Seed Funding for a Women-Led Natural Dyeing Yarn Cooperative

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Regenerative 2030

Purchase natural dyes and mordants, including indigo, cochineal and marigold
Buy essential dyeing equipment such as large stainless-steel dye pots, thermometers, stirring tools and safety gear
Build an initial inventory of high-quality undyed wool yarn from regional suppliers
Create simple eco-friendly labels, branding and marketing materials
Cover working capital such as transport and early operating costs

In Teotitlán del Valle, Oaxaca, a group of six women weavers is working to establish a cooperative that produces and sells high-quality, naturally dyed wool yarn. This project will provide the seed funding needed to help them secure materials, purchase dyeing equipment, build initial inventory, and begin selling their yarn through a dedicated cooperative space. Oaxaca is one of Mexico’s poorest states, and access to financial services and economic opportunity remains especially limited in rural communities. According to the OECD, around one-eighth of Mexico’s municipalities have no financial access point at all, and in Oaxaca that share reaches 56%. The World Bank also reports that the gender gap in account ownership in Mexico stands at 14%, and that lack of financing is the main reason many women entrepreneurs do not start businesses.

Addressing the UN Sustainable Development Goals

Gender Equality: Gender equality is not only a fundamental human right, but a necessary foundation for a peaceful, prosperous and sustainable world.

Decent Work And Economic Growth: Sustainable economic growth will require societies to create the conditions that allow people to have quality jobs.

Responsible Production and Consumption: Responsible Production and Consumption

Impacts

Six women will establish a fully operational yarn production and sales cooperative by the end of 2026
The cooperative is expected to produce and sell at least 100 skeins of naturally dyed yarn per month by the end of 2026.
The women will participate in at least two local artisan markets or sales events per year.
The income of the six women involved is projected to increase by at least 40% within the first year of operation.
Inceased access to naturally dyed yarn is expected to support at least 15 local weavers and help sustain the region’s weaving traditions.

Background

Oaxaca remains one of Mexico’s most economically challenged states, where many—especially women in rural areas—lack access to stable income and formal financial services. This economic exclusion significantly limits their ability to improve their livelihoods and achieve financial independence. According to the OECD, "Around one-eighth of Mexico's municipalities do not have even one financial access point... In some states this share is significantly lower and reaches 56% in Oaxaca."

Gender Inequality in Financial Inclusion:

Women in Mexico face notable barriers to financial access, limiting their potential for economic empowerment. As reported by the World Bank in 2022, there is a 14% gender gap in account ownership, and lack of financing is one of the primary reasons women entrepreneurs hesitate to launch their own businesses.

Limited Access to Resources for Artisans:

Traditional artisans, such as weavers, often struggle to source high-quality, affordable materials locally. This lack of access hinders both the quality and competitiveness of their products in a growing artisan market.

Threats to Cultural Preservation:

Weaving is a deeply rooted cultural tradition in Teotitlán del Valle, passed down through generations. However, without access to the resources needed to sustain their work, local artisans face increasing difficulty in preserving and continuing this important cultural heritage.

The budget for this project will be used to provide the women’s cooperative in Teotitlán del Valle with the essential tools, materials, and resources needed to launch a sustainable yarn business. A portion of the funds—AUD $1,200—will be dedicated to purchasing natural dyes such as indigo, cochineal, and marigold, along with mordants like alum and iron to ensure the yarn holds vibrant, lasting color.

Another AUD $2,300 will cover the cost of essential dyeing equipment, including large stainless-steel pots for bulk production, stirring tools, thermometers, safety gear, and drying racks to properly finish the yarn after dyeing. To begin production, AUD $2,000 will go toward sourcing high-quality undyed wool yarn from local suppliers, ensuring the materials reflect the region’s heritage and support nearby producers.

An additional AUD $500 will be used to design and print eco-friendly labels and simple marketing materials like brochures and business cards, helping the cooperative build its brand and attract customers. Lastly, AUD $1,000 will be set aside as working capital for day-to-day operational needs, such as transporting materials, delivering finished products, and handling other essential expenses.

Altogether, the budget is structured to equip the cooperative with everything they need to launch and grow a community-based, culturally rooted yarn enterprise.

En Vía's Microfinance Model: En Vía's microfinance program is unique because it is funded by responsible tourism. This model creates a sustainable cycle of support, where tourism directly contributes to the economic empowerment of local women. All loans are interest-free. Long-Term Vision: En Vía is committed to the long-term success of the women entrepreneurs we support. We provide ongoing training, mentorship, and follow-up support to ensure their businesses thrive.

This specific project represents an exciting opportunity to support a collective of women who are not only skilled artisans but also demonstrate a strong commitment to collaboration and community development. The cooperative model will allow them to share resources, knowledge, and risks, increasing their chances of success.