U.S. Microfinance: Small Loans, Big Results
We are proud to collaborate to produce the largest nationwide sample of microloan borrowers ever evaluated. The Aspen Institute’s microTracker outcomes survey gives us a unique opportunity to evaluate our microloan programs. We make these loans with a mix of thorough consultation and good faith, but we rely on industry-leading evaluation metrics to know the outcomes for our clients.
Key findings point to microloan recipients contributing to local economies in three key areas: job creation, business sustainability and growth, and income generation.
- Job Creation Nationwide, over 54 percent of survey respondents reported having employees, indicating that microloan recipients are key contributors to job creation throughout America. Of the businesses reporting employees, the average number of jobs supported was 5.6.
- Business Sustainability and Growth Even in times of economic turmoil, microloan recipients run sustainable businesses. Over 97 percent of survey respondents reported that their businesses were open one-year post loan. In addition, 43 percent of microloan recipients reported seeking a loan for business growth purposes. These statistics strongly suggest that in meeting the capital needs of small business owners, Accion and Opportunity Fund are increasing the likelihood of business success.
- Income Generation The survey indicated that microloans play an important role in boosting small business owner income, with 32 percent of respondents reporting increases in income generated from the business from 2010 to 2011. Notable also is the 41 percent of respondents indicating that the income generated from their business met or exceeded their expectations.