>ABOUT MICROCREDIT BORROWERS
Although this site does not work with microfinance borrowers, we have listed a number of exemplary borrowers in order to illustrate who microfinance supports.
Microfinance borrowers are poor people who take out microfinance loans in order to start their own businesses. This means two things: all microfinance borrowers are poor; and all microfinance borrowers are entrepreneurs.
How does one qualify as ‘poor?’ There are many definitions of poverty, but here are three particularly relevant definitions: 1) Poverty is living on less than $2 a day, and extreme poverty is living on less than $1 a day; 2) Relative poverty is defined by a relative threshold, for instance, living on less than 50% of a country’s median income; 3) Muhammad Yunus defines poverty in terms of quality of life. He .
Although each MFI approaches lending a little differently, most of them believe in the poor person’s inner entrepreneur. Most MFIs do not propose business plans to their clients. By leaving the creation and building of business in the hands of the poor people, MFIs further empower their clients to realize how capable they really are. Yunus describes the poor as ‘Bonsai people.’ He says, “Sometimes I describe poor people as the bonsai tree. If you take the seed of tallest tree in the forest and put it in a flower pot, it grows only as big as the pot will let it. There’s nothing wrong with the seed; simply we plant it in the wrong place. The poor people are bonsai people. There’s nothing wrong with their seed. Simply society never allowed them the space to grow.” Microfinance creates a more inclusive market, which allows borrowers to all become entrepreneurs.
While poverty and entrepreneurship connect all borrowers at a very fundamental level; there are also very many differences between borrowers. Along with personal differences that exist between all people (personality, interests, family, personal challenges, etc.), microfinance borrowers around the world encompass many ethnicities, nationalities, languages, climates, political circumstances, and religions. In fact, microfinance borrowers live in over 100 countries on five continents.
The profiles bellow have been selected from profiles listed on a variety of MFI websites. They represent a variety of borrowers, although no collection can depict the many individual personalities, circumstances, accomplishments, and the vast effects of these people on their surrounding communities.
BORROWER PROFILES
MFI: Opportunity International
Helen Otieno
Kenya
Helen Otieno is one of the many business owners that can be found any given day at the Kibuye Market in Northwest Kisumu – the second largest open-air market in East Africa. While she used to sell grains, she found the seasonal nature of this business to be frustrating as it depended heavily on the supply of cheap grain on the wholesale market. So in 2003, she became an apprentice of a local tailor who taught her the skill of sewing.
In 2004, Helen joined Opportunity International Kenya, and took out
her first loan. With this loan she was able to buy two sewing
machines costing $91 each and rent a small storefront in a
prominent location in the Kibuye Market. With her most recent loan
of $685, Helen was able to purchase a third sewing machine. With
this she can earn extra income by employing two apprentices. With
the profits from her business, Helen is able to support her seven
children by providing healthy meals and sending them to school year
round rather than only during the busy season.
MFI: Salone Microfinance Trust (SMT), a partner of Christian Children’s Fund, featured on Kiva
God Tenki Group
Sierre-Leone
Kamara is the leader for the group "God Tenki". The four members
sell their goods in the same market and have been working
cohesively as a rotating savings club for a long time. The group
joined the SMT program when it was established in Magburaka, Sierre
Leone, and are now applying for a loan together to expand their
individual businesses.
Abi is 50 years old and married with four children. Her business
supplements her husband's meager income as a teacher. She sells
utensils and other dishes. Abi would like to build her capital and
diversify her business.
Also in the group are: Kadiatu Kamara, who sells peanuts butter and
would like to purchase 15 bags of peanuts; Marie Larkoh, who sells
firewood/fuel; and Saffie Kamara, who sells palm oil.
