San Francisco, CA (PRWEB) March 18, 2010
Unitedprosperity.org reached another major milestone by providing US$100,000 in loans to 500 dynamic entrepreneurs living in extreme poverty. These entrepreneurs and their families are typically living on $2 a day and have one vision- to grow their businesses and thereby improve their lives. With an average funding of $200 per entrepreneur, these 500 funded entrepreneurs used these ‘microloans’ for a variety of initiatives ranging from buying cattle for milk, buying sewing machines for stitching clothes for their village folks, building product inventory in their small shops to buying raw materials for their small businesses.
Betterment of Impoverished Entrepreneurs
One such recent example is of Sunita Devi who supports her family by stitching clothes, as her husband is no longer alive. She applied for a microloan to rent space and purchase a sewing machine. She hoped to increase her income and meet the growing needs of her children. Through UnitedProsperity, 15 ‘guarantors’ from different countries provided $96 in guarantee, so that Sunita Devi could get a $175 loan, with which she bought two sewing machines and she now employs two people to handle her growing customer base. Not only has her income increased but she is also able to save some money. Although they have never met, Sunita Devi and the 15 persons from different countries who contributed to her loan guarantee became business partners.
Microlending is a means for private online individuals to pool their funds, often about $25 each, in order to make microloans to people like Sunita Devi. The 500 entrepreneurs would not have been able to realize their dreams and improve their lives without the individual guarantors who came to UnitedProsperity’s website to guarantee loans.
Unique and Differentiated Business Model
UnitedProsperity has a unique and much differentiated business model than other micro-financing websites. It impacts extreme poverty by generating nearly $2 or more in microloan for every $1 it receives as microloan guarantee from individuals on its website. For $1 received as a guarantee through UnitedProsperity, a partner bank typically releases nearly $2 in microloans to the poorest entrepreneurs through a partner Microfinance institution (MFI). Once the entire loan is repaid to the bank, UnitedProsperity’s guarantee to the bank is released. UnitedProsperity returns the money to the individual guarantor who can choose to recycle it to support other poor entrepreneurs. A key differentiator of its business model is its ability to make the local economy self-sufficient by creating relationships between local banks and MFIs thereby providing access to capital to meet the critical needs of poor entrepreneurs. For example, Ajiwika, an MFI in India has become very successful in generating additional loans from other local banks due to the involvement and support from UnitedProsperity.
UnitedProsperity is an Internet-centric non-profit social enterprise that contributes towards the eradication of extreme global poverty. UnitedProsperity’s mission is to end extreme poverty in the world by empowering individuals to provide a compassionate and impactful microloan guarantee that multiplies into a bigger loan for poor families. These microloans help poor entrepreneurs, mostly women, grow their small businesses, better their lives and provide a vehicle for them and their communities to come out of poverty with dignity.
UnitedProsperity.org is a 501(c)(3) non-profit, charitable organization registered in the State of California, USA. Federal Tax ID #26-2417418. For more details please visit http://www.unitedprosperity.org.