Social Microenterprise Initiative (SMI)

The Social Microenterprise Initiative is a unique and innovative program that makes interest-free loans strictly to small businesses in the "missing middle" - too large for microfinance and too small for commercial bank loans. Specifically, these loans enable them to purchase machinery and equipment. Businesses repay the SMI loans not in cash, but by donating in-kind products, services, and vocational training to the poor in their communities. In current piloted countries, the average loan disbursed is slightly less than $10,000, but the effect of the loan is enormous: on average, entrepreneurs hire 95% more employees after the loan is made.

The goals of the SMI program are to :

• Encourage Small Business Growth

• Create new permanent jobs

• Promote a culture of social responsibility within the business community

Agora Partnerships is proud to pilot this program in Nicaragua in the fall of 2010.

Blog post by Alejandro Solis, SMI Project Manager, reflects on the SMI Conference