So-called “microloans” — those under $35,000 — can have a giant impact on the success or failure of a small business or an entrepreneur’s idea. And just as critical as the loan itself is the technical assistance, mentoring, and help in developing financial literacy that can often hold the key to making a good idea turn into a profitable one. But all across the globe, small start-ups — especially those launched by women — face an array of hurdles that block them from both the microloans and the training. As part of its Banking on Women program, GE Capital has been tackling that issue, helping over 32,000 women in nine countries get the business expertise and resources they need to create business opportunities for themselves and their families. Now, the program is being launched in the U.S. for the first time in Salt Lake City in partnership with the Utah Microenterprise Loan Fund (UMLF) and the Women’s Business Institute. The video below was taken during the recent Banking on Women conference and launch event held at Salt Lake Community College.

Banking on Women

As UMLF explains on its website: “The concept of microenterprise was founded by Dr. Mohammad Yunnus and emerged in the developing world through the Grameen Bank (Bank of the Poor) in the country of Bangladesh in 1976. The bank was established with the practice of making small loans to the poor — predominantly women — to help them obtain economic self-sufficiency.” They note that Grameen Bank has been extremely successful, reporting a 97 percent rate of repayment. (Grameen’s pioneering work can also be seen on the healthcare front, with GE having partnered with the bank last year as part of its healthymagination efforts in Bangladesh).

While microenterprise in the U.S. is different from that in developing countries, the basic idea is the same. As UMLF’s Kathy Ricci said at the launch event in Salt Lake City: “We help people start or grow businesses that are not able to get traditional bank or credit union funding.” In the U.S., helping jumpstart a business also comes in the form of technical aid, specialized training and coaching, and assistance in improving the business owner’s financial understanding — all key GE Capital strengths.

“According to the U.S. Small Business Administration, small companies account for 64 percent of new jobs over the last 15 years,” said Utah Rep. Jim Matheson, whose state is number one in the country in when it comes to the percentage growth of women-owned businesses. Yet despite those statistics, he underscored at the Salt Lake conference that securing financing — and accessing the training and expertise — necessary for long-term success can often be an uphill battle for those starting a business, or trying to expand one.

* Visit the Banking on Women website
* Read coverage in The Deseret News
* Read coverage in The Salt Lake Tribune
* Read the announcement about the Salt Lake City program
* Read more GE Capital stories on GE Reports