New Business Start-ups

In the UK some 25000 new businesses are registered for VAT each year.  Some estimates suggest up to half of these will fail within 3 years.

In Malawi, the Microloan Foundation aims to provide 15000 loans in 2008, of which 95% will be repaid in full.

Malawi's population is about 1/5 of that of the UK and it is one of the poorest countries in the world.  Direct comparisons between the 2 countries is difficult due to the totally different economic structures.  What is clear, however, is that microfinance for small new businesses is now a proven strategy to help the poorest achieve their own development.

The Microloan Foundation was itself a start-up charity founded by one man in 1998.  He quickly built a team of volunteers to enable practical action in Malawi before allowing any overheads in the UK. The strategy has been so successful that the Microloan Foundation has now set the following targets to achieve by end 2008:

• Be making 15000 loans a year
• To have expanded to 15 offices in Malawi
• To have started operating in Zambia
• To be graduating clients to commercial credit arrangements
• To be encouraging them to trade up to higher value businesses

That, of course, needs MONEY!!

1. See for yourself at www.microloanfoundation.org.uk
2. Then, help me to help them.  I am doing a sponsored walk on Sunday 23rd September along the Regents Canal. Please contribute at:

www.justgiving.com/stephenorr1

Next month I hope to give you details of a new service I am preparing for web business start-ups in the UK.

Talk to you then

Stephen Orr