Economic Empowerment
More than 700 million people worldwide are living on less than $1.90 a day. When you’re that far behind, it’s hard to get ahead. That’s why we facilitate savings groups, improve market development, and provide access to microfinance, helping to break the cycle of poverty. Read the latest Economic Empowerment Newsletter.
Gertrude shares her story about how savings groups and health groups through the USAID-funded ENSURE program helped change her destiny by empowering her to lead change in her community and provide for her family.
At 18, Jose Luis left his home and family to seek a brighter future elsewhere. Now he’s built a brighter future for himself, his community, and his son back in Honduras.
When you give the gift of a goat through World Vision’s Gift Catalog, you’re helping to provide a sustainable source of income for families around the world. The small, but hearty animals basically take care of themselves, reproduce quickly, and seldom get sick.
577,458
people participated in Savings for Transformation groups, 78% women.
Thanks to the support of World Vision donors around the world in 2016-2017.
265,613
clients accessed credit, over two-thirds were women.
Thanks to the support of World Vision donors around the world in 2017.
Our Economic Empowerment Approach
Where does economic development fit in the timeline of World Vision’s community work?
When we first partner with a community, we work to address the basic needs — like food, water, healthcare, and education. Then we can address more complex community needs, such as skill training, community-managed savings and loan groups, and microfinance to fuel the local economy.
We train those in need to grow their business, improve farming methods, and work together to form cooperatives. This helps parents become better providers for their children. And those children grow up better nourished, better educated, and better equipped to break the cycle of poverty.
What does economic development mean in the communities where you work?
We help communities solve economic problems by investing in their entrepreneurial spirit through microfinance, savings groups, and market/value chain development.
- Microfinance provides individuals and groups with the opportunity to take out small loans to enable them to start or grow a business. These loans are $582 on average and are repaid at a rate of 95.5 percent. World Vision donors provide the capital for the loans, which are managed and dispersed through VisionFund International, a World Vision subsidiary. Once the loans are repaid, they are recycled back into the community.
- Through savings groups, we train community members to save money on a regular basis. These groups of 15 to 25 members meet weekly to put money into a joint savings account, and they can take turns borrowing money.
- Instead of farming just to feed their families, many subsistence farmers want to do more. They want to meet the demand for crops, livestock, or products in bigger and more distant markets. We train farmers to form producer groups, select suitable products, improve the value of their products, and negotiate for better prices.
How does World Vision work to break the poverty cycle in poor communities?
Breaking the poverty cycle is a complex, multi-sectoral process that varies greatly from country to country and community to community. However, a child’s parents have the greatest influence on their child’s economic well-being (EWB). Our strategy focuses on raising the EWB of individual households, helping to break the poverty cycle within that family and, consequently, the greater community.
Microfinance, savings groups, and market/value chain development are three ways World Vision empowers individuals to start their own businesses, learn savings habits, and improve their farming, which enables them to provide for their families. We also work with individuals to train them in business operation, gardening, and agriculture.
While breaking the poverty cycle does not rely entirely on families improving their EWB, the encouragement a family receives from having their own business and being self-sustaining is instrumental to transforming the lives of their children, other families in their community, and the community as a whole.
What are microloans?
Microloans involve lending small amounts of money, usually less than $500, to small business owners or farmers, especially women. These loans are designed to increase business incomes while being affordable for borrowers. When you donate a microloan through World Vision, that loan is managed and dispersed through World Vision’s microfinance arm, VisionFund. Microfinance is the provision of financial services, such as microloans, to low-income individuals or to those who do not have access to typical banking services. When a microloan is repaid, the funds are recycled to other borrowers.
How does microfinance work?
- Hardworking entrepreneurs, typically women with no credit history or collateral, apply for small loans to start or grow a business.
- The loan is managed and dispersed through World Vision’s microfinance subsidiary, VisionFund International.
- The entrepreneur makes payments on the loan until it is repaid.
- The repaid loan money recycles back into the community, funding more loans.
