Baking Entrepreneurship Workshops in Peru

Funding required: $63,605

Beneficiaries: 40 caregivers

Completion date: September 2024

Country: Peru

Executive summary

By 2021, Peru’s national poverty rate had dropped to 25.9 per cent thanks to remarkable economic growth over the past two decades. But for families living in the Cajamarca region, the poverty rate had increased to 39.7 per cent, making it the second poorest region in the country. Political crisis, natural disasters, high unemployment and extreme poverty have further paralyzed economic growth in the area.

Labouring an average of 10 hours a day, many caregivers work as motorcycle taxi drivers, construction workers, agricultural labourers or vegetable vendors—but it’s not enough to cover the basics or get ahead. Without reliable income, many caregivers are unable to fund their children’s education, and many students must abandon school to find part-time work. Without local higher education options, those who want to pursue further schooling must travel long distances, generating significant expenses and leaving their families for long seasons.

Compassion Peru has launched baking workshops throughout Peru to offer sustainable income-generating activities for the caregivers of Compassion beneficiaries. Your investment will help establish baking and entrepreneurship workshops at the local PE0380 Compassion centre so parents can gain relevant income-generating skills, both in making and selling bread, eventually launching their own small baking businesses.

Summary

Did you know?

Over the past 20 years, Peru has made excellent progress in its economic growth and poverty reduction, with the per capita income rising from USD$2,040 in 2002 to USD$7,126 in 2022. However, impoverished families in Cajamarca and other low-income communities still need significant training opportunities to rise above poverty.

Background

Currently, fewer than one-quarter of Cajamarca households have access to water, sewage, electricity and the Internet. Unequal access to basic services threatens these families’ ability to earn a sustainable income and respond to external shocks—like Cyclone Yaku, which landed Cajamarca and many other regions in a state of government-declared emergency. Impoverished families don’t have the economic stability or resiliency to overcome everyday poverty, much less when extra hardships strike.

The need

Living in the second poorest region in Peru, caregivers of Cajamarca are in desperate need of sustainable work. Political crises, natural disasters and high unemployment have paralyzed economic growth in the area. Learning income-generating skills will help caregivers create their own small businesses and provide for their children through work that is sustainable.

Your gift will strengthen the abilities and economic opportunities of 40 caregivers—selected based on their extreme vulnerability— from Compassion centre PE0380 in Peru through entrepreneurial training. Your gift will fund the renovation of a kitchen facility at the centre that can accommodate in-person workshops and bread production. The baking space will feature new baking equipment, tools and ingredients so caregivers can learn how to bake bread and then start creating their own products to sell for a profit.

What your gift will do

Your gift will train 40 beneficiary caregivers from Peru to become baking entrepreneurs by providing the following:

  • Compassion centre preparations
    • Renovation materials: electrical, painting and ventilation
    • Cleaning and adaptation of the space
  • Baking equipment, materials and supplies
    • Oven, mixer and table
    • Cooking and cleaning utensils
    • Baking supplies including flour, sugar, eggs, butter, milk, flavours, cheese, olive oil, chicken and more
  • In-person training
    • Technical advice (management of permits, licenses and health registration)
    • Baking workshops and entrepreneurship workshops taught by specialized technical advisors
  • Income generation support, monitoring and evaluation
    • Personal visits and counselling
    • Evaluation of income generation plans
    • Accompanying parents in sales of their first baking products

Logistics

  • Local contribution: US$782.82
  • Handling of funds: Compassion Peru will oversee the budget and purchasing.
  • Follow-up: Compassion centre PE0380 will have a specialized advisor to accompany the intervention’s implementation process and evaluate how the bakery training is directly improving the lives of beneficiaries as they gain access to better nutritional, medical and educational opportunities once their caregivers establish small baking businesses.
80%

No less than 80 per cent of your donation will be used for program activities and a maximum of 20 per cent for fundraising and administration. If we exceed our funding goal for the initiative shown, the remaining funds will be used to fund other programs where the need is greatest.