Business Overview

Pulperia Christain was founded in 2016 by Isabel Galindo when she was struggling to find employment and therefore a steady source of income. In return, this prompted her to start a small business from her home. So in October, 2016, she took out a loan from the community bank in order to open her pulperia which can be defined as a “small corner store”. 

Pulperia Chrisitan - Cerro Bonito, Honduras

Economic Challenge

The following are examples of economic challenges that small microenterprises face:

  • Security: The theme of security in Honduras from a business perspective is a common concern for many entrepreneurs. The existence and high prevalence of theft carried out by common criminals and gang members is omnipresent, therefore endangering the sense of security of small businesses. 
  • Price Fluctuations: Honduras primarily imports the goods and services that are abundantly provided in country. Thus as fluctuations in gas prices occur, the prices of general products are consequently affected making it difficult for entrepreneurs to consistently and accurately budget.  
  • Climate Change: Climate change is a major overarching challenge that disproportionately affects small business owners whose microenterprises relies on agricultural products. With increasing temperature and decrease in annual rainfall; there is a shortage of production in basic grains that circulate the communities like corn and beans which causes an increase in pricing and therefore less consumption.
  • Seasonal Work: Cerro Bonito is a community located in Cantarranas, whose community members rely heavily on seasonal work. But challenges with this type of work include, inconsistent employment and therefore unpredictable sources of income due to a season that only lasts from December to May, working for sugarcane companies. These companies have the capacity to cultivate such a large area of Cantarranas and therefore generates employment but only for six months out of the year. As a result, many community members struggle to find supplemental employment during the off season which puts strain on themselves, their families and the overall economy of their community and its local businesses such as Pulperia Christian.

The Business

Pulperia Christian has been in operation for four years and despite the business’s longevity, it is still facing many challenges that impede it from expanding. For example, Ms. Isabel identifies her business’s main challenge as the lack of access to capital in order to increase her inventory. This is primarily due to the community banks limited operational capacity in Cerro Bonito. Cerro Bonito’s community bank just recently established and capitalized their loan program in 2019 and therefore can only provide smaller sums of financial assistance at this time. Eventually, the goal is for the bank to grow its capital so it will then possess the ability to better assist the economic and entrepreneurial endeavors of its community members and the surrounding areas.

 

Competitive Advantage

The primary competitive advantage of Isabel’s Pulperia Christian is the fact that she possess a refrigerator that she bought as an initial investment of her business in order to store dairy,meat such as chicken, beef and pork. With the ability to maintain her inventory over a longer period of time, Isabel is in return also able generate more revenue by offering products other competitors without refrigerator may not be able to sell. Even with this advantage, there is still an opportunity for a business brigade to provide consultations that can assist Isabel in skills such as recording expenses and revenues so she may more effectively utilize her profits to potentially grow her business.

Obstacles

Isabel has identified two challenges in operating her microenterprise. The primary challenge is that she does not monitor her expenses and revenues on a daily basis. This is a general problem for entrepreneurs who have created businesses out of economic necessity rather than the desire to own a business. Nevertheless, with the correct mentality and diligence, she can learn to manage her products, track her business’s cash flow and eventually grow the business. Additionally, she does not have access to sufficient capital in order to grow her level of inventory. Lack of rainfall decreases the amount of crops that are yielded per season, therefore having a significant impact on peoples ability to access basic grains. Lower production in return causes price inflation, an issue which can be traced back to climate change and the hardships it poses to small businesses and their inventories.  

Next Steps

The tasks thatPulperia Chrisitan has prioritized are:

1: Record daily earnings and expenses
2: Receive a Consultation from a GB Technician
3: Take out a Loan from the Caja Rural

Page Last Updated:February 10, 2020