Website World Partners Foundation - MICROFINANCE AND BUSINESS EXPANSION

MICROFINANCE AND BUSINESS EXPANSION

Location: Chisinau, Moldova Budget: $ 880,000 Background: Moldova, situated between Romania and the Ukraine, is the poorest country in Europe, with 80% of its population living below the poverty line. As a result of the extreme poverty and lack of opportunities in the country, many Moldovans leave the country to seek jobs abroad. Additionally, human trafficking is a growing business in Moldova, as people exploit those looking for opportunities out of their poverty. Invest-Credit has been working in Moldova since 1999, providing small loans to entrepreneurs who do not have access to funding. By providing these loans, Invest-Credit has the opportunity to introduce the concepts of ethical and sustainable business practices. By conducting training in local community centers, Invest-Credit helps people see the opportunities they have to start their own business. Invest-Credit currently experiences a 100% repayment rate from its clients. It also has several clients who, if financing was available, could expand their businesses, employ many more people through the expansion, and provide principled leadership to the company and the employees. These two factors make Invest-Credit an ideal partner for World Partners.
	MOLDOVA
		To provide for sufficient loan funding and a permanent Moldova Development Center, which would be sustainable from Day 1, $805,000 is still needed. However, even gifts and investments of small amounts can be used right away for Moldovans waiting for loans.
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	PARTNERS

GOALS
Business: Provide funding and consulting for micro and small to medium enterprises, and grow micro businesses into larger, sustainable SMEs that will create more jobs for the Moldovan people. Provide a permanent facility for a Micro-Finance Center, Small and Medium Enterprise Center, and Training Center in Chisinau, to serve the people and enable achievement of these goals. Social: Break the poverty cycle, provide employment where unemployment is rampant, impact the human trafficking trade by offering legitimate alternatives, combat corruption through positive leadership, and reduce the number of Moldovans who leave their country behind to find work Ministry: Encourage entrepreneurs to use their newfound capacity and skills to help others. Partner with like-minded NGOs, churches, and other community-oriented groups to reach the poor and needy and bring them hope. Create ethical micro-businesses and SMEs that will impact the mindset of the Moldovan population.
PROJECT DESCRIPTION
The project can be broken into 4 categories: Funding for micro-enterprise. Loans will be provided to entrepreneurs and families who, among other factors, possess a sound business plan for their micro-business. Funding for SMEs. Loans will be provided primarily to existing clients who demonstrate, through their business, the ability to grow and sustain a larger business so more job opportunities are available in Moldova. · Training and consulting. Invest-Credit and World Partners will provide training and consulting opportunities from both local and Western sources on business development, entrepreneurship, and sound, ethical management principles. They will also facilitate hands-on expertise for clients to help their business grow. A permanent facility with 3 Centers focused on the above activities, with projected facilities for entrepreneurs to start-up professional operations before they move out on their own.
PROFIT EXPECTATION Currently, interest received from the existing Invest-Credit loans pays for much of the organization’s operational funding. When the budget for the project has been met, Invest-Credit and the new Moldova Development Center will be fully sustainable for all operational and financial expenses. Although most revenues will come from interest, supplemental sources such as renting out training space and providing business services will contribute to sustainability. Furthermore, Invest-Credit and the MDC will be able to channel some revenues to the revolving loan funds, reducing their future reliance on foreign donors for loan capital. .

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