants are trained in aspects of community development and multicultural
85
Reese, Bill. “Entrepreneurship for All—A New Approach to Youth Development,” Huffington Post,
Sept. 30, 2013. Web. http://www.huffingtonpost.com/bill-reese/entrepreneurship-for-all-
_b_4017016.html?fb_action_ids=10152220495673263&fb_action_types=og.likes&utm_hp_ref=fb&src=sp
&comm_ref=false#sb=3951163b=facebook
27
understanding prior to arriving to their community. Participants are required to work
alongside local youth and other community members in the process of creating a
sustainable community initiative based on the theme determined by both local partner
agencies and AMIGOS staff. The key to the AMIGOS philosophy in supporting
sustainable community development is empowering local youth and community members
to take ownership of community initiatives. Additionally, by encouraging youth to focus
on existing skills and utilize community resources while addressing community needs,
initiatives are likely to involve and integrate more community members into the program
design.
One aspect of a successful program design that is absolutely essential to any
international development organization is the partnership with local agencies that provide
connections and background knowledge to the project area and host communities.
Working with a local partner agency ensures that initiatives are locally designed and in
the best interest of the project area. Partner agencies can provide insight into the issues
they believe should be addressed in the region and they also can provide access to rural
communities that foreign nonprofits typically do not have access to.
In terms of youth development programs, “one organization or institution rarely
has all the resources and capacity required to offer youth a full range and depth of
services they need.”86 Partnerships allow for collaboration and the opportunity to
combine resources that can strengthen the effectiveness of the program. AMIGOS greatly
relies on local partner agencies to the extent that there is an acknowledgment that without
86
28
these partnerships, the programs could not exist. Not only do partner agencies help
develop the theme and curriculum of the program in a particular area, but they also
identify communities and host families that they believe will be dedicated and passionate
in working alongside AMIGOS participants on community-based initiatives. Without
previously identifying and communicating with interested and motivated, there is the
possibility that some communities would not be receptive to a foreign NGO, which could
lead to more outcomes more devastating than just a failed project.
AMIGOS worked with two local partner agencies in Cotopaxi: Plan PU Cotopaxi
and Grupo Social FEPP (El Fondo Ecuatoriano Populorum Progressio). Plan PU
Cotopaxi is part of Plan International, an international children’s development
organization that works in developing countries around the world that aims to improve
the quality of life of deprived children “through a process that unites people across
culture and adds meaning and value to their lives.”87 Since 1962, Plan International has
worked in Ecuador with primarily marginalized populations and currently supports
technical and economic assistance in both rural and urban areas of the country.88 FEPP is
a national Ecuadorian organization that “promotes access to new forms and means of
production, the conservation and sustainable use of natural resources, professional
training, [and] employment generation,” among other initiatives.89 FEPP works with
marginalized populations to support aspects such as education, access to employment,
and gender equality.
87
"About Plan." Plan International, Web. http://plan-international.org/about-plan .
88
“Qué nos hace diferentes.” Plan Ecuador, Web. http://www.plan.org.ec/que-nos-hace-diferente2.html
89
“Estudio Sobre la Sociedad Civil de Ecuador.” Fondo Ecuatoriano Populorum Progreso, Web.
http://www.iepala.es/IMG/pdf/14_FEPP.pdf (translated by me)
29
The program design in Cotopaxi sought to incorporate the missions and goals of
AMIGOS, Plan, and FEPP by supporting youth development in both soft skills and hard
skills by training and encouraging youth to launch microenterprises in their own
communities. Incorporating the missions of all three organizations, the entrepreneurship
program design involves training youth and allowing them the opportunity to develop
soft skills such as leadership, problem solving, adaptability, self-confidence, and time
management, in addition to hard skills such as financing, marketing, analysis techniques,
and business planning.
The program design in Cotopaxi offered a fresh approach to youth development
that differed significantly from past project themes or programs in other areas.
Traditionally, the community-based initiative used AMIGOS funding for infrastructural
initiatives that typically involved construction projects. The recent AMIGOS focus on
youth development diverges from this results-driven design, in which the “success” of
initiatives is often gauged on whether or not the projects are completed, and more
towards a process-driven design that allows and encourages initiatives to continue
beyond the program length. The main obstacle with funding infrastructural-based projects
is developing a track for sustainable future growth of the initiative. Additionally,
infrastructure projects can lead participants, community members, and partner agencies to
question the presence and effectiveness of the organization when funds are used to paint
murals year after year. Leaders in FEPP, Plan, and AMIGOS staff working in Cotopaxi
sought to confront these obstacles by supporting an alternative method to community
development that avoided the traditional and somewhat risky infrastructural projects, and
30
instead placed a greater emphasis on the personal and professional skill development of
youth.
This past summer, for the first time in AMIGOS’ history, the program theme in
Cotopaxi supported the development of youth-run microenterprises that coincided with
entrepreneurial training. Microenterprise development avoids the challenge that
infrastructure projects have concerning sustainability and continued growth because the
nature of business is dynamic and ever-changing. Opportunities to expand always exist
and there are always lessons to be learned and problems to troubleshoot in the process.
Therefore, the idea of “success” within a project is more broadly defined in terms of
microenterprise development because success is not only determined by profitability, but
also by the program’s ability to support and train youth in the hard and soft skills one
acquires when going through the process of launching a microenterprise. AMIGOS
emphasizes to volunteers and the community that there is value in learning from
mistakes, and the main objective of the microenterprise is the process of creatively
designing a business plan rather than the end results. Therefore, the risks often associated
with a traditional infrastructure project can be avoided in favor of a more sustainable and
educational initiative. Furthermore, microenterprise development legitimizes the presence
of AMIGOS and other similar international youth development programs because a real
gap exists within these communities in which young people lack both training in business
skills development and the means to launch a microenterprise. With the combination of
entrepreneurial training and seed funding, AMIGOS can justify its presence in these
communities and continue to work to improve its program design.
31
In the summer of 2014, AMIGOS worked in about 25 communities in the
Cotopaxi region, working alongside either Plan or FEPP, depending on the region. In
Salcedo, FEPP is present in many communities and works alongside community leaders
and youth in various initiatives. FEPP has been present for many years in all four of the
communities that I worked in; so while Plan played an enormous role in developing the
program theme and design, the case studies all relate to the partnership and presence of
FEPP. In my role as a Project Supervisor, before participants arrived to their
communities, I introduced the theme of youth entrepreneurship to youth and community
leaders and encouraged them to consider the resources and skills they have in their
community, in addition to possible ideas for a youth-run microenterprise. AMIGOS
participants in Ecuador were also aquatinted with the objectives and benefits of
microenterprise development before they arrived in community so that, ideally, they
could effectively relay that information to local youth once they arrived. Additionally,
throughout the summer, both participants and local youth received training and education
in how to launch a successful microenterprise.
A key aspect of the AMIGOS youth entrepreneurship program design is the
requirement for AMIGOS participants and local youth from each community to attend
youth encuentros, or workshops, which are designed to introduce the basics of
entrepreneurship so that each community can implement those components into their
microenterprise. The concept of complementing microenterprise initiatives with financial
literacy education not only enhances the chances of profitability of the enterprise, but it
also “allows youth to develop their ability to make good financial decisions and increase
32
their wealth potential.90 Learning these lessons at a young age can have a lasting impact
on youth and contribute to their ability “to make better decisions related to large financial
transactions.”91 Furthermore, financial literacy is proven to be particularly effective in
developing countries because many youth “assume financial responsibilities and even
emerge as heads of households at very young ages.”92
The AMIGOS program design formally introduced the critical concepts to
financial literacy throughout the course of three community workshops. During the first
one-day training workshop, all AMIGOS participants and local youth counterparts came
together to learn and share their knowledge and experiences about business organization
and management, budgeting and financing, sustainability, marketing and
communications, market analysis techniques, and business planning. After researching
various methodologies and lesson plans on how to present these themes, AMIGOS
project staff facilitated activities and discussions to relate these broad themes to each
community’s microenterprise. The goal of the first workshop was to give those in
attendance general background knowledge about what is necessary to consider when
developing a microenterprise. The majority of the AMIGOS participants and local youth
counterparts did not have prior experience or education in entrepreneurial devices, which
is why the first training workshop was so fundamental to the program design.
Following the first training workshop, each community had a week to further
develop their business plans and financial plans, conduct a market analysis to better
90
91
Ibid.
92
33
understand the context of their microenterprise within their community and surrounding
area, and prepare a presentation to present the following week at the second workshop.
The local youth and AMIGOS participants in each community presented their business
plans to a panel of judges that consisted of partner agency representatives and AMIGOS
senior staff. The presentation was part of a business plan competition that allowed each
community to compete for a portion of the Bevil Grant93, allowing their microenterprise
to receive additional seed funds to launch their business. Scholarships were awarded to
communities that best presented their microenterprise plans. Judges based their decisions
off of predetermined criteria that were given to each group prior to the presentation date.
Local youth and AMIGOS volunteers prepared their presentations to best meet the
criteria, which included strong organization, innovation, motivation and enthusiasm, a
sound financial report, sustainable practices, and the requirement that the microenterprise
is youth-run with youth serving as both leaders and organizers.
Each community officially applied for seed capital by completing a proposal that
included a detailed budget, a mission and vision statement, necessary materials, a
description of the roles of youth leaders involved, and future goals for the
microenterprise. Participants and community members were aware that each community
would receive no more than USD$400 as seed capital to launch the microenterprise;
however, they were also aware of the opportunity to receive additional funding by
excelling in the business plan competition. In the proposal, each group was required to
93
The Bevil Grant, established by Guy Bevil, the founding Executive Director of Amigos de las Américas,
appropriates a portion of the grant to each AMIGOS project in order to enhance and give opportunity to
innovative community-owned projects, (CITE Amigos website)
34
describe what their plans would be if they received additional seed funding and how that
money would improve the microenterprise. Additionally, the leaders of the
microenterprise had to attach their marketing plan, which often included an innovative
slogan and logo to advertise their product or service. The judges made their final
decisions based off of both the quality of the presentation and the proposal. After each
presentation, the judges had the opportunity to ask questions and clarify information.
Following the business plan competition workshop, which occurred about three
weeks after AMIGOS participants had arrived in their communities, Project Supervisors
and community members met to purchase the necessary materials for the microenterprise.
The purchasing of these “materials” varied significantly, with some microenterprises
requiring cooking ingredients or clothing materials, while others required the purchasing
of live animals. Project Supervisors, largely unaware of where to find high quality yet
affordable materials, especially when dealing with livestock, greatly followed the
knowledge and expertise of community members who were well versed in the bargaining
strategies that would yield a lower price.
Once the materials were purchased, the community was ready to launch its
microenterprise. The “launching” meant something different for each community, with
some communities beginning the production process of assembling their products,
preparing to sell them over the weekend, while the “launching” of agricultural
cooperatives were somewhat less climactic—community members were responsible for
caring for new livestock, and sometimes that simply involved moving the animals to new
pasture each day to feed. AMIGOS participants had approximately three weeks left in
35
their communities, and some community microenterprises were highly active during this
time, with meetings occurring frequently and selling occurring mostly on the weekends,
while others would not begin selling their product until animals matured, which ranged
from about three weeks to up to a year.
On the morning AMIGOS participants ended their stay in their communities, local
youth leaders and host families of participants gathered at a feria juvenil, or youth fair, in
which each community sold and displayed products from their microenterprise, where
possible. Some sold homemade food or artisan goods, while others displayed the progress
of their agriculturally-based or service-based microenterprise in the form of illustrative
posters and photographs. The feria brought together youth and community members from
all over the region of Cotopaxi, allowing for them to witness the successes of other
microenterprises. Therefore, the feria not only allowed for communities to sell their
products, but it also facilitated an exchange of ideas and the opportunity for groups from
different communities to collaborate in the future, possibly leading to inter-connected
microenterprises that could increase the benefits for all involved.
The following week, I returned to each of my assigned communities to conduct
what is referred to as a “community close-out.” During this time, I organized a meeting
with local youth and community members to listen to their evaluations of the program,
including their assessments of the microenterprise. Community members facilitated the
meeting and allowed for open and honest conversation about the aspects that were going
well and aspects that could be improved in the future. The meetings concluded with a
dialogue concerning the sustainability of the microenterprise and the components that
36
were necessary to address in order for it to continue and grow in the future. During each
community close-out, I also conducted interviews with community members,
intentionally waiting until the end of the program so as to not interfere with my job
responsibilities as Project Supervisor. Each interview predominately related to
components highlighted during the close-out meeting, which allowed for community
members to expand on their thoughts and insights gained from their evaluations of the
microenterprise with their peers.
CHAPTER III: MICROENTERPRISE DEVELOPMENT IN ACTION
Host Communities: Setting, Challenges, and Opportunities
San Diego
San Diego is situated nearly at the top of one of the mountains in the parish of
Mulalillo. The entire community is based on a steep incline, with hardly any flat land in
sight. At approximately 10,000 ft. above sea level and with temperatures dropping below
freezing during the night, community members have adapted to harsh working
conditions. The primarily indigenous community has far less access to the nearby cities
as compared to the other three communities observed. The winding 30-minute drive up
the mountain to the isolated community does not attract many cars or trucks and the walk
up from the nearest town would require at least three hours and an impressive amount of
leg strength. However, there are a couple of truck owners in the community who are
37
willing to drive people to and from the nearest city for a small fee. Many women living in
San Diego will often take advantage of this offer on popular market days so they can sell
fresh food and come back with a week’s worth of basic food supplies, such as bread and
cooking oil. Additionally, food trucks will frequently drive to the base of the community
selling fruit, bread, and other essentials.
Like many of the communities situated in this mountainous region, the land is
used primarily for agriculture and grazing livestock. In particular, almost every
household grows potatoes and corn, and many families portion off part of their land for a
chicken or guinea pig coup. Interestingly, the larger livestock, such as sheep and cows,
are owned communally. A collective agreement among community members allows
everyone to reap the benefits of wool, milk, and meat, so long as they agree to have their
turn at feeding and caring for the animals. These animals usually graze on the outskirts of
San Diego, or in some of the fenced-in fields within the community.
Within the community, there is a small elementary school with three classrooms
that provides classes for students in kindergarten through sixth grade. Any further
education would have to be completed in Mulalillo or Salcedo. In the center of San
Diego, there is a small church that connects to a room, which is used for town meetings
and other events. On the outside of the church, there is a loudspeaker that the president
will often use to inform community members if there is a meeting. Almost every
household has both electricity and running water. A single stone road runs through most
of the community, but nearly all the houses are accessible by the connected dirt roads.
38
During the week, there are far more women residing in the community than men,
who often work in the nearby cities during the week, and return home on the weekends.
The same is often true for many youth, who either work or go to high school outside of
the community during the week. Some may even work for extended periods in Quito or
Ambato and may only come to San Diego during their time off. Therefore, most people
living in the community during the day, who work long hours on their farms and prepare
meals for their families, are women and adolescents. These young children, ranging from
about 8-14 years old have many responsibilities, including watching over their younger
siblings, caring for animals, cooking meals, and occasionally helping their mothers in the
fields. This, of course, is in addition to their schoolwork. At a young age, residents of San
Diego learn the importance of hard work and responsibility.
The fundamental struggle that San Diego has in launching a youth-run
microenterprise is the lack of local youth available to organize and manage such a time-
consuming endeavor. The few youth who do live in the community have the challenge of
balancing school and high-labor chores that often keep them occupied throughout the
entire day. Additionally, in a community where decisions are made only when the
president is present and in agreement, the opportunity to involve youth to take leadership
roles in the decision-making process can be unlikely. Because of their geographical
location, it is also is more difficult to retrieve resources from the nearby cities, and it can
become a burden on the community to have to sell a product or service when
transportation is necessary.
39
San Diego does have the benefit, however, of being united and organized as a
community. Decisions are normally made collectively, and the mindset of the community
