The lack of capital presents a major barrier to grow a small business
Many entrepreneurs are unable to access the formal banking system, so their sources of capital are family members, savings groups or local moneylenders.
In many of South African communities, moneylenders currently charges as much as 1000 percent APR on their loans.
During the Business Experience Course, entrepreneurs create a simplified business plan and identify an income-generating investment for their businesses. Subsequently, qualified entrepreneurs apply for a microloan and, upon approval, each receive a microloan to invest directly into their businesses.
To date, there has been a 100 percent repayment rate on all microloans! When each loan is repaid, the church can then lend it out to another entrepreneur, creating a revolving fund that can impact many families over time.
