“When women come together in Nicaragua, we usually talk about families and communities. We never discuss about our businesses. That’s why a community like Red de Empresarias de Nicaragua (REN) is important, where women are encouraged to talk about their businesses without offending someone or thinking it’s a taboo.”
Marla Reyes Rojas, the owner of Techno Commerce Group, told me this over a cup of coffee during my recent trip to Managua. I was glad to hear first-hand how a CIPE partner is fostering a community where businesswomen, like Marla, can openly talk and build networks with other women in business.
Micro, Small, and Medium Enterprise (MSME) growth has been touted as a key for Nicaragua’s economic growth, but the country remains one of the most difficult places to start a business in Central America (for example, the licensing process takes more than 200 days to complete). This is even more pronounced for women entrepreneurs who confront myriad of challenges, and as a result only represent around 25 percent of the MSME sector in the country. Additionally, women face the rooted machismo culture that prevents them from achieving gender equality in the economy.
In such an environment, it’s crucial for women in business to come together and motivate one another. That’s why for the past year, REN led a mentorship program to develop leadership and entrepreneurship skills among women in Nicaragua. The program linked successful women entrepreneurs to female university students with business degrees (who served as interns) and emerging women micro-entrepreneurs (who were the mentees). REN matched ten teams — a team consisted of a mentee, mentor, and an intern — and each group worked to improve the mentee’s business.
When I sat down with the participants to learn what impact this program had on them, it was obvious that they all experienced both professional and personal growth. One example is the mentorship team between Florita Ortiz (mentee), Eloisa Washington (intern) and Carmen Davila (mentor).
Flortia runs a small bakery, Delicias del Norte, which produces traditional masa cookies eaten with coffee (rosquillas) and joined the mentorship program because she wanted to expand her business into different cities in Nicaragua. Flortia was matched with Eloisa, who has a marketing background from her studies, and Carmen, who owns Carmelitas Coffee — a large coffee company. When Eloisa and Carmen assessed Delicias del Norte, it was clear that Flortia made quality organic products, but her company lacked good marketing and branding. So the goal for the mentorship became to improve the company’s marketing strategy.
The team worked together for less than a year to achieve tangible results for Flortia’s company. For instance, prior to the mentorship, Flortia asked her friends in her town for their opinions about what they thought about the taste of cookie or the packaging. However, Eloisa pointed out that Flortia’s friends only represent a small fraction of the market and that she needed to do a thorough market research. Using the intern’s marketing skills, the intern and the mentee conducted a market survey to determine what their customers wanted. From the survey results Flortia found out that people were craving fruit-based flavors and that they were eating her products on the go in cars, not just during proper coffee breaks.
These insights encouraged Flortia to develop two new flavors of cookies (some using jams produced by a REN board member’s company, Jaleas Callejas), and a new logo that incorporates the message that her products are organic. They are also developing new, smaller packages so that people can buy her products in smaller quantities.
The survey results also sparked an idea from Carmen (the mentor) to approach convenience stores and bodegas at gas stations as possible vendors. Carmen and Flortia pitched to several stores, and they successfully closed an agreement with the convenience chain store Quick Stop, which agreed to carry Flortia’s cookies in handful of stores.
Florita commented that this program has changed her life and her community. Not only has her profit increased by 20 percent, she added 3 employees to her staff of 15 to meet the increased demand. “Not only am I expanding my business, I’m happy to employee more people in my community and spread the wealth. And the program gave me more confidence that I could do more. And I have!” she told me.
Likewise, Eliosa said she learned many lessons from both her mentee and her mentor. “From Carmen, I learned about negotiations and marketing skills. I had only read about these things from books so it was great to be on Carmen’s side and watch her negotiate with managers of supermarkets and stores to place Florita’s products. And from Florita, I learned how a small business operates. I visited her factory several times, so I have a much [better] understanding of production and packaging. I also now know that running a business requires having good relationship with your employees. You must know how to treat people, how to create an encouraging environment so that employees want to continue working there.”
When I asked what Carmen gained from all of this, with a large smile on her face, she answered that “it’s satisfying and encouraging to know I’m empowering another businesswoman and also imparting knowledge to a young woman who is already starting to think about her own venture. Having your own business is scary and lonely, so supporting each other is such a big motivation. I know that from my own experience.”
The other program participants also echoed similar sentiments – about how this experience was a confidence builder and an eye-opening, fun way to get to know other women entrepreneurs. As Marina Stadthagen, the executive director of REN told me, REN plays a catalytic role to bring together such women.
“Without a businesswomen’s’ association like REN — where women in business can bond and come together – it would be so much more challenging and complicated for women to grow their enterprises. We already have a difficult time navigating our society in a machismo culture; women need to support and help each other grow.”
Maiko Nakagaki is a Program Officer for Global Programs at CIPE.
