That second chance that makes all the difference

That second chance that makes all the difference

After years in a difficult marriage, Loveness Nkhoma found herself divorced, back at home, and unsure how to support herself and her three children. Canaan Gondwe, the local SIA Small Business Fund (SBF) coordinator in Manyamula Village, Malawi, recruited her to join the SBF program and start a new business. She quickly grasped the new business concepts and was a big help encouraging the other business leaders in her cohort.

In April 2015, Loveness received her $100 grant and opened a small shop in the village. She ordered vegetables, tomatoes, and other wholesale goods in bulk and then repackaged them into smaller quantities.

Loveness with her repackaged goods for sale.

It’s been two years and the business continues to provide all the basic needs for the family of four! Loveness has saved $69 and reinvested almost $200 back into the shop. She is able to pay school fees for her sons Adam (4th grade) and Raphael (5th grade) and has enough food for her 4-year-old daughter. The demand for their goods has been higher than expected! Loveness bought three goats with the profit. The goats will give milk and manure, in addition to meat.

When Canaan went to visit Loveness and check on her business, she was quick to say that she is happy with her progress and is thankful to SIA for giving her a chance. She is positive about her future and she feels secured and stable, a big change from how she felt right after her divorce!

Loveness with the three goats she bought with her SBF grocery profits.

Spelling “SIA” to Raise Money for Small Businesses!

Thank you to Joshua Brooks for running a half-marathon last weekend to raise money for the SIA Small Business Fund! He spelled S-I-A as he ran and raised $720, enough for almost five new small businesses. Check out his route here (or by clicking on the runner below). Then click the arrow play button on the bottom of the map to see his spelling in action! Thank you to all who contributed to the campaign!

Entrepreneurs in Nairobi: “We feel resurrected”

Entrepreneurs in Nairobi: “We feel resurrected”

These men and women, chosen to receive SIA Small Business Fund grants, are living in the rough conditions in the informal settlements around Nairobi. They and their families are living without running water or adequate toilet facilities. Structures are made tin pieces and are packed together very closely. Rain turns dirt roads and floors into muddy messes.

And yet, with the chance to start her own business and to provide for her family, one of the new entrepreneurs in Nairobi said that she feels like she is ‘resurrected’ and ‘like other people’ now.

Here are more success stories from the latest Small Business Fund cohort in Korogocho, Nairobi:

  • Mutinda, selling shoes: He feels very confident because can provide food for his family. All his children can go to school and his family can even afford better medical care. Writing is a challenge for Mutinda, but his business skills are excellent!
  • Rebecca, cooking chapatti: She is now her own boss, leaving her old workplace where she also cooked chapatti. Initially, she was selling a few packets per day, but now she can sell in bundles (a big packet of twelve chapatti). Her children still go to school and eat well. She was also able to repair holes in the roof of her rented house. Before, she would be waiting forever for the owner to do it.

Phoebe explaining a point to other entrepreneurs

  • Nelly, making soaps: She was making five liters of soap at a time, and repacking it in smaller quantities to sell. Now, she makes 60 liters and has a much better market. Three people have benefitted from this business and she is able to take her son to a better school. She can afford medical care and is grateful to SIA.
  • Phoebe, selling fabric: She is so proud to be able to send her son to a boarding school out of Nairobi County! Five people benefitted from the business, but the best thing that ever happened to her is sending her son to boarding school just like ‘other people’!
  • Kezziah, selling vegetables: Her profit was more than predicted! Besides reinvesting 20% in the business, she is able to keep 10% for herself. She is able to pay school fees for all her children. She is especially proud that she can pay for her daughter to attend high school. Her family also eats better than before.

So far, SIA has supported 33 businesses in the Korogocho slum in Nairobi. Josephine, one of the SIA local mentors, plans to meet with all 33 groups and register themselves under the Deputy President’s program for women’s groups!

Improving life in the informal settlement (L to R): Dorcas (who helps with record-keeping), Kezziah, Mutinda, Phoebe and Josephine (local mentor).

How do their lives change?

How do their lives change?

Reposting this roundup of the ways peoples’ lives change after receiving a SIA Small Business Fund grant.

In [June 2015] I highlighted the 5 most common businesses that Small Business Fund (SBF) grant recipients typically start. The groups receive $150 and are mentored over the course of a year. This week I received a batch of final One-Year Reports from our two SBF local coordinators in Uganda. These are short reports that check in to see how each business is doing one year after receiving the grant. The report also asks how the lives of the groups members have improved and what they have used their profits to buy. The responses generally fall into one of five categories.

These are the five basic needs that families are empowered to meet after starting an SBF business:

SCHOOL FEES

Paying for school fees is by far the most common goal and use of SBF profits in Uganda. There is supposed to be free universal education in Uganda, but the public schools quickly fill their limited spaces and the families must pay for private schools. School fees for the average private school near Kasozi Village, Uganda are about $12 per term for each student (with 3 terms per year). This adds up quickly with many children and with the additional costs of uniforms and school supplies!

Yuba Robert and his extended family show us their pottery, including a clay savings box. They have been able to pay for school fees, build a house, and pay for another person to plow their fields. Godfrey Matovu, local SBF coordinator is seated on the right.

