From Deseret News archives:
Nobelist partners with Provo group
Warner Woodworth, the founder of MicroBusiness Mentors, announced the partnership at a ceremony Friday night for graduates of the program. The Nobel winner, Muhammad Yunus, received his prize last weekend for his work with the Grameen Bank of Bangladesh.
MicroBusiness Mentors focuses on providing small loans to aspiring entrepreneurs who have no capital to start their own businesses and don't qualify for bank loans. Yunus used this method, called micro-finance, in Bangladesh to help village women start small businesses.
"These women were making one or two pennies per day," said Woodworth. "Some now make $1,000 every month."
The relationship between MicroBusiness Mentors and Yunus will be an informal one, said Woodworth.
"We'll send him an e-mail once in awhile and say, 'We've got this problem. Any ideas?"' he said.
Yunus, who is tentatively planning a visit to Provo this fall, has collaborated with Woodworth before. In January 2000, Woodworth, a professor at Brigham Young University, traveled to Bangladesh with about 10 wealthy American CEOs to learn about micro-credit. Since then, Woodworth has worked with students in BYU's Marriott School of Management to create more than 40 projects in 22 countries.
One of the largest of these initiatives, Unitus, has worked with other nongovernment organizations to help about one million individuals start their own businesses.
A couple of years ago, Woodworth and his students decided to start a local effort, and MicroBusiness Mentors was born.
The program, which became partners with United Way this fall, utilizes business students at BYU to provide training and mentoring for local Hispanics with business ideas.
"It's a nice program because it's not only training those who are receiving the loans but the students as well," said Joan Dixon, executive director of Centro Hispano, an organization with United Way.
At Friday night's ceremony, four fledgling entrepreneurs graduated from the program and each will receive a $500 loan on Jan. 19. If they successfully repay the loans, they will be eligible to receive a larger sum.
"It's the same theory as Muhammad Yunus' — to help them help themselves," said Shea Allred, a BYU student who volunteers with the program.
The graduates presented their business plans, which ranged from a restaurant to a custom tailoring business.
"I'm thankful for your help and your desire to help the Hispanic community," Jorge Coromel told program volunteers, after presenting his plan to open an Hispanic restaurant complete with a dance floor.
MicroBusiness Mentors has a 100 percent re-payment record for loans, said Woodworth, and so far about 50 individuals have received training through the program.
Woodworth told volunteers and graduates he expects to see an increase in the program's scope in the near future.
"We have the potential to help a lot of people get ahead," he said.
E-MAIL: rwestenskow@desnews.com
