Micro-what?!

Microfinance! (aka microloans, microcredit, micro-lending...)

Now I have you thoroughly confused, right? What am I talking about and why? What does it have to do with me, you, or Uganda? Good questions, all. I'll explain.

A friend recently gave me a book called "Banker to the Poor" by Mohammad Yunnus. The book tells the story of Yunnus, who came up with a simple but revolutionary solution to end world poverty - micro-credit. His solution to world poverty, founded on the belief that credit is a fundamental human right, is brilliantly simple: loan poor people money on terms that are suitable to them, teach them a few sound financial principles, and they will help themselves.

Making sense yet? Another way to put it is like this; when we hear the word "loan" in America, we thousands of dollars, right? Not so when you live in a 3rd world country. For someone living in a 3rd world country the capital needed to start or improve a business idea (that will create a sustainable income) may only be a matter of dollars (thus the term "micro"; if I'm not explaining it well, read more about it and the Grameen Bank )

Ok, now the connection (which makes me super excited!). Hope Live! also participates in creating opportunities through microcredit:

"Instead of giving money to caretakers, Hope Alive! provides opportunities for small businesses. Hope Alive! comes alongside family members and provides micro-finance loans. These small businesses allow the caretakers to develop a sustainable future for themselves and their families.

The goal is to enable families to become financially independent so they no longer need Hope Alive! to assist them. Instead the caretakers will have the joy and dignity of being able to provide for their own families. Micro-finance loans are also available to students who have completed vocational training."

As video-happy as I've been lately, of course I found a related one. The article and video are a bit lengthy but well worth your time and I hope you'll check them out: Uganda: A Little Goes A Long Way