Yuba Robert (right, standing) and his extended family show us their pottery, including a clay savings box. They have been able to pay for school fees, build a house, and pay for another person to plow their fields. Godfrey Matovu, local SBF coordinator, is seated on the right. (Uganda)

MEDICINE

Ziba and his wife Annie started a furniture business this year. The profit will help cover their medical bills and to feed their 6 children. (Malawi)

Ziba and his wife Annie started a furniture business this year. The profit will help cover their medical bills and to feed their 6 children. (Malawi)

IMPROVED HOUSING

Before…

House with a thatched roof and dirt floor in Uganda.

House with a thatched roof and dirt floor in Uganda.

During…

A new house in progress. We visited this potter in Uganda and they are slowly building the house that will also be a storefront. Bricks for the project are piled in the front yard.

A new house in progress. We visited this potter in Uganda. They are slowly building the house that will also have a storefront for their pottery. Bricks for the project are piled in the front yard.

After!

Completed brick house with a tin roof in Malawi! Kondwani started a business in photography and also selling vegetables. The family now has a solar panel and wiring for lights in his house. They are waiting for the electrification project to reach their neighborhood.

Completed brick house with a tin roof in Malawi! Kondwani’s family has both a photography and a retail vegetable business. The family now has a solar panel and wiring for lights in their house. They are waiting for the electrification project to reach their neighborhood.

More stories about improved housing:

BETTER DIET

The diet in Uganda is mostly ugali (maize meal, like a dense polenta), rice, and some vegetables such as kale, collards, and tomatoes. Improved diets means having enough food to eat and also adding animal protein, like this chicken dish.

The diet in Uganda is mostly ugali (maize meal, like a dense polenta), rice, and some vegetables such as kale, collards, and tomatoes. Improved diets means having enough food to eat and also adding animal protein, like this chicken dish.

FURNITURE

A new table for the the Phiri family! Other families are able to buy beds and other simple, yet profound, dignities.

A new table for the the Phiri family! Other business groups have been able to buy beds and couches – simple, yet profound, dignities.

The booming renewable energy market in Uganda

The booming renewable energy market in Uganda

A briquette fuel making initiative, organized by the Ugandan grassroots organization LUWODEA, is creating hundreds of jobs in their community. They used a SIA grant to buy a briquette production machine, which takes plant waste and compresses it to form a highly efficient fuel source. LUWODEA also formed a women’s cooperative to work together and share profits! (Read more about the cooperative here.)

A trainer with LUWODEA meets with the women from the briquette cooperative.

So far the production is a great success! Mrs. Sharon, one of the group leaders, shared, “We are happy to report that the beneficiaries and other groups are now making their own briquettes to be sold at local markets and to hotels, restaurants, schools, and bakeries around Kamuli Township. In last few days of Christmas preparation, we were able to produce 1,300 briquettes. This is equivalent to 238 pounds of fuel.”

The briquettes can be made out of a variety of locally available waste materials like coffee husks, banana peals and charcoal-dust. Reusing these materials as fuel saves trees from being cut down. Additionally, the briquettes have a high heat content and burn for longer times, with less smoke, compared to wood fuel.

Growing Interest and Expanding Businesses

Looking around the village, LUWODEA is impressed with how many people have already started using and selling briquette fuel. “Currently, the local demand is not able to be met by the LUWODEA women, so we have been promoting and encouraging many other people in the surrounding communities to engage in briquette production as a potential business to help fight extreme poverty in homes.”

Mrs. Sharon reports that a Mr. Nelson, “had abandoned his firewood selling business after three weeks of successive losses. He had many obstacles in conducting his firewood business since most of his clients are resorting to buying briquettes from women working with LUWODEA.” Firewood can’t compare with the more affordable and more efficient briquettes!

The LUWODEA briquette radio show also inspired Moses to start his own business. This year, Moses hopes to be able to employ 10 youth to help with production. Moses writes, “Thank you Spirit in Action for not providing us with fish, but teaching us how to catch fish. I now feel self-empowered and am using realizing fully my potential to fight poverty in my home.”

A second chance for Sylvia

A second chance for Sylvia

It’s not easy being divorced in Malawi. Three years ago, Sylvia S.’s husband left her and ran off to South Africa, leaving her (now age 33) alone with her two daughters (ages 7 and 12). Sylvia had no visible source of income. Previously, Sylvia had relied on her husband for income. She spent her time caring for the children and their home. Suddenly, she was without her husband and without a job, and without money for even soap or food.

She didn’t have a lot, but Sylvia did have some experience as a hair dresser. It is the goal of the Small Business Fund to reach people like Sylvia. Our local coordinators recruit families who are well below the poverty line and who also have some skills that they will be able to leverage with the $150 grant. (Read more about how we choose business groups.)

New Beginnings

Sylvia used the first grant installment of $100 to rent a shop in the Manyamula market. She also bought things like hair weaves, shampoo, and other hair products that would appeal to her new customers. The Debbie and Nomsa Hair Salon (named after her daughters) was open for business!

Sylvia with a customer. She has a style chart and many options for extensions to braid into her customer’s hair.

Just three months later, the shop was so busy that Sylvia needed to hire an assistant to help with the hair braiding and styling services. She used some of her profit to buy a new hair dryer so that she could expand the services at her shop.

Sylvia is now earning her own income and is able to provide for her family. She has enough money for food and to send her two daughters to school.

In a letter from Canaan Gondwe, our local coordinator who recruited, trained, and is mentoring Sylvia, he reports that, “Sylvia is grateful to SIA for the transformation in her life, and most times you find her smiling.”

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