Solutions

Lobby group

Microfinance

Microfinance is often considered one of the most effective and flexible strategies in the fight against global poverty. Typically, the word microfinance is used in conjunction with the poor or poverty. In the TKOH micro-finance is used to help those that are in need and those that want to learn to go into another direction in life as we treat all as equal. Poor and poverty are bias words. We treat all as equals. This approach is far more successful as it empowers people getting them away from the mentality of being poor, which is about restructuring beliefs.  Beliefs can build or destroy. Beliefs are dangerous if attached to who we are, because that is what we become and is a part of self fulfilled prophesy.

It is sustainable and can be implemented on the massive scale necessary to respond to the urgent needs of those living on less than $1 a day, the World’s poorest.

TKOH-Foundation Microfinance does several things:

• Brings freedom, relief, self respect, which also brings respect for others, self worth, community spirit, equality and unity.

• Good for individuals, families, communities and regions.

• Brings temporary relief.

• A Comprehensive plan of action.

• Restructuring of beliefs and debt.

• Brings vision, solutions, goals, expectation and outcomes.

• Increase of income and connection,

TKOH and its members do two things. First we work to bring temporary relief which may come in the form of food, water, shelter, electricity and a way of communicating usually through the Internet for there to be a cost effective way to communicate. Microfinance consists of making small loans, usually less than $300, to individuals and or families, usually women, to establish or expand a small, self-sustaining business. It is not a hand out, but a hand up. It is feeding people and teaching them to fish at the same time.

This works in two ways; Ideally as a part of the Cognitive Restructuring Program as people make money from the program they give to help those that cannot afford the program. The program is effective not only for individuals, but even areas as it starts with restructuring beliefs.  For example, a woman may borrow $50 to buy chickens so she can sell eggs. As the chickens multiply, she will have more eggs to sell. Soon she can sell the chicks. This is not only good for the individual but trickles to the community and supports others in the community. The program resolves debt or restructures debt and then works to increase finances. This is a process where each level is an expansion of the Cognitive Restructuring Program, which pulls her and her family further from the devastation of poverty. We also finance the Cognitive Restructuring Program to bring outside revenue to a local community through participants of the Program, which then takes care of short term and long term needs.

Microfinance, the TKOH way, includes several support systems that contribute greatly to its success all designed to support the restructuring of individuals, families and communities. The TKOH-Foundation is a microfinance institution, which is supported by its members. The Foundation offers business advice and counseling, while clients provide peer support for each other through solidarity circles. For example, if a client falls ill, her circle helps with her business until she is well. If a client gets discouraged, the support group pulls her through. This contributes substantially to the extremely high repayment rate of loans made to microfinance entrepreneurs.

An equally important part of microfinance is the recycling of funds. As loans are repaid, usually in six months to a year, they are re-loaned. This continual reinvestment multiplies the impact of each dollar loaned.

Microfinance has a positive impact far beyond the individual client. The vast majority of the loans go to women because studies have shown that women are more likely to reinvest their earnings in the business and in their families. As families cross the poverty line and micro-businesses expand, their communities benefit. Jobs are created, knowledge is shared, civic participation increases, and women are recognized as valuable members of their families and communities.