Investing in new economies through micro enterprises.

• Author: Louiseize, Kelly
• Position: NEWS

Business people and investors worldwide have heard of the old 10 per cent rule; pay yourself 10 per cent of the profits, give 10 per cent away to community or charity and save a certain percentage for rainy days when business softens.

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The philosophy has been around for centuries dating back to the Tora, the Bible and the Koran.

These concepts were put to use again when three men; Canadian Pastor Ross Clemenger, American business executive Al Wittaker and Australian entrepreneur David Bouseau sowed the seed of what is now called Opportunity International (01).

It is a not-for-profit donour-based organization that gives a hand up to the poor by providing small loans to people who would otherwise not have the luxury of applying to institutional lenders. So far governor Ruby Lougheed Yawney of Opportunity International has ventured into the shantytowns of Peru and Africa with other 01 officials and put in motion the makings of new economic society through loan dispersements from Canadian micro enterprises.

An estimated six million people reside in the shantytown around Lima, Peru with no collateral, no census count, no medical care, no potable water and no septic systems. Opportunity International management scouted the area creating interest through posters and word of mouth. Team members began organizing a community meeting where residents were asked if they would like to become their own boss. Loan officers usually possessing an economics or social work background asked residents to come to eight meetings before they could qualify for a loan.

"They have to demonstrate a definite desire to change their lives," Lougheed Yawney says.

Officers will sit with interested locals to determine what strengths can be drawn out to begin a business.

"It would be a very rudimentary business plan," she says.

By the eighth meeting the people who were serious about opening a business had gathered to form a trust bank. In other words each loan is co-guaranteed by others in the group.

"The reason we do that is because it forces community and creates interdependence," she says

If one person is sick another individual within the group will ensure business carries...