Microcredit is a socioeconomic process aimed at facilitating entrepreneurship
among the poor through small loans and other business and socio-
political support systems.
It assumes at the outset that:
The poor are no less capable than the affluent in developing a
business, except that they lack finances and therefore access to
commercial bank financing. Microcredit is therefore a loan program
offering small loans to those who do not have access to bank credit.
At the same time, the support structures, such as the chamber of
commerce, available to established businesses, is absent among small
start-ups, and therefore a holistic Microcredit program aims at
providing support such as training, marketing and business acumen.
One may ask how the loan program survives without a system of financial
1. Microcredit operates on the virtue of trust: we believe that
by trusting each other, people often prove to be trustworthy.
2. To facilitate trust and social responsibility:
a. loan seekers join other loan seekers in a peer group to support
each other's business, share business ideas, and knowledge.
b. The peer group develops an intimate relationship of trust and
accountability with the microcredit program.
c. The peer-group serves as a form of social collateral, meaning
that when a member is unable to make a payment, they would support
the member in whatever way necessary to ensure payment.
Someone once said that we are out of our minds to trust people in
this fashion. Yes, we are glad to be out of our minds. For it does
take a total transformation of our minds to facilitate a more caring
society. In fact, repayment rates under such circumstances are greater
than in commercial banks.
Our first loan group is: Vamp, Willie and Joe, who have taught
us as much as we taught them
It truly takes a village to rear an entrepreneur, and I would like
to thank and pay tribute to those students who have facilitated
the progress of CHOMI thus far: Gary Westberry, Avantika Hari, Nsaa-iya
Kihunrw; Nomalanga Grootboom, Cynthia Nicholson and Jason Lambert