Introduction – Sponsor a Livelihood development or Small Business Activity
The Grassroots Economic Empowerment Fund, is a revolving fund that finances the activities and cash flows of struggling small businesses.
The fight against poverty should be understood as the action to create wealth by the poor and not just an issue of redistribution of wealth from the rich.
Access to capital is a huge challenge to most micro entrepreneurs as Banks and Financial institutions consider them insolvent – too risky, lacking bank collateral and transaction amounts too small to be worthy of their time. Hence, they are cut off from the mainstream financial systems and from the large pool of idle finances stock in some banks and waiting for well-established medium and large scale enterprises and the Government.
Providing access to finance and inclusion services for the poor, is an effective market and demand driven approach in addressing poverty issues. It discourages the culture of dependency and offers hope for a prosperous future based on hard work and self-reliant initiatives.
The funds are generated from open donations to avoid certain constraints put by some major donors that make it difficult for those in dire need of cash or capital, to have access to financing.
These are generally individuals without financial data and cannot afford bank collaterals or security.
This fund will empower these category of people to work their way out of chronic poverty, transform their lives, guarantee their children’s futures and improve on their communities.
This is by enhancing opportunities to create wealth, solve personal poverty related problems, provide employment, move the economy forward and solve the many poverty related problems in society.
The Funds are easily accessed through Group Members, who are encourage to put their savings together which serve as group collateral/guarantor or security to the loans applied for by their members.