Success Stories

By: Marissa Folk

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Overall, micro credit has gained recognition as an effective way to bring very poor families out of poverty with the help of low-cost financial services. It also helps in the development of an economy by giving everyday people the chance to establish a sustainable means of income. Eventually increases in disposable income will lead to economic development and growth.

All stories listed below are examples of women who were able to establish financial security with the help of microcredit. The following are excerpts from Unitus.com. Unitus is a nonprofit organization taking a hybrid approach to fighting global poverty. They use proven strategies from the venture capital, investment banking and strategy consulting industries. For more information, please visit their website at http://www.unitus.com

Mexico:

Georgina Gutierrez Age: 36 Children: Daughter, age 7 Current loan: 6th loan, $400 Business: Chicken sales Institution: Pro Mujer Mexico

Before receiving her first loan from Pro Mujer Mexico, Georgina made only enough money helping with her father's business to feed herself and her daughter, Rebecca. A friend told her about Pro Mujer Mexico, and she went to an informational meeting. There, she decided that a Pro Mujer Mexicoloan was just what she needed to invest in a business and make enough money to support her family. With her first loan, Georgina bought some chickens and the materials needed to feed and care for them. Her profits were $2.00 for each chicken sold, and she sold an average of 15 chickens per day. With her significantly increased income, Georgina can now support herself and Rebecca.

Kenya:

Susan Wangui Age: 30, Single Children: Daughter, 9 / Son, 13 Loan History: 3rd loan, $110 Business: Clothes mending and sales Institution: Jamii Bora Trust

Susan was kicked her out of her home when she became pregnant at 17. Hoping to find work, Susan and her infant son moved to Nairobi, where she married and had a daughter. Her husband left her when they learned she was HIV-positive. Unable to find work and with no means to support her two small children, Susan ended up in prostitution. Susan learned about Jamii Bora and she completed their business training, which improved her business skills and gave her the confidence to begin her clothes mending and sales business. Jamii Bora’s microfinance services enabled her to quit prostitution and move her family from a disease-ridden slum into a safer house. Their house has a floor, running water, a waterproof roof and locking door—all luxuries they did not have previously. Susan has savings for the first time and is striving to earn enough to ensure her children’s educations so they can break free from the chains of poverty.

Indonesia:

Soimi Age: 47, Married Children: 2 sons, 4 daughters Loan History: 5th loan, $245 Business: Sewing, raising ducks Institution: MBK Ventura

Since joining MBK in 2003, her businesses have rapidly grown and in turn the quality of life for her family has dramatically improved. She has been able to purchase additional sewing machines, invest further in her duck eggs business, and is now conducting sewing classes for young girls in her home. Her duck egg business now makes more than $5 each week in profits and Soimi is able to charge her sewing students $22 per month. This has significantly increased her family’s income and Soimi is excited about her ability to expand her businesses while continuing to fulfill her daily family responsibilities. Soimi makes a point of saving at least 11 cents everyday at home and deposits it in a voluntary savings program operated by MBK.

Argentina:

Juana Fernández Age: 40; married Children: Daughter, 12 / Son, 7 Loan history: 8th loan, $700 Business: Hairdresser Instituition: FIS

When the Argentine economy collapsed in 2002, Juana Fernandez was determined to persevere. A loan from FIS allowed Juani the means to save her business. Juani used her initial loan to settle debts resulting from the economic crisis and pay her rent. With subsequent loans she was able to buy new equipment for her business. Juani often reflects on how microfinance has changed her life for the better. “I come from a very humble family in Paraguay,” Juani says. “We lived in a shantytown, and sometimes I had to pick old cloth from the garbage to make clothes for ourselves. Now, though, I think I have achieved everything I ever wanted since I was a child.” Her focus now is on providing for her own children and making sure they study hard. Juani, with help from FIS, has broken the cycle of poverty in a single generation.

India:

Nazimunisa Age: 48 years, married Children: Daughter, 18 Loan History: Fifth loan, $274 Business: Tailor; Vegetable shop owner Institution: Grameen Koota

Nazimunisa came from a very poor family of daily-wage laborers. Before joining Unitus's MFI partner Grameen Koota (GK), Nazimunisa worked as an incense roller, earning about 22 cents for every 1,000 sticks made; her husband ran a small food shop. Looking for ways to smooth her family’s income through rough times, Nazimunisa joined GK in 1999. With her first loan of $91, she bought a sewing machine and started a successful dress-making business. After expenses, Nazimunisa used her profits of $6 to $9 per month to do maintenance on her home and pay for her daughter’s education. With the help of GK’s microfinance services, it took less than one generation for Nazimunisa and her family to lift themselves out of poverty. In the past six years, Nazimunisa has started three successful businesses, and her family’s income is comfortable and sustainable.

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General Microcredit History | Historical Precedent | Models | Critiques of Microcredit | Benefits of Microcredit | Success Stories | Microcredit Summit Campaign | Conclusion | For More Information