Micro-leasing: Empowering women entrepreneurs
VPWA’s Micro-leasing scheme empowers no-collateral-but-creditworthy entrepreneurs to lease productive cash-generating assets.
Sobre Sua Organização
Nome da Organização
Volunteer Partnerships for West Africa
Página da organização na internet
País da organização
Gana, GA, Pokuase - Accra
Países onde este projeto vem gerando impacto social
Gana, GA, Fise, Amasaman - Accra
Sua organização é
Há quanto tempo sua organização está em operação?
Entre 1 e 5 anos
A organização recebeu algum prêmio ou reconhecimento público? Por favor, conte-nos mais detalhes
1. In 2010 & 2011 respectively, VPWA Volunteers was selected for the prestigious United Nations Volunteers award.
2. VPWA Green Ghana project was finalist in 2011 Project Inspire and MasterCard Project Inspire program in Singapore
3. In 2012, VPWA founder Hayford Siaw was selected Playmaker by Playing for Change to work on an idea to help improve life for children.
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Selecione o estágio que melhor se aplica à solução
Inicial (um piloto que começou recentemente)
Há quanto tempo está em funcionamento?
Implementado há menos de um ano
Qual(is) item(ns) abaixo descreve(m) melhor a(s) barreira(s) que sua inovação soluciona? Escolha até dois itens.
A necessidade: Qual é o problema que você está tentando resolver?
According to a recent survey conducted by FINSCOPE, 30% of Ghanaian adults in the urban areas of Accra are still completely unbanked. This demonstrates the need for growth in the microfinance sector to foster investments and thus, economic development at the micro-enterprise level.
However, giving out cash loans presents some issues: it is not uncommon that the money kept in the house is being used for non-business purposes like school fees, funeral rites, etc. Moreover, the money loaned tends to be used for working capital needs and not invested in productive equipment due to low business planning ability and financial literacy of the beneficiaries.
A Solução: Qual é a sua solução? Seja específico!
The solution is a Microfinance Institution (MFI) that enters into leasing contracts with its beneficiaries instead than giving out loans. The target of VPWA’s micro-leasing program is women entrepreneurs with no assets for collateral and therefore, no possibility of accessing the formal banking system.
Money is used to purchase and lease productive equipment instead of being directly lent to avoid it being be taken away or turned into cash to pay for unbudgeted expenses not related to the business. Women must define the equipment to be purchased and leased as part of a business plan, which is a prerequisite for the lease.
An adequate level of financial literacy and business planning is reached through business classes and weekly visits by the VPWA’s staff to the beneficiaries’ business places.
O Modelo: Demonstre através de um exemplo específico como sua solução faz a diferença; inclua suas atividades primárias
Here is the success story of a micro-lease. Mrs. Grace Laar sells red red (beans and fried plantains) and rice and stew as her business. She originally used charcoal as cooking fuel, for a weekly cost of 34 GHC (17 USD). In November 2011, VPWA helped Mrs. Laar purchase a gas cylinder and a stove within the micro-leasing scheme, allowing her to cut down on her energy expenses to 20 GHC (10 USD) per week. The extra 14 GHC (7 USD) has gone to family and business savings and other expenses. Widely satisfied with the greater efficiency attained, Mrs. Laar invested her extra income in expanding her menu choices, which now also include banku, and was able to repay all her installments even earlier than the due date.
Like Mrs. Laar, hundreds of retailers, tailors, hairdressers, and other women entrepreneurs are in need of productive equipment to be more efficient, earn higher profits, and thus contribute to the sustainable development of their families and communities. The pilot phase of VPWA’s project, which centered on the easier to implement micro-loans, has shown that even in the absence of collateral, such entrepreneurs are creditworthy, with an almost 100% repayment rate, if they are given access credit.
O Mercado: Quem são os seus pares e concorrentes? Identificar os outros que também estão trabalhando para solucionar as mesmas necessidades que você e o que você faz de diferente em relação a eles. Quais seriam os desafios impostos por esses concorrentes que impactariam no seu sucesso ou crescimento?
As of yet, there are no sizeable formal or semi-formal financial institutions operating in the vicinity of Amasaman, where the VPWA main project office is located and currently operates. The majority of the local population is still severely underbanked. VPWA Microfinance’s main local competitors are informal money lenders. Given that the informal sector does not generally constitute a reliable resource of financial services, VPWA has not had and does not anticipate much competition in its microfinance product offering.