is to benefit all, with the expectation that there is a shared effort put forth by everyone. In
terms of launching a microenterprise, community members can use this familiar
collective approach to create a social enterprise in which the entire community can
benefit. Additionally, ensuring that the entire community agrees upon the official idea for
the microenterprise may improve sustainability because project legitimacy will not be
questioned. Furthermore, leaving the decision-making process up to the entire community
rather than a few ensures that the community has taken into consideration all the talent
and resources community members have before arriving at a decision.
San Luis
The scene described at the opening of this chapter took place in a slightly larger
community closer towards the valley of Salcedo. San Luis is home to about 500 hundred
people of mostly mestizo descent; however, indigenous influence is still prevalent,
especially among the older generations. While most of the families rely on subsistence
farming, some community members, including women, work in nearby cities that may
involve selling extra produce or homemade goods at local markets. Many men in the
community work construction jobs outside of the community and do not return to San
Luis until the weekend. For some families, the absence of the parents throughout the
week leaves household chores and farming responsibilities to children and youth during
40
the day after school ends. This does not seem to deter youth from continuing on in their
education, with many attending high school in Mulalillo—about a 30-minute walk from
San Luis. Some youth, depending on the financial situation of the family, may also have
the opportunity to continue their education at universities that are primarily located in
Quito.
At the center of San Luis is a public square that consists of a few public buildings.
There is a fairly large elementary school that includes a small playground and blacktop
used for soccer and basketball. San Luis is one of the few communities in the area to also
have a nursery school, which allows parents to work outside the community during the
day even with small children. Across from the nursery school is a church alongside one
of the two small convenient stores. The public square is also directly next to a community
soccer field that includes benches for spectators along with a wooden booth to sell
refreshments during games. Next to the field is a community meeting room that is only
occasionally used.
The infrequent use of the community meeting space correlates to the more
informal organization of the community as opposed to San Diego’s meticulous meeting
structure. Large community meetings are almost unheard of, occurring only once every
six months or so, and even on these rare occurrences, attendance is low. While San Luis
has a president, he lives outside the community and is difficult to contact. If pressing
news needs to be relayed, community members will simply forward the information to
their neighbors and extended family, oftentimes through a phone call or text message.
41
The informality of San Luis seems to have spurred the creation of smaller
organized groups, rather than a completely united community. For example, a women’s
group called Las Carmelitas del Sur meets for the purpose of knitting scarves together
while discussing community issues that are relevant to them. The teachers and principal
at the elementary school will occasionally hold meetings for parents, in which school-
related events may be organized. Some important community decisions are decided at
these parent meetings, while others are decided among a few community leaders. The
decision-making process in San Luis is therefore based on the interests of one particular
group over another at a certain time. While this process can have some advantages in
terms of diversity of opinion and the opportunity for decisions to satisfy various factions’
interests, it is also accompanied by the possibility for disillusionment and disputes among
various factions, as well as exclusivity that may cause further tensions. Furthermore,
because large community meetings are so rare, incorporating more community members
in the microenterprise may be difficult because soliciting for support or resources via
phone call or text message cannot replace the effectiveness of face-to-face meetings.
The primary advantage that San Luis has in launching a youth-run
microenterprise is the strong presence of youth in the community. While they have many
responsibilities, they are both active and engaged. Because the high school in Mulalillo is
within walking distance, older youth still spend much of their time in San Luis. They tend
to be vocal and enjoy taking on roles in extracurricular activities. However, they are not
completely autonomous; a youth group in which decisions can be made by youth alone
does not exist in the community. The youth seem to prefer the presence of adults in
42
community activities especially because many of the adults are older siblings or cousins
of the youth. Additionally, while youth are vocal, decision-making in community matters
is most often reserved for adults. This is a challenge that may be necessary to overcome
in a youth-led microenterprise and has the potential to cause tensions between youth and
adults in the community.
Taxoloma
A long winding road down the mountain from San Diego leads to a small
community of only about 300 people. Looking up to the mountains from Taxoloma, one
can faintly distinguish the farms at the peak of the sierra. Taxoloma is home to a highly
organized mestizo and indigenous population, and like most communities in the region, it
is characterize by subsistence farming. Compared to the inhabitants of San Diego,
community members have convenient access to the neighboring town of Mulalillo, which
is within walking distance. Public buses not only stop in Mulalillo to go to Salcedo, but
they also run right through the town of Taxoloma nearly every half hour. The community
president resides in Mulalillo and many members of the directiva have strong
connections with leaders in both Mulalillo and Salcedo, which allows for more potential
resources and connections in launching a microenterprise.
Taxoloma consists of one main road that evenly divides the community into two
sections, with about half of the houses stretching towards the steeper parts of the Sierra
and the other half extending towards the start of the valley. Within the community, there
43
is a small church that also serves as a large meeting room, and adjacent to the church is a
fenced-in blacktop for children to play on. Across from the church is a small storefront
offering some basic food items, with the only indication of its existence the single Coca-
Cola sign posted on the outside wall. Taxoloma is one of the few communities that does
not have an elementary school, with almost all of the children attending school in
Mulalillo. Aside from the church and the small convenient store, no other public
establishments exist and more than half of the community members do not even attend
the local church on Sundays, choosing to instead make the walk to the larger church in
Mulalillo.
While there may be few gathering locations for community members to
congregate and socialize at, this by no means undermines the level of the participation
among community members. In fact, the community consists of a directiva—a board of
directors—that organizes bi-weekly meetings at the church in which at least one person
from each household must attend. Normally, there are at least 50 to 60 people in
attendance. At the beginning of each meeting, there is a roll call facilitated by the
community secretary, and families that do not have a representative consistently
attending the meetings will expect to be charged a fee by the directiva.
Interestingly, almost everyone who attends the community meetings is well over
the age of 40, with almost no youth or children in sight. In a sense, Taxoloma could be
perceived as a community in decline, with the few youth that do remain either leaving for
either school or work in the cities throughout the week. A large majority of community
members at the meetings are also older women who serve as matriarchs in their
44
households while their husbands live and work in nearby cities. Similar to the family
structure in surrounding rural communities, these women take primary responsibility in
tending to their farms, their animals, their children, and their households. Like the young
children in San Diego, children in Taxoloma also have many responsibilities in helping
their mothers with various chores.
Taxoloma resembles San Diego in its obvious challenge to promote a youth-run
microenterprise in a community in which there is a clear absence of youth. However, at
the same time, it shares San Diego’s positive feature of tremendous community
organization and their willingness to incorporate everyone in the decision-making
process. Because of the community’s incorporation of a large portion of the population,
the process of determining talents and resources of the community can be thorough and
inclusive. At the same time, however, incorporating everyone’s opinion can lead to
stagnation when lengthy disputes arise.
Salatilin
Salatilin is the most populated of the four communities, with about 700 habitants.
The community neighbors the larger town of Mulalillo and is at a slightly lower altitude.
The main road from Mulalillo goes through the center of Salatilin, which consists of a
church, an elementary school, a community hall, a recreational field, and a number of
small stores that sell a variety of food and toiletries. The center of town connects to a few
dirt roads that run both up towards the mountain and down into the larger valley. Along
45
these dirt roads are more than 100 houses, a number of which are being remodeled to
support a second story to the houses. Buses often pass through the community on their
way from Mulalillo to the neighboring parish of Cusubamba, resulting in Salatilin’s
familiarity among local residents of the region.
Compared to the other three communities observed, Salatilin is slightly more
affluent and developed. An organization for clean water exists, comprised of community
leaders, allowing for the community to have safe drinking water and sanitation. In
addition, every house has electricity and almost all have hot water. Young neighbors who
wish to have quick access to e-mail and social media outlets frequent the few houses in
the community that have computers and Internet connection. Similar to the other
communities studied here, men and older youth often work in nearby cities while women
tend to their farms. Some women may also have secondary jobs, such as managing a
small store or working part-time at a larger agricultural cooperative. The extra income
contributes to the expansion of houses or the purchase of livestock, such as chickens or
cows. About a quarter of households have access to a car or truck, allowing them to go on
outings to larger cities such as Latacunga and Quito.
While the community has a board of directors and a president, their roles are
limited and the president does not live in Salatilin, but in a nearby city. Community
meetings are also few and far between, sometimes only occurring two or three times a
year. There are other organized bodies that are more active, however, such as a parent
association, and a local branch of a partner agency of AMIGOS called FEPP94, which
46
holds workshops for youth on topics such as sexual education and opportunities for
employment. Civic participation tends to be high in this regard, but attempting to meet
with the entire community can still be challenging without prior approval from the
president.
Youth in Salatilin tend to have less agricultural responsibilities compared to the
more rural communities observed. Younger children often play on the community
playground and teenagers usually gather in the center of town after their classes, either
participating in a pickup soccer or volleyball game, or chatting outside of the community
stores. Nearly half of the older youth have a cellphone and almost all have a Facebook
account, which they update frequently. In this sense, youth in Salatilin have the
opportunity to reach out globally and establish connections with others beyond their
immediate community. Many of the youth are involved with the local branch of FEPP,
partially because their involvement with the group is rewarded with free clothing items
and school supplies. Youth are encouraged to attend workshops sponsored by FEPP that
encourage mindfulness of the environment and gender equality, as well civic
participation in their own communities.
During a community meeting that introduced the concept of launching a
microenterprise, many community members displayed disappointed looks, explaining
that in Salatilin hardly anyone had any talents in making artisanal products nor did the
community did not specialize in agricultural cooperatives like other nearby communities.
The challenge here lies in the community’s willingness to be creative and the belief that
Salatilin does have a great deal to offer. Additionally, while youth in Salatilin are both
47
present and available, crucial aspects to a successful microenterprise such as motivation
and leadership are not as prevalent. Chores and responsibilities among many youth are
not as demanding compared to what is observed in the other three communities, which
may translate to the youth’s greater sense of apathy in community matters. However,
factors such as motivation and leadership can undoubtedly be instilled in a youth
population if the initiative will directly benefit them. In this sense, the popularity of the
idea for the microenterprise is critical for strong youth participation and leadership.
Case Analysis: San Diego
San Diego has hosted AMIGOS participants since 2010. Projects prior to the
microenterprise initiative included building a structure to house the community sheep,
painting a mural on the outside of the school, and providing the school with a gas stove.
Because former projects were primarily infrastructure-based, community members were
slightly resistant to the idea of launching a microenterprise. They questioned why the
money allotted to the community could not simply go towards building another house for
the livestock or towards painting another mural. The AMIGOS participants and I had to
provide multiple explanations to community leaders about the benefits of a
microenterprise while also communicating that in order to receive funding, an idea for a
microenterprise had to be fully developed, preferably by local youth.
The major challenge that San Diego faced in attempting to develop a youth-run
microenterprise was the reality that there were very few youth living in the community.
48
As mentioned earlier, most youth older than the age of twelve either work or go to school
outside of the community during the week. While this is not ideal to a successful youth
entrepreneurship program, implementing microenterprises in small, rural communities is
typically far from ideal, and it is even more critical to continue working with available
resources, rather than abandoning the project altogether. Given the unforeseen lack of
available youth, the community decided to implement an alternative method in choosing
an idea for the microenterprise. The entire community met multiple times to discuss
possible ideas for the initiative. Facilitated by the president of the community, with the
majority of those in attendance older than thirty years old, the optimal model of a youth-
developed and a youth-run microenterprise was abandoned, but in its place was an idea
generated entirely by community members. Within the mindset of an international
development program, this alternative is certainly acceptable, simply because the
community has ownership over the project and has the final decision in the idea for the
microenterprise. The fact that the entire community was present during these meetings,
rather than just a few, increases the legitimacy of decisions made because everyone’s
opinion was taken into account and no hierarchy was involved in the decision-making
process.
After extensive deliberation throughout meetings organized by both the AMIGOS
participants and the San Diego’s president, the community arrived at a decision regarding
their microenterprise. Being careful not to stray too far from community members’ areas
of expertise, the community decided to launch a microenterprise they knew would be
financially successful based on prior experience. Simple, yet financially secure, they
49
decided to use the seed fund provided by AMIGOS to purchase baby lambs. The lambs,
in turn, would eventually provide the community with wool that could be sold in nearby
cities. Using their extensive knowledge and experience on raising and caring for farm
animals, the community knew that they could successfully raise lambs to become healthy,
woolly sheep. Additionally, because San Diego is essentially a commune in the sense that
much of the land is shared, with larger livestock belonging to the community as a whole,
determining who would care for the lambs would not be a difficult task. The community
already had a rotation system set in place for herding the animals to a different grazing
location, and a few extra lambs would not burden anyone. Furthermore, community
members already had plenty of experience selling wool at local markets, which would be
beneficial in setting a reasonable price for a given amount of wool.
Those living in San Diego were also well practiced in the craft of purchasing large
cattle. Due to the inexperience of both the AMIGOS participants and myself in this
particular category of commerce, we relied heavily on community members’ knowledge
and expertise in navigating the enormous outdoor livestock marketplace located on the
outskirts of a nearby city. Some of the younger children from the community also
accompanied us, helping to guide us through the maze of cows, chickens, pigs, and
horses in our search for the sheep section of the market. Once we finally arrived to our
desired location, the area looked more like a sky full of compacted woolly clouds, with it
being nearly impossible to make a distinction between one sheep and the next as they all
blurred together in one compressed space. The habitants from San Diego did not seem
fazed, however, as both the children and the community leaders eagerly pointed at certain
50
lambs, shouting suggested prices to the sellers. The sellers appeared to regard the
requested prices as far too low, judging by their immediate scoffs as they called attention
to the quality of the wool on each lamb. This process went on for some time, and
eventually the community members were able to haggle down the price of each lamb to
what they originally suspected each would cost. At $75 each, San Diego came home with
five baby lambs.
Without having completed the calculations, it might be difficult to comprehend
how the purchase of five baby lambs could substantially impact the growth of the local
economy in San Diego. Fortunately, a section of the proposal that must be completed
before any seed fund is granted requires leaders of the microenterprise to detail expected
earnings. Therefore, not only are the providers of the seed money aware of the potential
profit, but community members are also cognizant of the future benefits the
microenterprise can offer. In the case of San Diego’s microenterprise, these calculations
were even more necessary to consider because of the prolonged and gradual fiscal impact
selling wool would provide. Unlike chicken or guinea pig cooperatives, newly
established sheep cooperatives do not lead to swift payoffs. Whereas chickens and guinea
pigs mature in only a matter of weeks, lambs mature after about a year, at which point
they are able to reproduce. The number of sheep will undoubtedly increase over time,
which will have a significant impact on the total profit made from the sheared sheep.
However, because the reproduction of sheep is relatively gradual compared to chickens
or guinea pigs, the profit of the microenterprise is not seen until after the first two years.
51
If one were to ask someone from San Diego how much money was made from the
microenterprise in the first year, the $90 amount raised would not appear to be
particularly impressive, especially considering that it does not even come close to
balancing out the original seed fund of $375. Compared to other local microenterprises
that have a much quicker payoff, the investment in sheep may not give the impression of
being especially profitable. However, if the same question were asked after five years of
the microenterprise’s existence, the answer would augment considerably due to the
exponential nature of launching a microenterprise involving an animal that will reproduce
and grow with relatively little effort.
Table 1 illustrates the modest estimated gains the microenterprise will garner
within five years. According to community leaders experience in selling wool, a single
adult sheep can be sheared a maximum of three times a year, with each sheep’s clip
amounting to about 8 to 10 pounds of wool, which sells for about $12 per clip in the local
market. Lambs, on the other hand, produce about half as many pounds of wool per clip,
resulting in an estimated $6 gain from each clip. The community originally purchased
three female and two male lambs, and after one year, when the lambs mature, it would be
reasonable to assume that the sheep would reproduce a combined total of at least two
