THE SELF HELP MODEL

Our projects always aim for social and economic sustainability. We do not want to create dependency by being a permanent distributor of aid. Instead, we help people to help themselves. In other words, we do not give people fish, but rather train them to use a fishing rod and lend them the money to buy one.

Self-help groups

Hand in Hand mobilises women into self-help groups, which work as business and savings partnerships. Here, women from the poorest sections of society learn how to save money, and about lending and repayment within their own group. We then give them basic reading, writing, and arithmetic skills, as well as the fundamentals of bookkeeping and accounts. This prepares them to take on the challenge of running their own small businesses. Self-help groups are a way to bring women out of their homes, to talk not just about their economic problems, but about family issues as well, and to instil in them self-confidence and hope.

Microfinance

The microfinance model created by Muhammad Yunus has proved to be one of the best ways to bring people out of poverty. We have taken that model and, by using a combination of loans and structured business training, we motivate and support women not only to create their own enterprises, but also to create jobs for other people. We lend only to women and ensure that the loans are used for investment and not consumption. We run practical and effective training programmes in literacy and entrepreneurship, which help even illiterate women to start up and run small enterprises quickly. To facilitate fast and effective distribution of microcredit, we have a limited liability company and a non-banking financial company that, in effect, operate as special-purpose banks to distribute loans at low interest rates and with flexible conditions. While these two companies disburse microfinance, the Hand in Hand Trust ensures that there is no “mission drift” and that we stay true to the cause of integrated development for the poor.