The Innovation: The Fundación Paraguaya

The Fundación Paraguaya (FP) was the first microfinance institution in the country. Today, it is one of its most respected social enterprises and a member of several international microfinance networks. FP was the first to use a bond market issue to fund a microcredit program, and as a result of its proven success, Paraguay’s Central Bank initiated a line of work to provide microfinance to entrepreneurs. Today, FP’s microfinance program is self-sustaining. But FP does more than a microfinance. It has continued to innovate beyond microcredit. Martin Burt and FP want to make every Paraguayan an entrepreneur, and to that end FP has put in place a high-impact program that starts in kindergarten and goes through high school. Mentored by over 1,000 members of the business community who volunteer their time, students end up creating and running their own companies, building social and human capital, but also having fun. In its 8 years of operation, 50,000 young people have had this opportunity. FP has expanded the program beyond Asunción to 18 other cities in Paraguay.

When the chance to take over an agricultural school fell in its lap two years ago, FP seized the opportunity to further its vision of keeping young rural people on the land. In a country where agriculture dominates the economy and half of the population is rural, environmental sustainability is critical. FP’s Agricultural School promotes sustainable organic farming practices. By demonstrating the financial viability of this approach, as well as equipping its students with appropriate business skills, economic, environmental and social goals are advanced. The Agricultural School is projected to achieve full economic self-sufficiency by 2007.