lambs in the second year of operation. Over the years, the number
of sheep would theoretically increase exponentially, resulting in a profit that also
increases exponentially. Additionally, there are virtually no additional expenses after
purchasing the lambs, with the convenience of sheep’s ability to live entirely off of grass,
which is abundant in the hills of San Diego.
52
After the calculations are made, the impact of the microenterprise after five years
results in at least four lambs and twelve sheep with a combined total profit of at least
$1,085. It is important to keep in mind, however, that the total profit includes the $375
expense of purchasing the sheep, but since this was seed money provided by AMIGOS,
the total amount of money the community will have gained after five years would be at
least $1,460. The community determined that they would use the profits made from the
microenterprise to make improvements in the community, including infrastructural
enhancements such as improved roads and enhancements to the local school such as new
playground equipment. While this option was not discussed among community members,
they could also choose to sell some of the sheep in the case that pasture becomes limited.
While AMIGOS was active in the community this past summer, the
microenterprise was not especially dynamic. The lambs were cared for daily by
community members, but that was the extent of activity, and further activity would not
occur until the lambs were sheered, which would occur once the lambs matured.
Furthermore, investment in time and efforts to develop a marketing plan would most
likely prove to be not as beneficial compared to other microenterprises due to the
straightforward and informal process of selling wool that typically does not require
ingenuity in advertising techniques. For these reasons, this particular microenterprise will
not likely require extensive future investment in regards to time and effort because the
process is particularly gradual and more traditional compared to other initiatives.
Case Analysis: San Luis
53
As described earlier, San Luis differed immensely from San Diego due to the
presence of active and engaged youth. Arriving in the community and introducing the
theme of youth entrepreneurship to various community members was accelerated by local
youth who communicated their excitement of launching a microenterprise to anyone who
listened, thus creating a ripple effect of support that is difficult to achieve without initial
youth engagement. The challenge of involving youth that was ever-present in San Diego
was not a challenge in San Luis, which allowed for quick progression and development
of a microenterprise initiated and partially managed by local youth.
The summer of 2014 was the third summer AMIGOS worked in San Luis. In
previous years, the community’s initiatives consisted of construction projects, including
building a shed to house chickens at the local school. However, by the time I arrived, the
shed had been destroyed and was no longer in use. Initial reception to the new theme of
youth entrepreneurship was generally positive, although this was somewhat more
difficult to gauge due to lack of community meetings in which the entire community was
present. Nonetheless, a small group of youth, who were almost exclusively girls and
young women, displayed enthusiasm in launching a microenterprise. A young woman
named Blanca, who I later interviewed, explained the initial steps in determining an idea.
“I searched for people to meet and work with my sister and me. I explained what
a microenterprise is and they agreed to meet.” Blanca mostly spoke with her close friends
and family who lived close by. The twenty-one year old lived within short walking
distance of many of her relatives and visited them almost every day. Blanca lived with
54
her 16 year-old sister in a modest home with two bedrooms, an outdoor latrine, and a
kitchen which they shared with their neighbor. While her father lived close by, she served
as the head of the household, which included looking after her younger sister and tending
to the family farm. These responsibilities overlapped with her high school coursework,
which she attended part-time. Blanca hosted an AMIGOS participant in the past and was
thrilled to host another participant this past summer. Her initial involvement and
awareness of the microenterprise was due to her close connection to the AMIGOS
participants who encouraged Blanca and her sister to serve as leaders of the initiative.
Blanca gladly took the role of organizing a small meeting to discuss the microenterprise,
despite her many responsibilities.
The first meeting occurred within the first week AMIGOS participants had
arrived to San Luis, and it mostly consisted of Blanca’s close friends and relatives. Both
women and young girls of a variety of ages attended to discuss their options. Blanca had
already envisioned one possibility for the microenterprise that she later shared with the
group.
“I realized that the women knew how to knit so I invited more women that knew
how to knit to the meeting. I introduced the idea and asked the women if they would be
willing to knit for the microenterprise and they said yes right away,” she later explained.
Blanca first arrived at the idea by considering the talents and resources in San Luis. She
had grown up surrounded by female relatives and role models who constantly had a pair
of needles in their hands.
55
“I always saw them knitting beautiful hats and scarves. They are really very
good.” She promptly showed me a scarf her older sister had knitted for her for her
birthday. “Isn’t it pretty?” she asked as she proudly modeled the long pink scarf around
her neck.
Without much deliberation, those in attendance at the meeting quickly supported
Blanca’s idea to knit hats, scarves, and shawl-like coats, with the women particularly
excited that they would play a large role in the process. Among the group at the first
meeting were more than a dozen women, with some in their mid-30s or 40s, serving as a
connection between the youth and the older abuelas who were invited by Blanca because
of their expertise in knitting. Many of the women in attendance were also members of the
community’s women’s group, which mostly existed for the purpose of the women to
socialize and knit personal clothing items together.
Initially, some of the women were confused about why the AMIGOS program
design placed such a significant emphasis on youth involvement, especially considering
the fact that those most experienced in knitting were the older women. Many of the youth
in attendance did not know how to knit, including Blanca. “At first, I didn’t know
anything about knitting, but I wanted to learn,” Blanca explained. She later voiced this
sentiment to Sra. Inés, an influential and respected woman in the community who also
happened to be the host mother of the AMIGOS participant living in San Luis. Sra. Inés
had younger grandchildren, one as young as eight years old, who accompanied her during
the meetings. Immediately she recognized the opportunity the microenterprise could
provide in allowing her granddaughters to learn how to knit.
56
“Knitting is such a valuable skill and my children do not have time to teach my
grandchildren, but here at these talleres [workshops], the women can teach the youth how
to knit,” Sra. Inés insisted. She seemed to quickly comprehend the relevance in involving
youth; her colleagues, however, needed to be convinced. The older group of women
seemed to operate on a system of exclusivity, in which they did not recognize the purpose
in opening up the group to others, especially young people who had little to no
experience in knitting. The forward-thinking grandmother did not hesitate to voice her
opinion to the group.
“This is not a closed group. We need to incorporate the youth and the children
because they are the future of this community.” She began to smile, adding, “We’re old.
We’re not going to be here forever.” Some of the women chuckled, nodding in
agreement. While some remained skeptical, the women slowly conceded to the notion of
youth involvement. “Besides,” Sra. Inés added, “This is not the same as previous years.
The AMIGOS program will not approve of the idea unless the youth are involved.”
Because Sra. Inés was a host mother to one of the participants, she was well aware of the
conditions of the microenterprise. When I interviewed her in the following weeks, Sra.
Inés commented on her role in the microenterprise, “I tried to gather youth…because this
microenterprise is more for youth, and with the combination of youth and adults [the
microenterprise] would be much better.”
While the women needed some time to accept the presence of youth, unlike
community members in San Diego, they were instantly receptive to the thought of
developing a microenterprise. Sra. Inés later explained the initial enthusiasm among the
57
women in the group, “We are a group of 20, the majority of us live in the campo and we
don’t have work…we feel that with what little time we have we need to take advantage of
this opportunity…we are making these items in order to sell them and from there we can
make some money and have something for ourselves.”
Soon enough, the women agreed to have an inclusive group in which youth were
not only leaders in organizing meetings, but also apprentices to the more experienced
knitters. During each workshop, some of the women agreed to spend an hour teaching
and assisting youth in the basics of knitting, increasing the complexity of the example
garment as their skills developed. Involved youth also significantly contributed to the
organization of the microenterprise by assessing the details concerning the cost of
necessary materials, where to sell the garments, and developing a marketing plan. Local
youth even designed a logo for their business they named Tejidos Carmelitas pictured in
Figure 2. Also displayed is the clever slogan, “¡Achachay! ¡Compra gorro! (How cold!
Buy a hat!)”
The youth also collaborated with the women in the group in conducting market
research in determining the cost of the necessary materials. Part of this research required
members of the group to go markets in nearby cities and ask for prices of wool, needles,
and buttons. This often included haggling down prices, at which the older women were
especially skilled. The group wanted to purchase as many materials as possible with the
seed fund provided by AMIGOS, and because community members were cognizant of
the $400 limit, they purposefully developed their proposed budget to arrive as close to the
maximum amount as possible. Table 2 outlines the initial expenses of the
58
microenterprise, which includes wool, needles, and buttons, and also reflects the detail-
oriented mindset of the group members. They stretched the budget as much as they could
to include four payments for the reservation of the space required to sell at the local
market on the weekends. Additionally, the group thought to include the transportation
cost for two people to buy materials in Ambato, a city about forty minutes away from San
Luis. Foreseeing the possibility that customers may buy enough items to need a bag to
carry them all, the budget also accounts for plastic bags to give away to clients. Lastly,
the group agreed to purchase a model coat so that group members could dissect the
woven pattern of the coat, which they were inexperienced in knitting, but knew would be
highly profitable.
The local youth and AMIGOS participants also calculated the total expected
yearly earnings, displayed in Table 3. After researching reasonable prices to sell their
items, the group decided to sell scarves and hats for $5.00 each and coats for $30.00.
Because the group did not have previous experience selling these, it is possible that these
estimates are over or underestimated. While making the budget, the group assumed the
number of items sold would increase each month as they also accounted for the
purchasing of materials every three months. However, despite having more items
available to sell, this does not necessarily translate into increased sales. At the same time,
as profits increase and more items are available to sell, it may be possible for members of
the group to sell at more locations and more than once a week, which would likely
increase sales.
59
When local youth and AMIGOS participants presented at the business plan
competition during the second workshop sponsored by AMIGOS, the judges were
impressed with their involvement of youth, their organization, and the strong level of
enthusiasm displayed during the presentation. San Luis was one of six communities
awarded a portion of the Bevil Grant for the group’s success in organizing a youth-run,
sustainable and original microenterprise. The community was granted a $100 scholarship
that would be used as a small scale-up to improve or expand the initiative. At their next
meeting, the youth and the women agreed to use the scholarship money to hire a teacher
to attend the workshops in order to teach both the women and youth how to knit a more
complex scarf model. The group conducted prior research to determine which models of
scarves were in demand, and later decided to hire someone to teach how to knit a
particular scarf that was of higher quality and would therefore result in a higher profit.
Within the first couple weeks of operation, the group met twice a week, with
women continuing to knit the majority of the products while also ensuring that time was
spent teaching youth. The women agreed that in the coming weeks, the youth would be
responsible for making the scarves, which many of them had learned how to make since
the first meeting. The youth were also largely responsible for selling the items at the local
markets on the weekend, relying on a rotation system so that everyone had an equal
responsibility in selling. The group did not decide what to with the profit generation from
the microenterprise. They recognized that it would be difficult to divide the money
among the large group, so they agreed to use the money to further invest in the business
so that it could expand even more.
60
“We need a permanent place to sell,” Sra. Inés suggested when I asked her how
the microenterprise could be improved. “We’ve already sold at the market, but if we had
a storefront in Mulalillo, we could sell every day.” If the microenterprise continues to
grow and leadership and involvement remains consistent, the profitability of the
enterprise could be significant after a few years. Table 4 outlines the expected number of
items sold up to three years, with an expected net income of $12,762. While these
estimates may be optimistic, if the microenterprise is still running after three years, it is
reasonable to assume that a substantial amount of profit would be made, which could
have a serious impact on the financial well-being of those involved, and could possibly
lead to permanent employment positions that would allow these youth and women feel
empowered and in control of their own futures.
Case Analysis: Taxoloma
Taxoloma is an anomaly in terms of its demography, with the majority of its
habitants presumably over the age of 40 based on those in attendance at the frequent
community meetings. Encouraging a youth-run microenterprise in this environment
proved to be incredibly problematic as repeated attempts by AMIGOS participates to
seek out and engage local youth were largely unsuccessful. However, similar to San
Diego, Taxoloma did have the advantage of its large-scale involvement of all community
members through its regular, organized meetings.
61
AMIGOS participants introduced the new theme of youth entrepreneurship during
one of the community meetings, but community members did not seem to show much
enthusiasm in the prospect of youth-run microenterprise. It seemed that older members of
Taxoloma had little confidence in the few youth that lived in the community. Sra. Toro,
the president’s wife, later commented on the lack of youth involvement in community
members, “For the most part, they leave to go to work—it could be men, women, they
leave to work and some study at night as well. During the day, sometimes they often do
agricultural work as well…and perhaps they’re tired and don’t want to do anything else.”
It was evident from the start that alternatives to an entirely youth-run
microenterprise needed to be considered in Taxoloma. AMIGOS participants encouraged
the community to decide on an idea collectively, since their strength as a community is
their ability and willingness to incorporate all opinions in the decision-making process.
However, community members still lacked initiative and enthusiasm in brainstorming
possible ideas. At the same time, facilitators of the meeting, including the members of the
directiva comprised of the president, secretary, and the president’s wife, were steadfast in
arriving at a decision, no matter how much time passed. Minutes elapsed as community
members remained largely complaisant in waiting for someone else to chime in with an
idea.
Community members first expressed their confusion about the purpose in creating
a microenterprise and insisted that AMIGOS should simply fund a more traditional,
infrastructural-based project as the organization has supported in the past community.
The previous years, the community initiatives mainly consisted of construction projects
62
that involved additions to the community playground. The complexity of the
microenterprise seemed to overwhelm many community members, but once the
AMIGOS participants explained that AMIGOS would only fund a microenterprise,
community members reluctantly refocused their attention.
All suggestions for the microenterprise involved using the community’s
agricultural expertise, such as a chicken or guinea pig cooperative. These
recommendations were logical due to the community’s agricultural-based economy and
their belief that the microenterprise would be most profitable if they based it off skills
and knowledge they already had. Many families had experience in raising small
livestock, so community members could use that information in buying the appropriate
food and medication for the animals. Community members eventually agreed that a
chicken cooperative would generate the quickest returns, since compared to guinea pigs,
they matured at a faster rate. However, there were some initial disagreements in
determining how many chickens to purchase and at what level of maturity. Some argued
that buying the chickens when they were close to being mature would allow for quicker
turnover and the ability to sell the mature chickens at a higher price. Others were not
convinced this would be the most profitable method. At one point a woman who sat
quietly in the back of the room stood up to address the quarreling few in the front.
“What if we bought chickens that were only one day old?” the woman asked as
the crowd hushed, cuing her to continue. “A chicken that is one day old costs about only
35 cents. We could buy hundreds of chickens…we could raise them—give them food,
medication—and then sell them after three weeks when they have matured. A mature
63
chicken sells for $1.75.” The crowd grew more excited as they suddenly realized the
potential to buy hundreds of chickens rather than just a few dozen.
“After 21 days when the chickens are mature, we can sell them,” she continued.
“We could buy them for a discounted community price.” Suddenly it seemed the meeting
had shifted gears; community members vocalized their agreement with the woman in the
back of the room. At this point, the directiva calculated the costs for medications and
food, while noting that it would donate the space necessary for a chicken pen to house the
chickens. They also noted that after the first two cycles, the community could also sell
the fertilizer made from chicken excrements, which would equate to about $40 each
cycle. After some calculations, the directiva decided that in the first cycle, the community
would buy 200 day-old chickens. The newfound enthusiasm among the group grew as
community members realized the potential profit the community could make each cycle.
Furthermore, selling the mature chickens to community members at a reduced price
compared to prices they would find in the nearby markets would allow for each family in
the community to own affordable, fully-medicated mature chickens.95
The process of calculating the expected yearly earnings was fairly straightforward
(see Table 5). Expenses for each cycle, which occurred every 21 days, included the
purchasing of new chickens, medicine, and food, while the expected profit from each
cycle (if all the chickens are sold) is $350 plus the profit generated from selling the
fertilizer. In the proposal that was completed by the directiva, they requested that
95
Access to affordable and healthy chickens allows families in the community to consistently have a cheap
source of protein in the form of meat and eggs, which is crucial to the Ecuadorian Sierra diet that
oftentimes lacks beans.
64
AMIGOS seed funds be used to pay for the first cycle in addition to the medicine and
food of the second cycle, totaling $300. For each cycle, the community planned to buy
the same number of chickens because of the limited space available to house them. After
the first two month, the expected net profit for each cycle is $162, with an expected
yearly profit of $2,678.
The significant time commitment necessary to care for the chickens proved to be
one of the largest challenges community members faced. For the first cycle, a member of
