Every month, we invest a percentage of our revenue into microfinance loans for entrepreneurs in developing countries through Lend With Care.
When the entrepreneurs make repayments, we ‘recycle’ the loan – using the money to fund more entrepreneurs.
Lend With Care provides access to basic financial services and entrepreneurial training to help entrepreneurs start and develop their own businesses and build a better future for themselves and their families.
It’s a cause close to our hearts, and an important part of our impact strategy.
In 2011, our Senior Managing Partner Sian worked on a sustainable development project in Sierra Leone, working with the local community to set up a scientific research base for biodiversity and conservation and an eco-tourism resort to bring income to the area and support the work of the base. Part of the project involved supporting community members to start their own businesses using microfinance loans – such as a restaurant and local shop.
Sian saw first hand the power of microfinance loans – people can work their way out of poverty in an empowering way that benefits their family and their community, creating jobs and economic opportunity.
When she started #EthicalHour (the UK’s largest ethical business membership community) in 2016, Sian knew she wanted to support a microfinance organisation, investing a % of revenue into microfinance loans as part of #EthicalHour’s mission to help good businesses grow.
To date, #EthicalHour has made 91 loans, supporting 571 entrepreneurs, 2,139 family members and creating 304 jobs.
It was important to Sian to continue this work when she founded 181st Street with our other Managing Partner Andrew.
Having previously scaled and sold his own tech company, Andrew personally understands the power and importance of people investing in you and your business idea early.
The support of microfinance loans aligns perfectly with our other impact pledge – to give senior strategic time on a pro bono basis to purpose driven startups that otherwise couldn’t afford it.
We want to empower businesses of all sizes to embed social and environmental impact and become as profitable as possible – so that purpose led business becomes the norm.
When choosing who to lend to through Lend With Care, we prioritise green investment projects where available, and female-led businesses.
Our pledge to support Lend With Care primarily aligns to Sustainable Development Goal 1: No Poverty, Sustainable Development Goal 10: Reduced Inequalities and Sustainable Development Goal 8: Decent Work and Economic Growth. By prioritising green investment and female founders, we also have an impact on Goal 13: Climate Action and Goal 5: Gender Equality.
We have set up a 181st Street loan fund with Lend With Care so we can track our impact as a business, and combined forces with #EthicalHour as a ‘lending team’ to track our collective impact over time as we continue to invest in new loans and ‘recycle’ existing ones.
You can find out more about Lend With Care and microfinance loans here.
