Top Seven Reasons Why Microfinance is so Powerful
At CareLink, we believe that business can be a powerful force for good in the developing world, and Microfinance lending is an amazingly transformative tool. Here are the top seven reasons why Microfinance is so powerful:
Empowering. Microfinance loans empower women to do things that they previously thought were impossible. Armed with business training, a connection to a community of other new entrepreneurs, and a small business loan, women believe they can accomplish their dreams
Sustainable. Unlike other forms of “Charity”, Microfinance is sustainable. Families use the profits from their new businesses to break the cycle of poverty - fostering a new way of life that creates long-lasting financial freedom.
Pays Forward. Microfinance creates transformational change that can last for generations to come. For example, a woman business owner will often use some of her business profits to send her children to school, providing them with educational opportunities that will set them on a trajectory of success in future years.
Community. We aim to fund groups of women from the same community and then connect them to each other, and connect them to a local church. This approach creates a small “Mastermind” group of new business owners that can help support each other with shared business best practices, fellowship, and Bible study.
Belief. Something truly supernatural happens with these newly-funded business women. They believe in themselves! This belief is a tremendously powerful force that propels them toward their goals. Belief leads to Hope.
Self-Esteem is Enhanced. Given the choice, most people would prefer a “hand up” versus a “hand out.” A life of living off of charity and donations from well-intended donors can become demoralizing. Microfinance loans, even though CareLink does NOT charge interest, are legitimate business loans that are re-paid over time. This method of assistance fosters self-esteem in the recipients who take pride in their achievements.
It’s an Investment. We find that our partners (“donors”) appreciate the fact that their donations are really investments in the future of humankind. Our partners really appreciate getting personally involved in the lives of the business women they help fund, and enjoy seeing photographs of these business owners, and hearing about their personal successes and stories. They can see their investment at work!