the directiva offered to care for the chickens, which included feeding them three times a
day and giving them medication each day. This time commitment can be burdensome for
one individual, which is why the member of the directiva only agreed to commit to one
cycle, encouraging other community members to step forward and take responsibility for
the next 21-day period. More than one person caring for the chickens supposedly induces
too much stress for the chickens and the inconsistencies can be harmful to their
development. Asking someone to commit 21 days to care for the chickens resulted in
heated conversations in the community meetings. Some suggested that a list be made so
that one community member would be assigned to one cycle; others argued, however,
that they did not have time to break up their day three times a day to care for the chickens
when they already had a dozen other responsibilities to attend to. The directiva threatened
to end the microenterprise if no one volunteered to take responsibility. Due to the fact
that the directiva held most authority over final decisions made about the
microenterprise, it is possible that the top-down style of leadership may have contributed
65
to lack of participation among community members because of the perceived lack of
agency in final decision-making.
During lengthy debates, community members questioned and doubted the
sustainability of the microenterprise because by the time the first cycle concluded, no one
volunteered to care for the chickens in the second cycle, which jeopardized the timeline
and the ability to purchase a new batch of baby chickens. Nonetheless, while the future of
the microenterprise hung in the air, the first cycle was completed and successful. Some
families opted not to purchase any chickens, while others offered to buy up to ten, so at
the end of the community meeting, all 200 chickens were sold. The question remained,
however, about what to do with the $350 profit if no one agreed to care for the new
chickens in the second cycle. The last day of the first cycle happened to be on the same
day I revisited Taxoloma for the community close-out. I witnessed the overall success of
the first cycle, but I also left the community unsure of whether or not the microenterprise
would even last a second cycle. I was not able to get in touch with community members
since this past August regarding the continuation of the microenterprise.
Case Analysis: Salatilin
Salatilin slightly resembles the youth situation in San Luis, in which youth of all
ages are present and, to an extent, active in their communities. Youth in Salatilin seem to
have more free time in comparison, however, which is why this community perhaps has
the greatest amount of potential for a successful youth-run microenterprise. Although,
66
even in a community populated with youth, the challenge can be youth engagement in an
initiative that they develop and are passionate about.
At first, the youth involved in choosing an idea for the microenterprise in Salatilin
seemed to have nothing but passion. They quickly grasped the concept of a
microenterprise, and immediately steered away from traditional microenterprise options
seen in other communities; here, the youth were enthusiastic about starting an Internet
café. They were convinced it would be successful because there are no Internet cafés in
Salatilin and people would not have to walk a half hour into Mulalillo to use the Internet.
The youth all agreed that it would be much easier to do homework and would be very
beneficial to students who do not have access to computers. They also had plans for who
would be in charge of running the Internet café. Youth would take turns volunteering and
would be rewarded with one hour of free Internet access. In the future, they hoped to sell
homemade foods inside the café to make a larger profit. Within a couple years, they
hoped to be able to save enough money to buy a second computer and perhaps start
paying those who worked instead of relying on volunteers.
However, there were a few problems that arose when trying to implement the idea
of an Internet café as the microenterprise. With a limited start-up amount of $400
provided by AMIGOS, and without a computer, it did not seem feasible to find a used
computer to purchase for less than that amount. Even if this was possible, there is still the
dilemma of paying for a Wi-Fi package and being able to make monthly payments. The
youth decided that it would only be possible to continue with the idea if they could
somehow get a computer donated. Some sounded hopeful, mentioning names of
67
community members who would potentially donate an old computer. Others were more
pessimistic, noting that all the Internet cafés in the nearby cities had brand new
computers, and it would not be worth having an old computer that might not be reliable.
The other problem that arose was a lack of agreement among community
members. While the youth were excited about the idea to start an Internet Café, many of
the adults in the community were skeptical. They were doubtful that the café would make
enough profit each month to pay for the Wi-Fi, and they did not seem to have very much
faith that enough youth would commit to volunteer to run the café. They also mentioned a
former community project in which books were donated to start a mini-library. Within a
month, the small building was broken into, with almost all of the books stolen and the
property damaged. They foresaw that the same fate would occur to the Internet café.
Without the support of many of the adults and with the difficulty of obtaining a
computer, it became difficult to arrive at a consensus on whether or not to continue with
the original idea. Part of the AMIGOS program design emphasizes a community-led
project, and this requires an idea that is supported by at least the majority of the
community. While the theme of the project is youth entrepreneurship, with AMIGOS
placing great value on the initiative and opinions of youth, without the support of the rest
of the community the project success seems less likely. For a microenterprise as
ambitious as an Internet Café, it essential to have the support of as many people as
possible, especially adult leaders in the community.
After an older woman in the community offered to donate her computer, the
process finally seemed to be moving in a positive direction. However, the “computer”
68
only consisted of the monitor, lacking the pivotal piece to continue forward with the
microenterprise. With this unfortunate news, the youth were forced to brainstorm some
other ideas for a successful microenterprise. Perhaps due to a sense of defeat at giving up
on the dream to start an Internet Café, the youth seemed to be at a loss at arriving at
another idea. When the youth and the volunteers consulted me about this challenge, I
mentioned some ideas other communities had developed, including selling arts and crafts
made by community members or the possibility of breeding farm animals and selling
them in regional marketplaces. However, after some deliberation, nearly all of the youth
agreed that their community was not known for its particular talents in making arts and
crafts. Some of the young girls made friendship bracelets, but everyone agreed that would
not suffice as a microenterprise. They also commented that in Salatilin, many community
members already had small chicken and guinea pig farms, so the idea to raise and sell
these small animals would not be original and would only serve to just barely compete
with more experienced markets.
Meanwhile, the volunteers and the youth continued working on a fundraising
initiative that became surprisingly successful. The AMIGOS program design encourages
volunteers and community members to develop and complete fundraisers that may
contribute extra funds to the community project. This is emphasized because often times
the community may want to complete a project that exceeds the monetary amount
AMIGOS is able to contribute, which is usually around $400 per community. This also
gives communities the opportunity to expand on the original project or start a new project
altogether, using funds that were collectively raised. Furthermore, fundraising can instill
69
excitement and awareness for the project, all while giving the community a sense of
ownership over the project. While the community had not yet settled on a
microenterprise, that did not prevent community members from fundraising within the
first week that the volunteers arrived in Salatilin.
In the first community meeting the volunteers and local youth organized,
fundraising options were discussed, and those in attendance decided on selling fruit
salads. Many of the adults in attendance agreed to donate some fruit, with some
contributing bananas, watermelon, strawberries, pineapple, and ingredients to make
whipped cream to place on top of the fruit salads. Some lent knives, cutting boards, and
beaters to make the whipped cream, while others donated cups and spoons. Everyone
agreed that the adults would donate the supplies while the youth and other younger
children would assemble the fruit salads and sell them at nearby soccer games that
occurred in neighboring communities on Sunday afternoons. In the first attempt, they had
enough supplies to make seventy fruit salads. After deciding on a reasonable price for the
salads, the youth who attended the games sold the salads for seventy-five cents each.
They had sold all of them in less than an hour, making a $52.50 profit.
While this was a substantial amount raised, the question on what project the
money was being raised for still lingered. Within the timeline of the AMIGOS program
in Cotopaxi, it is ideal that the community settles on an idea for the microenterprise
within the first two weeks. This gives youth and participants enough time to prepare for
the business plan competition for the second required AMIGOS workshop. With this time
pressure, the community was in desperate need of a practical idea for a microenterprise,
70
but the youth were still struggling to arrive at any conclusion. It was also clear that any
idea they did arrive at would have to be supported by the rest of the community if they
expected to have any future assistance. The youth seemed to fear that lack of support and
an expectation of failure among adults in the community would inhibit the
microenterprise’s success before it could even take off.
It soon dawned on some of the youth and the volunteers that perhaps there was an
opportunity for microenterprise already in the works. They all agreed that the success of
the fruit salad fundraiser could perhaps be repeated multiple times, without having to rely
on community donations of food and supplies. While the idea was simple, it was already
clear from the first fundraiser that the initiative could easily make a profit with the high
demand and relatively cheap costs of materials. The simplicity of the idea also served as
an advantage because the time commitment and overall effort of making and selling fruit
salads one day of the week was entirely manageable for all those involved. Additionally,
the idea to convert the fundraiser into a microenterprise could be easily communicated to
the rest of the community in order to garner support by highlighting its early financial
success as a community fundraiser.
Once decision was made, local youth developed a budget for the microenterprise
that included the fixed costs per week (Table 6), consisting of the costs for the fruit,
cups, spoons, and transportation to the nearby soccer games. The budget also included the
initial costs necessary to make and store the fruit salads, which also ensured that the
microenterprise would not have to rely on using borrowed items from community
members. These costs, displayed in Table 7, include large containers to carry the fruit
71
salads, a blender to make the whipped cream, cutting boards, knives, and a cooler. The
total seed fund amount requested from AMIGOS included the initial costs and a month’s
worth of the fixed costs, totaling only $225. Basing their market research off of their
recent experience in selling fruit salads, the youth set the price of each fruit salad at 75
cents, with the goal of making and selling 100 each Sunday, resulting in a monthly profit
of $300. Subtracting the monthly expenses from this amount, the expected monthly net
profit after the first month is $166.40, leading to a total expected yearly earning of
$2,238.20 (Table 8). In the first three weeks after the microenterprise was approved, the
community sold all 100 fruit salads made within less than an hour.
Because many of the youth involved in making and selling the fruit salads were
particularly young, adult supervision and encouragement from parents and community
leaders played a large role in helping manage the initiative. The coordination between the
two age groups, with the adults encouraging youth to play the most active role, arguably
led to the success of the microenterprise. Parents of the children met to deliberate how the
profit from the microenterprise should be used. Incorporating the opinions of older youth
leaders, they decided to use the profit gained within the first few months to purchase
athletic equipment for the children at the school as Christmas presents. I later contacted
members of the community to ask them how the microenterprise process was going, and
one of the parent leaders proudly told me that youth were still making and selling the fruit
salads every week, and they were able to buy the Christmas presents like they had
planned to five months prior.
72
CHAPTER III: CONCLUSIONS
The final chapter of this thesis presents conclusions of the four communities
outlined earlier. Each community is examined separately in the same order they were
presented with an analysis of the successes and challenges of each microenterprise. The
chapter closes with general conclusions that outline the benefits and challenges of
implementing a youth entrepreneurship program design.
Conclusions: San Diego
Community members in San Diego were initially hesitant in investing their time
and effort into creating a microenterprise. The challenge in introducing the theme of
youth entrepreneurship in San Diego may have been due to AMIGOS’ program history in
the community. In agreeing to work with AMIGOS for another summer, the community
may have expected the program to fund construction projects as it had in the past and was
resistant to an alternative use of the funds. This situation may not occur in communities
that only have a history of working with programs strictly dedicated to launching
microenterprises; however, other communities may have a more traditional perception of
international development programs and may consider infrastructure and other
construction projects the only viable option. In the case of San Diego, the only way the
program was able to change this sentiment was by allowing time for the community to
become accustomed to the idea of an alternative method to community development (a
microenterprise) and encourage community members to be involved in the decision-
73
making process. While launching a microenterprise was not initially popular among
community members, that attitude reversed altogether within a matter of weeks. This was
mostly attributed to the popularity of purchasing something useful for the community that
could benefit everyone and the growing understanding that the microenterprise would
continue to grow, unlike a traditional infrastructure projects that have little room for
expansion.
A host mother of one of the AMIGOS participants in the community, Maria, later
reflected on her change of heart from her initial skepticism of the entrepreneurship
program. “At first we weren’t sure, but now that we have [the microenterprise], we don’t
want to lose it…I am very grateful for it. We are all very satisfied with the
microenterprise.” I later asked her and others if they would want to continue the theme of
youth entrepreneurship in the future. Maria responded, “Yes, of course. With the
microenterprise, we don’t lose the money. It continues to grow more and that is what we
want.”
Maria’s comment on not “los[ing] the money” substantiates the growing worry
that traditional infrastructure projects at grassroots levels are not always as affective as
many hope, sometimes falling apart after only a few months. While the same fate can be
true with microenterprises, it seems that they will at least generate some profit that goes
beyond the initial seed fund, so long as they are well-planned and managed. This puts the
success or failure of the program in the hands of community members rather than the
outside program, which gives the community further ownership over the initiative.
Additionally, in the case of San Diego, the microenterprise chosen had a low risk factor
74
due to its simplicity and community expertise in caring for the lambs. These factors
nearly guarantee that it will eventually make a profit, therefore never “los[ing] the
money” invested.
While San Diego’s microenterprise will eventually make a profit (see Table 1), a
positive net profit is not expected to occur until the second year of operation. Compared
to the other communities, this is a much slower timeframe for growth. For similar
microenterprises that do not yield speedy profits—possibly taking years to fully
develop—receiving approval from NGOs granting seed funding may be challenging. The
need for NGOs to quickly report positive results back to partners, donors, and other
stakeholders so that they can continue to gain support and funding can limit investment in
communities that do not make a significant profit in the first year. However, if
communities are able to clearly outline the future profits and the benefits that will be
achieved in the years to come, perhaps NGOs can be more comprehensive in their
approval process by considering long-term objectives. This would expand opportunities
for agricultural-based microenterprises, for example, which may develop at a slower rate,
but nonetheless have lasting growth potential.
The choice of the microenterprise in San Diego seemed to be motivated by a
concept of community entrepreneurship, which “moves beyond the individual, providing
multiple outcomes for groups of people where economic activity is embedded in social
aspects.”96 This is a unique concept that differs from the autonomous or individual
96
Cahn, Miranda, (2008) “Indigenous Entrepreneurship, Culture and Micro-enterprise in the Pacific
Islands: Case Studies from Samoa.” Entrepreneurship and Regional Development, 20 (1),
http://web.a.ebscohost.com/ehost/detail/detail?sid=0d07d64e-fc94-466c-ab4b-
75
approach that is characterized by microenterprises that tend to benefit a small group of
people rather than an entire community. Rather, community entrepreneurship relies on
collective decision-making that “leads to community-based development goals.”97 San
Diego is a partial commune, in which community members share certain responsibilities
with the expectation that benefits will be evenly distributed. This shared sense of
responsibility was reflected in the choice for the microenterprise in which everyone
shared a role in caring for community-owned livestock. The profits made from selling the
wool would be invested into the community, thus allowing all contributors in the
community to benefit from the fiscal outcome.
The decision to invest in a communal microenterprise can be rooted in the reality that
San Diego is strongly influenced by the local indigenous culture. While most people
speak Spanish in the community, parents actively teach their children to speak Kichwa,
which is the indigenous Quechuan language native to northern Ecuador.98 The indigenous
culture is also reflected in the traditional dress of community members and the traditional
music and dance common at community gatherings. The indigenous culture entrenched in
San Diego and similar communities can greatly impact the community’s mindset towards
entrepreneurship. According to scholars, “[i]ndigenous entrepreneurship differs from
other forms of entrepreneurship in terms of the context of the enterprise, the types of
goals and outcomes towards which the enterprise is focused, and/or the from and
abff896bf4cf%40sessionmgr4004&vid=0&hid=4206&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=
bth&AN=27876237 (hereafter: Cahn, “Indigenous Entrepreneurship”)
97
Cahn, “Indigenous Entrepreneurship,” (2)
98
King, K. A., (2001) Language Revitalization Processes and Prospects: Quichua in the Ecuadorian
Andes (Bilingual Education and Bilingualism, 24). Clevedon, UK: Multilingual Matters Press.
76
organization of the enterprise, which is often oriented toward the community rather than
the individual.”99 This is due to the varying conceptualization of “business” in many
indigenous societies, in which “economic activities are embedded in cultural and social
aspect,” leading to “unique styles of entrepreneurship, which are often community-
oriented, and with diverse livelihood outcomes.”100 This appears to be accurate in San
Diego’s “community-oriented” microenterprise, in which the competitive style of
business common to Western business practices was avoided in favor of a collective
initiative. The cultural and social aspects of indigenous culture that influences business
strategies and structures can be attributed to “the importance of personal relationships,
including exchange and reciprocity” that is commonly seen in indigenous, collective
societies where cultural and social aspects are interwoven.”101
The indigenous culture of San Diego also contributed to the high level of
