Microfinance and Business Development

35% of the Cambodian population lives under the poverty line ($1.25/day) – in order to strengthen the private sector and local economy, NGOs have begun setting up microfinance and microloan projects. Microfinance institutions ("MFIs") lend money out to the poor (primarily women) in the form of microloans. Microloans are small loans that are given to an individual with very little income and almost no collateral in the hopes that he or she will use this money to start or expand their current businesses. Based off of the Nobel Prize winning model used by Mohammed Yunnus and the Grameen Bank, microfinance centers primarily around education. Potential applicants must go through a serious of trainings on topics ranging from financial literacy to health and hygiene. They are then split into groups with other individuals from their communities and are responsible for paying back the loans of those of those within their groups, should they default. This model of lending has resulted in almost perfect repayment rates that are much higher than their western counterparts. 

Volunteers help with making business plans, proposal writing, assisting the program directors, visiting the beneficiaries of the loans and interviewing communities that are part of the project. Depending on local needs, volunteers may also become involved in providing business consultations and trainings on opening savings accounts, running small businesses, evaluating loan applications, performing risk analyses, monitoring projects and overseeing repayment.

The volunteer will assist the local staff in writing reports and success stories, visit the beneficiaries, help to select new participants and use their English skills to support the staffs in writing proposals and correcting reports. The volunteers can do survey with local staff by interviewing the local people. After they collect the data, the volunteer will do data entry. 

Every volunteers will get the weekend off. There are many places volunteers can visit at the weekend including the Royal Palace, Silver Pagoda, Wat Phnom, National Museum, Killing Field... Volunteers can also travel by bus to visit many provinces at weekend or during national holiday such as to Siem Reap to see Angkor Wat, the famous historical place or Sihahouk Vill and Kampot to see beaches. Phnom Penh is a very international city, you will find a lot of western bars, supermarkets offer western articels, and especially the riverside is the spot for diplomats, travellers and international ngo-workers. But of course, you will also find the Cambodian Culture everywhere in the city. Walk around the different markets, try the food of the food stalls at the street or just walk around the streets, there is really always something to explore. Phnom Penh is a good base for trips through the country as it is very central.