SPBD President Greg Casagrande Explains SPBD's Mission on New Zealand TV
South Pacific Business Development Foundation (SPBD) Fights Poverty by Empowering Women
SPBD's founder, Greg Casagrande, with a group of low-income aspiring micro-entrepreneurs in the village of Samusu-uta on the island of Upolu in Samoa."Providing credit to those who need it most..."
SPBD's mission is to improve the quality of life of people living in poverty in the poor island nations of the South Pacific. Our first market is the independent island nation of Samoa, in the middle of the South Pacific.Poor people in Samoa suffer from absolute poverty that is driven by a poverty of opportunity. This poverty of opportunity is based on the fact that there are few traditional waged employment opportunities available in Samoa. For most rural Samoans jobs just do not exist.
A cure to this poverty of opportunity is to provide the poor with the opportunity to establish their own businesses. The poor however most often do not have the capital necessary to buy the equipment needed to successfully start a small business. Traditional banks do not lend to the poor since they have no collateral or income to secure. Thus the "entrepreneurial solution" is not a viable solution for most poor persons.
SPBD is committed to making "the entrepreneurial solution" viable to any poor women in Samoa.
The Problem
48% of Samoan families live in a state of food deficiency according to a 1999 UNDP study. Most families are already engaged in a variety of micro enterprise activities, however success is elusive without access to affordable capital.
Traditional banks are of little help to the poor since they demand collateral or proof of a steady and sizable income in order to secure a loan. Unsecured lending is generally not available. Pawn shops prey on the poor and charge rates well in excess of 500% p.a. As a result, most poor have no access to affordable credit, and have little opportunity of reaching their potential.
Essentially the problem comes down to: No Jobs + No Access to Credit = No Opportunity
The SPBD Solution
SPBD provides small, unsecured loans to groups of rural women. Women invest their loans into businesses based on their existing livelihood skills.SPBD's philosophy of lending is based on a respect for each individual's innate human ingenuity, drive and self esteem. It is these qualities which make people credit worthy, not the collateral which traditional banks demand. By providing access to capital, SPBD allows women and their families to pursue their dreams and achieve their full potential.
SPBD's Micro Entrepreneurs
SPBD has helped hundreds of poor Samoans launch or significanlty expand a wide variety of small businesses. These businesses are all based around existing livelihood skills. They are businesses which the poor implicity understand and at which they can be a success.
Usually the one thing holding them back is availability of cash to make a few strategic purchases to launch the business and some ongoing guidance and encourgaement. That is where SPBD comes in.
A sampling of SPBD member initiated micro-businesses includes:
- Small plantations and vegetable gardens,
- Chicken and pig farms, Cow farms,
- Banana chip, taro chip and potato chip manufacture,
- Copra production (from the meat of a coconut, used in skin care products),
- Clothing production and repair,
- Weaving of fine mats, bags, hats, baskets, etc.,
- Beach fales (small exotic tourist accomodations) operators
- Fishing and vending,
- Food preparation and distribution,
- Roadside and market place trading and vending,
- Taxi operators,
- Distributors transporting produce and items into Apia from the village,
- Village lawn maintenance services,
- Bingo operators.
