I received this update from Kiva about one of my first microloans – to Va Chou in Cambodia.
Here is how she has had to use her loan. Like every entrepreneur I know she made a plan, carried it out, and had to readjust to make the plan work! She actually had to change businesses for the time being, but she was smart enough to know she wasn’t making the money she needed and then smart enough to recognize that another way to make steady money was awaiting her and she made the changes before she had no other options.
This is an update on Va Chou written by Charlotte Bailey:
Va Chau showed us into her house, which was a wooden structure raised high above the stagnant flood water below. Despite having little money, it is a well kept home. Lace hangs prettily from one of the doorways and some large, brightly colored pictures decorate the wall. These additions are clearly old, but they demonstrate care and love of the family home.
Va Chau explained that she had taken out the loan with Kiva/Credit with the aim of purchasing a shop in a busier area, which she felt would increase her customer base. Unfortunately, the cost of the shops in the area where Va Chau wished to buy became too expensive. Not prepared to give up immediately, she began renting instead. Within a few months it became evident that the rent was also too expensive. Eventually, Va Chau had to make the difficult to decision to change businesses as the high rent was eating into her profits. Having a family to support, Va Chau was forced to use the remainder of the loan to raise pigs instead. Whilst she preferred her work preparing noodles and coffee, her new business provides her with a crucial income, which she uses to support her daughter through hair-dressing college.
For now, Va Chau is contented to continue raising pigs as she needs the reliable income to support her family. Once her daughter finishes college however she aspires to re-open the shop. Her other dreams centre around seeing her children successful. In particular, she would love to see her daughter open her own hairdressing salon.
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