You give them the opportunity. They do the rest.

"Financial services for poor households make a major contribution to the UN's Millenium Development Goals - to halve the number of those living in extreme poverty by 2015."

Applies for a Microfinance loan:

The entrepreneurial poor have ideas and ability but cannot access the capital they need to start a business. Asset poor with few savings and wanting only a small loan means banks will not lend to them. Often the only credit is from moneylenders charging exorbitant rates of interest.

To successfully apply for a Microfinance loan the poor entrepreneur needs to demonstrate trustworthiness, a good work ethic and a sound business idea.

Entrepreneurs mutually guarantee each other’s loans forming a community bank.

Business training:

A Microfinance client receives training in basic business, handling credit and saving.

Microfinance loan is given:

A loan can be as little as £25 enabling a client to buy some seed or some fertiliser to increase crop yields. Basic equipment like a sewing machine for shoe repairs lets clients operate small trading enterprises.

Business is created or expands:

Profits can buy more seed or stock or be used to start a new business such as tailoring.

Coaching:

Clients continue to receive coaching in business as well as agriculture or trading practices as part of the development programme.

Business thrives:

With a loan, entrepreneurs can improve farming, open a hairdressing salon, sell handmade clothing and handicrafts or run a small convenience stall, to name a few. These businesses create jobs and generate additional goods and services and the whole community benefits.

Families gain self-sufficiency:

Families are able to support themselves and save for future uncertainties.

Children benefit:

Parents are able to give their children more nutritious food and family health improves. Parents have enough money to send their children to school.

Loan repaid and money recycled:

The poor are a good credit risk and 97% of loans are repaid. Once a loan has been repaid, clients can take out bigger loans to expand their business. Repaid loans are recycled to help others. Microfinance loans are leveraged and recycled to impact family after family, eventually having 10-25 times the impact of one donation.