What is Micro-enterprise Development?
Micro-enterprise Development (MED) works with poor people utilizing small amounts of money, in order, to serve their particular micro-business and financial needs.
Through MED the working poor (or economically active poor) receive small loans and training that changes their lives. Their businesses grow, increasing the security and well-being of their families, and most importantly, creating a foundation of hope for the future.
Worldwide, MED repayment rates range from mid to upper 90 per cent. Step Ahead has maintained repayment rates of 98 percent for two consecutive years, a testament to the determination of our partners to break free from the cycle of poverty once and for all.
Step Ahead micro-finance loans are made accessible to those who can not qualify for traditional loans. These people often have no option but the local money lender or loan shark who charges a minimum of 20 percent interest per month – it is this sort of exploitive service we seek to render redundant.
MED programs take many forms and models. While Step Ahead reached 1,200 clients in Klong Toey community several years ago, today we focus on local savings mobilization through promotion of grassroots Credit & Savings Associations, and through what we call “Economic Recycling” in order to serve widows, single moms, aunts and grannies in our non-institutional, family-based orphan care program- Keeping Families Together (KFT).