Chamba in Honduras: Part 3 Retirement

Juan Ignacio Ortiz, or Don Nacho as his friends call him, is 72 years. He started his car wash and oil change business two years. To Don Nacho, work means retirement security.

The retirement spending of many Hondurans is based completely on the generousity of their children and grandchildren. Since few Hondurans save, no nest egg awaits them when they reach retirement age. Senior Citizens have very limited work opportunities and most banks and NGO lending organizations (micro-finance) see them as high risk clients, thus preventing the possibility of starting a business. Without savings and few opportunities to generate income for themselves, the elderly are dependent on family and friends.

Hondurans is not the only nation with an elderly population that feel hopeless in the face of globalization, cell phones, computers and a world in which both university and high school degrees are listed as job requirements. The government of Chile announced that the nation's economic stimulus program includes subsidies for small businesses that hire citizens age 45 and older who recently lost their job.

In the face of this reality, Mr. Ortiz started his business with the hopes of not becoming a burden on the state nor to his family. He also built four apartments behind his house that rent for $60 each per month. The income that his businesses provide is important in his "retirement years," but the businesses have also provided employment and thus economic security for others.

Mr. Ortiz employs four to six young Hondurans depending on yearly business cycles of the car wash industry. In the waiting area for clients, he allowed a neighbor to set up a cafeteria. Honduran style tacos and home made fruit drinks are sold to hungry clients and car wash employees at lunch time. The cafeteria is another source of employment the Don Nacho's business has helped create.

Don Nacho is always looking to grow his business. He recently purchased an industrial vacuum cleaner and air compressor with a loan from a Partners Worldwide supported organization. (Mr. Ortiz paid off the loan in mid January.) A bucket and sponge car wash costs $2 but Mr. Ortiz can now offer a $4 wash using the power washer and air compressor. Many clients prefer having their car washed in half the time for $4.

For Juan Ignacio Ortiz, work is a retirement fund.

Below: Mr Ortiz during Partners Worldwide visit