organization within the community. Community meetings are coordinated through the
use of a loudspeaker that notifies everyone that a meeting will occur that night. Nearly
the entire community attends these meetings, which are facilitated by the community
president. The president leads discussions and often allows community members to vote
on actions. Unified decision-making processes and strong traditional leadership can be
key components in the success of a microenterprise.
While this style of decision-making is conducive to creating a social enterprise
based on unanimous agreement of the community, it is not necessarily favorable for the
99
100
Ibid
101
77
creation of a youth-run microenterprise. In fact, communal style entrepreneurship has the
potential to clash with a youth-focused program design because the influence and prestige
of traditional community leaders may overshadow the leadership and involvement of
youth. Additionally, the expectation that youth should be the main organizers and
decision-makers in the process inherently diminishes the role of adult community leaders
in the process. In certain communities that may share San Diego’s social structure, the
youth program design may be problematic and lead to tensions between community
members and youth. If youth entrepreneurship programs are designed to measure success
based on youth initiative and youth involvement, it is likely that indigenous, collective
communities may not have a high success rate due to the traditional social structure and
decision-making process.
A second challenge in attempting to launch a youth-run microenterprise in San
Diego was the prevailing absence of youth, which is by no means an anomaly in rural,
indigenous-influenced communities in Cotopaxi. Maria commented on the low youth
population in the community, explaining, “…youth do not stay here [in the community].
They work in Ambato, Salcedo, in the cities, or they already have families and do not
have time.” Clearly, the major challenge for San Diego in creating a youth-run
microenterprise was the lack of available youth. For communities like San Diego,
microenterprises can be financially successful and have broad community involvement.
However, if the overall focus of a youth entrepreneurship program is the consistent
involvement of youth, rather than the profit made, then microenterprises such as the one
created in San Diego should be avoided in favor of developing those that require more
78
youth leadership. This challenge in San Diego could have been avoided had there been a
standard in place beforehand to determine which communities would benefit most from a
youth entrepreneurship program design. Gathering information about the availability of
youth in communities prior to selecting communities for participation could help gauge
the difficulty of a particular community in engaging and involving youth.
While the ultimate goal of involving youth in the process of the microenterprise
was not achieved in San Diego, in many ways, the project can still be regarded as a
success. The entire community supported the initiative and community members outlined
a plan to ensure the sustainability of the microenterprise. Maria explained, “The sheep
will be taken care of by everyone. One day my family will care for them, another day,
someone else, so it will be a round.” So while youth involvement was low, the
community perceived the microenterprise as a success with its potential to have a lasting,
positive impact on the community.
Conclusions: San Luis
The microenterprise in San Luis proved to be tremendously successful, not only
in its clear ability to harvest profits by producing and selling scarves, hats, and coats, but
also in its ability to effectively incorporate youth in all aspects and steps of the process.
In San Luis, youth leaders took initiative in gathering individuals to meet, deciding upon
an original business idea, collecting community resources, developing a sustainable
business plan, and implementing the microenterprise. However, the critical factor in this
equation is an available and engaged youth population, which as the demographics in San
79
Diego and Taxoloma point out, is not guaranteed in every community. Nonetheless, the
achievements of the youth in San Luis support the premise that when youth are given the
opportunity to implement positive change, they can not only rise to the challenge, but
also far exceed expectations.
While the launching of the microenterprise was successful in many ways, as with
any initiative, youth and community members faced a set of challenges, some still
unresolved. One challenge Blanca and other youth leaders sought to address was to
increase youth involvement. One of the goals of the microenterprise was to have at least
as many youth involved as women, but this was challenging for multiple reasons. In the
beginning steps of launching the microenterprise, the women phased many of the youth
out, believing them to be too young and unable to knit. Blanca later expressed the initial
skepticism. “It was easy to get the women involved, but they only wanted the group to be
among themselves.” The exclusiveness of the women seemed to be fueled by the
perspective that the more people involved, the less profit there would be at an individual
level. This is a concern for a small-group microenterprise as compared to community-
based microenterprise. The small-group factor contributes to the incentive for individual
profit among group members, and while having an incentive in any business
circumstance can contribute to higher productivity, this may also increase the exclusive
mindset of the group. This makes it challenging to involve more people as group
members attempt to balance the line between inclusivity and losing individual profits.
The original members eventually agreed to an open group so long as new members
80
commit to making significant contributions to either the production or selling of the
garments.
Another challenge the group faced was diversifying the youth involved. One of
the only boys in the group, Edwin, later expressed his difficulty at getting his friends
involved in the microenterprise. “I thought it would be easy, but boys think it’s only for
girls.” A younger girl, Carolina, chimed in and said, “and youth think it’s only for old
people!” Everyone, including the women, laughed at Carolina’s comment. The challenge
in addressing this issue may be a matter of rebranding the microenterprise to make it
more attractive for youth to be involved. Blanca suggested that giving youth who do not
want to knit other responsibilities, such as marketing and selling, might increase youth
participation including among boys. She also suggested that rescheduling the workshop
times to better fit the time schedule of youth would increase participation. “Many of the
youth have homework during the week and their parents don’t give them permission to be
out of the house so late.” For these reasons, the group decided to reschedule the
workshops for Friday evenings, as to not interfere with schoolwork. Blanca also
mentioned other initiatives to incorporate more youth involvement by “using the
community loudspeaker. We could also go house to house to see if they will agree to
come to one of our workshops.”
While some of the women were not assured of the youth’s capabilities in the
beginning phases of the microenterprise, when I last met with them, all the women
expressed their confidence in youth after working alongside them for multiple weeks.
Sra. Inés conveyed her gratitude for the youth because “they have innovative ideas and
81
they want to continue with the microenterprise and not lose it.” This newfound
confidence can have a profound impact on the future of San Luis as community members
begin to see the potential of youth to work together to instill positive change.
During the community close-out meeting, community members also discussed
scale-up possibilities in the future, including the option to invest in a permanent location
to sell. “We have already sold at the market on the weekends, but we need a permanent
place to sell so that we can sell every day and make more of a profit,” Sra. Inés
explained. “If we have this space, we can put our hearts into this and have the best
product in the region perhaps.” While this may seem like an ambitious goal, it is
important that those involved set goals for the future so that they have continued
motivation. The nature of business forces entrepreneurs to stay on their toes by always
searching for opportunities to grow and expand. Of course, investing in a permanent
location requires funding from reinvesting in profits, and this can be controversial among
participants that would rather pocket individual profit rather than reinvest it in the
microenterprise. Determining expectations in the beginning phases of the microenterprise
is essential so that disagreements over mixed anticipations do not occur once profits
increase. Carolina, one of the younger participants, also expressed her idea to scale-up by
suggesting that the group “learn to knit more models of hats and scarves.” This scale-up
idea was realized when the community won a portion of the Bevil Grant during the
business plan competition, using the money to hire someone to teach group members how
to knit various models of scarves.
82
Sra. Inés expressed that one of her personal goals for the microenterprise was “to
teach the youth who don’t know [how to knit] to learn, and even more importantly, that
they learn to like knitting and have an appreciation for it.” While the microenterprise is
still in its beginning phases, some have already developed an appreciation for knitting.
Carolina expressed her excitement in learning how to make hats after she had completed
her first scarf. Blanca also expressed her gratitude to the women who taught her how to
knit. “I didn’t know anything about knitting, but I learned at the workshop how to knit
hats and scarves, which makes me excited to learn more.” Carolina hoped “to have
everyone continue with the microenterprise,” noting that “if some do not want to
continue, [the group] will search for youth who want to learn how to knit.” Interestingly,
all of the goals mentioned have little to do with the profit generated, but rather focus on
skill development and continued involvement. Edwin commented on the success of the
microenterprise so far, and rather than mentioning the number of items sold or the profits
gained, he simply stated, “It’s very good that we can learn how to knit because some
youth do not know how to knit, and I think it’s really important.” So while this particular
microenterprise differs from the community-based microenterprises in the other
communities, it can still be considered a social enterprise because it has the goal of
“benefiting society” by developing hard and soft skills among youth.102
Everyone in San Luis agreed that if AMIGOS were to work in their community
the following year, they would want to continuing developing or start a new
microenterprise rather that support a traditional project. The community members seemed
102
83
disheartened at the effectiveness of infrastructure-based projects, mentioning prior
projects that failed such as the shed that was destroyed only months after it was built.
Perhaps the initial enthusiasm in the entrepreneurship theme was due in part to a new
focus that substituted as an alternative to failed infrastructure projects. Past experience
with projects spoke to the community’s receptivity of a microenterprise, so while San
Diego had generally positive experiences with traditional AMIGOS projects and
therefore initially rejected an alternative, San Luis was originally open to launching a
microenterprise due to previous failures of infrastructure projects. In their evaluation of
the microenterprise, community members conveyed their support of the new type of
project, with Blanca insisting that the microenterprise “is better because it lasts longer.
We can make more, and it can grow more.” Both the youth and women involved in the
microenterprise communicated their commitment to the project because of all the
potential benefits. Blanca, who was eventually recognized as the president of the
microenterprise, stated that she has confidence in herself and in the other youth to move
forward with the microenterprise “because everyone that is involved is chévere
(Ecuadorian slang for “cool”) and they like to participate. We don’t want to see this end.”
Conclusions: Taxoloma
Taxoloma’s choice to grow and sell chickens for their microenterprise is derived
from the high-level of agricultural activity in the community. The microenterprise
focused on existing skills in the community, a crucial component to community
development in which “Projects and programs need to be carefully designed to build on
84
existing skills of participants while also responding to identifiable community needs.”103
Using skills that already exist in the community will enhance the effectiveness of the
microenterprise and result in less risk due to a higher level of knowledge and expertise.
Community members in Taxoloma were well aware of all the necessary materials and
requirements to raise chickens because many of them already had experience doing so on
a smaller scale. Additionally, the microenterprise addressed “identifiable community
needs” by allowing for community members to have an increased source of protein
through chicken meat and eggs. This is especially important to community health in the
rural highlands of Cotopaxi due to the lack of beans in the typical diet.
Similarly to San Diego, Taxoloma has an indigenous culture that affects the
“cultural and social aspects…[that] influence the goals and outcomes of the
entrepreneurs, business structures and business activities.”104 The collective organization
among community members was similar to the organization in San Diego, with
community meetings occurring frequently and unified decision-making. However, the
need for collective decision-making can interfere with efficiency and may not always be
realistic when launching a small-scale microenterprise that could benefit more from the
management of a small group of committed individuals, rather than an entire community.
Indeed, during the community meetings in Taxoloma, it was clear that some people in the
room were apathetic regarding the operation of the microenterprise. Tensions arose
during meetings when work expectations were discussed. The notion that everyone would
be expected to contribute to caring for the chickens equally was criticized by community
103
104
85
members who scoffed at the idea of putting in time to a job that they considered to be
best managed by one individual or a group of individuals. The idea of a collective work
style in which everyone contributed to the cause equally did not resonate with some of
the community members who could not be bothered by additional work that did not
necessarily benefit them directly. This differs from the sentiments of community
members in San Diego, which was similar in both its collective style of decision-making
and indigenous influence. However, Taxoloma was also influenced by the culture of
Mulalillo and other nearby cities, unlike San Diego, which was isolated from urban
influence. In this sense, perhaps some community members in Taxoloma identify more as
individualists, which is presumably more common among urban dwellers, rather than
collectivists.
Leaders in the community, however, had a different opinion on the matter.
Taxoloma has the tradition of collective decision-making, so allowing a small group to
manage the microenterprise was not an option for many. The president’s sister, for
example, voiced her opinion for what she regarded to be most challenging aspect in
launching the microenterprise, “In the beginning, we needed everyone to be more unified
in order to make the microenterprise. If the people are not united, we can’t do anything.”
This mindset presents a challenge for similar communities that are in the process of
determining an idea for a microenterprise. If the entire community is not on board, others
may feel discouraged or grow weary of hours of discussion, possibly abandoning the
initiative altogether.
86
Part of the traditional way of life in many rural areas involves “subsistence living
and secure access to food.”105 In many rural communities in the region of Cotopaxi,
including Taxoloma, families sustain by producing the crops they need. However, within
these communities, “cash is becoming important for material goods, fuel, [and] fuel.”
Unfortunately, in many rural communities, there is a “lack of cash, and cash-earning
opportunities.”106 Typically, community members, especially youth and men, are forced
to leave their communities to work in nearby cities in order to have access to income.
However, if alternative employment opportunities were available within the community,
perhaps the exodus of youth and men would not be so pervasive. Through
microenterprise development, it may be possible for rural community members to have
cash-earning opportunities with their community, thus encouraging them to stay. At the
same time, at least in its beginning phases, microenterprises do not offer full-time
positions. Nonetheless, in the case of Taxoloma, community members may have been
able to ensure the continuation of the microenterprise by hiring on a local youth in a full-
time or part-time position to care for the chickens.
The “lack of cash and cash-earning opportunities” within many rural communities
is prevalent throughout Latin America, which is why over the past three decades “[r]ural
nonfarm employment (RNFE) and incomes (RNFI) [have become] crucial to Latin
American households.”107 The overarching factor that contributes to rural unemployment
105
106
Cahn, “Indigenous Entrepreneurship,” (5-6)
107
Reardon, Thomas. “Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy
Implications.” World Development 29.3 (2001): 385-409. Science Direct. Web. 6 Mar. 2015.
http://www.sciencedirect.com/science/article/pii/S0305750X00001121(hereafter: Reardon, 2015)
87
and low income is rural communities’ reliance on subsistence farming, which is
increasingly known for “low-productivity, low-wage, [instability], [and] low-growth
potential.” As mentioned earlier, rural communities in the highlands of Cotopaxi
typically rely almost exclusively on subsistence farming. However, when extra income is
needed, community members are forced to rely on outside employment opportunities, as
is the case with nearly half the population in Taxoloma. This is likely due to the fact that
“RNFI far exceeds farm wage incomes.”108 However, “local RNFI far exceeds migration
incomes,” so if employment and economic opportunities are available within the
community, this can result in even more economic benefits compared to community
members finding outside work in nearby cities. Again, while one microenterprise cannot
employ all youth living in Taxoloma, it could serve as catalyst for investment in other
community initiatives that can offer local employment opportunities. For instance, after
only three completed cycles, Table 5 shows that the community’s expected net profit is
$410. With this profit, the community could choose to launch another microenterprise in
order to offer further employment opportunities to community members. As profits are
gained from another microenterprise, this continues to open up more opportunities for
future community investments that could alleviate the dilemma of so many community
members migrating to cities to find work.
Part of the challenge in launching a microenterprise in Taxoloma was the
community’s insistence on obtaining quick results with little effort. Community members
invested in a microenterprise must be aware and accepting of the time commitment and
108
Reardon, 2015
88
effort necessary in such an endeavor. It should be conveyed in the introduction of an
entrepreneurship program in a community that more effort will yield more long-term
benefits. However, community members in Taxoloma expressed their concerns about the
long-term plans of the microenterprise. Maria Toro, the president’s sister, reflected on the
community’s experience raising and selling chickens. “The microenterprise would have
more success if we knew how to manage it well in the first place. We need to search for a
project that we can utilize that will help everyone in a short time.” This sentiment does
not coincide with the goals of a sustainable entrepreneurship program. If the community
only wants to take part in small, temporary projects the program loses its effectiveness
and its ability to trigger positive, sustainable change in a community. For this reason, it
would be beneficial for program and partner agency representatives to identify
communities that have the desire to put forth sustained efforts in an initiative, rather than
risking a valuable opportunity by working with communities that prefer more traditional,
short-term projects. Nonetheless, community members in Taxoloma were not completely
set on ending the efforts with the microenterprise. Commenting on the prospects of
completing a second cycle with new chickens, Mara Toro explained, “We are going to
see how the people think later on. Perhaps if the first round is successful—if all the
chickens grow and don’t die, and all is well, we will continue.
Conclusions: Salatilin
Using only $225, the microenterprise in Salatilin succeeded in making a
substantial monthly profit with low fixed costs and minimal working hours. The
89
simplicity in selling fruit salads and its profitability allows this type of microenterprise to
