Life-long independence that begins with a simple loan

In the developing world, 1.4 billion people live on less than £4 a day. While such poverty is widespread, the reasons behind it remain varied. There is no ‘one-size-fits-all’ solution, and men and women in different communities may need to learn very different skills to earn an income to support their families. That’s why each time Plan sets up a livelihood training and microfinance scheme, we research the crucial gaps in the market that local people can then exploit to their own advantage.

After this is completed, we help to train people in the practical and financial skills they need to set up their chosen business, and establish a microfinance system that provides them with low interest loans. For example, with a loan of £25, a woman can buy a sewing machine and clothing material to make clothes to sell at the local market. Other occupations might include farming or IT. We also forge links with nearby businesses like hotels, cafés and restaurants who need permanent staff.

With enough initial funding, a single livelihood training and microfinance scheme can enable hundreds of parents to earn and save money – and to invest their profits in their children’s future.

We like to support women in particular, as they are more likely to share their income with their families, friends and neighbours.

Helping people to earn their way out of poverty

£13,500 could provide an ongoing credit fund providing equipment and training to 28 women in El Salvador.

£50,000 could help a credit provider to make small loans and provide business training for some of the poorest people living in Bangladesh. They can establish their own businesses and earn the income required to support their families.

£100,000 could provide 1,200 women in rural China with loans to increase and stimulate economic activity and independence.