Posts Tagged 'small businesss credit'

How Mastercard is Investing in Women Entrepreneurs in Developing Nations

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In Michelle Martin’s recent Forbes article, “How Mastercard Could Close A $300 Billion Credit Gap For Women Entrepreneurs,” she reports,

“As of 2017, 70% of women-owned MSMEs [micro, small and medium-sized enterprises] in the developing world lack access to adequate financing, representing a $300 billion credit gap each year.”

This major finance inequality stems from MSMEs not having access to a digital record of transactions or the resources required by banks to obtain credit. Because of these issues, women entrepreneurs, in places such as Nairobi Kenya, are not able to gain the capital needed to purchase inventory in order to expand their enterprises. Expanding a business is critical to the success of a business, and makes it possible for the entrepreneur to potentially achieve success on a global level.

Thanks to Mastercard, this $300 billion credit breach is about to change. The corporation is launching technology, through the Mastercard Center for Inclusive Growth, to aide women owned MSMEs in these countries. Martin explains,

“In partnership with Unilever, Mastercard recently launched the Jaza Duka program in Kenya, where they created a first-of-its-kind digital lending platform. The unique platform tracks how much Unilever product a store owner has purchased over time and combines that data with an analysis by Mastercard. The results are used to provide a micro-credit eligibility recommendation to Kenya Commercial Bank, who can then provide an interest-free credit line.”

The venture is already being met with success. In one instance, a Kenyan entrepreneur named Lucy Njoki, has been able to increase her sales at her shop by twenty-percent, thanks to the Jaza Duka program.

To read Martin’s full piece, and an interview she conducted with one of the executives of this Mastercard program, Shamina Singh, click here.

This support of global women entrepreneurs is the kind of change that we here at wegg™ are proud to watch. If you or a woman entrepreneur you know is trying to “go global,” we would love to help you, too.

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JOIN us for our morning wegg™ workshop on September 12th and hosted by Bank of America (135 S. LaSalle Street, 44th Floor).  Julie Smolyansky, President and CEO, Lifeway Foods, will present “Follow Your Gut,” covering:

  • How global factors influence company values and mission
  • Why we should empower women entrepreneurs around the world
  • How to channel inspiration from travel experiences into marketing initiatives

Tickets $40 ($20 for students); includes Continental Breakfast.  To learn more and to register, visit:  https://www.eventbrite.com/e/weggtm-workshop-follow-your-gut-presented-by-julie-smolyansky-tickets-48655708534
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Clues to the Rules for Credit

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Securing credit can be a headache for a small business owner, especially when she is trying to make her business global.  With payments lagging in a recessionary economy and exchange rates in constant flux, small business owners need to smooth out cash flow with credit lines and loans. For those eyeing opportunity, credit can also be the key to strategic expansion or repositioning in this changing economy.

Earlier this year, Digital Insight and Emergent Research held a roundtable on small business credit to identify just where small businesses could turn for credit.  The attendees concluded that credit unions and community banks are among the most committed to small business lending.  Yet, as the roundtable report indicates, the standards of those lenders are high, and lending depends on a solid financial story from those seeking loans.

So what makes your story stand out from all others?

At last week’s Intuit Town Hall Tweet Chat on Small Business Credit (#intuitth), experts in small business lending discussed this issue. The advice from the session maps a solid path for credit applicants and was consistent with the roundtable research.

To secure lines of credit or loans, you must first establish a personal relationship with your banker. Building confidence and commitment by investing in that relationship can make or break a deal.

Second, be armed with well-organized, comprehensive financial data.  Prepare more than you expect to need, just in case that extra question gets asked.

Lastly — and most important — know the story behind your numbers.  Be able to breathe life into your business plan, depict your customers in detail, show your industry expertise and be an authority on the region and culture in which you operate.

In a credit-tight market, your knowledge of your business and your market makes a difference in how one views your credit risk.   Tell your story to the lenders evaluating your loan request.  If you do not paint your own profile, the banks will do it for you…and they’ll do it without knowing who you and your business really are.

Posted by:  Carolyn Ockels


WEGG Mission

Our mission is to educate, inspire and nurture women business owners and entrepreneurs worldwide on how to go global so they can run healthier businesses and create a new future for themselves, their families and their community.


Women Entrepreneurs GROW Global is a 501(c)3 nonprofit organization. EIN/Tax ID #47-2956522.

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