It gives the beneficiaries a voice and it involves them in the development process. Members not only receive loans, they form cohesive groups who manage and collect repayments on those loans, who save diligently and decide on ways to invest those savings, and who progress together, forming networks for mutual support. By sharing their problems, challenges, and successes, clients learn and progress together. Village Banking groups are a great source of moral support for start-up enterprises. Members network, advertise for, and patronize one another's businesses.
Cooperation takes precedence over competition.
Microentrepreneurs know that if one members' business attracts customers to the neighborhood, all are likely to benefit. The working capital brought into the neighborhood by a Village Banking group seldom stops working.