Empowering Entrepreneurs through Microfinance

I paid a visit a couple of weeks ago to Zhang Rong, the hot pot entrepreneur and microfinance borrower whose photo has long graced the Wokai website. Mrs. Zhang operates her hot pot stand across the street from the ARDY branch office in the town of Yong Le, while her husband works up the street at the local power station. Her older son, who is 21 years old, works as a car mechanic in Chengdu, while younger son, 18, is currently a senior at Yongle High School.

Mrs. Zhang and her husband moved to Yongle from the countryside in 2001. When they first came here, Mrs. Zhang worked as a cook at the power station where her husband still works. In 2005 they started construction on the building which currently houses the hot pot shop on the ground floor and the family’s residence on the second floor. The concrete building was completed at a total cost of around 20,000 RMB and paid for in part by a micro loan from ARDY.

 

With her husband away at work all day Mrs. Zhang runs the entire shop by herself, even during the evening rush.

Mrs. Zhang’s stand is famous for its Ma La Tang 麻辣烫, a type of hot pot consisting of vegetables and some meat which is sold by the skewer (at 0.5 RMB apiece) and then boiled in a spicy broth. Mrs. Zhang makes her own broth from chili peppers, Sichuan peppers, and various other seasonings; I tried to get the exact recipe from her but was unsuccessful. Many people who sell food for a living here are protective of the secrets of their business, for fear of inspiring more competition.

 

In the years since first opening her own shop Mrs. Zhang’s business has increased significantly. In addition to the classic hot pot she now sells fried hot dogs on skewers for 1RMB each and bubble tea for 1 RMB a cup. The profit margin on all of her products is quite slim; the hot dogs cost her 0.8 RMB a piece to purchase, leaving her with only 0.2 RMB profit. She caters mainly to students from the three middle and high schools in the town, which swarm her stand during break time, especially after their evening classes end at 9pm.

On the Saturday afternoon during which I spoke with Mrs. Zhang, two regular customers, students at the local middle school, had just showed up for a snack before going shopping. The two girls lingered at the shop, sipping on bubble tea and munching on sausage skewers as they chatted with Mrs. Zhang before sitting down to a bowl of hot pot. Mrs. Zhang mothered over them, urging them to eat more vegetables.

With their own home and a stable business, the Zhang family has a fairly comfortable life in Yongle. Through their own relentless hard work was doubtlessly the most important factor, microfinance also played a role in helping them to become successful rural entrepreneurs.

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