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In China the government is helping thousands of women who lost their jobs due to the world economic crisis by giving them government-backed micro loans. This program has helped women get back to being financially independent. In addition, business incubator programs in different provinces have trained these female entrepreneurs how to best use these loans.
A women living in the Tianjin province who lost her job five years ago, decided to start a business with her husband who also lost his job when his employer went bankrupt. Lacking money and experience they sought the help of the Tianjin Women's Business Incubator. Their idea was accepted and the couple received training in how to run a business and an interest-free loan of 4,000 Yuan (600 dollars) to lease shop space in Tianjin. Later, they borrowed another 20,000 Yuan to buy equipment to start the business.
Another recipient borrowed 50,000 Yuan from the micro-financing program after a Chinese state run bank turned down her loan request. The state run banks are not prepared to lend money to entrepreneurs because the size of the loans that they need are too small and usually the women entrepreneurs have no assets to offer as collateral.
This program plays an important role in China filling a gap that the formal banking system does not deal with. WomenTeachingWomen applauds this initiative and believes programs that empower women financially are a key combating poverty.
