RVB ENTREPRENEURS With microfinance, help promote economic ventures in the slums and remote, undeveloped regions. ENTREPRENEURS CMJN With microcredit, savings, and training, Entrepreneurs du Monde helps thousands of underprivileged men and women in developing countries to establish their own income-generating activity. 29, rue Ladmirault – F-86000 Poitiers - Tel. : +33 5.49.60.68.50 - Fax : +33 5.49.60.89.01 Internet : www.entrepreneursdumonde.org - Mail : [email protected] RVB ENTREPRENEURS 2 “Granting loans to the poorest people provides them with an opportunityENTREPRENEURS to CMJN develop an economic activity, which helps them recognise their own ability to generate income, shows them that success is possible, and puts them on the path to economic, social, and human development.” RVB ENTREPRENEURS 3 ENTREPRENEURS CMJN Entrepreneurs du Monde (“Entrepreneurs of the World”) is a French-based international solidarity organisation created in 1998. We intercede in developing countries to enable the poorest families to develop a small economic venture by giving them access to loans and savings. Our directors and administrators, as well as most of our employees, come from the world of business and call upon efficient, durable methods that are indispensible to the success of development programmes. The Situation In the slums of developing countries, the poor have few opportunities to develop an economic venture. Excluded from the traditional banking system, they resort to loan sharks whose interest rates frequently exceed 20% per month. What’s more, often with little education, the poor cannot find employment in the formal sector and they lack self-confidence. However, they are all driven by a profound determination to take action in order to improve their daily lives. They can open a store or start up a fishmonger’s business or dressmaking workshop overnight if a loan provides them with the means to do so. More than 96% of them will pay it back. Our Initiative In this context, Entrepreneurs du Monde both establishes and supports loans, savings, and training programmes that place the poor in a stable development process by offering them: . loans for developing an income-generating venture, . savings to cope with the unexpected and insure projects for the long-term, . training to encourage self-sufficiency, . individualised follow-up to ensure the initiative has a positive impact on the whole family. In order to reach the greatest number of families among the poorest, and to ensure the economic and social impact of our programmes, Entrepreneurs du Monde continually adapts its methodology: we try out new approaches, such as mutualist systems, and actively participate in sharing experiences with other operators. Our Results 11 years of operation 14 local partners in 9 countries 49,400 entrepreneurs supported in 2008 A budget for 2008 of 1.3 million euros with 11% for operating costs RVB ENTREPRENEURS 4 ENTREPRENEURS CMJN Popularised by Mohamad Yunus, the founder of the Grameen Bank and recipient of the 2006 Nobel Peace Prize, microcredit now reaches out to more than 130 million families around the globe. Today, thousands of people with increasingly diverse backgrounds take part in this sector: private investors, banks, governmental agencies, microfinance institutions, cooperatives, NGOs, traditional banking systems, moneylenders... They support populations that are becoming increasingly heterogeneous: small loans minimal collateral Peasants, Families living in the slums, Shop-owners, Craftsmen, Employees, Civil servants, Professionals, Small businesses.... large loans significant collateral Entrepreneurs du Monde aims to develop and support loans and savings programmes that demonstrate the following four elements: . In urban areas, establishment in the heart of the slums in order to ensure proximity to the beneficiaries The branches are established in the slums, from which the personnel is likewise recruited and trained. Committees of beneficiaries participate in initiative decisions. Continuous adjustment of methods and products in order to reach the poorest Each loan application is studied on a case by case basis and the loan repayment and savings instalments to be put away are adapted to the means of the family. The borrower commits to an individual, rather than collective, responsibility. Adoption of a complete approach, with the loan as a starting point Numerous services are offered in order to improve the living conditions of the beneficiaries: the opening of savings accounts, training in income-generating activities, management assistance, vocational counselling for youth… . Provision for project sustainability within 5 to 6 years - creation of a solid and competent local team - organisation of a legal