Furthermore, VPWA’s leasing scheme is a completely distinct offering from the micro-loans other MFIs offer in the West Municipality of Greater Accra.
Temas relacionados à inscrição
História: Queremos saber mais sobre o momento de descoberta desta solução. Conte-nos um pouco a história sobre onde e quando o(s) fundador(res) vislumbrou(aram) o potencial desta solução para mudar o mundo:
In operating microfinance program as part of organizational initiatives since 2009, I have been trying to find solutions to some of the perennial worry of the micro entrepreneurs. In 2011 I gathered through informal interaction with beneficiaries that often some of the recipients did not use the money in any way related to the growth of their business, although sound financial literacy two weeks prior to administering loan had been provided. It was obvious that there had been some change their minds on receipt of loan. In the quest to still support women entrepreneurs I came up with the idea of leasing asset which the beneficiaries can use to improve their business and own such assets after repaying the equivalent value of the item and the interest.
Descreva a meta da sua iniciativa; fale sobre o que você está tentando alcançar.
Backed by the success of the micro-loans, VPWA has decided to expand its offerings to include micro-leasing or financing productive assets. The goal of micro-leasing is to ensure that money that is given to the micro-entrepreneurs to generate development is actually used for productive purposes and not wasted due to misallocation of resources.
Beneficiaries’ level of wealth is increased by being given possession of a cash flow-generating asset, without running the risk of cash loans being used for personal expenditures.
Beneficiaries’ access to credit is improved: once the initial investment and the interests are repaid to VPWA, the beneficiary becomes the owner of the asset than can then be used as collateral to access further credit.
Quais são os obstáculos da inclusão financeira que sua solução procura resolver? (Selecione todos que fizerem sentido)
Barreiras de acessibilidade física ou outros, que impedem as comunidades de usarem os serviços financeiros, A escassez de produtos financeiros acessíveis adaptados às necessidades de comunidades desfavorecidas e excluídas.
Se você selecionou 'outro' acima, especificar quais outros obstáculos da inclusão financeira que sua solução procura resolver:
Para quais comunidades desfavorecidas ou excluídas sua solução vai oferecer acesso a serviços financeiros de forma segura, abrangente e adaptada às necessidades daquelas comunidades? Qual é a sua expectativa de impacto para os próximos 1 - 3 anos?
The target of the VPWA microfinance projects is the women entrepreneurs of Amasaman, where the office is located, and Fise, a nearby village, both in the West Municipality of the Greater Accra region.
The lively business community of this area is made up of small scale businesses, typically street vendors, retail workers, food stalls, saloons, and craftsmen. Most of these businesses generate just enough to get by. Savings for emergencies, children’s education, or to improve their businesses are not common. Access to credit for investments is very limited: Formal financial services require collateral, which these entrepreneurs lack, and informal financial services are not reliable. There are tremendous opportunities for MFIs, offering semi-formal financial services, to help alleviate poverty and support entrepreneurial ventures.
A sua solução funcionaria em outras regiões? Se sim, onde?
The micro-leasing scheme is easily applicable anywhere - that is, wherever there are people who do not have access to credit. From the poorest to the wealthiest regions of the world, credit is everyone’s right, and the leasing of a 134 GHC (67 USD) gas stove can change the life of a Ghanaian red red vendor as well as a French crepe chef.
Se a sua solução for muito bem sucedida, o que será diferente em 10 anos?
If micro-leasing expanded at a pace of 288 beneficiaries the first year, 378 the second, and 550 in the third, as devised in our business plan, in 10 years all of the businesses of the West Municipality of Greater Accra in need of productive equipment will have the possibility to lease it. This will lead to an increased productivity of businesses, greater profits to be reinvested, stalls turning into shops, economic stability for the beneficiaries, and improved wealth and well-being for the entire community.
Through business and financial classes, made part of the leasing process, business awareness and financial literacy will spread in the area, which will foster a more efficient and productive use of resources.
O que tiveram que mudar para fazer isso acontecer?
