InKrea – Business and Economic Development

Context

Job opportunities with good economic perspective for the slum dwellers are low. Many dwellers rarely get employment in the formal sector due to their lack of technical capacity, contacts, and higher education. So most of them work and develop their economic activities in the informal sector.

Unfortunately, this sector is difficult to obtain an affordable funding to develop their own businesses. Therefore, these areas are high levels of underemployment that contribute to job insecurity, which in turn hinders the development process and thus prevents an exit out of the vicious cycle of poverty.

Therefore it is extremely important to promote economic initiatives that promote economic development in these areas. The overall goal is to enable its inhabitants to develop their potential and increase their productive capacities and skills to develop sustainable solutions to meet the needs of their families, thus reducing the need to migrate to the U.S.

InKrea, Proyect Description

While we’re still in the beginning stages, we’ve created InKrea as an umbrella to house our current and future business initiatives. Our hope is to integrate income generation models into our different projects, in order to make them self-sustainable over time. In addition, InKrea hopes to create jobs for urban slum dwellers, enter the micro-credit market and provide entrepreneurship and basic business training to small business entrepreneurs. Towards that end InKrea is focusing on:

  1. Integrating revenue generation activities in our different projects in order to sustain operational costs of our business initiatives. For example, COOPALIM, our collective food purchasing venture, will reduce food-related costs for participating families while providing sustainable income to Project ProSalud.
  2. Creating jobs to contribute to the economic sufficiency of some urban poor families. Our first proposed business venture in this regard is a promotional products business that caters to private, organizational and business clients.
  3. Providing entrepreneurship and basic business training help the dwellers to create and grow their own small business; Teaching them accounting and spreading knowledge about technical skills and business management is another way to strengthen their productivity and labor. We consider that the vocational programs are helpful when linked directly to microcredit programs or to networks of existing enterprises that are willing to provide job opportunities for the recently graduated.
  4. Considering that over 90 percent of jobs in urban areas are created through micro and medium enterprises, we argue that giving small loans and savings accounts is a key intervention to end the marginalization in these areas, something InKrea hopes to launch soon.
  5. Building bridges with middle-class entrepreneurs to establish socially responsible companies because those companies tend to create more formal employment, and building bridges between formal and informal sectors.

Achievements

While InKrea has not yet accomplished many aspects of its vision, since it is still very much at the beginning, we nonetheless have leveraged a technology and marketing relationship with Iya Technology Laboratories LLC (ITL) of Kettering, Ohio (http://iyatech.com/), a company which has developed an innovative line of specialty media products. InKrea has already set up a small workshop to promote our first business initiative – a promotional products business. In addition, InKrea has offered a five-week long youth entrepreneurship course to 10 youth and is in the process of launching COOPALIM.

 

 

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