How TechnoServe Helps Women-Led Businesses Succeed in Guatemala
In Guatemala, women entrepreneurs like Yara Tobar are gaining the confidence, skills, and connections they need to build successful, profitable businesses.
In the heart of Guatemala City, Guatemala, Yara Tobar stands at the helm of a literary legacy. As the general manager of Piedrasanta, a family-owned publishing house with roots stretching back to 1947, Yara isn’t just selling books—she’s drafting a new story. When her grandparents started the business almost 80 years ago, they had no idea the impact the company would have. Now, with Yara in charge, the business is flourishing. But the journey wasn’t without setbacks along the way.
The Challenges Faced by Women Entrepreneurs in Guatemala
In Guatemala, women face immense challenges, particularly as they seek to join the workforce or embark on their own entrepreneurial journeys. The labor force participation rate is 40.8% for women compared to 81.1% for men. Women often encounter skepticism about their leadership abilities, with prevalent attitudes questioning women in positions of power.
Financial obstacles loom large as risk-averse banks make accessing affordable credit difficult. Many women also grapple with balancing business responsibilities and family obligations. The scarcity of specialized business support and the need to create safe work environments add to the hurdles these women must overcome in their quest for business success.
How TechnoServe Supports Women-Led Businesses
Since 2012, TechnoServe has supported small and medium enterprises (SMEs) in Guatemala through the Impulsa tu Empresa program (ITE). In 2023, as part of the program, 56 women-led companies in Guatemala received strategic support from TechnoServe to accelerate business growth and foster strategic alliances.
The businesses represent a vibrant cross-section of Guatemala’s entrepreneurial landscape:
- Sectors: Commerce, services, light manufacturing, and handicrafts
- Size: From micro-enterprises with two employees to medium-sized businesses with over 50 staff
- Experience: Ranging from startups to companies with 74 years of history
- Revenue: Annual sales from 25,000 quetzals ($3,232) to over 10 million ($1,293,095)
Tailored Support for Women-Led Businesses
TechnoServe’s approach was comprehensive and personalized. It included:
- Diagnostic tools to assess business practices
- Goal-setting and job creation tracking
- 20 hours of specialized technical advice over three months
- Networking events to expand business connections
- Financial strengthening workshops to boost confidence in seeking credit
For Yara, TechnoServe’s support came at a crucial time. “When TechnoServe contacted me, I was immediately interested,” she recalled. At the time, Yara was struggling to find qualified employees and to align current staff with the company’s new vision and procedures.
Financial Management: The Key to Success
One of the biggest challenges for SMEs in Guatemala is access to affordable credit. Banks are often risk-averse, resulting in high interest rates and short repayment terms. TechnoServe’s intervention aimed to change this narrative.
Juan Fernando Díaz, a TechnoServe advisor who supported Yara, highlights the tangible improvements:
- Enhanced leverage and reduced financial costs
- Improved liquidity management through:
- Organized accounting processes
- Certified financial audits
- Systematic cash flow balancing
“Going forward, Piedrasanta will be better equipped to manage surpluses and deficits,” Juan explained. Yara found the personalized financial support to be one of the most valuable aspects of the program.
Looking Ahead: A Brighter Future for Guatemalan Entrepreneurs
Yara’s story showcases a shifting entrepreneurial landscape in Guatemala. While significant challenges remain, including cultural barriers and limited access to financial resources, women entrepreneurs are carving out new pathways to success. Yara has big dreams for Piedrasanta. In the future, she wants to expand the business beyond Guatemala to the rest of Central America, Mexico, and the Caribbean.
Breaking Barriers and Creating a Safe Workspace
Beyond financial hurdles, women also face cultural and social barriers. Recognizing the multiple forms of violence that women in Guatemala encounter, Yara is committed to fostering a safe work environment. “The culture must change,” she asserted. “The best way for that to happen is through individual and corporate change.”
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