Microfinance Program - "Launch Detroit"
Posted by Vivian Smith
LAUNCH DETROIT: At the height of the auto industry Detroit had a population of over a million. Then came the recession in the auto industry and now there is a population of 70,000.
The Rotarians in the Detroit area and parts of Ontario Canada did some "brainstorming" and decided that there had to be a way to begin restoring the area. John Louttit, the Past President of the Rotarian Action Group for Microfinance and Community Development, visited Yunis (Nobel prize winner) who started Micro Finance in Bangladesh and learned the model for this movement.
Rotarians in Detroit first advertised for applicants for the program and they had applications from 39 people and chose 13 for the first class.
These are the methods used : "The Four Legged Stool" 1) Each applicant had a mentor to learn successful business practices. 2) Net working 3) loan 4) loan. Each applicant must attend 8 classes - miss one and you are out. The must come up with their plan for a successful business. The loan is between $1,000.00 to $2,500.00. This must be paid back within 12 months at 5% interest.
So far the success rate has been 98%. The additional requirement is that they must build a business that will hire additional workers.
The entrepreneurs range from production of BBQ sauce, Pies, hairdressing, to name a few. The motto: "One entrepreneur at a time.
It raises the question of the need assessment in cities/ towns in the United States as well as third world countries.
The Rotarians in the Detroit area and parts of Ontario Canada did some "brainstorming" and decided that there had to be a way to begin restoring the area. John Louttit, the Past President of the Rotarian Action Group for Microfinance and Community Development, visited Yunis (Nobel prize winner) who started Micro Finance in Bangladesh and learned the model for this movement.
Rotarians in Detroit first advertised for applicants for the program and they had applications from 39 people and chose 13 for the first class.
These are the methods used : "The Four Legged Stool" 1) Each applicant had a mentor to learn successful business practices. 2) Net working 3) loan 4) loan. Each applicant must attend 8 classes - miss one and you are out. The must come up with their plan for a successful business. The loan is between $1,000.00 to $2,500.00. This must be paid back within 12 months at 5% interest.
So far the success rate has been 98%. The additional requirement is that they must build a business that will hire additional workers.
The entrepreneurs range from production of BBQ sauce, Pies, hairdressing, to name a few. The motto: "One entrepreneur at a time.
It raises the question of the need assessment in cities/ towns in the United States as well as third world countries.
*Rtn. Vivian heard this program and summarized it for us following her attendance at the Rotary International Convention in Sao Paolo.