YouthWorks Inc.
Microfinance for youth using ICT4D.
YouthWorks is the premier mobile microfinance providing affordable loans to grassroots and underprivileged youth and women entrepreneurs in the Philippines using ICT4D.
Facts
2007
| Two years ago: | |
| Last year: | |
| This year (forecast): | 14,520 |
| Year 2 (forecast): | 65,160 |
| Year 3 (forecast): | 98,820 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | -87473 |
| Year 2 (forecast): | -39763 |
| Year 3 (forecast): | 25,115 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 5 |
| Year 2 (forecast): | 7 |
| Year 3 (forecast): | 9 |
Finance needed
| Finance needed for fixed assets (buying of machines, buildings, ...) | 788 |
| Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) | 605 |
| Total finance needed (US$) | 1,393 |
How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.
| Own Contribution in cash | 400 |
| Loans (debt) | |
| Share capital that you seek from investors (equity) | |
| Other sources | 35,678 |
| Total finance needed (US$) | 36,078 |
The Business
The main service provided by YouthWorks Inc. is microfinance for underprivileged grassroots youth. To ensure success and achievement of its vision, YouthWorks uses ICT to attract more clients and market their products and as a platform for loan applications and toolkits. Its mobile community-coordinators are equipped with laptops andd internet access to ensure ease of service provided to youth and to keep updated information everywhere they go.
As the premier mobile microfinance for youth, YouthWorks Inc. constantly develops clients through the meetings and fora on youth employment it attends. This come from academic institutions, local governments, youth and women. Aside from Manila and Cebu, there is already a waiting line for borrowers from Baras, Pagadian, Davao, Dumaguete, Ormoc. It ensures that credit goes to underprivileged youth and women entrepreneurs while working towards a 90% repayment rate.
YouthWorks Inc.’s competitive edge is its target market – youth remains an untapped sector for microfinance in the Philippines. Its lower overhead costs due to the mobility of its employees. Lastly, the commitment on ensuring youth entrepreneurs emerge as the reason for the existence of the this institution.
The use of ICT aims to increase its client base at the grassroots,
encouraging investments and providing loans to borrowers. Believing that a multi-stakeholder approach to sustainable development through enterprise development is the best approach, YouthWorks will not provide loans to areas where there is no clear support coming from the private sector and the local government. Right now, theses areas are Taguig, Cebu and Baras.
YouthWorks provides credit to an untapped and considered high-risk sector in microfinance - underprivileged and grassroots youth. Loan applications, approvals, tollkits and the virtual marketplace for marketing its borrowers' products and services are done through ICT.
The Entrepreneur & Management
I have worked in various fields – research, service industry, human resource development, management, legal assistance and social development work working with the governmentt, the private sector and civicl society organizations such as Ambergris Solutions, Philippine Chamber of Commerce and Industry, W. Sycip Policy Center, and the Philippine Youth Employment Network (PYEN). As PYEN’s Executive Director and then Chairman, I was in-charge of the day-to-day operations and created partnerships and networks.
I have started small enterprises, invested in other microfinance institutions, and conducted and developed capacity-building programs for youth.
Development
85% of youth are unemployed around the world, 15% are in Southeast Asia. In the Philippines, 85% of the 14 million youth in the labor force are unemployed and living on the poverty line.
Microfinance has been known to provide a source of livelihood for the poor and YouthWorks provides microfinance through ICT for youth capable of starting their own enterprise or need additional capital to expand their enterprise.
This will have several effects. As a mobile institution, it will reach more clients and market their products and services to assist in the growth of its clients’ enterprises.
Apprehension on the use of ICT remains and a more “human touch” continues to be effective. The mobile community coordinators will be teaching borrowers to access the website for loan application and toolkits and online marketplace through the company-issued laptops and wireless internet connection.
More importantly, YouthWorks’ credit facility will provide capitalization for sustainable youth micro-enterprises providing s source of livelihood for the youth, his employees and the community. This lessens urban migration, increases productivity, eliminates idle time for destructive activities among the youth, increases thirst for knowledge and learning as well as contributes to the community’s increased economic development.
In our experience, young people given the chance to establish their micro-enterprises are able to support their family, employ their family and other youth in the community, provide financial support for their siblings' studies and become eladers in their community.