- As the entrepreneur’s business grows, they are able to buy more food, medical care, clothing, and more — things that improve the well-being of their children and help grow their community’s economy.
Economic Empowerment Resources
Market Systems Development Toolkit (PDF)
This toolkit provides practical guidelines for how to apply a more systemic lens to livelihood, economic, and private sector development programs.
Selection, Planning, and Management of Income Generating Activities (PDF)
This manual empowers semi-literate VS&L clients to choose, plan, and manage their economic activities.
More than 700 million people worldwide are living on less than $1.90 a day. When you’re that far behind, it’s hard to get ahead. That’s why we facilitate savings groups, improve market development, and provide access to microfinance, helping to break the cycle of poverty. Read the latest Economic Empowerment Newsletter.
Women’s empowerment helps creates a world where women and girls have equal rights to engage in society, education, politics, and the economy. Here are seven ways we can promote women’s equality around the world and close to home.
Oana, a mother of four in Romania, now has hope after World Vision empowered her to increase her family’s income through agriculture.
NOV. 1, 2016, ZAMBIA — Just a few years ago, Rosemary’s family was stuck in poverty — both physical poverty and poverty of the mind. Then a gift of goats changed everything.
577,458
people participated in Savings for Transformation groups, 78% women.
Thanks to the support of World Vision donors around the world in 2016-2017.
265,613
clients accessed credit, over two-thirds were women.
Thanks to the support of World Vision donors around the world in 2017.
Our Economic Empowerment Approach
Where does economic development fit in the timeline of World Vision’s community work?
When we first partner with a community, we work to address the basic needs — like food, water, healthcare, and education. Then we can address more complex community needs, such as skill training, community-managed savings and loan groups, and microfinance to fuel the local economy.
We train those in need to grow their business, improve farming methods, and work together to form cooperatives. This helps parents become better providers for their children. And those children grow up better nourished, better educated, and better equipped to break the cycle of poverty.
What does economic development mean in the communities where you work?
We help communities solve economic problems by investing in their entrepreneurial spirit through microfinance, savings groups, and market/value chain development.
- Microfinance provides individuals and groups with the opportunity to take out small loans to enable them to start or grow a business. These loans are $582 on average and are repaid at a rate of 95.5 percent. World Vision donors provide the capital for the loans, which are managed and dispersed through VisionFund International, a World Vision subsidiary. Once the loans are repaid, they are recycled back into the community.
- Through savings groups, we train community members to save money on a regular basis. These groups of 15 to 25 members meet weekly to put money into a joint savings account, and they can take turns borrowing money.
- Instead of farming just to feed their families, many subsistence farmers want to do more. They want to meet the demand for crops, livestock, or products in bigger and more distant markets. We train farmers to form producer groups, select suitable products, improve the value of their products, and negotiate for better prices.
How does World Vision work to break the poverty cycle in poor communities?
Breaking the poverty cycle is a complex, multi-sectoral process that varies greatly from country to country and community to community. However, a child’s parents have the greatest influence on their child’s economic well-being (EWB). Our strategy focuses on raising the EWB of individual households, helping to break the poverty cycle within that family and, consequently, the greater community.
Microfinance, savings groups, and market/value chain development are three ways World Vision empowers individuals to start their own businesses, learn savings habits, and improve their farming, which enables them to provide for their families. We also work with individuals to train them in business operation, gardening, and agriculture.
While breaking the poverty cycle does not rely entirely on families improving their EWB, the encouragement a family receives from having their own business and being self-sustaining is instrumental to transforming the lives of their children, other families in their community, and the community as a whole.
How does microfinance work?
- Hardworking entrepreneurs, typically women with no credit history or collateral, apply for small loans to start or grow a business.
- Donors choose an entrepreneur to fund.
- The loan is managed and dispersed through World Vision’s microfinance subsidiary, VisionFund International.
- The entrepreneur makes payments on the loan until it is repaid.
- The repaid loan money recycles back into the community, funding more loans.
