Awakening a sleeping giant

Because salaried or wage-paying jobs are scarce in many developing countries, most citizens earn their livings through self-employment, creating and operating their own tiny enterprises. But without financial services to fuel their productivity, the poor can never grow their microenterprises into businesses that help them escape poverty.

"Microfinance is an idea whose time has come.”
—Kofi Annan, former United Nations Secretary-General

The microfinance movement was born to ease the suffering caused by poverty, and to awaken the global economy's sleeping giant: the under-capitalized productivity of the world's working poor.

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Microfinance, What Is It?

Microfinance refers to financial services provided to low-income people, usually to help support self-employment. Small loans, savings plans, insurance, payment tranfers, and other services are provided in small increments that low-income individuals can afford. These services help families to start and build "micro" enterprises, the very small businesses that are important sources of employment, income, and economic vitality in developing countries worldwide.

Pushing it further through "Village Banking"

By providing very poor families with small loans to invest in their microenterprises, Village Banking empowers them to create their own jobs, raise their incomes, build assets, and increase their families’ well-being. Here's how it works. Neighbors come together in financial support groups called “Village Banks.” Individuals borrow working capital for their microenterprises, and because they have little to offer for collateral, the group guarantees those loans. As businesses grow, families earn more, purchase more nutritious foods, and parents are better able to send their children to school. After a year or more, many Village Bankers make significant improvements to their businesses, their homes, and their lives. Because neighbors support each other while growing their businesses, Village Banking helps invigorate entire communities.

What Are WE Doing About It?

In doing our part and after much research in the microfinance area, 2K.2 inc. is working on establishing a philantropic partnership with FINCA through which 1% of all of 2K.2 inc's proceeds will be donated to the Village Banking initiative.

The Foundation for International Community Assistance (FINCA International) is a non-profit, microfinance organization, founded by John Hatch in 1984. With distinguished supporters such as Her Majesty Queen Rania Al-Abdullah of Jordan, and Natalie Portman, international film actress,

FINCA today reaches over half a million clients in 20 countries.

Sometimes referred to as the "World Bank for the Poor" and a "poverty vaccine for the planet", FINCA is the innovator of the village banking methodology in microcredit and is widely regarded as one of the pioneers of modern day microfinance. With its headquarters in Washington, DC, FINCA has 21 affiliated host-country institutions, in Latin America, the Caribbean, Africa, Eastern Europe, the Caucasus and Central Asia.

Along with Grameen Bank and Accion International, FINCA is considered to be one of the most influential microfinance organizations in the world.

What YOU Can Do To Help?

You can help by learning more about Village Banking and microfinance. You can also make donations for Village Banking and / or simply sign up for the FINCA newsletter that will keep you aware of ongoing efforts and initiatives you may want to be be part of.