For some it might just be the amount of a new pair of shoes which equivalently can be the basis for others to live a better life. To improve the life of a single individual but also of a family a small amount is often enough. 24 out of 32 small businesses which participated in our program in cooperation with our partner “Gema Alam” have expanded their business, widened their product range and significantly increased their income on par with their overall standard of living.
All participants are from the east of Lombok, an island of Indonesia with more than 3 million citizens. While Lombok is known for its scenic beaches and picturesque nature it is also prone to poverty and earthquakes. Many people in Indonesia rather live for the day than thinking about the future. As an effect of this common lifestyle many Indonesians accumulate a lot of debt and can´t handle their problem with money and can´t pay back their loan. It isn´t unusual for lenders to charge sky-high interests for a loan.
Global Micro Initiative and our partner “Gema Alam” have a different approach with our microloans. The participants of our program obtain the ability to manage their finances, save money rather than spending, develop strategies for their businesses and analyse the market e.g. offering a wider product range that increases their sales. Creating a network with other participants is also a part of our approach with giving microloans. Participants can help each other and motivate themselves with this network. Our long period to redeem a microloan makes sure that participants aren´t trapped in a vicious debt cycle.
Employees of “Gema Alam” have conducted a research to find out about how effective our village development program is for the people of Lombok. 30 out of 32 small business which participated in our program were able to expand their businesses with the help of a microloan. Some shops are now able to offer a wider product range, some were able to expand the size of their premises and some were able to increase their production. On average the income of all participants increased by 42 %. Some participants even doubled their income. Our 2-day workshop “Accounting and planning” even helped the ones who before suffered by stagnating business.
It is important for Global Micro Initiative to give people more than just lending them money. We want to teach them new things and be more successful with their businesses. We hope that our program will be successful in the future and that your contribution as donations gives more people the opportunity to change their life to a better one. A microloan of Global Micro Initiative should give participants a fundament on which they can aim to build a more self-determined and independent life and have a sustainable source of income for the future.
Translation by P. Mustafa