Recupera Chile has develop projects with local entrepreneurs for a total amount of USD $49,980. A first round of private and public funds was able to meet around 87% of total capital needed, but there are still a number of projects in search for capital. Most projects are oriented to recover livelihood conditions in the short run.
The main areas where projects are being developed are food services, commercial, livestock and services in general. Secured funds are distributed among all areas with a predominance in commercial.
Recupera Chile is working with local entrepreneurs to try to fill the gap between total capital needs and supply in Perales by attracting private and public investment into the town.
Cash Grants Development Strategy
Perales is a very special case in terms of development. Its economy is very small and underdeveloped. Most people work on basic activities such as algae collection, fishery, agriculture and cattle, but most of the activities are self-consumption oriented and there is not much surplus produced for export. Because of that the local economy is more of the subsistence type.
All the above present an opportunity for Perales. Even though there will not be a development strategy or path as in Cobquecura related to tourism, there are a lot of small improvements and productivity gains that could be achieved and that will positively impact the life of people in Perales.
Because of its size, it is very unlikely that an industry will develop in Perales. Therefore, the development strategy will be focus on providing assets and improving capabilities for existing businesses in order to increase productivity and, on the long run, household income and quality of life.
Because of the local economy being highly informal and income per capita very low, it is very unlikely that local business will develop or acquire more and better productive assets without direct help of the government or the private sector. This is why Recupera Chile, on a first stage, is focusing its work on providing cash grants to local entrepreneurs as a way to reach the goals (improve assets and build capabilities) and prepare the way for a future transition into micro loans.