SKI Charities

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At SKIC, Community is Everything

SKIC has been a community-minded organization since day one. But now, more than ever, the organization is seeing the importance of maintaining and stimulating communities in both of its operating sites – Lebu, Chile and Mutare, Zimbabwe.

LEBU, CHILE | Lebu is a rather isolated city, with a static population. It relies heavily upon people-to-people connections – for it’s economy, and for morale.

Several years ago, Lebu was very much impacted by a huge earthquake. Many local institutions collapsed and the town became much more physically isolated. Lebuanos were forced to look inward and found that they could only count on their neighbors, not Santiago, Chile’s capital.

MUTARE, ZIMBABWE | Zimbabwe has been experiencing increasing economic hardship over the past 2 years, with no financial liquidity. In this economic landscape, there is a lot of room for depressed morale. SKIC’s response to this has been to downsize their SKIMFI participation, scaling from 200 beneficiaries, to 20. This scale shift has enabled SKIMFI project managers to focus their energies more specifically, and for the 20 women who are a part of the program to really band together.

SKI Charities Founder, Shyam comments on SKIMFI’s downsize, “We get obsessed in life with numbers. But it dilutes the focus and the impact. Eventually we want to reach 200 participants again, but we are really impacting people at a crucial time right now by scaling back. We are actually impacting far more people than we were before, despite numbers being lower. ”

TIRUA, CHILE: SKIC’s Latest Location | Recently, the organization extended its reach to Tirua, Chile – another relationship-oriented location.

Beneficiaries in Tirua regularly participate in group meetings to compare notes and support each other’s endeavors. Different community and government leaders conduct lectures regarding accounting, and how to set up a more formal business. These meetings give women a sense of camaraderie and the sense that there is the ability to continue their entrepreneurial pursuits outside of SKIC based on the networks they’ve created for themselves. It’s comforting for them to know that once they have completed the SKIC program, their lives can continue comfortably and that they have a set of skills and resources to keep a certain momentum behind their businesses.

 

Across all SKIC programs, there is little room for competition – the beneficiary experience is largely collaborative.

Community is a fundamental part of how SKIMFI participants vend their products. With a moderately stagnant economy, community becomes essential to liquidation. One of the main goals of SKIC is to foster community and collaboration between beneficiaries. Income is a short-term reward for beneficiaries, but it doesn’t match the long-term impact of building trusted networks that extend into other parts of life. “SKIC beneficiaries know they have sisters to count on when time gets tough, or even when things are going well and they have to contemplate the next step for growth,” Shyam says. “Community is everything to our organization.”

 

Empowering Transformational Female Leaders

In a previous post, “Why Focus on Women?,” we discuss the importance of SKI Charities’ focus on empowering female entrepreneurs and providing education for young women. In the traditional communities of developing countries like Zimbabwe and Chile, where SKIC works, already-marginalized women are often made powerless by circumstances of conflict and unrest, with men historically and culturally standing as the heads of households. To counter these unfortunate standards, the SKIC team directs its efforts toward women to level the playing field and to tap into the entrepreneurial spirit and leadership potential that we believe all women possess.

Mrs. Annia of Mutare used her SKImfi microloan to begin, and expand, a vegetable business.

Mrs. Annia of Mutare used her SKImfi microloan to begin, and expand, a vegetable business.

Our world needs more female leadership – and not just because women are currently underrepresented in formal and informal leadership positions worldwide. Unlike men, who tend to have a transactional leadership style, marked by incentivizing good performance and maintaining order and flow in a workplace setting, women tend to be transformational leaders. According to Alice H. Eagley’s New York Times article “Hybrid Style Works, and Women are Best at It,” a transformational leader “acts as an inspirational role model, motivates others to go beyond the confines of their job descriptions, encourages creativity and innovation, fosters good human relationships, and develops the skills of followers.” This leadership style has shown to be most effective in modern workplaces.

The interpersonal relationships and motivational attitude that transformational leaders bring to their environments are ideal for fostering economic and social growth, and for multiplying the efforts of SKI Charities. With each transformational leader we empower, we hope to send a ripple effect through countries, so that countless more women emerge as leaders, driven to transform their communities and workplaces.

