Over the years, microfinance worldwide has proved to be a powerful instrument for poverty reduction that enables low-income individuals to build assets, increase income and reduce their vulnerability to economic stress.

Dry Cleaner

Tailor

In Lebanon, this concept is gaining popularity, as several non-governmental local organizations, international finance institutions, donor countries, and banks are showing interest in developing the micro-enterprises through the provision of loans.

Roadside vendors, small grocers, craftsmen, artisans equipped with simple tools producing basic consumer goods, electricians, small shops, tailors; these are familiar sites in Lebanon. Commonly, such business ventures are referred to as informal sector enterprises, and account for 40% of Lebanon's economy. In order to survive, grow, and succeed, these ventures need, besides the know-how, the capital that comes from savings or in the form of loans from family members, friends, banks, non-profit organizations, or from other sources.

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The importance of micro-credit as a beneficial tool for community development is the driving force behind the Makhzoumi Foundation/Micro-Credit program (MF/MC).

Micro-Credit Program Profile

In 1997, the Makhzoumi Foundation decided to establish a micro-credit program. With the help of a microfinance expert with extensive experience in the design, implementation and evaluation of microfinance projects in developing countries, the Foundation commenced with conducting a study on the Lebanese micro-enterprise sector.

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Barber

Results of the market assessment showed that demand for micro-finance loans is enormous compared to the supply. Micro and Small-scale businesses employing less than 4 employees, and often run by women, usually need very short-term working capital loans. Because many are unable to satisfy the collateral requirements for commercial loans set by banks, or have to pay exorbitant interest rates on money borrowed from lenders, they are unable to reach their full potential and expand.

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Hair Dresser

In 1998, the micro-credit program was launched. When it started, the program used to cover only Beirut, but has since expanded to cover the Greater Beirut area, and recently the North and Mount-Lebanon. As we establish ourselves in the market and cover gradually more of Lebanon's geographical areas, we continue to set new goals and respond to new challenges, in order to ensure the program's long-term viability and to provide efficient and tailor-made financial services to Lebanon's low-income group of the population, making the Foundation’s Micro Credit Program one of the leading microfinance programs in Lebanon.

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- Makhzoumi Foundation received an invitation from "Sanabel", Microfinance Network of Arab Countries, to its Fifth Annual Conference, “Advancing Arab Microfinance: Greater Social Impact through Inclusive Financial Systems”, from May 6th – 8th 2008 in Tunisia. During this conference, Sanabel's 2008 Regional Award is granted to the Best Micro-entrepreneurs in the Arab Countries. One of Makhzoumi Foundation beneficiaries, Mrs. Amina Beiruti, has been selected the "Best Micro-entrepreneur in Lebanon and she will be attending the conference to receive her award. This award celebrates the accomplishments and successes of micro-entrepreneurs, as well as the efforts of the microfinance institutions that have provided financial and non-financial support to these micro-entrepreneurs.

- Being one of the active pioneers working under the scope of Microfinance, Makhzoumi Foundation received an appreciation certificate from the Microcredit Summit Campaign certifies that the Foundation is an active member and committed to the Summit's goals. The Microcredit Summit Campaign works to ensure that millions of the world's poorest families receive credit for self-employment and other financial and business services. Makhzoumi Foundation launched the Micro Credit Program in 1998, to provide efficient and tailor-made financial services to Lebanon's low-income group of the population to build assets, increase income and improve their economic status.