Fatness, Tiyanjane Credit Group, Ntchisi
‘MicroLoan Programmes and their effect on education’
Number in family: 5 children (2 in secondary education; 3 primary)
Business: Tea house
Income before MicroLoan Foundation: subsistence
Current income: MK 5250 (£22.50) per week
Fatness sells tea for MK50, MK30, MK20 depending on whether it’s a large, medium, small cup.
She spends MK200 a day on firewood to heat the water (nobody likes a cold cuppa). She spends a mere MK50 on tea leaves per day because these are bought in bulk. She reckons she sells 200-300 cups of tea per week and 100 scones. She buys the scones in at MK20 and they are sold at MK30.
MicroLoan Foundation training instills the essential skills that all entrepreneurs need to succeed – a sound business plan which looks at the importance of profit rather than just turnover. In this way Fatness has set a pricing strategy based on keeping costs at a minimum. Each week she spends MK 3250 and turns over MK 8500 on average, giving her a net profit of MK 5250. Entrepreneurs here could learn a lot from this approach!
The deep social impact of Fatnesses entrepreneurship combined with the MicroLoan programme is very clear: she has 5 kids in total and she uses large amounts of her income to pay their school fees. Three of her kids are in primary school so they are free. She has a 16 y/o girl and an 18 y/o boy who demand MK 3000 and MK 5000 per term respectively.