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New Mexico’s Senators Praise Work of Local Business Development Organizations
U.S. Sens. Pete Domenici, R-N.M., and Jeff Bingaman, D-N.M., are praising two local small business development organizations featured in a new national guide that puts New Mexico in the spotlight.

Microenterprise development leaders who want to make a greater difference in the lives of emerging entrepreneurs should look to ACCION New Mexico and WESST Corp as models of high performance and impact, according to the Aspen Institute’s Microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination, known as FIELD. The two New Mexico organizations are described as examples of strong performing programs from among hundreds nationwide in a recent edition of FIELD’s Funder Guide Series.

In “Performance Counts,” FIELD officials say that such programs not only achieve strong business development and client outcomes, but the managers of these programs also “exemplify excellence by focusing on reaching higher levels of scale and sustainability, increasing efficiency and seeking continuous improvement in all aspects of their operations.”

ACCION New Mexico has financed the start-up or growth of more than 2,000 businesses in New Mexico through small business loans totaling more than $17 million. WESST Corp has provided technical assistance to more than 25,000 individuals in New Mexico and disbursed more than $1.9 million in small business loans.

Domenici, who has used his Senate Appropriations Committee seat to direct funding to such small business initiatives, praised the credit and training these two programs provide as critical components in lasting economic development.

“ACCION New Mexico and WESST Corp deserve this attention because of all the hope and opportunity they have brought so many in New Mexico,” Domenici said. “They have shown people that owning a small business – while very hard work – is attainable. The organizations place a particular emphasis on bringing more women and minorities into the fold, and I join in applauding their work. I also look forward to doing what I can to support them in this endeavor.”

Bingaman said the accolades underscore New Mexico’s importance as a national trend-setter in microenterprise development.

“ACCION New Mexico and WESST Corp have set the national standard for how to create good jobs by supporting entrepreneurs,” Bingaman said. “They have helped create thousands of jobs in New Mexico, and they are an invaluable resource for start-up businesses and growing companies. I applaud ACCION New Mexico and WESST Corp and congratulate them for this well-deserved national recognition.”

The FIELD guide called ACCION New Mexico “one of the most efficient microlenders in the nation,” noting that the organization spent only 25 cents to manage each dollar of its portfolio in 2004 while issuing 559 loans to a diverse client base and maintaining a loan loss rate of 3 percent. In addition, the publication highlighted results from a sample survey of people who had been ACCION New Mexico clients for more than a year. Those clients increased sales from $28,980 to $54,000 on median and increased median household income by more than 30 percent.

As a training-led program, the guide cited WESST Corp’s ability to create a positive, lasting impact that changed the lives of clients. In 2004, the organization served 645 clients, 74 percent of whom were women and 62 percent of whom were low- to moderate-income. Surveyed clients reported a notable increase in business ownership of 25 percent and an impressive increase in median sales of more than 200 percent, from about $15,000 to $46,000. Full-time employment increased by 20 percent while part-time employment jumped by 100 percent, producing 11 new full-time and 59 part-time jobs.

WESST Corp and ACCION New Mexico leaders said the noteworthy attention is an honor and points to New Mexico’s strength as a national torchbearer for underserved entrepreneurs.

“WESST Corp prides itself on investing not only in the success of New Mexican entrepreneurs, but also in our ability to measure the economic impact of our organization,” WESST Corp Executive Director Agnes Noonan said. “We’re honored that FIELD recognizes our organization’s efforts to be accountable to the communities we serve.”

This month, FIELD announced it is also awarding ACCION New Mexico one of five national contracts aimed at providing microenterprise lenders resources to explore the demand for and supply of market research in their local communities. The $7,500 award will fund a research project by ACCION officials to deepen the organization’s understanding of what motivates borrowers to repay their loans.

“It is vitally important that we, as practitioners, get the support and information we need to push for further innovation in the microenterprise development field,” ACCION New Mexico Vice President of Advancement Lynn Trojahn said. “FIELD is at the fore of efforts to create greater scale, sustainability and impact in the industry. The Funder Guide Series and research contracts are just
two examples of the range of outstanding tools FIELD makes available to help practitioners on the ground and elevate the industry as a whole.”

FIELD is a project of the Economic Opportunities Program (EOP) – one of 19 policy programs housed at the Aspen Institute in Washington, D.C. The Aspen Institute is an international nonprofit dedicated to fostering enlightened leadership and open-minded dialogue. Through seminars, policy programs, conferences and leadership development initiatives, the institute and its international partners seek to promote nonpartisan inquiry and an appreciation for timeless values.

FIELD’s work focuses on identifying, documenting and disseminating best practices in the microenterprise field, and educating funders, policy makers and others about microenterprise as an anti-poverty strategy. The “Performance Counts” Funder Guide can be viewed at: http://fieldus.org/Publications/FunderGuide4.pdf.

Contact:
Leslie Hoffman
ACCION New Mexico Communications Director
(505) 243-8844 ext. 238
(505) 270-0285 cell