Why? Short info about target group
- No bank account
- Little or no savings-subsistence level economy, especially in rural villages
- No credit cards
- Limited personal resources
- Limited entrepreneurial education
- THEY HAVE AN IDEA!!!! OR A SMALL BUSINESS!
Why not a bank or other… sharks
- Banks won’t make loans under $25,000
- Banks won’t loan to start-ups
- Banks typically lending maximum of 80%
- All loans must be fully collateralized
- Interest 5-10% per month
- Equates to 60-120% per year
- Don’t even think about what happens if they can’t pay in a timely fashion
HOW IT WORKS
1. Small loans are made
- Amount: 1000 USD – 4000 USD
- Financing period: 12 – 36 months
- Financing Cost: 5% p.a.
2. Support system
- One-on-one mentors
- Group lending
- Training workshops for application process
- Training sessions for management
Entrepreneurship training
- OK to start small
- Become expert before you expand your business
- Customer Service
- Ethics Count
- Trade Association Advantages
- Partnerships
- Brainstorm with others
- Research your market
- Horizontal / Vertical Integration
Entrepreneurial challenge event
- Business Contest like “Shark Tank” TV Show
- Includes training / assistance with
- Business Plans
- Presentation Skills
- Judged by business experts
- Law, marketing, business planning, insurance, manufacturing
- And the public who attends
- Helps foster enthusiasm for business
- We’ll use it to help find good borrowers
Results in two years time
- 40 small businesses granted with microloans
- 40 families avoiding poverty risk
- 50 entrepreneurs supported in their businesses
- 90 jobs supported
