Phase VMicroeconomics Deliverable

Andrew Vetterlein

Who?

• Agustin– Lives outside of one of the capital cities of Bolivia,

La Paz– Occupation• Carpenter

– Has three children– Lives in a small house

What?

• Requesting a $1000 loan to…– Renovate his house to provide better living conditions for

his family• Would allow him to hire a worker to help him with the

renovation

– Help improve carpentry business• Travel to places for better work

– Such as nearby Peru

• Buy tools– Increase work quality – Be able to work faster

• Obtain larger jobs with more employees

Why?

• Agustin works in the Industrial Production Segment of the Bolivian economy– Mining, Manufacturing, and Construction – Makes more money than average Bolivian

• Compared to agricultural or service worker

– Probability of repayment is higher• Loan will help Agustin increase…

– His Living conditions– His personal Income– His ability to hire additional workers– New job opportunities – Human and physical Capital for his business

Why (cont.)

• Agustin will benefit greatly from this small loan • A small loan can help Agustin buy many new tools and

employ additional workers• Bolivia’s Industrial production growth rate is 2.9%

– The United States is -5%– City of La Paz is growing. This creates more opportunities for

work • Allows Agustin to get work from larger geographic areas• Helping Agustin will improve his family’s living conditions

$$

Benefits • Lender benefits

– Provide Money and Hope for a man’s business and his family– It’s a loan to be repaid

• Lender makes interest on his loan

• Agustin Benefits– Help Increase Agustin’s Industrial production

• More work done with better tools• More work opportunities because of ability to travel

– Help Increase Agustin’s Physical Capital• Tools

– Help Increase Agustin’s Human capital• Helper to build house and teach him about renovation

– Help create a better life for Agustin and his family

You Can Help

There are many people in the world just like Agustin. These people are asking for loans so they can better themselves and their community. It is hard for these small business owners to obtain loans to grow their business. But, we can make a difference by contributing money to Agustin for his loan. By doing this we will provide not only money, but hope for someone who needs it the most. We can make a “loan that can change a life.” Do the right thing, fund Agustin.

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Thank You