be implemented in various communities. It does not require a set of advanced skills, nor
does it require a significant time commitment from those involved. Additionally, the
microenterprise did not have to rely on sales outside of the community because youth
were easily able to sell all the fruit salads within less than an hour to community
members in Salatilin. If youth were willing to contribute a couple more hours a week to
make twice the amount of fruit salads, the microenterprise would almost effortlessly
double their profits. Community members in Salatilin were pleasantly surprised at how
well the microenterprise was taking off. Pamela, a mother of a couple of youth involved
in the microenterprise noted, “[it] is something very innovative here in Salatilin. Here, we
haven’t accomplished this type of activity before. It was so successful to sell fruit salads
on the weekends, and yet it was so simple. I wish I thought of it first.” Clearly, a
successful microenterprise does not have to involve an ingenious idea from a specifically,
gifted group of individuals. The success sometimes lies within the organization and
implementation of a simple, yet reliable idea, which makes the microenterprise
innovative in its own way.
One of the major differences between Salatilin’s microenterprise compared to the
others is its incorporation of younger youth, particularly adolescents, between the ages of
12 and 15. Adolescents may play a larger role in communities where older youth are
relatively absent due to work or school, or if there is a general disinterest among older
youth in developing a microenterprise, in which case interest from other demographics
should not be ignored. However, when working with young adolescents, it is absolutely
90
essential for youth development programs to differentiate between acceptable child
involvement in microenterprises and child labor. During the close-out meeting in
Salatilin, community members raised the question of child labor and some were
concerned that including children in the microenterprise may be illegal. According to the
Minimum Age Convention (1973), in locations “where the economy and educational
facilities are insufficiently developed,” the minimum age for non-hazardous “light work”
is 12.109 “Light work” is defined as work that should “not be harmful to a child’s health
and development” and “not prejudice attendance at school.”110 So while UNICEF defines
adolescence as ages 10 to 19, youth entrepreneurship programs should only allow youth
over the age of 11 to participate in microenterprises in developing countries; for other
countries, the minimum age for light work is 13.
In the case of Salatilin, the youth and children agreed that selling the fruit salads
only once a week was sufficient, which limited involvement to only two to four hours a
week, thus falling in the category of “light work.” The small-scale nature of
microenterprises is distinct from larger enterprises because they can be successfully
implemented simply as extracurricular activities for youth and children that do not
require excessive work hours. Setting guidelines for child involvement in
microenterprises should extend beyond minimum age requirements and encompass
encouragement of children to take a proactive role in their own level of involvement.
109
“International Labour Standards on Child Labour.” Promoting Jobs, Protecting People. International
Labour Organization. N.d. Web. http://www.ilo.org/global/standards/subjects-covered-by-international-
labour-standards/child-labour/lang--it/index.htm
110
"Towards an Internationally Accepted Statistical Definition of Child Labour: Children’s Activities and
Their Definitions." International Labour Organization, IPEC-SIMPOC. Web. 18 Jan. 2007.
file:///Users/michaelakline/Downloads/ICLS_rep_II_compendium_child_act.pdf
91
Finally, it is vital for children to have decision-making abilities during all phases of the
microenterprise, which allows them to have ownership over the initiative. As a “youth-
run” microenterprise, children should dictate their own level of involvement and the
direction they wish to see the microenterprise take. Program staff working with
communities during the beginning phases of the microenterprise should take notice of
any signs of exploitation by adults and threaten to pull its resources from the community
if it continues.
During the community close-out, community members all seemed to agree that
one aspect of the microenterprise that proved to be challenging was an overall lack of
communication and collaboration by community members in the beginning phases of
choosing an idea. Attempts at holding a community meeting in order to arrive at key
decisions often failed due to lack of attendance. Despite efforts made by both the local
youth and the volunteers to advertise meetings, hardly anyone attended, possibly due to
community members’ perception that adult leaders were the only people capable of
organizing community meetings. This contributed to an overall lack of communication
that hindered the community’s ability to collaborate on decisions concerning the
microenterprise. Attendance at meetings was low because the president of the community
had not scheduled them, and the majority of the community would only attend if the
president held the meeting. The AMIGOS participants and local youth attempted to
contact the president, but found it difficult because he did not live in Salatilin, but in
Ambato—a city about a half hour away. In spite of several attempts, efforts to convince
the president to schedule a meeting in order to discuss the microenterprise were
92
essentially ignored, substantially delaying progress on essential decisions. Progress was
made only after other adult community members intervened by helping to advertise
community meetings to their peers. This introduces a question about the community’s
view of local youth and their willingness to take their initiatives seriously without
traditional leadership.
While the lack of confidence in youth introduces a critical challenge youth face in
attempting to organize a community microenterprise, this also raises the subject of the
benefits to working closely alongside adults in a youth-run microenterprise. This tactic
was highly successful in the case of Salatilin. Pablo Oña, a well-respected and
progressively minded father in the community, saw the potential that a youth-run
microenterprise could have in the community. He was a close friend to the families
hosting the AMIGOS participants and therefore witnessed the struggles they and local
youth had in scheduling a community meeting. Knowing his influential role in the
community, he took it upon himself to schedule a meeting that would encourage both
youth and adults to attend. “I talked to the adults in the community and was able to get
many of the parents to come.” He helped facilitate these meetings, but always allowed the
youth to voice their opinions and pose their questions to the group. If ever community
members fell silent after a question was presented, Pablo would rephrase the question and
urge the audience to respond. He also served in convincing hesitant adults to support the
initiative when youth struggled in their attempts to persuade community members to be
on board with the idea.
93
Once the idea to sell fruit salads was finalized, Pablo took on an even stronger
role as a link between the adults and youth by holding additional “parent meetings” that
often lasted hours. During these meetings he advertised the microenterprise, insisting to
the parents that allowing their children to help contribute to the process of making and
selling the fruit salads would increase their children’s sense of responsibility. He
explained that this type of microenterprise gave opportunity not only to teenagers in the
community, but also to younger children who were interested in contributing. He also
explained the increased financial benefits the microenterprise could have in the
community, particularly as a result of the profit that would undoubtedly be made from
such a cost-effective microenterprise.
The connection Pablo created between the youth and the adults in the community
touches on an important aspect of a successful youth entrepreneurship program design.
Broad community involvement can help facilitate a positive environment in which youth
have the opportunity to grow and learn from leaders in their community. Studies have
shown that “community members, including parents, teachers and business people, can
serve as educators, trainers, and mentors” in the process of developing a youth-run
microenterprise.111 When the youth struggled to organize a community meeting, Pablo
was able to “offer valuable support and encouragement,” which is especially appreciated
during “tough times,” such as struggling to organize meetings with community members,
that youth may face while developing a microenterprise.112 In the broader picture of
youth entrepreneurship in practice, it is important to note that, ideally, youth should not
111
112
Ibid.
94
be the only actors involved. Adults can serve as positive role models to youth by
“work[ing] with youth leaders to mentor them and facilitate their learning and
development process.”113 Furthermore, as was true in the case of Salatilin, the role of a
parent, teacher, or community leader in the microenterprise can allow others to see it as a
legitimate cause, one which they may have otherwise viewed with a skeptical lens
because of their lack of awareness or denial of young people’s potential. While the
AMIGOS program design strongly emphasizes the role of youth in community projects,
it by no means overlooks the positive and encouraging role adult leaders can serve,
including those working for local partner agencies who often provide guidance to local
youth and program participants. Local partner agency representatives and community
business leaders can also “help facilitate linkages to knowledge, markets, employment
opportunities, and networks,” which is especially beneficial to youth throughout all
phrases of the microenterprise.114
The community’s overall impression of the microenterprise was ultimately
favorable, with many focusing on the positive effect it had on youth in the community.
Pamela, a mother in the community, stated that the microenterprise was “very successful
because the youth had the opportunity to work on the weekends and [the work] benefited
themselves.” Her daughter, one of the youth who was involved, believed that the
microenterprise would continue in the future “because it is beneficial for everyone, not
only for some.” In terms of sustainability, community members in Salatilin seemed to
113
114
95
believe that an initiative could only continue if it had the entire support of the community
and if it benefited the community in some way.
When I last visited Salatilin in the beginning of August of 2014, I noticed a list of
names displayed on the outside of the community hall with each name assigned to a
particular week through the end of November. Someone later explained to me that the
names belonged to youth who had volunteered to work on the microenterprise in either
making or selling the fruit salads. So many youth were interested that the parents’ group
decided to create a rotating schedule for who would be involved each week. The level of
organization and the youths’ desire to participant increases the level of sustainability of
the microenterprise, which community members had at least planned to continue through
the end of November.
Points of Departure
The four case studies described and analyzed are meant to shed light on a topic
that generally lacks qualitative study. In the continually growing field of youth livelihood
development, practitioners must adapt program designs to best meet the needs of youth;
however, in order to do so effectually, knowledge of best practices must be compiled and
shared with those in the field. The conclusions gathered from each community in this
thesis can be used to stimulate conversation about the potential benefits of youth
entrepreneurship, the best practices used in the AMIGOS program design, and challenges
that programs face when applying the theme in certain settings.
96
As a leader in youth development, AMIGOS offers an alternative to traditional
infrastructure-based initiatives in favor of a more contemporary, educational, and
sustainable alternative. Whereas infrastructure-based projects focus on resources that the
community typically lacks, microenterprise development focuses on developing
resources and skills the community already has. By relying on what is referred to as
Asset-Based Community Development, youth entrepreneurship programs encourage
communities and youth to identify and mobilize “existing, but often unrecognized assets,
and thereby [respond] to and [create] local economic opportunity.”115 This allows both
community and youth development programs to work more effectively and respectfully
in communities by focusing less on needs and more on individual or community assets.
One aspect of the AMIGOS program design in Cotopaxi that strengthened
microenterprises in each community is the emphasis on entrepreneurial training during
the workshops that youth and AMIGOS participants were required to attend. Not only did
these training workshops allow for youth and participants to receive advice from
experienced professionals, but they also allowed time for each group to receive feedback
from their peers. This gave youth the opportunity to reflect on their own microenterprise
and incorporate some shared ideas into their own plans, especially in terms of marketing.
Blanca, the youth president of the microenterprise in San Luis, was particularly inspired
by one community’s initiative to start a bakery as a microenterprise. She later explained,
“In the future, we could have more than one microenterprise in the community. Not only
115
"What Is Asset Based Community Development (ABCD)." Asset Based Community Development
Institute, n.d., Web.
http://www.abcdinstitute.org/docs/What%20isAssetBasedCommunityDevelopment%281%29.pdf
97
can we knit clothing, but also put a bakery in the community, for example. We do not
have a bakery in San Luis and it could be very successful.” She acknowledged that she
was motivated to further develop ideas for future microenterprises after viewing the
presentations made by other groups during the business plan competition. Creating an
atmosphere in which youth can share ideas also allows for possible collaboration between
communities and the opportunity to make connections that may lead to the organization
of regional microenterprises. In the future, when the theme of youth entrepreneurship in
Cotopaxi is more established, it would be beneficial to incorporate coordination between
communities so that resources from each community can be used on a larger scale.
For these reasons, it is clear that youth entrepreneurship program designers should
incorporate peer-networking opportunities into the core curriculum. To further advance
the curriculum, perhaps beyond the capabilities of a summer-long program, having more
local business experts and professionals available for consultation would be ideal.
Making these connections with local businessmen and businesswomen and encouraging
them to provide support and advice to local youth during learning workshops would
allow for conversation to develop beyond the knowledge and expertise of non-local
project staff. After listening to the microenterprise proposals during the training
workshops, local professionals can mentor youth on a regular basis. Regional mentors
could consult with youth living and working in communities in close proximity or
mentors could meet with youth working on a specific theme that is related to their
expertise, such as agricultural cooperatives, artisan stores, or technology focused
businesses.
98
One challenge rural communities tend to come across in launching a
microenterprise is determining an original idea. A “copy cat” mentality exists among
aspiring entrepreneurs in which some “set themselves up in the same business, selling an
identical product, and often in the same locality” as other entrepreneurs.”116 Taxoloma
was not alone in its idea to grow and raise chickens. Many other communities working
with AMIGOS this past year developed similar, if not identical initiatives, in which
communities raised and sold chickens or guinea pigs. While many communities have the
knowledge and expertise in this particular area, the unoriginal idea may make it more
difficult for the community to scale-up the microenterprise and sell outside of their own
community due to the competitive nature of similar enterprises operating in the same
market. It is possible that elements exist within the indigenous, rural culture of
communities like Taxoloma that tend to discourage innovation and change. In
communities similar to Taxoloma, community members may instead place higher value
on ideas that are familiar and comfortable to community members, which may have a
profound impact on the choice for the microenterprise. The AMIGOS program sought to
address the issue of originality by incorporating it as a component for a strong
microenterprise in the guidelines for the business plan competition. This forced
community members and youth to consider original ideas before making a final decision.
Perhaps after attending the business plan competition and the feria juvenil, community
members and youth gained other potential ideas by observing the diversity in some
116
99
microenterprises that did not focus on developing an agricultural cooperative, possibly
avoiding overlapping ideas that would be in competition with each other.
Part of the program design that could be improved in the future is the community
selection process. While AMIGOS and partner agencies conduct pre-assessments of
communities in terms of interest in the program and hosting participants as well as
identifying community assets and opportunities, the pre-assessment should also gauge the
availability and interest of youth to avoid working in communities whose demographic is
not as conducive to youth-based program design. While microenterprise development can
still be effective and impactful in communities without an engaged youth population, as
was demonstrated in San Diego and Taxoloma, program designs should always include
the involvement of the demographic it hopes to serve. In the case of AMIGOS and other
youth development programs, a simple pre-assessment of the community’s demographic
before implementation would allow programs to utilize their knowledge and expertise of
working with youth to better serve the entire community.
Based on the success in only its first year of application, the AMIGOS program
design in Cotopaxi serves as a model for the youth livelihood development community.
The best practices can be used as a resource not only for other youth development
programs, but also within the AMIGOS organization. Currently, Cotopaxi is the only
AMIGOS program with the theme of youth entrepreneurship. As success stories unfold
from the program design in Cotopaxi, including those within this thesis, I hope to see
AMIGOS continue to promote sustainable youth development practices by implementing
youth entrepreneurship programs in its other project areas. The theme of youth
100
entrepreneurship can coincide with other AMIGOS themes such as public health and
environmental sustainability by encouraging the development of social enterprises that
address health and environmental concerns in the community.
The AMIGOS program design in Cotopaxi succeeded in applying a contemporary
perspective to youth development by offering youth the tools and resources to take
matters into their own hands, providing testimony to the notion “young people always
rise to the challenge when given the opportunity.”117 Through the process of youth
entrepreneurship development, potential and grit are unlocked as youth tackle problems
and persevere through failure. The process of launching a microenterprise is an
invaluable learning opportunity that emphasizes the ability to think critically and
innovatively, address difficult challenges, effectively make decisions, and work
productively in groups. Enhancing these skills in youth will not only positively impact
the microenterprise, but will undoubtedly have lasting impact on youth who learn to think
creatively and overcome failure throughout all aspects of their lives. In the field of youth
livelihood development, we must continue to promote sustainable practices that empower
and mobilize young individuals to utilize their creativity and address community and
global problems with a fresh perspective. After all, in today’s continuously dynamic and
evolving world, developing and embracing an entrepreneurial spirit may be the only sure
road to success.
117
Amigos de las Américas, Brand Messaging
101
REFERENCES
"About Plan." Plan International, Web. http://plan-international.org/about-plan
"Adolescent Participation in Latin America and the Caribbean." What Works: Finding
Their Voice: Engaging Adolescents in Meaningful Participation Strategies (2010).
UNICEF, Regional Office for Latin America and the Caribbean. Web.
http://www.unicef.org/adolescence/files/What-Works-Finding-thier-voice-English.pdf
“Deduction & Induction.” Research Methods Knowledge Base. Center for Social
Research Methods, http://www.socialresearchmethods.net/kb/dedind.php
“Ecuador.” Culture of Ecuador. http://www.everyculture.com/Cr-Ga/Ecuador.html
“Ecuador.” The World Factbook. Central Intelligence Agency, 22 June 2014,

