Worldwide 12.6% of youth are unemployed. This is not only detrimental to economies on a national scale, but impacts directly on the youth themselves. Other microfinance providers are attempting to directly address the crisis of youth unemployment directly through youth themselves. Deki finds itself in the position to be strongly involved to this innovation and to join in this movement. In 2018, only 7% of our loans went to those age 18 to 25, showing we have some real room for improvement and increased focus in this area.
Much like a healthy diet, achieving financial health comes down to more than just a loan. It’s vital to use a combination of ingredients including: increased financial literacy; easier access to cash funds; and the facilitation of financial robustness to compensate for cash flow fluctuations or unforeseen circumstances which can often be highly detrimental to an entrepreneurs’ journey with Deki.
A common barrier identified to financial inclusion and effective microfinance is low levels of financial literacy, leading to a lack of trust of financial institutions and of understanding how to build a sustainable business from a loan. Tailored training helps to overcome this educational gap to financial inclusion.
At Deki, our goal is to help those who are most vulnerable and impoverished. To this end, we implement an assessment for all of our prospective loan applicants to measure their current level of poverty. This is achieved by using the Poverty Probability Index. These measures vary from country to country, but encapsulate key factors which indicate whether an individual is living in poverty.
Women play a critical role in achieving a world full of opportunity, not poverty, but they face persistent obstacles and high levels of financial exclusion, limiting their ability to lift themselves, their families and their communities out of poverty. This is why 79% of Deki entrepreneurs in 2018 were female.