The lack of access to credit through the formal banking system compelled Guatemalans to search for new opportunities to establish profitable businesses. Génesis Empresarial is one of the options which, during more than seven years, granted nearly 3 30 million quetzals, translated into 51,970 loans to 27 thousand clients organized in groups, and more than 117 thousand individual beneficiaries. It has turned into a non-profit development financial intermediary, but a self-sustainable one, which is at the present time qualified to operate in the stock exchange.

Fundación Génesis Empresarial was created in 1988 by initiative of Fundación Tecnológica (FUNTEC) to help develop Guatemala's micro and small businesses. A pact between the Agency for International Development (AID) and Acci&oa cute;n Internacional made it possible to obtain financing and consulting on the methodology to grant loans, respectively. The program works through the "Red Acción" (Action Network) in all Latin America, except in Uruguay, Venezuela and El Salvador and, with characteristics of it's own, in the United States, to help local and immigrant small entrepreneurs.

Loans to microentrepreneurs, granted individually or to groups, fluctuated between 100 and 3000 quetzals in 1988 (when the exchange rate was Q 2.68 for a US dollar), but the amounts have raised in proportion as debtors fulfill their short term obligations , in a period not greater than a year, and many times, before three months.

From 1988 until 1991, Génesis Empresarial received funds from AID to cover the loan portfolio and operating expenses. The initial donation served to buy fixed assets, office equipment and work vehicles. During the second and third year, resources d estined to operations were reduced to 50 percent and zero respectively and, at the end of the agreement, the foundation was able to cover its costs.

Until December 1992, a funds extension was received to strengthen the institution, but in 1990 it also got loans from two private banks: Industrial and Granai & Townson. Now, 50 percent of the costs are covered with loans from some 14 local banks and the Central American Bank for Economic Integration (BCIE). The other 50 percent is covered with its own resources, that is, with the payments it receives from the granted loans.

"Most of the microentrepreneurs aren't paying direct taxes, but they all pay the indirect ones. Nobody escapes the Value Added Tax payment, because we demand them to record their operations, have invoices and control their business' evolution. However, th e qualifying and consulting process leads the businesses to formalize, since it is said that informal economy accounts for 34 % of the Gross National Product, and some times that it reaches 51 %, in addition to the annual incorporation of 55 thousand wor kers to the economically active population", says Edgar Búcaro, manager of Génesis Empresarial.