Syunik Village, Armenia

April 2009

Keen to build a better life

Neko Avetesyan earnt less than $100 a month from his 4 cows and 2 calves that he kept in a ruined shed.  With no running water in his home, nor an inside toilet, Neko was keen to build a better life for his wife, mother, 3 children and 2 grandchildren.

Loans - $500 to $6,500

That was in 2004.  He took his first loan of $500 to buy more cattle and with subsequent loans of $750, $1,400 and $6,500 over the years he has expanded his herd to 28 cattle,now in a renovated shed, added a horse and last year produced 4 tons of potatoes.

Increased income, improved standard of living

His income has consistently increased and last year he made $500 from milk production and over $1,000 from meat sales.  When asked what a loan has meant fro him and his family, he opens his arms wide and smiles with a shrug.“Without a loan it would have been impossible to develop my farm to a profitable level and on that basis, build up my household.” 

His clean, though simple home now has hot running water, an inside bathroom and a kitchen area.  He traded his potatoes for new clothes for all the family, has planted a new field this year, has plans to stock fish in a pond on his land and is hoping to renovate another shed and add to his stock of cattle.  As well as that, he employs 4 seasonal workers, each with families of their own.

Arman stands to one side, a wry smile on his face as he tells how he was the one to encourage his father.

In his 30’s, he’s smartly dressed in faded black jeans and jacket with a pair of trainers on his feet. His story is similar to his father’s except that he started with nothing.

Originally a group leader, he preferred being responsible for himself with a repayment schedule that suited the seasons of his crops, so he was keen to take an individual loan when he was in a position to do so.

Neko Avetesyan and some calves from his new herd 

Now he has 17 cows and 6 calves, sells meat and milk locally and cheese which is sent to the capital, taking his monthly earnings to between $300-$450.  He also employs 3 seasonal workers.  “A reliable collaboration with VisionFund has inspired me to continually develop my business.  It ensures a future for my children in terms of their education and nutrition as well as a future for their families and households.”

Microfinance Stories Armenia April 2009

Lideta and Abote, Ethiopia
October 2009

Desire to expand a business

Taronesh Walderaragai works from her small lock-up, no larger than 5 foot square, stacked high with pillars of coloured hats that she and her husband, Gerbru Melka, make to sell to wholesale traders from all over the country.  With 4 children who range in age from 17 to 8 months, they have run their business for 19 years, but needed finance to really make it grow. 

Employment created

That was 3 years ago and her initial loan of $75 has grown over 8 cycles to $2,500.  “This was the catalyst that enabled us to expand our business and look at other opportunities.”  They now have 4 sewing machines and employ 8 people in a nearby warehouse.  “All we need now is more capital” says Gebru.  “Then we’d be able to make other designs of hats for different seasons and be able to produce more for those buyers that want to buy in bulk.” 

A family prospers

The loans have had a real effect not only on their business but on the lives of their family and on the lives of those that they employ. 

 “More income has meant we’ve eaten better quality meals.  It’s meant that our children have been able to go to a better school” Taronesh tells us.

 Gerbru Melka and one of his eight employees. 

 “Our eldest daughter is going to medical school next year,” she adds proudly with a broad smile, "and our 16 year old son wants to take over the business in the future.”  

Microfinance Stories Ethiopia Oct 2009