Some of the problems that these small or micro business (microenterprise) owners face include:  lack of capital, lack of cash flow, inaccessibility to markets, lack of financial knowledge, lack of financial tracking, and lack of business training. Microenterprise owners use their profits to pay for school fees, food and healthcare. Individuals, families and communities benefit from successful small businesses. Microenterprise development has proven to be an effective method for fighting poverty and raising up the poor in developing countries.

These microloans, combined with vocational development, business training and discipleship, will allow individuals to either start businesses or grow existing businesses. Loan repayment rates are extremely high with one organization, Kiva, reporting over 98% repayment rates. This was confirmed when we spoke with other missionaries in Uganda that had great success with microloan repayments. The repayments go toward funding additional loans.

Successful business owners result in families that can afford to buy food and clothing for their family and the ability to send their children to school to improve their future. Successful businesses also help to strengthen communities, which helps local organizations prosper. These organizations can help to solve issues that their community is facing in culturally relevant ways. Solving issues in Uganda will begin at the grassroots level and takes all pieces of the puzzle and we are excited to find ways we can help deliver pieces of this puzzle.