Rural Community Finance. Global Interconnectedness. Investing in a Prosperous Future for Guatemala.
Fueling the Entrepreneurial Spirit in the Developing World
What Makes Pajebal Different
Pajebal seeks to help develop existing small businesses, and to aid micro
entrepreneurs with vision and potential to create small businesses (going beyond
“micro”) that will employ others, be substantially more productive and efficient than
the micro businesses in the same region, and therefore increase the standard of living
of the community.
The core of Pajebal's lending philosophy is that if we are to use loans to truly help the
communities we seek to assist, we cannot simply be an intermediary for funds from
rich-world lenders to developing-world borrowers, but rather must make strategic
investments, which we serve as advisors on, and closely coordinate with the local
community to create real long-term growth through better business. Many
microfinance projects, in their honorable attempt to reach the poorest of peoples,
view the degree of poverty of the soliciting developing world borrower as the most
important requisite in them obtaining approval for a loan. While this helpful practice
does give the poorest of people's in our world an economic opportunity, it is only part
of the equation of establishing an economic system of significant, long-term, and
sustainable development. Slightly larger loans, combined with appropriate
training, are also essential, helping proven businesses and entrepreneurs
to transition from the micro phase to at least the small phase, and thus
allowing for more comprehensive development. Therefore, Pajebal
concentrates on helping to create and encourage cooperation, specification & division
of labor, and market-driven job creation through forming and enhancing sound
small businesses (see visual below).
Our lending strategy is to target investments of typically a few thousand dollars to
members of the community who are ethical leaders with sound business skills, or at
the least with demonstrated sound business potential, and allow them to strategically
and intelligently create businesses that will lead to employment in their communities.
We must understand that just like in the developed world, not everyone can, or even
wants to, run their own business; many people just want a steady job with a decent
Furthermore, when Pajebal speaks about our philosophy of going "beyond micro," we
must emphasize that we are just trying to go one step beyond micro, to the level of a
small business, and are not bringing outside medium-sized or large companies into
the community. Our project is focused on developing the local community with
leaders from within.
Pajebal uses U.S.-originated loan capital to finance the small businesses, and we pay
our U.S. lenders back 100% of the principal payments made in Guatemala. We use
donations to cover the operational expenditures of our indispensable training and
advising services, run by our highly educated Guatemalan staff.
Pajebal, Inc. is a U.S. 501(c)3 non-profit organization
What Makes Pajebal Different