Barriers to Microcredit Brilliant Solutions
Adapted from an Exercise at the
MIUSA International Symposium on Microcredit
for Women with Disabilities, Fall 1998

Women with Disabilities
have a hard time getting loans or
succeeding in business because:

Brilliant / Creative Solutions

Two women apply for a loan. One of them is disabled. It takes longer for the women with a disability to get the loan. The devaluation affects the project, because by the time that the person has the money the prices are higher.

A disabled woman wants to start a business and the family members do not take her seriously. Then she starts her business and everybody wants the control of the business and do not listen to her.

When writing a proposal, add a certain percent contingency to cover the gap.

She should keep with decision making and do not let the other people take control.

The associations should provide more leadership trainings and monitor or evaluate how the project is going.

No accessibility -- she can’t go from one place to another to sell things ( no wheelchair, etc.).

No knowledge about marketing

Illiteracy -- how will she keep books?

Stigma -- people don’t want to buy from disabled women

High competition

Lack of access to raw materials

Poverty -- need to use your loan funds on immediate needs (i.e. your child becomes sick, of course you will spend any available money on that).

Provide mobility aids as part of the project -- to transport herself and her goods

Training in business techniques

Provision of education

Education/raising awareness through success stories

High quality

Networking among suppliers -- perhaps internationally?

Welfare -- apply to welfare

Lack of start-up capital or tools, "I don't have the money to buy equipment -- I have no tools".

Agency requirements: -- Women with disabilities may have harder time obtaining required matching funds

"I don’t have any training or skills to run an enterprise."

"How am I going to buy my supplies?"

"Where will I sell my products?"

Find out if any NGO/organizations give start-up capital or tools and equipment (heifer project, etc.)

Ask family or get together a group to pool capital.

In bulk, cooperatives find people going to area

Sell from home or make at home

Advertise/give samples

Ask school children, people going to marketplace, church to bring things for you

Ask people to sell for you - you produce

Use the cooperative method (producing, marketing, selling -- division of labor)

It’s difficult to bring products to market place

Inaccessibility of training: some physically disabled women have more difficulty to get to the meeting place.

Husbands discourage business training (because they know we’ll do better than them).

Someone (marketing manager should appoint) takes products for whole group to market

Invite trainers to disabled women’s groups, provide interpreters

Educate husbands to know the importance of training’s and meetings, invite husbands to meetings.

Limited skills - business, technical know-how, poor quality products and poor market outlets.

Low production capacity because of percentage of additional support needed. (time lost).

Competition with big producers

Lack of facilities and mobility.

Employees marginalize you

Customers feelings - disability is dirty, contagious

Lack of understanding of prevailing economic policies and dynamics

Heavy responsibility as single mothers

Communication limitation

Training

Exposure through learning visits

Use a coalition to identify market outlets

Lobby for better facilities, get better competition skills (funds to boost capital - collective micro-credit fund).

More strict with employment terms

Training

Database, Internet

Form a coalition to be understand and keep updated on economic policies and dynamics

Women have no collateral

No public transportation (in Nepal) is accessible

People think that disabilities are contagious

Lenders do not think that women with disabilities will succeed in business (or in anything)

Lenders fear that women will not be able to pay loans back (they think that crutches mean beggars).

No money for transport

No time to travel to loan office many times in order to get loan.

Limited assistance to travel

No sign language interpreter/Braille

Unmarried women will not get loans.

Microcredit lenders visit clients door-to-door

WWD meet in groups in villages and invite M/C lenders

Use the group as collateral

Lobby with the government to make public transit accessible

Educate the public (make special Olympics/sports, media/civic education, lobby)

Provide specific success stories; disability does not mean inability, show them.