Beneficiaries: 100 Compassion-assisted children and their families
Completion date: May 2025
Country: Peru
Executive summary
A recent study by the University of Piura in Peru highlighted several alarming trends in national poverty and unemployment rates. Largely attributed to the onset of the 2020 pandemic, four years on, a sharp incline in unemployment continues to persist. Current data indicate that 29 per cent of people in Peru live below the poverty line. However, reports indicate that most of the population remains highly vulnerable, with an estimated seven out of 10 people either living in poverty or teetering precariously on the edge of it.
Rising levels of unemployment continue to feed this growing crisis. In 2023 alone, 150,000 jobs were lost nationwide, with a range of factors including political instability and natural disasters contributing to these losses. While the government has implemented an economic reactivation plan, it has primarily benefited companies. Vulnerable families, especially children, are left without adequate support or a path to escape the cycle of poverty.
Children are deeply affected by economic hardship. When families struggle to afford the most basic necessities, children are at risk of malnutrition, poor health and education loss. Many of the children Compassion serves in Peru live in extreme poverty. Unable to find stable work or to qualify for a business loan, caregivers are in dire situations. Many have turned to the church in their desperation. These families show visible signs of malnutrition and often wear tattered clothes. Caregivers are unable to find stable work, have no capital to invest in their businesses or are single mothers and thus are unable to take on full-time jobs. Our local church partners want to help, but in the face of such overwhelming need, their resources can only go so far.
This intervention will equip 100 caregivers and youth from five different Compassion centres in Peru with business entrepreneurship skills and resources so they can start their own businesses and earn a stable income. These communities lie in both rural and urban settings; initiatives have been chosen based on identified opportunities and demands in their local markets. Planned trainings include guinea pig farming in Oxapampa, pastry and juice shop initiatives in Chota, trupan (medium-density fibreboard [MDF]) product manufacturing in Tarma, laser cutting in Ccachona and organic fertilizer production in Patacalasaya. With the skills and tools needed to offer in-demand services, caregivers and young people will be able to earn a decent income to support themselves and their families.
Summary
Did you know?
Ongoing political instability is a significant contributor to economic instability in Peru. Since 2018, Peru has ousted four presidents who have been either impeached or forced out of office due to accusations of corruption. Widespread protests and social unrest continue to persist.
Background
Many families in Peru face significant economic challenges, particularly in securing stable employment. To address this pressing need, Compassion Peru has initiated a national strategy focused on encouraging entrepreneurship through business training and skills workshops. This strategic plan is being implemented through our local church partners across the country and has seen great success.
This project aims to support 100 highly vulnerable families from five Compassion centres located in Oxapampa, Chota, Tarma and two communities in the city of Cusco. Families who will benefit from this intervention currently rely on informal work, such as street vending or day jobs, and are struggling to survive. Some have tried to start new businesses, but without adequate training and support, their efforts have been largely fruitless. The goal of this intervention is to equip 100 participants—a mixture of caregivers and Compassion-assisted youth—with the knowledge and resources they need to take advantage of the unique opportunities in their local market. Our partners have already been working with participants to identify these opportunities and develop a plan. In alignment with our national strategy, the long-term goal of this project is to expand these efforts each year, reaching more families and empowering them with the skills needed to achieve economic independence.
The need
Compassion-assisted families in Peru are struggling to survive. High rates of unemployment coupled with political unrest have left many caregivers unemployed as they scramble to take on casual jobs that simply do not provide enough money to feed their families. With no way to gain skills to compete in the workforce, adolescents and young people face a bleak future. The effects of poverty on these families are stark—caregivers and children appear visibly malnourished and can’t afford decent clothes. Caregivers are turning to their local churches for help, but our church partners can only do so much. They know these families need long-term solutions.
This intervention will equip 100 caregivers and youth in the communities of Oxapampa, Chota, Tarma, Ccachona and Patacalasaya with the resources and training needed to start and maintain successful small businesses. Churches will organize training workshops, which will take place over a two-month period and will be tailored to each community’s specific opportunities and needs. Planned initiatives so far include guinea pig farming in Oxapampa, pastry and juice shop initiatives in Chota, MDF manufacturing in Tarma, laser cutting workshops in Ccachona and organic agriculture in Patacalasaya. Caregivers will receive ongoing support from technical advisers and church and centre staff. Beneficiaries will be fully equipped to generate income immediately after completing the workshops so they can improve their quality of life as quickly as possible.
What your gift will do
Your support will provide vital entrepreneurship training and tools for 100 caregivers and youth from five Compassion centres in Peru, including:
- Orientation meetings
- Technical input
-
Renovations for home-based businesses
- Proper ventilation and lighting
- Essential cleaning supplies
- Labour
-
Materials and supplies for training workshops
- PE0363: Guinea pigs, food and materials
- PE0382: Equipment, kitchen utensils, supplies and care items
- PE0391: Machinery and materials
- PE0684: Laser cutting machine and materials
- PE0690: Corrugated board, blocks, sand and cement
- Shipping and installation costs
-
Training in small businesses and entrepreneurship
- PE0363: Guinea pig breeding workshop (30 participants)
- PE0382: Pastry and soft skills and sales workshops (15 participants)
- PE0391: Medium-density fibreboard (MDF) product development workshops (20 participants)
- PE0684: Cutting and engraving workshops (15 participants)
- PE0690: Preparation and use of worm smoke pools for fertilizer workshops for (20 participants)
- Materials and special clothing
- Technical advisor fees
- Grand opening event for each business
- Business exhibitions
- Monitoring and support
- Equipment maintenance
Logistics
- Local contribution: US$656.72
- Handling of funds: Compassion Peru will distribute funds and will work with Centre directors to ensure this intervention remains within budget.
- Monitoring and follow-up: Ongoing monitoring and follow-up will ensure that beneficiaries receive continuous support and guidance. A technical advisor will regularly visit participating families to assess progress, provide technical assistance and help overcome any challenges they may face in establishing their new businesses.
