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WORLD ALLIANCE OF CITIES AGAINST POVERTY
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WOMEN’S ENTERPRISE: PROVIDING BUSINESS TRAINING AND ACCESS TO MICRO-CREDITA CASE FROM THE NORTH: NORWICH, ENGLAND
Norwich, a city of 170,000 inhabitants, is a member of the World Alliance of Cities Against Poverty. Although it is apparently a prosperous city, one third of its citizens live below acceptable levels of income. In 1995, the Norwich City Council elaborated a new anti-poverty strategy. One of the actions that was initiated as part of this strategy is a micro-credit programme for women, “The Full Circle,” which began in March 1998. Women’s Full Circle a) The IdeaFull Circle is a micro-credit for enterprise programme based on the idea that micro-enterprise can be a route to self-employment, but that one must remove the hurdles normally faced by low-income women who want to start their own business: problems in access to credit and lack of ongoing support. It is designed to be a lender of last resort for women who do not have access to commercial credit. The Programme not only provides them with access to loans, but also with training in business skills, peer group support, and additional help in starting a business and making the transition to self-employment. b) The PartnersFull Circle was conceived by an independent voluntary organisation called “Women’s Employment Enterprise and Training Unit (WEETU)”. WEETU was founded in 1987, with the support of the City Council,
by a group of women concerned about the lack of guidance available
for women returning to the labour market. From 1987 to 1997, the City
Council was the main core funder of WEETU. This new project has been publicised through community groups and by the City’s anti-poverty advisors in order to reach the beneficiaries. c) The Beneficiaries“Full Circle” was established to support women with low individual incomes. Participants may be unemployed or unwaged, beneficiaries of state welfare, or working part-time or in a low-paid job.
d) The TrainingThe training phase of the programme consists of four stages:
The length of this initial training phase is 15-16 weeks. Participants can join at any stage. Those who feel that their business plan is well-defined may join at the fourth stage only, as long as they are accepted by a borrowing circle. Two field workers, called “enterprise development officers”, will train and support the participants throughout the programme. e) The SupportAdditional support is given to women in making the transition to enterprise. Financing for partial childcare or dependent care (up to 15 hours per week) and transport is provided by WEETU during the training and the first year in business. WEETU also is trying to negotiate a welfare benefits waiver so that participants can claim benefits during their first year in business. f) The LoansEach borrowing circle decides, as a group, which member is ready to apply for a loan first. That member must have made several repayments before the next one can have her loan. Moreover, the group is liable for any individual member’s inability to repay the loan, and access to new loans for members of the group will be frozen until defaults are cleared. Each member pays 5% of her loan into an emergency fund to be used if the group requires it. This will establish a solid basis for mutual support and trust. The first loans average £500 (835 US$) and when they are repaid, the participants may step up to larger loans with a ceiling of £2000 (3200 US$). It is assumed that when participants are borrowing larger amounts, they will have built up a credit history and will be eligible for loans from mainstream banks. g) Funding and ResourcesThe loans are not taken from WEETU’s budget, but from a Loan Fund established as a separate entity, with its own board of trustees which gives the final approval for loans. In general, however, it will accept the recommendations of the borrowing circles. The Loan Fund consists of donations by private foundations as well as the City Council. Office and training space, as well as access to computers for participants are provided by WEETU. WEETU also pays the wages of the two “Enterprise development officers”. Eventually, specialists from the business sector could be brought in on a voluntary basis for specific training modules. h) Expected OutcomesWEETU plans to train 45 women during the first year and expects that 30 of them will go on to start businesses. Participants who become eligible for commercial loans will be encouraged to continue meeting with their peer group and be an inspiration for others. WEETU plans to gradually withdraw from the peer groups when they are strong enough to continue meeting on their own. The groups will be encouraged to continue meeting even when they stop borrowing from Full Circle. Certificates will be given to all participants so that their additional qualifications can be recognised, and women who choose to leave the programme for any reason will receive support in identifying alternative routes to economic independence for themselves. This is called the “no failures rule” of Full Circle. Women who start businesses will become independent and self-employed, and this project will contribute to overall community development through the introduction of capital to low-income areas, the development of community based trading links, and the establishment of local business networks.
For more information, please contact: Mrs. Chris Polpewlmell Mrs. Erika Watson
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