Micro-Businesses: Hope Loans changing lives in South Africa

Building a micro-business from the ground up is never easy.

For the bead women of Philippi, however, it has been very successful. The business began when Bridges of Hope International gave six Xhosa women a “Hope Loan” to buy their first supply of beading materials. They then converted those supplies into goods that were marketable.

Many of the earliest pieces of jewelry did not reach an acceptable standard but with time and patience, the designs were reworked and perfected. The beading ladies were able to come up with a system in order to pay back their Hope Loans. They decided to split their profits in half and use one half of the profits to pay back their BHI loan (which has since been used to fund another micro-business) and to purchase supplies needed for their business. The other half of their profit is divided among the women.

Today, they have paid off all of their Hope Loans and their business is thriving. There are now ten women employed full-time as a part of this micro-business, three of whom are HIV+. All of these women come from zero-income households. One of the women in the business who is struggling with AIDS was also homeless. She used most of her first paycheck to purchase a shack in the township where the business is located. She used what was left to purchase healthy foods. She now has hope for her future and friends who have joined her on her journey.