Micro Loans For Women Impacted by HIV/AIDS, Zambia

Knowledge of business skills is critical to business success

We believe that knowledge of basic business skills is critical for running a successful business. As part of program activities related to our micro loans program, business training is provided to women impacted/infected by HIV and AIDS. In 2019, 309 women have been provided with business training with 100 new women being trained last month. The newly minted graduates are now equipped with business skills and ready to run more successful businesses. In addition, skills acquired during business training are permanent and can be used in diverse ways (even if the business fails) to improve one’s quality of life. For example, most women learn to save a small amount each week and become comfortable with mobile banking.

About Business training

Goals of this training are to empower women by teaching them how to (i) run a business, (ii) overcome challenges, (iii) work as a team, (iv) run a profitable business, (v) become responsible borrowers, and (vi) develop relationships of mutual support with other women.

Training is participative, hands on, and in the local language as most women have never been to school and many do not know how to read or write. In addition, most women are single and care for multiple children with few resources. Trainees get an opportunity to discuss business issues and external challenges with mentors in the same line of business. All modules are supplemented with hands on exercises, work sheets, real world examples, and group discussions. Social issues, possible challenges and how economic independence can lead to empowerment are also discussed. 

Business Training Curriculum

The modules of business training are as follows: 

Introduction: this helps the women understand simple business concepts as these are new to most women. Questions asked are:

• What is business? 
• How to start or expand your own business?
• How to raise money for your business?
• How to make profit in your own business?
• How to protect your business?

Market investigation: The trainees are asked to brainstorm and come up with ideas on the kind of business they would like to start/expand, who their customers will be, location of their business, and the process of selling. They answer questions such as:

• What am I going to sell?
• Who will buy from me?
• What will be the location of my business?
• How am I going to sell my goods or services? Door to door, shop in a marketplace, or a stand outside my home?

Business concepts: Quality, pricing, sourcing of materials, quantity and frequency of purchases of raw materials/inventory are discussed. Concepts such as sales, profits, price, managing money, and repayment schedules are discussed.

Costing and pricing: Cost of materials, competition, and pricing of final product are discussed. In addition, trainees are asked to think about filling a need in the marketplace and developing unique products by using their individual talents and competencies.

Selling: The concept of selling above cost and profit is introduced. In addition, ideas on how to attract and retain customers are discussed.

Money management: This module discusses the importance of bookkeeping and accounting. The women are encouraged to keep a Money Management sheet/book for their business finances. Guidance is provided on how to separate funds for capital, loan repayment, hire purchase expenses (if any), savings, and family expenses. This helps track their asset and capital growth.

Business promotion: This module covers: 

• Learning about your product
• Advertising your business
• Store display and design
• Learning about customer needs
• Customer service
• Ethical business practices
• Reasons for a business to not do well

Savings and banking: The women are encouraged to save a small amount each week. Information is provided on mobile/commercial/village savings bank.

Internship (pilot stages): This module may require trainees to shadow a successful business owner for a 3-4 days, so that they are exposed to the operations of a business before they launch their own. 

Creation of a simple business plan: By the end of the fourth day of training the women are able to build a simple business plan that includes: location of business, where they will purchase raw materials/inventory, how they are going to set up their store, proposed mark-ups, a list of equipment (if needed), estimated fixed and variable costs, funds required to start/expand business, a profile of their customers, and how to attract/retain customers, and their goals for the next 1-2 years.

Empowerment: Social issues such as running the business when a family member is sick, are discussed followed by a Q and A.

Challenges: This module addresses challenges such as a disease outbreak, that could have severe consequences on earnings resulting in a loss of capital and savings. Participants discuss viable solutions to prevent losses.

Impact

Upon completion of business training, the women are better equipped to run businesses. Earnings from these businesses help pay for necessities and school expenses. In the short run, there is an improvement in diet and health, better information about HIV, more children can attend school and improved financial literacy. In the long run, there is a reduction in poverty, reduced stigma about HIV, women are empowered, and an improvement in gender equity.

Thanks for giving vulnerable women impacted by HIV, an opportunity to learn business skills.

Links:

• About our micro loans program
• Impact of our Micro Loans Program in 2018
• Micro loans are effective for poverty alleviation

Micro Loans and Training Are Effective Tools for Poverty Alleviation

Globally, micro loans programs provide small loans (as little as US$10 or as much as $US500) to the very poor, alongside other financial services such as savings accounts and financial training. Access to credit enables poor people to become entrepreneurs, increasing their earnings and improving their quality of life. Many lenders accompany their small loans and financial services with peer support, networking opportunities and even health care to improve their clients’ odds of building a successful small business. Research has shown that a small boost in micro loans to developing countries can lift more than 10.5 million people out of extreme poverty. Micro loans programs have a powerful potential to reduce poverty.

Micro Loans Transform Lives of Vulnerable Women

Power of Love’s micro loans program provides small loans ($150-175), business training and ongoing support to loan recipients. These loans and training transform lives of vulnerable women impacted by HIV and AIDS in Zambia. Given below are stories of two women, Agnes and Priscilla, who received loans in 2017 and 2018 and are currently receiving ongoing training and support. Both women worked hard to become successful entrepreneurs. Now they are educating and encouraging other women to start businesses and take control over their lives.

Agnes is the sole caregiver for five dependents - three children and two others. She is divorcee but does not get any support from her ex-husband. She received business training and a loan in December 2017. With loan funds she started a business selling vegetables that is doing well. She has successfully completed repayments on two loans and is now on her third loan. She has learnt to save a small amount each week and is comfortable with mobile banking.

Agnes is now a mentor for new loan recipients. She told our loan officer that she is happy to mentor others as owning a business was the best thing that happened to her. She appreciates the loans program for being there for her when life was becoming meaningless and she needed support. In her words, “I never used to do anything before receiving a loan. I don’t know how I would have managed without this program. My vegetable stand helps support my children and family. The business training provided helped me to move on because one of the components talks about women being able to become self-reliant in case, they become a divorcee or a widow”. She said that through this program God has fought battles for her. My prayer is that don’t stop doing good by helping the women in society because they are the most vulnerable if not empowered to be self-sustained. God keep blessing this organization so it can help many more women in need”, adds Agnes.    

Priscilla: Priscilla is a 31-year old divorcee and the sole caregiver for her two children. After her divorce (her husband does not provide any support) she started living with her parents, but life was difficult as she had no source of income. She became a burden on her parents and other siblings and was asked to move out. For a few months, she lived with a friend who introduced Priscilla to our micro loans program. She received business training and a loan in 2018. Loan funds helped her start selling fritters (a fried snack) by the roadside. Today, she is a happy young woman as she is renting a place of her own, can provide three meals for her family, and her oldest child started school in January 2019. She added soft drinks to her assortment when she received a second loan and is on schedule with repayments.

We are proud of women entrepreneurs, like Agnes and Priscilla, who are working continuously to overcome challenges such as poverty and disease in their communities. They are role models as they share their knowledge and experiences with others, in the community. In the long run, this leads to improved gender equality and cultural change.  

Thanks for giving vulnerable women impacted by HIV, an opportunity to become entrepreneurs.

Links:

• Impact of our Loans Program
• Mechanics of Our Loans Program
• About our Business Training Program