VSLA: An Effective Means of
Promoting Social Enterprise
Incubating & Scaling Business Solutions to Poverty Issues
What is a VSLA?
 The Village Saving and Loan Association is a groups of 20-30
self-selected participants who make regular savings contributions
by purchasing shares to a loan fund from which any of the
members can borrow and pay back with interest
 The growth of the fund permits group members to acquire assets
which build economic stability at the household level
Why VSLA?
 Groups are low-cost, simple to manage and can be seen as a first
step for people to reach a more formal and wider array of financial
services.

VSLAs can dramatically raise the self-respect of individual
members and help to build up social capital within communities,
particularly among women who represent approximately 70 percent
of member
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April 13, 2015
What is Social Enterprise?
Market-based
programming
Development projects
achieving social impact
via engagement of the
poor as resilient and
creative entrepreneurs as
well as value-demanding
consumers
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April 13, 2015
Social Enterprise
Ventures that advance
their primary social
mission using business
models and approaches
Why Social Enterprise?
•Harness market-based mechanisms for program impact,
sustainability & scalability;
•Explore new models of operation and of financing,
especially in countries with diminishing aid assistance and
increasing private sector presence;
•Adopt a more entrepreneurial approach: encourage
innovation, replication & scale; incubate real game-changers.
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April 13, 2015
CARE HAITI VSLA & Eco Dev Strategic Plan
Scale up
Village
Establish
Savings and
collaborative
Loan
linkages for
Association
mature VSLAs
s effectively
with formal
and efficiently
financial services
through
and Market
Implementati
engagement.
on Partners
Organization
s (IPO).
Advocate
reducing barriers
to financial
access. Identify
financial sector
policies and
procedures that
meaningfully
increase women
and youth’s
access to formal
financial services.
WOMEN’S EMPOWERMENT
Social Enterprise
Explore new
models of
operation and of
financing,
especially in
countries with
diminishing aid
assistance and
increasing private
sector presence;
Summary Statistics for VSLA Groups in Haiti
385 VSLAs formed with 10,878 members of whom 77% are
women
Savings mobilized equals 462,886 USD
Outstanding loan portfolio totals 437,150 USD
Portfolio at risk is 0.4%
Loan utilization rate is 73%
Data from MIS, September 2013
CARE Enterprises’ mandate
1. To support the incubation of
enterprise-based solutions to
poverty issues, their evolution to selfsustainable entities, their growth and
long-term success;
2. To attract social investments from
foundations, corporations and
investment funds in the form of equity
or debt investments to fuel the growth
of CARE’s enterprises.
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April 13, 2015
How does CARE develop social enterprises
in Haiti?
• Since 2009, CARE Haiti has successfully formed and supported
385 Village Savings and Loans Associations (VSLAs) made up
of 10, 878 participants. Our plan is to expand this experience to
10,000 VSLAs creating a network of 300,000 microentrepreneurs across the country.
• Through CARE’s VSLA approach, the village groups quickly
increase the level of their investment capital and form stronger
micro-entrepreneurs. The network of these micro-entrepreneurs
constitutes a strong platform for a large range of social
enterprises. CARE Haiti incubates a portfolio of social
enterprises and set up a social investment fund to support the
growth and quality of these social enterprises
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April 13, 2015
Pathway for evolution
Key
phases
Project / Idea
Assessment
& roadmap
Business
proposal
design
Transition
Spin-off
Phase I
Phase II
Phase III
Phase IV
Funding
mechanism
•
Key
•
activities
•
•
•
•
Assess potential
ventures;
Develop a
roadmap for
evolution;
Engage donors;
Provide technical
assistance.
Phase V
Venture capital
Grants
Mainstream social
enterprises as part
of project design;
Work at an early
stage with
potential partners
& investors.
Social Enterprise
•
•
•
Spin-off the entity;
Bring in coinvestors;
Manage venture
ensuring long term
results.
CARE backed Social Enterprises in Haiti
1. Micama Soley: In partnership with Micama Soley,
CARE works to strengthen the capacity of existing
VSLA members to access financial services and
engage in profitable new enterprises, particularly in
the area of solar power.
2. LIV : CARE donates seed capital in the form of books
to the SMCs who then sell and reinvest profits back
into the school / Sustainable school.
3. Cocoa: The Haitian cocoa market presents an
example of an emerging opportunity for social
enterprise.
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April 13, 2015
CARE partnership Model
Diaspora
Together we
are powerful
I have a voice to influence the Haitian
and US Governments
I have skills to offer my country and the
organizations working in Haiti.
I have financial resources to contribute
to lasting social change through social
investment.
CARE and Partners
Partnership /
Investments
People in Haiti
Haitians have ideas about what
they want for their country.
CARE works through
community driven
development to implement
programs addressing poverty
and social injustice.
Haitians have entrepreneurial
spirit.
CARE builds social enterprise
and manages social investment
funds.
Haitians know the potential
and challenges in their
communities.
CARE organizes personal
investment into scalable longterm programs with shared
learning.
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For more information please, please contact:
1.
2.
3.
Innocent RUTIKANGA| Financial Inclusion & Social Enterprise
Coordinator : rinnocent@pap.care.org
Gilda Charles | VSLA & Women’s Empowerment Manager:
charlesg@pap.care.org
Mc Arthur Elisma | Linkages & Enterprise Development Manager
: elisma@pap.care.org