How Microloans Are Contributing to Entrepreneurship in Minority (Underserved) Communities (Infographic)
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Microfinancing has continuously proved to be an important foundation for small business success in minority (i.e. underserved) communities. Microlending organizations like the Grameen Bank in India have paved the way for growing microlending organizations in the United States. One such organization is Accion U.S. Network. According to the recent report, “Business Microloans for U.S. Subprime Borrowers”, Accion Texas has greatly contributed to the sustainability and growth of minority owned businesses in the area. The report was compiled based on data obtained from Accion Texas on its microloan borrowers between 2006 and 2011.
The study reported that over 30% of the small business owners who received a microloan from Accion Texas between 2006 and 2011 were still operating as of May 2012. That’s a significant number of businesses that were able to sustain during a tough time in the American economy. In addition the study found that the average business owner who received a microloan during this time period experienced a 41% increase in sales by May 2012. Furthermore, the average business owner was also able to double their staff by May 2012. All of these things were made possible due to microfinancing, as proven in the report. (See infographic below).
Who Benefits the Most?
Although microloans are becoming more popular, surprisingly, it is not widely known that microfinancing was created to promote entrepreneurship in poor (i.e. minority) communities. Minority communities are often considered underserved. Most minorities are typically underserved because of lack of wealth or well established credit. Lack of wealth and well established credit make it extremely difficult (albeit impossible) for minority entrepreneurs to obtain capital from traditional banks and lenders. That’s why organizations like Accion are needed. Accion serves to benefit those who lack wealth and exceptional credit and are constantly turned downed or overlooked by traditional lenders. Minorities and women business owners tend to benefit the most.
How Can I Get Microloans?
Obtaining a microloan can be a simple process when you know where to go and who to talk to. Here at QT Business Solutions we have experienced microloan consultants that will work with you to develop your business plan and help you apply to microlenders in your area. You can get up to $50,000 in funding with our help.
We not only educate you on what it takes to qualify for a microloan, we also help you prepare to meet those qualifications, and work with you throughout the process until you secure funding for your business. Even after financing is secured, we still maintain a long term business relationship with you by providing you with access to other resources that will help grow your business.