https://www.cia.gov/library/publications/the-world-factbook/geos/ec.html
“Entrepreneurship for Development.” 67th Session of the United Nations General

Assembly. 16 Apr. 2013,
http://www.un.org/en/ga/president/67/letters/pdf/Thematic%20Debate%20on%20Entrepr
eneurship%20for%20Development%20-%2016%20April%202013.pdf
“Estudio Sobre la Sociedad Civil de Ecuador.” Fondo Ecuatoriano Populorum Progreso,

Web. http://www.iepala.es/IMG/pdf/14_FEPP.pdf
“Generation Entrepreneur? The State of Global Youth Entrepreneurship” (2013) Youth

Business International. Web. http://www.youthbusiness.org/wp-
content/uploads/2013/09/GenerationEntrepreneur.pdf
"Global Employment Trends for Youth 2013: A Generation at Risk." (2013).

International Labour Organization. Web. http://www.ilo.org/wcmsp5/groups/public/---
dgreports/---dcomm/documents/publication/wcms_212423.pdf (hereafter: ILO, “Global
Employment Trends for Youth 2013).
"Global Youth: Emerging Trends & Next Steps." Opportunity for Action: Preparing
Youth for 21st Century Livelihoods (2013). International Youth Foundation. Web.
file:///Users/michaelakline/Downloads/Opp4Action_FINAL.PDF
“International Labour Standards on Child Labour.” Promoting Jobs, Protecting People.

