Hargeisa shop owner makes a small loan go a long way
15 March 2012 - Before taking a $300 loan through UNDP’s microfinance initiative, Canab Abdi Daud struggled to make ends meet. Her small Hargeisa shop rarely turned a profit, and as a result, she could often not afford basic essential items for herself and her family, and also at times found herself unable to afford to buy products to stock her shop.
But since taking the loan, prospects have improved for Canab.
“After I got the loan my business has expanded,” she said. “My customers increased in number and the profit I make from the business increased. Some of customers are very confident now and even trust me to keep their monthly bills in advance. My profit margin is high and I am sure that I will be able to pay back the loan regularly.”
In addition to being able to meet the demands of her customers, Canab was also able to start a new money exchange business with the mircogrant, enabling her to earn even more, and giving her the comfort of knowing she can afford to support her family.
Canab received the grant through UNDP’s Private Sector Development project , which issues microcredit loans to low-income families to improve household income and reduce vulnerability.
All recipients of the loans also receive training in record keeping, generating business ideas, marketing, costing, and business planning. Training is conducted by local NGO Committee of Concerned Somalis and loans are repaid interest-free.
- UNDP’s Microfinance initiative turns canab's small shop into a profitable business