entity - progressive self-financing of the loans activity - search for local grants to subsidise the non-financial services Furthermore, Entrepreneurs du Monde seeks to diversify its sources of financing and to get our name and efforts known to the general public. RVB ENTREPRENEURS 5 ENTREPRENEURS CMJN The Beneficiaries Whether they are banana-sellers, grocers, sari-makers, or peasants, the beneficiaries of our programmes receive various services that allow them to gradually improve their living conditions and to take charge of their and their children’s futures. The average loan is 138 €, lent for a term of approximately 5 months. The rate of repayment is greater than 97%. During the loan period, a family typically manages to save between 20 € and 30 €: it is often their first savings. The Areas of Intervention Whether in an urban locale (Manila, Accra, Kolkata, Port-au-Prince, ....) or in a rural region (Myanmar, Vietnam and Burkina Faso), the intervention zones are very poor. The average daily income varies from 1€ to 3 € by country. The environment is characterised by dense population and precarious sanitary conditions in the cities, and, in the countryside, isolation, uncertainty, and lack of local markets in the countryside. Entrepreneurs du Monde intercedes on a fnancial and operational level in the Philippines, Vietnam, Cambodia, India, Benin, Ghana, Burkina Faso and Haiti, and on a technical level in Myanmar. Information for 2008 Aside from intensifying our work in countries in which we are currently active, Entrepreneurs du Monde is focusing on two specific areas for development in 2009: Southeast Asia and West Africa. Surveys are currently being conducted in Togo. HAITI 6,200 entrepreneurs INDIA VIETNAM 4,600 entrepreneurs 1,200 entrepreneurs BURKINA faso Technical consultation MYANMAR Technical consultation GHANA CAMBODIA THE PHILIPPINES 5,000 entrepreneurs 6,600 entrepreneurs 14,800 entrepreneurs BENIN 11,000 entrepreneurs RVB ENTREPRENEURS 6 ENTREPRENEURS CMJN Organisation of our programmes Branches are established in the poorest neighbourhoods, where residents have no means to develop an economic venture. The branches are directed by a manager who supervises 2 to 4 agents. Their mission is to identify families, evaluate their needs, grant loans, collect repayments and savings deposits, offer advice, etc. Each branch must become self-sufficient after 2 to 3 years of activity. The management of loans and savings data is computerised , either within the branch itself or in a centralised location, depending upon the local methodology. Non-financial services (training, follow-up...) are usually supervised by a specialised team that works in several different branches. It takes between 5 and 7 years to ensure the structural and financial sustainability of a programme, depending on the country and the services offered. Profit generated by the interest received on loans is used to cover local operating expenses. Central Office: Branch 1 Administrative Allocation of loans, collection, training, follow-up and financial management Branch 2 Allocation of loans, collection, training, follow-up Branch N Allocation of loans, collection, training, follow-up Training Training is one of the mainstays of development. Many families are illiterate or not formally educated. Basic training (self-confidence, arithmetic…) is therefore provided alongside professional training (management, trade training…) and community training (aimed at improving sanitation, as well as the family and social environments). Some examples: - calculation of profits (for example, that revenue earned does not equal profit) and how to save 30-50 euro cents per day... - skills training: learning how to cook a recipe, vulcanise a tyre, sew a bag... - answering questions about children’s education, their place in the family, - raising awareness to hygiene, endemic diseases, etc. Individualised monitoring The team’s first step is to do a financial assessment of the family in order to help the family determine its needs (loan, training…). When the family becomes a member of the branch, the team makes regular follow- up visits: encouraging the family, following its progress, and providing counselling on management of the economic venture, the children’s education, the family environment, etc. RVB ENTREPRENEURS 7 ENTREPRENEURS CMJN Sources of financing 41 % The development of Entrepreneurs du Monde’s projects is linked to the collection of private funds (individuals, businesses and foundations) and public funding (in particular, 29 % the French Ministry of Foreign Affairs supports 27 % our activities by means of governmental co- financing). In 2008, we collected 1,293,150 €, provided by five different kinds of donors (see breakdown opposite). 2 %