The founder of South Pacific Business Development (SPBD), Fiji’s largest microfinance network, has called on the government to consider increasing investment in the organization. American social entrepreneur Greg Casagrande emphasized that investing in SPBD is an effective way to empower micro-entrepreneurs at the economic base.
“We cannot have economic growth focused only on the top 10% of society. Growth must come from the ground up, and SPBD, which has been here for nearly 25 years, is financially sustainable and committed to serving the needs of micro-entrepreneurs, especially women,” Casagrande said in an interview.
He criticized the practice of funding microfinance groups without a proven history of providing sustained finance to micro-entrepreneurs at the base of the pyramid, calling it a waste of money. “Handouts breed dependency. SPBD believes in providing a hand-up, not a handout, and we have never taken any handouts. We seek investment to deploy with our members,” Casagrande explained.
SPBD currently has a financing partnership with the Fiji Development Bank (FDB). “FDB lends us funds that we use to grow our loan portfolio, and I would love to expand that relationship. SPBD is financially self-sufficient; funds that come to us don’t cover operating costs, which are already taken care of. They help us expand into new villages, enhance our relationships with existing customers, and open new offices on different islands to better serve each community.”
Since its establishment in Fiji in December 2010, SPBD has supported over 20,000 women micro-entrepreneurs, providing more than 32,000 loans totaling over $100 million in unsecured credit. The organization currently has 7,000 members.