Microfinance for Mothers – An Education Initiative
Indonesia has a young population, with more than half of its 252 million people less than 29 years of age. Veronica Colondam established the YCAB Foundation to tackle this generational challenge. YCAB addresses the crisis in a two-fold manner. First they provide access to education to those most in need. These programs include basic education, soft skills, vocational training and work readiness or entrepreneurship. Second, YCAB provides microloans to women entrepreneurs. Their strategy creates a virtuous cycle: the microloans empower low-income women entrepreneurs, most of them mothers, to increase their household income and allow the children to focus on their education to then become skilled workers or entrepreneurs themselves. The income generated from the microfinance loans is then recycled back to support YCAB’s educational programs. Since 2009 the micro-finance program has acquired 88,130 clients, of whom 78% have seen an increase in their profits by 30%. Now 42% of clients who previously had no savings are now able to save. Clients have reported a 77% higher level of confidence in planning for the future, and 99% have stated that food security has improved, saying that they have eaten enough food in the last year, and also 99% of the children have participated in school as compared to %88 of the national rate.