Training and networking schemes tied-in with microfinance enable women microentrepreneurs to earn their way to self-reliance

Microfinance is exactly what it sounds like but it involves bits of money probably even smaller than you’d think. In some developing countries a microloan could be as small as $25. That $25 loan could be enough for a woman to buy seeds, start a garden, sell the produce, pay back the loan, buy supplies for her family and buy more seeds this time without a loan, enabling her to break out from a cycle of poverty. This loan does so much more than break the cycle of poverty for this one woman; it allows her to earn her respect in her family and her community. This opportunity allows her to break others’ view of her as just a child bearer and makes them see her as a resourceful entrepreneur. Organizations like Grameen Bank only loan to women so women alone can qualify for loans, not their husbands and this bolsters women’s status in their communities. Now that their husbands can see their wives are able to provide for them, themselves, their children they are more likely to listen to their purchasing decisions and to respect them. Research has revealed that when women are in control of the household finances they are more likely than men to buy things that help the health and prosperity of their families (e.g., mosquito nets, school uniforms, healthy food) Overtime women’s involvement in microentrepreneurship can prevent global epidemics like malaria and improve the communities’ health and prosperity. 

Microfinance makes a huge difference in developing parts of the world but it can also provide amazing opportunities right here in the USA. Any microentrepreneur anywhere in the world can become successful by pursuing loan programs with the support of other community members. For example according to Grameen America‘s model (www.grameenamerica.org/model) aspiring women microentrepreneurs are coached to find four others she trusts to form a Grameen Group. Next the 5 women participate in a week of financial training where they learn about loans, savings and how to build credit. At the end of the week each member of the group opens a savings account. After the first 2 steps are complete each woman receives a micro-loan of $1500 so she may begin to build a small business. Then the group of women meet weekly with a Grameen America staff in a member’s home these meetings allow the members to make loan savings payments, continue their education and build trusted networks among their peers. With the microloan, training and networking these women microentrepreneurs hold the tools they need as they continue to build their businesses. 

Right here in North Carolina we have very innovative programs that focus on providing opportunities to rural women microentrepreneurs. Programs like Slow Money (slowmoneync.org) and The Rural Center (www.ncruralcenter.org) offer financial and technical assistance along with small loans. As discussed in regards to the Grameen Bank model, resources like financial coaching and peer networking coupled with a loan maximize the success of the entrepreneurs. Slow Money is focused on supporting small farms and other small entrepreneurs in the local foods sector, and The Rural Center supports all kinds of small businesses in rural communities.  These institutions provide loans for people wanting to start or expand a very small business, and whom may not qualify for bank loans with reasonable terms. One of the best things about Slow Money is that in addition to providing access to the loans, they focus on creating bridging ties between the microentrepreneurs and more affluent members of the community interested in supporting the local food economy. Investors/lenders and borrowers are encouraged to work closely together often arranging their own contracts agreeing on lending times and on mutually agreeable interest rates. One of the great things about The Rural Center is their special emphasis on serving rural, low-income, female and minority borrowers.

Based on current scholarship and field experiences with North Carolina microentrepreneurs, I would encourage microentrepreneurs to consider these microlending programs when looking to start or grow a small business! In addition, I would encourage individuals that are relatively affluent and would like to support self-reliance in their communities or around the world to consider lending money to microentrepreneurs through organizations reviewed in this post, or through a curated global microloan platform like Kiva (www.kiva.org). The key thing to keep in mind when asking or offering a microloan is that microloans and financial support provide opportunity for someone to become prosperous but the training and networks associated to the loan are critical to enable microentrepreneurs to thrive. Together we can make a change.

By:   Britt Davis, Social Change Champion and Intrepid World Traveler

         NC State PRTM class of 2018