SOURCE: Village Enterprise Fund
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March 18, 2008 11:00 ET
Village Enterprise Fund Helps Break the Cycle of Poverty in East Africa
Quantifiable Results Attest to Effectiveness of Seed Capital, Training and Mentoring Program
SAN CARLOS, CA--(Marketwire - March 18, 2008) - A comprehensive before-and-after survey by
the Village Enterprise Fund (VEF) quantifies how the organization has
helped transform the lives of the rural poor in sub-Sahara Africa. The study of businesses VEF
has helped start shows dramatic, long-term improvements in the standard of
living for the participants.
VEF provides seed capital grants, training and mentoring for small
businesses in Kenya, Tanzania and Uganda. The organization helps the rural
poor who need more than money and who are not served by traditional micro-lenders. VEF provides grants of
$100 to $150 in two installments. VEF business mentors help identify
potential recipients, and provide the training and mentoring needed for
success.
"This recent survey data confirms scientifically what we have seen over the
years, that our program dramatically improves the lives of the micro-business owners," said Brian
Lehnen, co-founder and executive director of VEF.
VEF can measure the impact of its programs because the organization gathers
baseline data from potential business leaders before they participate.
"This is how we qualify the group and ensure that we are serving the
neediest people in the region," explained Lehnen. This baseline data is an
unusual asset for VEF as most
micro-finance organizations do not collect such information on a
systematic basis.
Results Show Dramatic Improvement in Standard of Living
The survey concentrated on how the VEF program affected the business
owners' standard of living. Respondents showed consistent and significant
improvement in several areas, when compared with the baseline data. For
example, across all three countries:
-- The percentage of children in school increased 40 percent, from 68
percent to 95 percent.
-- The average number of meals increased from 1.9 to 2.5 meals a day, a
32 percent increase.
-- Households using iron sheet roofs instead of straw ones changed from
37 percent to 65 percent.
-- Land ownership increased 16 percent in Kenya, 37 percent in Tanzania
and 20 percent in Uganda.
-- The value of livestock increased significantly. The change in value of
these animals was 161 percent in Kenya, 571 percent in Tanzania, and 627
percent in Uganda.
The study's results are consistent with other data VEF has gathered since
its founding 20 years ago. The organization has helped launch more than
16,000 businesses, each of which improves the lives of an average of 25
people (400,000 people total). Eighty-eight percent of the businesses are
operating after the one-year mark, and 75 percent are still thriving after
four years. Fully one-third of the businesses launch a second or subsequent
business.
Almost all VEF participants started on the lowest rung of the economic
ladder. Most had been living in extreme poverty, with little or no hope of a
better future until entering the VEF program.
Statistical Methodology
The comprehensive survey was conducted between September 2005 and November
2006. To ensure accuracy, VEF spent more than a year tabulating, checking
and analyzing the results.
VEF interns interviewed a random sample of VEF-funded businesses that had
been operating for two to five years. A total of 284 businesses, about 7
percent of the total businesses VEF started in this period, participated.
The quantitative and qualitative survey consisted of more than 100
questions about locally relevant indicators, such as nutrition, children's
education, and household assets.
The businesses included agriculture, livestock, manufacturing, retail and
service operations. The typical respondent was 33 to 35 years old and
supported an average of five to eight dependents. In Kenya, 61 percent of
the surveyed business leaders were women, compared to 59 percent in
Tanzania and 47 percent in Uganda.
An executive summary and detailed results of the VEF Program and Impact
Evaluation study are available at
www.VillageEnterpriseFund.org/information.html.
About Village Enterprise Fund
Village Enterprise Fund (VEF) helps break the cycle of poverty in rural
East Africa through training, seed capital and mentoring for small,
income-generating businesses. Since its start in 1987, the not-for-profit
501(c)3 organization has helped improve the lives of hundreds of thousands
of people in sub-Sahara Africa. For more information about the San Carlos,
CA-based organization, visit the website at www.VillageEnterpriseFund.org,
e-mail info@VillageEnterpriseFund.org or call 1-800-785-1775.
Note to Editors: Visuals, including photographs of some participants in the
VEF program, are available upon request or at www.VillageEnterpriseFund.org
under "Resource Center" and then "Photo Gallery."