Frequently Asked Questions of Village Enterprise Fund

Our Program
Frequently Asked Questions

How many businesses did VEF train and fund last year?
In fiscal 2007, we trained and funded just over 2,650 new businesses. As of December 2007, we’ve brought over 15,000 businesses into being. In fiscal 2008, we expect to add 3,100 enterprises to the mix.

What is the impact of the VEF program?
Survey data shows the average business owner to be 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.

business owner and family With increased income, families have the means to eat balanced, healthy diets. They can afford to outfit their homes with metal roofs, kitchens, bath houses, latrines and beds. The can pay for the requisite uniforms and supplies to send their children to school. And they can purchase the land on which they work and/or increase the quantity of cultivated acreage.

We are gratified to know that these improvements last. 88% 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. Thus, after four years, as many businesses are operating as were started originally by VEF.

Why does VEF give grants instead of loans?
We work in remote, rural areas where few (if any) other organizations go. The majority of our business owners are subsistence farmers who struggle to produce enough food to sustain their families. Microgrants are the appropriate funding mechanism for agriculturally-based businesses that require several months to grow crops and/or raise animals.

woman weaving Grants alleviate concern about repayment in the event of business failure due to unforeseen circumstances (flood, drought, civil disturbance.) Grants free our recipients to invest in their business in ways that will be beneficial long term (e.g., purchasing capital equipment) without worrying about short term loan servicing. And our business training and ongoing mentorship gives recipients the knowledge and confidence to be successful. They’re prepared to take out a loan when the time is right to expand.

Finally, loans are expensive to administer and collect. Our grant model gives us the freedom to invest in the development of human capital rather than a loan administration infrastructure.

Does VEF fund both men and women?
Our business model does not have a 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.

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 and/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!

Read about the impact we've had on East Africa »