Partnerships with local organizations. Interclient cooperation and trust are important sources of learning and encouragement for clients, as well as a basis for broader community action. Low-income people can be good credit risks. Microenterprise programs incorporate incentives that motivate people to repay and substitute for conventional collateral. Repayment rates are often above 95 percent.
Entrepreneurs know their businesses best.
Recognizing that entrepreneurs know more about their businesses than outsiders, most international microenterprise programs focus on providing financing rather than training. Where training is given, it is demand-driven, focused on specific topics, and emphasizes learning from peers. International programs encourage clients to save, recognizing that asset accumulation is an important path out of poverty, and that savings can be used to increase business equity. Work with clients who have made a real commitment. Supporting people who have made a start, no matter how small, is essential for ensuring that clients will take their enterprises seriously.