Africa’s Mobile Technology Rise

The technology that has long provided convenience in most daily lives is now transforming opportunities available to entrepreneurs in developing countries. Mobile technology in Zimbabwe has risen to more than 71 percent, supplementing the work of SKImfi and allowing women in Zimbabwe to expand, organize, and promote their entrepreneurial efforts.

A SKImfi entrepreneur completes the loan process.

A SKImfi entrepreneur completes the loan process.

Mobile technology in Africa has created a major boon in business in recent years, and has a particular impact on women working with organizations like SKI Microfinance Institute. Mobile banking applications strengthen solidarity lending. They allow women to reinvest their earnings, move money between one another with ease, and distribute funds to their families in rural areas. A 2011 case study on Zimbabwe by Groupe Speciale Mobile Association (GSMA) cited a 41 percent increase in opportunities for women to generate income and an 81 percent increase in women’s independence when they can access mobile phones.

The distances that technology allows us to traverse give women the opportunity to build the best possible businesses. Instead of solely relying on local suppliers, SKImifi entrepreneurs can explore vendor options outside their immediate circle and find quality products in more distant locations. This flexibility expands the types of businesses women choose to start and extends the circle of microfinance engagement to other types of vendors. The connections made possible by mobile technology improve both the work lives and the personal lives of women; 93 percent of women in the GSMA study reported feeling more connected to family and friends since owning a mobile device.

They are better able to organize staff, manage their finances, and communicate without restriction to create efficient, lucrative businesses. Access to mobile tools allows SKImifi entrepreneurs to reach their potential as leaders.

Faces of SKImfi: Prudence K.

When Prudence and her SKImfi group members gather for business meetings, they begin each session with a chant: “High high, it lifts you high. SKImfi lifts you UP!” Prudence K., a 30-year-old mother of three, launched an electrical supplies business after attending a Selection, Planning and Management workshop with SKImfi Zimbabwe.

She accessed a $100 microloan through SKImfi to open the doors. She sells radios, television sets, cell phones, and has recently begun importing solar panels and batteries from South Africa. Through profits from the business, Prudence buys better food, clothing, toys, and medication for her family.

Prudence K., in her electronic supplies store.

Prudence K., in her electronic supplies store.

“I am now proud to associate with other people in the community, as I look very presentable and I am confident in whatever I do,” she says.

Now, Prudence decides how to spend money without her husband’s permission, and she feels that he respects her more because of her independence. Not only does she provide for her family, but she also supports philanthropy in her community. In April, she donated five 12-foot asbestos roofing sheets to her church. Her charity also extends to a widow living at the church, whose welfare Prudence contributes to.

“I hope to do more as my business grows,” she says.

Prudence struggled to provide stable resources for her family before this business venture. Married at 18 years old and unable to pay college tuition fees, a job was impossible to find. Her husband left for South Africa to look for employment while Prudence was seven months pregnant with her third child, but he was unsuccessful. She says her own mother was her inspiration for starting her business.

“I thought how mother had succeeded in sending us to school through buying and selling anything that had demand,” she says. “She is my inspiration, a strong woman who always hopes for better things. She is still doing business, and now my younger sister and brother are at university. If it had been my father’s choice, we would have not gone to school, especially us girls.”

Prudence attributes her business’ success to the SKImfi team’s training sessions and to the program’s low interest rates. Before she learned of SKImfi, she was faced with exorbitant interest rates from private money lenders, and, with no collateral to guarantee repayment, she couldn’t secure a loan from local banks. Now that her business is steadily building capital, she will not need another loan until she is ready to further expand her business.

“My vision is to become a major supplier of hi-tech goods,” Prudence says. “I will work to buy a house for my family and a pick up truck for my business. I will work to thank my mother for sending me to school.”

A Conversation with Shyam: How We Find Talent

“Everyone has talent, but not everyone is given the opportunity to take advantage of it,” says SKIC founder, Shyam K. Iyer.

Though SKIC chooses participants selectively, beneficiaries end up being role models for their friends, families, and communities at large.

Listen in to hear about how important talent is to SKIC, and how the gifted individuals who make up the program affect the greater community.