Micro Enterprise • Village HopeCore International

Our Approach

The Micro Enterprise program is not strictly a microfinance delivery project, but rather a poverty reduction and economic development program working in the Maara Sub County, Tharaka Nithi County, Kenya. The department uses a multiplicity of vehicles to eradicate poverty, including the distribution of loans, implementation of small savings schemes, enhancement of clients’ productive assets, skills-based learning, business and enterprise education, and agricultural and livestock management advice.

Our Story

HopeCore's origins lay within the Micro Enterprise department, with the first group of 12 women funded in the year 2000. Since then, the team has funded 107 loan groups, each with 12 members. (As of February 2018).

Micro Enterprise Goal: Reduce poverty by supporting the creation of sustainable businesses and equipping local Kenyans to manage their enterprises

How Loaning Works

HopeCore’s Micro Enterprise program is divided into the 6 steps listed below. We always have groups waiting to receive Normal Loans who are going through the Merry-Go-Round and Soft-Loan processes.

Group Formation: 12 motivated and dedicated individuals form group
Merry-Go-Round: Each member of the group contributes a small amount of personal funds monthly.
“Soft Loan” Distribution: The group receives a 30,000 Kenya Shilling (approximately $300) loan to be repaid over 6 months at the 4.5% interest rate.
Distribution of “Normal Loans”: Once the group successfully repays their “soft loan”, they become eligible to receive “normal loans” of 30,000, 45,000, or 60,000 Kenya Shillings (approximately $300, $450, and $600) per member. These loans are repaid over 24 months at 9% interest.
Insuring Full Repayment. All members of the group pledge to pay the loans of all members of the group.
Support and Sustainability: The group collects payments, provides business advice, maintains accountability, lends support and keeps financial records.