Giving Back: FINCA

Broad Reach is proud to provide microfinancing to 10 women entrepreneurs in Tanzania via FINCA Canada. Through this vital FINCA program, Broad Reach provides loan capital to help these women fund and run their businesses. As a global company founded by a woman entrepreneur, Broad Reach strongly believes in supporting women who are creating businesses, enhancing the lives of their families, and in turn, strengthening their communities.

Why Tanzania

In countries such as Tanzania, very small businesses are essential sources of employment, income, and economic strength. It is only with microfinancing that these businesses are able to grow and survive. Although Tanzania is one of the poorest countries in the world and unemployment is very high, it is one of the most peaceful and stable countries in Africa. In 2004, Broad Reach President Andrea Lekushoff spent time in Tanzania just prior to founding the company. While there, Andrea witnessed the difficult living and working conditions many people face. Yet she was touched by the warmth, happiness, and optimism of everyone she met. And it’s clear that FINCA is making a real difference in Tanzania. Compared with national averages, FINCA clients in Tanzania are more likely to have access to reliable water sources, and clients’ children are more likely to be able to read and write.

Why Microfinancing and Village Banking

Village Banking provides poor entrepreneurs with microfinancing to invest in their businesses. This can include small loans, savings plans, insurance and other services provided in small increments that they can afford to repay. FINCA clients—70 percent of whom are women—have no other sources of working capital. Village Banking also helps invigorate entire communities as neighbours come together in support of each other in groups called “Village Banks.” Individuals borrow small amounts of working capital for their microenterprises, and because they have little to offer for collateral, the group guarantees those loans. In this compelling video, FINCA Ambassador for Hope, Natalie Portman, talks about the power of microfinancing and Village Banking.

Why FINCA

Before making loans or providing other financial services to clients, FINCA trains its clients on credit and cash flow management, how to retain a portion of their profits for savings, and how to determine whether they have the capacity to expand their businesses. This type of training is important for clients’ and FINCA’s long-term success. In this powerful video created by FINCA Canada founder and board member Jacquie Green, FINCA clients and staff talk about the difference FINCA is making in the lives of female entrepreneurs.