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Problem
Families and children living in poverty have no access to funds for education, training, or business opportunities. Traditional bank loans are unavailable to those without collateral or job experience.
Solution
The solution is to enable motivated individuals and groups to become self-sufficient by providing business training and micro-loans. Reach the Children acquires funds, finds capable mentors, then shares the capital with motivated loan applicants with the potential for success. Loan recipients come together in small groups called "associations" to assist and advise each other. Each team member also receives capable instruction and training from a mentor. Each recipient commits to pay back their own loan and to co-guarantee the loans of their team members.
Success
Geoffrey Okaka, from Kampala, Uganda, was 21, but had no skills to lift himself out of the poverty he had grown up in. He applied for a micro-enterprise loan through Reach the Children, attended the required free classes, developed a business plan with the help of his mentor and association members, received a loan and made his first big business investment -- a lawn mower.
Within a week he had landscaping clients including churches, estates and businesses. Two years later he showed up to work smiling in a suit and tie; he had four other young men working for him, each with a mower and other tools. Geoffrey paid back his original loan and hasn't needed another. He has reinvested into his business and seen it grow to support him.
Many People Depend on Her
Catherine Nyaga is the mother and support of 5 of her own children, the sole support of 2 non-relative orphans and she supports 5 other extended family members. Catherine is a Vegetable Vendor and she uses all of the business concepts she received from Reach the Children’s Micro Entrepreneurial Skills and Business Training to manage her business in rural Kenya. Catherine started with a small inventory worth Kshs 1,000 and she used to earn Kshs 2000 ($31) per month. After having received Reach the Children’s training for micro enterprise recipients, a revolving loan funding and additional mentoring services, Catherine’s stock now stands at Kshs 20,000 and earns a net of 5,000 ($77) per month. Catherine says “If it were not for God to send RTC, I don’t know what could have befallen my family during this 4 ½ years draught situation in Chyulu. RTC keep up with the good work.” There are numerous opportunities to help families in Africa, just like Catherine’s, by donating to the Micro Enterprise Program through Reach the Children.
Determined to Give Her Children an Education
Damaris Murimi Kakuli a mother of 10 children, some in secondary school and others in primary school, is an Hotelier at Makutano market place. Damaris began her business selling Ban Cakes with a Kshs 4,000 inventory and earning probably Kshs 1,000 ($15) per month. Now Damaris has a stock of Kshs 10,000 and earns closer to Kshs 15,000 ($150) per month!!!. Damaris thanks Reach the Children for Entrepreneurial Skills and Business Training, a Kshs 10,000 ($150) revolving loan and the management group togetherness and support of the Atanu Self Help Group. *
Damaris provides for her family, pays school fees and runs her business at ease. She reckons that if it was not for her micro enterprise loan and the help it provided for her and her business, the persistent draught in the Chyulu area could have vanquished her family. Her children would have had a hard time finding food each day and none of them would ever have been able to afford a secondary school education. Without that education their choices in life would have remained sorrowful and very limited.
*(Atanu Self Help Group is located at Makutano Chyulu Hills area, Mtito Andei Division Makueni District, Eastern Province of Kenya. The group was founded by 15 members whose objective it was to assist member’s progress in social economic welfare activities. This group started a savings scheme where each member made a monthly contribution of Kshs.100. The progress was slow and difficult even to keep members together. At the time Atanu Self Help Group came in contact with Reach the Children, they had made a savings of Kshs 5,200, but membership had dropped to 12. Soon after a 1 day sensitization workshop conducted by Reach The Children, membership rose to 40 but only 35 were retained as per Reach the Children requirements as the maximum for each group. Reach The Children’s Micro enterprise Program Manager, together with Atanu’s Program Coordinator provided a 5 day Entrepreneurial Skills and Business Training to the 35 program beneficiaries. Reach the Children supervised the 8 week training for the group members. Equipped with entrepreneurial skills received from the training and supervision, Atanu Self Help Group savings raised to Kshs 25,000 By the end of the year 2004. Currently the savings scheme stands at Kshs 58,400. ($898)
Filling His Role as Father and Provider
Stanley Wambua is married with 2 children who are both in primary school. He runs a general Hardware Store called (Jua Kali) in his rural town of Makutano. He is so happy that he is now able to sell his inventory at a good profit; thanks to Reach the Children’s Micro Enterprise Entrepreneur Skills and Business Training. With the Kshs 10,000 ($150) micro enterprise loan he also received from Reach the Children, after the training, Stanley was able to increase his inventory. The increased inventory and the training he received in running his business allowed Stanley to increase his sales. Stanley can now feed his own family and sustain those other extended family members that depend on his living, from income earned from his micro enterprise business. From an original stock inventory of Kshs 5,000 and earning perhaps Kshs 1,500 ($23) per month, Stanley now has a stock inventory worth Kshs 30,000 and he earns Kshs 5,000 ($76) per month. As soon as his original loan is paid off according to the loan stipulations, Stanley will be able to obtain a second micro enterprise loan to continue to grow his business and his ability to better provide for his family.
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