Microfinance

1. I’m a young African entrepreneur; can UYDO give me a loan?
2. I’m a young entrepreneur based in the UK/US; can UYDO give me a loan?
3. How are young entrepreneurs chosen? Who decides who gets a loan?
4. Is microfinance the solution to poverty?
5. What is microfinance?
6. What is UYDO’s definition of a young entrepreneur?
7. What makes UYDO different from other microfinance organizations?
8. Why would someone living in poverty need access to financial services?
9. Why young people?

UYDO only provides loans through our Field Partners. If you live in a country where UYDO has a Field Partner, the first step is to approach them.

UYDO only provides loans through our Field Partners. Currently, our Field Partner is located in Nairobi, Kenya.

UYDO works with Field Partners on the ground which are run by locals in the area. Our Field Partners receive applications from young people in their area who are looking for a loan. The Field Partner reviews each application thoroughly against set criteria. Every successful application is then sent to UYDO and their business ideas and loan requirements are publicised on our website and members can start investing funds as small loans to them.

We don’t consider microfinance to be the silver bullet which will rid the world of poverty. However, microfinance is a sustainable way for people to access loans to start a small business, earn an income and take themselves out of poverty rather than relying on handouts. And, by creating employment opportunities, local communities can benefit from the ‘multiplier effect’, a concept where one person’s increased income can benefit the wider community through increased consumption.

Microfinance, simply put, is the act of providing financial services to those who traditionally have been unable to access these services through the normal financial system (such as banks). UYDO enables its members to raise funds which they can invest as small loans to young entrepreneurs through our Field Partners, so our young entrepreneurs can get access to vital startup costs, start a business, and create an income for themselves. Without the effort of our community, these young entrepreneurs might not be able to start their own business.

We define young entrepreneurs as those between the ages of 15 and 29.

UYDO is the only peer-to-peer microfinance organisation developed to encourage young people to raise funds to be invested in other young people. Also, there are huge implications with youth unemployment and the absolute majority of microfinance institutions ignores or refuses to work with youth clients. Research and experience show that there is no particular reason why we should not invest in youth other than a misconception in society. UYDO aims to break this negative view of youth and show that young people are valuable to their local and national environment, which is why UYDO is investing purely in young entrepreneurs (aged 15-29). 

People living in a poverty environment need financial services just as much as anyone else. When a person lives on a low income, more often than not, they are unable to save the necessary money needed to buy the equipment needed to start a business. A small loan can help people buy necessary equipment, start a business and lift themselves out of poverty.

Global youth unemployment has reached an all time high, and with 87% of the world’s youth living in developing countries it is shocking that young people make up only 10% of microfinance clients. UYDO breaks this mould as it only provides funds as loans to young entrepreneurs (aged 15-29), which incentivises microfinance institutions on the ground to work with young people.

 

Statistics also show that as much as 50% of Africa’s population falls within the age bracket 15 to 29. By focusing on young people, UYDO provides opportunities to a largely neglected sector of society.