Access to financial backing needed to start, expand and or sustain businesses has always been a key challenge for micro, small and medium-sized enterprises (MSMEs).
Chances are therefore grim for small business entrepreneurs in villages and communities to access traditional sources of finance such as banks because they cannot meet common prerequisites like the provision of a proven revenue stream, credit history or collateral.
It is institutions like the South Pacific Business Development Microfinance Pte (Fiji) Ltd — widely known in Fiji as SPBD — that have come into this space to provide financial services to low-income individuals or groups who would typically be excluded from traditional banking.
For SPBD Fiji, it is particularly focused on empowering women to start, grow and maintain micro-business through the provision of access to financial and business development services.
On May 24, SPBD Fiji celebrated its milestone achievement of surpassing $100million disbursed through 74,253 loans since its inception in the country 13 years ago.
SPBD history
SPBD Fiji began operations here in December 2010.
It is part of a wider SPBD Microfinance network, established in 2000, that aims to create meaningful economic opportunities and transform lives across the South Pacific.
Its mission is to improve the quality of life of underprivileged families by providing them with meaningful economic opportunities to help lift them out of poverty.
While the institution focuses on empowering women to go into business, it also provides the opportunity for women entrepreneurs to build assets, improve financial security, and finance housing improvements and education.
And it has a vision to create a network of financially self-sufficient and scalable micro-enterprise development organisations throughout the South Pacific.
According to SPBD founder and president Greg Casagrande, SPBD Microfinance has provided financial education and services to empower more than 30,000 women micro-entrepreneurs in Samoa, Tonga, Solomon Islands, Vanuatu, and Fiji.
In Fiji today, the institution has nine branches, 438 village-based, serving almost 8000 members across nine branches in Fiji — Suva, Sigatoka, Lautoka, Rakiraki, Levuka, Labasa, Savusavu and Taveuni.
A new branch is set to open in Nausori in June.
Surpassing $100m
Two weeks ago, SPBD Fiji surpassed the $100m mark of loans disbursed.
SPBD Fiji director and general manager Elrico Munoz revealed to this newspaper they had disbursed precisely $100,078,000 to 74,253 loans since December 2010.
Mr Munoz said the $100m loan disbursement is a testament to the 13 years of unwavering dedication and resilience in providing inclusive financial services to women in Fiji.
In an interview, he said this growth in lending to those small businesses indicated the demand for such loans for women going into business.
“These are very small loans because if you divide the $100m by the 74,000 (loans), it is just a little over $1000. They do not use this for consumption but for investing in very small businesses, and along the way, they grow,” Mr Munoz said.
At last week’s celebration at its headquarters on Waimanu Rd in Suva, entrepreneur Suliana Naiubi of Bavu in Nadroga was the recipient of the $11,000 milestone loan.
That was Ms Naiubi eighth unsecured loan. She has come a long way from her very first $350 loan.
Mr Munoz said the high loan amount indicated their trust with members’ loan repayments.
“Our repayment rate is 99.78 per cent, which is much better than the banks. And to top it off, all our loans don’t have collaterals, we don’t ask for any collaterals.
“The loans are really coming from all payments.”
In a statement, Mr Casagrande said: “The $100m milestone represents not just a figure but the dreams, aspirations and economic potential unleashed through microfinance.”
Transformation
A transformation SPBD is proud of is the ability to build a savings habit among its members.
“Fijians, particularly iTaukei, are not famous to be savers,” Mr Munoz said.
He said through constant financial education, their members had now developed the healthy habit to save.
“We meet them every week and we make savings very facilitative because we tell them, you build your assets through your savings, even with small cents like $1 or $2.
“We accept them because during our meetings is when we do the collection. They don’t have to go to town, so we tell them, whatever you spend on your bus fare to go to town, that is your savings.
“Some of the ladies have built up savings really well and it makes them more stable. During COVID some members continued paying us using MPAiSA because they had built up their savings.”
The future
The institution has now set a target to reach $200m in loans disbursement over the next five years.
It hopes to achieve this with its anticipated increase in membership and loans disbursed.
Mr Munoz said they have already established a big network and by the end of this year, they’re targeting to have at least 10,000 members.
With that, he said $200m in loan disbursement can be achieved in five years or “even less”.
Mr Munoz said women micro-entrepreneurs had also learnt to diversify their businesses.
“I have noticed with our members, instead of making their businesses bigger and bigger, what they do now is they diversify.
“Diversification is the way to go. You don’t put all your eggs into one basket.
“This is what we’re teaching them, to be resilient, to be nimble.
“You don’t have to grow big but you can diversify and you’re able to adjust to the different situation.”
SPBD Fiji director Lorraine Seeto said women in Fiji are resilient, innovative and impactful in their families and communities, and their members are testaments to this, growing from small and humble beginnings to materialising their dreams of becoming entrepreneurs.
She acknowledged the sponsors and partners for believing in the cause and collaboration over the years.
“More milestones are coming up and we look forward to your support as we work together to inspire our SPBD members to think outside the box and help grow the Fijian economy,” Ms Seeto said.
