Business loans and how they work
Action10 empowers social enterprises in sub-Saharan African countries. We offer business loans, and through Human Rights & Science (HR&S) also training, networking, expert advice, and physical infrastructure. In each country there is an HR&S Branch with carefully selected local teams, trained on the HR&S tools and strategies. The local branches offer business loans, training, expert advice, networking, and auditing to local entrepreneurs.
Five steps to get a business loan
1- Presentation
Local entrepreneurs are welcome to present their business ideas to HR&S and Action10. Ambitions, outcome challenges and how outcome challenges are addressed is discussed firmly with HR&S. If the business idea is sound; the entrepreneur is driven by intrinsic motivation; is an agency for change; if value accountability is truth and trust; and if HR&S is able to address and solve the outcome challenges – then the entrepreneur and HR&S may agree to become partners.
2- Business Loan and Membership
Agreed on enterprises are offered a loan with 10% annual interest and to become members of the HR&S Support Centre. The income generated locally co-funds the running of the Support Centre. Members benefit from local training, training, expert advice, networking, and annual auditing.
3- A small loan that can become larger
The first loan is small, when it is paid back with interest, the loan-taker is eligible for a second loan, maybe twice as large. This procedure is repeated until the business in profitable and self-sustained. Thus, the relation is built slowly but firmly while trust and equal partnership is developed, and the challenges facing the social entrepreneur are addressed together.
4- Payback and Reinvestment
The paid back capital is accounted for at the HR&S branch local bank account and is re-invested in order to scale-up the on-going partner business or to start or scale up a new business. The capital is raised through donations due to the inherent financial risk.