- As the entrepreneur’s business grows, they are able to buy more food, medical care, clothing, and more — things that improve the well-being of their children and help grow their community’s economy.
Economic Empowerment Resources
Selection, Planning, and Management of Income Generating Activities (PDF)
This manual empowers semi-literate VS&L clients to choose, plan, and manage their economic activities.
Our Village Agent Guide provides NGO staff with clear and specific guidance on selecting, training and linking entrepreneurial village farmers to private sector suppliers and buyers to increase market access for very rural communities.
MICROLOANS CHANGE COMMUNITIES
YOUR GIFT
becomes a loan
ENTREPRENEUR
receives a loan and training
BUSINESS GROWS
and jobs are created
LIVES IMPROVED
kids in school, access to healthcare, better food, and a bright future
LOAN REPAID
money is recycled to another person in the community
Ways to Give to Economic Empowerment
Support economic empowerment: $30+
In the poorest places of the world, many hardworking parents lack the resources and opportunities they need to improve their children’s lives and break free from the cycle of poverty. Your gift will equip people with the tools and opportunities they need to empower their own futures – and pass those skills along to the next generation.
Monthly giving is the most effective way to help children and families who need it most. It lowers costs, which means more of your gift helps kids!
Provide a small business loan for a woman: $120+
Thanks to micro loans from friends like you, women who once lived on the edge of survival now own successful small businesses: running grocery stores, sewing, creating handcrafts, and more. They’re making money to feed, clothe, and educate their children. And as loans are repaid, your gift keeps giving loans for other women.
Ways to Give to Economic Empowerment
Support economic empowerment: $30+
In the poorest places of the world, many hardworking parents lack the resources and opportunities they need to improve their children’s lives and break free from the cycle of poverty. Your gift will equip people with the tools and opportunities they need to empower their own futures – and pass those skills along to the next generation.
Monthly giving is the most effective way to help children and families who need it most. It lowers costs, which means more of your gift helps kids!
Provide a small business loan for a woman: $120+
Thanks to micro loans from friends like you, women who once lived on the edge of survival now own successful small businesses: running grocery stores, sewing, creating handcrafts, and more. They’re making money to feed, clothe, and educate their children. And as loans are repaid, your gift keeps giving loans for other women.
Ways to Give to Economic Empowerment
Support economic empowerment: $30+
In the poorest places of the world, many hardworking parents lack the resources and opportunities they need to improve their children’s lives and break free from the cycle of poverty. Your gift will equip people with the tools and opportunities they need to empower their own futures – and pass those skills along to the next generation.
Monthly giving is the most effective way to help children and families who need it most. It lowers costs, which means more of your gift helps kids!
Provide a small business loan for a woman: $120+
Thanks to micro loans from friends like you, women who once lived on the edge of survival now own successful small businesses: running grocery stores, sewing, creating handcrafts, and more. They’re making money to feed, clothe, and educate their children. And as loans are repaid, your gift keeps giving loans for other women.
Ways to Give to Economic Empowerment
Support economic empowerment: $30+
In the poorest places of the world, many hardworking parents lack the resources and opportunities they need to improve their children’s lives and break free from the cycle of poverty. Your gift will equip people with the tools and opportunities they need to empower their own futures – and pass those skills along to the next generation.
Monthly giving is the most effective way to help children and families who need it most. It lowers costs, which means more of your gift helps kids!
Provide a small business loan for a woman: $120+
Thanks to micro loans from friends like you, women who once lived on the edge of survival now own successful small businesses: running grocery stores, sewing, creating handcrafts, and more. They’re making money to feed, clothe, and educate their children. And as loans are repaid, your gift keeps giving loans for other women.
Together, we work to help communities develop the perfect recipe for sustainable success.
Choose one and see how our work gets done.
Health
Poverty in America
Economic Empowerment
Clean Water
Education
Christian Faith
Gender Equality
Disability Inclusion
Refugees & Fragile States
Child Sponsorship