Not much is needed to get things started. An initial investment of 52,722 GHC (28,000 USD) is forecasted in our business plan in order to serve the beneficiaries mentioned above, which are 288 the first year, 378 the second, and 550 the third. However, these numbers can easily grow exponentially with greater funds. After the first year, the process will be self-sustaining, since the new equipment to be leased will be purchased through reinvestment of operating income.
As the number of beneficiaries grows, the teaching process will be institutionalized through hiring the appropriate personnel and renting the appropriate space.
Qual foi o impacto da sua solução até hoje?
VPWA started a microfinance pilot project in 2009 with a group of 50 beneficiaries, offering a straightforward micro-loan product combined with basic financial literacy training. Since the start of the initiative, more than 120 micro-loans have been granted with a total volume of more than 19,000 GHC (9,744 USD).
The experience has been very positive so far. The small loans and subsequent training provided by VPWA Microfinance has substantially helped entrepreneurial women to launch or expand upon a small business and gain regular income. This has enabled these women to provide for their household, send their children to school, and minimize dependence on their husbands.
As for micro-leasing, the project is still in its start-up phase, so the only impact we are currently able to measure is the effect on Mrs. Grace Laar, mentioned above.
Qual é a sua expectativa de impacto para os próximos 5 anos?
Over the next five years, the project is expected to reach a volume of more than 4,000 beneficiaries (year-to-year numbers are detailed in the business plan). This means empowering more than 4,000 women by giving them the instruments to make the most efficient use of their time, increase quality standards and quantity of their production, and earn a sustainable living out from it. A knowledgeable business community will be created through the positive spillover effects of a trained set of beneficiaries.
Quais são as barreiras que podem impedir o sucesso do seu projeto? Como você planeja superá-las?
The major obstacles we have been experiencing with the micro-loans are late repayments and laziness in bookkeeping of the beneficiaries, and we are likely to face the same problems with micro-leasing.
The difference comes from the fact that the leased product, which acts as collateral, and the initial 10% required deposit give an incentive to the beneficiary to pay on time. Moreover, once taught how to do bookkeeping during ad hoc classes, micro-leasing beneficiaries are more likely to have stable business places, where our personnel may more closely monitor and aid their businesses.
As inscrições vencedoras apresentam um plano sólido sobre como vão alcançar e acompanhar o crescimento do projeto. Identifique as metas de seis meses para aumentar seu impacto.
By the sixth month of the project, 144 leasing contracts will have been signed for an amount of over 50,000 GHC.
Identifique as três maiores atividades que você terá de completar para obter a meta estabelecida para os seis (6) meses
24 leasing contracts to be signed each month, of which 11 with a maturity of 6 months, 7 for 9 months, and 6 for 12 months
Collection of repayments and begin of reciprocal trust and respect relationship with the beneficiaries.
Begin of business and financial classes for the beneficiaries.
Agora pense grande! Identifique qual seria sua meta de impacto para 12 meses
288 leasing contracts signed, out of which 200 will still be outstanding. Leases will be financed by reinvested operating income
Identifique as três maiores atividades que você terá de completar para obter a meta estabelecida para os doze (12) meses
Keep the pace of 24 contracts to be signed per month, with the same structure as above.
Collection of repayments and enforcement of rules, while making sure not to break the trust and respect relationship built.
Accompany beneficiaries with business advice and bookkeeping help throughout the term of the lease.
Por favor, explique de que forma o estabelecimento de parcerias é importante para o sucesso de sua inovação
VPWA Microfinance currently operates as an independent project under the Volunteer Partnerships for West Africa without any partners yet.
Atualmente você planeja atender outros locais, mercados e populações específicas com sua inovação? Se sim, onde e por quê?
Que tipo de ambiente operacional e fatores da organização interna ajudarão o projeto a ser bem sucedido?
The success of the innovation depends on the fact that we build personal relationships with the community in which we are working: by going through the process of visiting, teaching and helping beneficiaries, problems are faced and solved together. It is a powerful instrument both for the beneficiaries, which are constantly followed, and for the organization, which is able to constantly improve thanks to the daily feedback received.
Fale mais sobre as necessidades ou ofertas que você selecionou anteriormente e/ou sugira categorias de apoio que não foram listadas
The current need we are facing is that of capital injection. According to our business plan, an initial investment of USD 28,000 is the minimum amount to start a self-sustaining program of micro-leases. However, the program can be easily implemented on a larger scale if the initial investment is bigger.