International Labour Organization. N.d. Web.
http://www.ilo.org/global/standards/subjects-covered-by-international-labour-
standards/child-labour/lang--it/index.htm
102
Map of Ecuador and Its Provinces. Digital Image. Penny in Paradise. Web.
http://pennyinparadise.com/ecuador/
Map of the Cantons. Digital Image. Academic. Web.

http://fr.academic.ru/dic.nsf/frwiki/1380185
“Microenterprise Definition.” Investopedia. 10 July 2007. Web.

http://www.investopedia.com/terms/m/microenterprise.asp
“Qué nos hace diferentes.” Plan Ecuador, Web. http://www.plan.org.ec/que-nos-hace-

diferente2.html
“Resultados del Censo 2010 de población y vivienda en Ecuador—Fascículo Provincial

Cotopaxi.” Instituto Nacional de Estadística y Censos, 2010,
http://www.ecuadorencifras.gob.ec/wp-content/descargas/Manu-lateral/Resultados-
provinciales/cotopaxi.pdf
"Towards an Internationally Accepted Statistical Definition of Child Labour: Children’s

Activities and Their Definitions." International Labour Organization, IPEC-SIMPOC.
Web. 18 Jan. 2007.
file:///Users/michaelakline/Downloads/ICLS_rep_II_compendium_child_act.pdf
Trends for Youth 2013 A Generation at Risk. International Labour Organization. Web.
http://www.ilo.org/wcmsp5/groups/public/---dgreports/---
dcomm/documents/publication/wcms_212423.pdf
"What Is Asset Based Community Development (ABCD)." Asset Based Community
Development Institute, n.d., Web.
http://www.abcdinstitute.org/docs/What%20isAssetBasedCommunityDevelopment%281
%29.pdf
The Youth Employment Crisis: A Call for Action: Resolution and Conclusions of the 101st
Session of the International Labour Conference, Geneva, 2012. Geneva: ILO, 2012.
International Labour Office. Web. http://www.ilo.org/wcmsp5/groups/public/---
ed_norm/---relconf/documents/meetingdocument/wcms_185950.pdf
“Youth Microenterprise and Livelihoods: State of the Field--Lessons from the 2007
Global Youth Microenterprise Conference." Global Youth Microenterprise
Conference (2007). Making Cents International.
Web. http://www.youtheconomicopportunities.org/sites/default/files/sotf/MakingCentsInt
ernationalYouthEnterpriseLivelihoodsPublication_2007.pdf
103
Babbie, Earl R. The Practice of Social Research. Belmont, CA: Thomson Wadsworth,
2007. Print
Baxter, Pamela and Jack, Susan, “Qualitative Case Study Methodology: Study Design
and Implementation for Novice Researchers.” The Qualitative Report Volume 13
Number 4 December 2008 544-559
http://www.nova.edu/ssss/QR/QR13-4/baxter.pdf
Cahn, Miranda, (2008) “Indigenous Entrepreneurship, Culture and Micro-enterprise in the

Pacific Islands: Case Studies from Samoa.” Entrepreneurship and Regional Development,
20 (1), http://web.a.ebscohost.com/ehost/detail/detail?sid=0d07d64e-fc94-466c-ab4b-
abff896bf4cf%40sessionmgr4004&vid=0&hid=4206&bdata=JnNpdGU9ZWhvc3QtbGl2
ZQ%3d%3d#db=bth&AN=27876237
Catchafire. Brand Messaging Amigos de las Américas, Sept. 11, 2013. Web.
https://www.catchafire.org/projects/3885/amigos-de-las-americas--brand-messaging/
Chigunta, Francis. Youth Entrepreneurship: Meeting the Key Policy Challenges. Rep.
Oxford University, England, 2012. Print
Ebrahim, GJ, “Qualitative Field Research,” n.d., n.p., Web.

http://www.oxfordjournals.org/our_journals/tropej/online/ce_ch14.pdf
Edgcomb, Elaine and Thetford, Tamra. “Microenterprise Development as Job Creation.”

Big Ideas for Jobs. Web. http://fieldus.org/Publications/jobcreation.pdf
Hamilton, Sarah. “The Two-Headed Household—Gender and Rural Development in the

Ecuadorean Andes,” University of Pittsburg Press, 1998
J.Key, M. Herrington, Y. Litovsky, and H. Gale. Generation Entrepreneur? The State of

Global Youth Entrepreneurship (London: Youth Business International and Global
entrepreneurship Monitor, 2013) http://www.youthbusiness.org/wp-
content/uploads/2013/09/GenerationEntrepreneur.pdf
Jong, Julie De, and Mansoor Moaddel. "Trends in Values among Saudi Youth: Findings
from Values Surveys." The Journal of the History of Childhood and Youth6.1 (2013):
151-64. Global Employment
King, K. A., (2001) Language Revitalization Processes and Prospects: Quichua in the
Ecuadorian Andes (Bilingual Education and Bilingualism, 24). Clevedon, UK:
Multilingual Matters Press.
104
Ortiz, Isabel, and Matthew Cummins. "Social and Economic Policy Working
Paper." Global Inequality: Beyond the Bottom Billion (2011): 26-27. UNICEF. Web.
http://www.unicef.org/socialpolicy/files/Global_Inequality.pdf
Reardon, Thomas. “Rural Nonfarm Employment and Incomes in Latin America:

Overview and Policy Implications.” World Development 29.3 (2001): 385-409. Science
Direct. Web. 6 Mar. 2015.
http://www.sciencedirect.com/science/article/pii/S0305750X00001121
Reese, Bill. “Entrepreneurship for All—A New Approach to Youth Development,”

Huffington Post, Sept. 30, 2013. Web. http://www.huffingtonpost.com/bill-
reese/entrepreneurship-for-all-
_b_4017016.html?fb_action_ids=10152220495673263&fb_action_types=og.likes&utm_
hp_ref=fb&src=sp&comm_ref=false#sb=3951163b=facebook
Salazar-Xirinachs, José Manuel. "Generation Ni/Ni: Latin America's Lost Youth |

Americas Quarterly." Americas Quarterly. Americas Society and Council of the
Americas, Spring 2012. Web. 27 Feb. 2015. http://www.americasquarterly.org/salazar
Santos, Pais, M. (2000) “Child Participation and the Convention on the Rights of a
Child,” MA: Harvard Center for Population and Development Studies, Harvard
University
Sargeant, Joan. "Selecting Participants." National Center for Biotechnology Information.

U.S. National Library of Medicine, 31 Aug. 2005. Web. 11 Oct. 2014.
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3312514/
Sergovia, Gabriela. (2012) “Through the Paradise in the Rural Parishes of Cotopaxi.”
Universidad de Especialidades Turisticas, http://hdl.handle.net/123456789/457
Solo De Zaldívar, V. B. (2015), Tempest in the Andes? Part 1: Agrarian Reform and
Peasant Differentiation in Cotopaxi (Ecuador). Journal of Agrarian Change, 15: 89-115.
doi: 10.1111/joac.12072;
Turner, Daniel W., III. "Qualitative Interview Design: A Practical Guide for Novice
Investigators." The Weekly Qualitative Report 3.2 (2010): 7-13. Nova Southeastern
University, 11 Jan. 2010. Web. http://www.nova.edu/ssss/QR/WQR/qid.pdf
Weiss, John. “Micro-finance and Poverty Reduction in Asia.” Poverty Targeting in Asia.
Cheltenham, UK: Edward Elgar, 2005. 251. Print
Wolfowitz, Paul. World Development Report 2007 Development and the next
Generation. Washington (D.C.): World Bank, 2006. Print, (99).
105
Wright, Robin B. Rock the Casbah: Rage and Rebellion across the Islamic World. New
York: Simon & Schuster, 2011. 91. Print.
106

Youth Entrepreneurship in Practice - A Comparative Case Study Analysis PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Youth Entrepreneurship in Practice - A Comparative Case Study Analysis PDF

Загружено:

Авторское право:

Доступные форматы

YOUTH ENTREPRENEURSHIP IN PRACTICE: A COMPARATIVE CASE STUDY

A thesis submitted to the Kent State

LIST OF TABLES vii

Youth Entrepreneurship as a Solution 4

Case Selection Process 10

Geographical Context of the Case Studies 14

CHAPTER II: YOUTH ENTREPRENEURSHIP AS A PROGRAM DESIGN 18

The AMIGOS Program Design 27

CHAPTER III: MICROENTERPRISE DEVELOPMENT IN ACTION 37

Host Communities: Settings, Challenges, and Opportunities 37

Case Analysis: San Diego 48

Case Analysis: San Luis 53

Case Analysis: Taxoloma 61

Case Analysis: Salatilin 66

CHAPTER IV: CONCLUSIONS 73

Conclusions: San Diego 73

Conclusions: San Luis 79

Figure 1: Flow Chart of a Microenterprise 36

Figure 2: Logo and Slogan for San Luis 58

Table 1: San Diego—Expected Profit After Five Years 52

Table 2: San Luis—Budget Request 58

Table 4: San Luis—Total Expected Earnings 60

Time # Scarves Sold # Hats Sold # Coats Sold Net Income

6 months 78 102 51 $1,878

1 year 174 222 111 $4,254

3 years 522 666 333 $12,762

Table 8: San Luis—Monthly Profits 72

Map 1: Ecuador and its Provinces1

Map 2: Cotopaxi and its Cantons2

collaboration with our partner agencies in Cotopaxi—FEPP and Plan International—as

agreed to provide their insights and feedback.

Special thanks is owed to my committee members, Dr. Gabriella Paar-Jakli, Dr.

opportunity, especially Vicki Bocchicchio for helping me through the administrative

constructive feedback of my numerous drafts pushed me to think critically and improve

enough to be in your presence.

a special mention to my mother, whose love and endless encouragement continues to

drive me to be the best version of myself.

notebook, she announced the totals from the previous weekend.

calculate the total profit.

everyone quickly added the results in their head.

think we could sell even more next week.”

more days and in other locales.

the small business called “Tejidos Carmalitas.”

community in rural Ecuador collaborated to continue the process of creating a small

business, also known locally as a microempresa. The launching of this microenterprise is

particularly significant in its incorporation of youth—a sector of society whose potential

challenges of this microenterprise and others, youth entrepreneurship program designers

can incorporate this information to implement a similar process in other communities, in

microenterprise in their own community.

The purpose of this undergraduate thesis is to examine the strategy of utilizing

to an effective youth entrepreneurship program. Using four specific case studies of

in rural communities in Cotopaxi, Ecuador, the thesis attempts to identify advantageous

factors that led to a more successful youth-reliant microenterprise, as well as identify

some of the challenges that arose in attempting to initiate a microenterprise in a particular

economic opportunities. Today, “youth make up 25 percent of the working population,

affected by poverty and by the negative consequences of poverty.”4 This harrowing

well as involvement with drugs and crime.5

community invests increased attention to economic opportunities for youth. Progress

development in their communities.”8

can be achieved with a practice that is recognized by various practitioners as “a

economic growth in their communities.”9 The practice of entrepreneurship can be

nterpriseLivelihoodsPublication_2007.pdf (hereafter: Making Cents International, “Youth Microenterprise

into their own lives and communities.