Village Enterprise Fund - Frequently Asked Questions

Our Program
Frequently Asked Questions

How many businesses did VEF train and fund last year?
In fiscal 2009, we trained and funded close to 2,000 businesses. As of June 2009, we've launched 19,200 businesses. In fiscal 2010, we expect to add another 2,000 enterprises.

business owner and family How big is a microgrant?
Seed capital grants of $150 go to trained groups with approved grant applications. We provide grants in two installments. The first $100 gets the operation up and running. The balance ($50) follows approval of a 6-month progress report that shows several months of revenues and profits.

Empowerment grants ($300) go to our most successful entrepreneurs. These incremental investments take an existing business to a new level. They facilitate additions of employees, branch office openings, acquisitions of capital equipment, and inventory expansion.

woman weaving Does VEF fund both men and women?
We have no gender bias. At present, 60% of our business owners are women. By harnessing the combined talents of both men and women, we maximize the beneficial impact on the community.

How does VEF monitor businesses?
Our business mentors provide coaching for each funded business for a minimum of one year. The mentoring relationship often lasts much longer. Our in-country staff also visits, encourages, and evaluates many of the businesses first-hand. In addition, we conduct third-party impact evaluation surveys every 3-4 years to assess longevity and effectiveness across a random sample of businesses.

What is the impact of the VEF program?
We’ve conducted longitudinal studies to assess the impact we've had on program participants and their families and communities. Survey data shows that the average business owner is 33 to 35 years old with 5 to 8 dependents (spouses, children, parents, orphans.) With at least 5 owners per group, the typical number of people benefiting from each VEF business is 25.

Our findings also show:

The average number of meals consumed per day increased from 1.9 to 2.5.
School enrollments increased from 68% to 95% as parents gained the means to pay for uniforms, school supplies and lunches.
The value of chickens and livestock (rural Africa’s form of savings) rose 161% in Kenya, 571% in Tanzania and 627% in Uganda.
Land ownership rose 16% in Kenya, 37% in Tanzania and 20% in Uganda. Among land owners, land under cultivation rose 41% in Kenya, 7% in Tanzania and 29% in Uganda.
A variety of home improvements made living quarters more comfortable, sanitary, and durable.
Eighty-four percent of women report significant improvements in one or more of the following: relationships with spouses, equity within their households, participation in community life, public image and a sense of independence and empowerment.

Eighty-eight percent of our businesses are still operating after one year and 75% continue beyond four years. Roughly one-third of our businesses spin off other ventures.

African child Is VEF affected by the AIDS crisis in Africa?
We actively target businesses comprised of AIDS widows and step-parents of AIDS orphans to provide a way for these families to earn an income. Our group-based business model ensures that someone is available to keep the business going when one or more members are ill.

How do you address graft, bribery and corruption in Africa?
As a relatively small, grassroots organization, we operate "under the radar" of most government agencies, although we enjoy the blessing and encouragement of local officials. Our African staff conducts themselves with utmost integrity. Nonetheless, we have multiple checks and balances in distributing funds to ensure that money goes directly to our business start-ups.

Can I see the impact of VEF’s work first-hand?
You are welcome to participate in one of our 14-day vision trips to Kenya, Uganda, or Tanzania. We travel to rural villages to meet our entrepreneurs and their families. You'll enjoy their hospitality as you listen to stories about how our program changed their lives. You’ll make lifelong friends and return with a clear sense of the intelligence, drive, and beauty of the people of East Africa. We guarantee: It will change your life!