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International evidence has shown the tremendous entrepreneurial potential that access to finance can unleash in poor communities. With continued help, families and communities can provide their children with opportunities they themselves never had.

Poor women in particular benefit from microfinance services. Such women, often the most disadvantaged group in a society, tend to be good credit risks. Increasing women’s access to microfinance has wide-ranging benefits, not just for their well-being but also for the welfare of their families, the communities in which they live and for society at large. However, the provision of microfinance on its own is insufficient. In some instances, such loans can become a burden due to poor management, or unsound investments.

Microfinance schemes have to be complemented with adequate training so that recipients are empowered with the skills necessary to benefit from the loans.

The UNDP Entrepreneurial Skills: Empowering Women project was undertaken in partnership with the Ministry of Entrepreneur and Cooperative Development (MECD) and the Malay Chamber of Commerce (MCCM). The project aimed to empower women by creating greater awareness of microfinance and various small loans available to low-income women, and through a skills training programme. Additional support was provided by Rumah Nur Kelantan, Amanah Ikhtiar Malaysia, Universiti Teknologi MARA, Agensi Kaunseling dan Pengurusan Kredit, Microsoft Malaysia (Unlimited Potential), Mydin Mohamed Holdings Bhd, and BRM Advanced Technologies Sdn Bhd.

A communications campaign on microfinance was conducted in Kelantan, Terengganu, Penang, Kedah and Melaka to increase awareness and understanding of microcredit and microfinance, especially among low-income rural women. Helpdesks were set up at the state level MCCM offices to act as one-stop centers for independent information on microfinance and workshops were conducted at the district level to educate and inform women of the various microcredit and microfinance opportunities available.

Complementing the communications campaign was a six month training programme for a select group of low-income women to equip them with the necessary tools to enhance their business skills and upscale their enterprises. The training programme was directed towards low-income women with existing food businesses in Kelantan and Terengganu, the two states in Peninsula Malaysia with the highest poverty rates and lowest human development. While emphasizing the multi-faceted nature of enterprise management, the programme also focused on providing motivational training to build confidence, and creating business matching activities to expand market opportunities for low-income women. More importantly, the project has developed a training module that can be readily replicated.

The project saw about 50 low-income women blossom into more confident and creative entrepreneurs. These women showed tremendous dedication to learning and a determination to succeed. Some travelled long distances to attend class. These women, who previously had no reliable income, have benefited from microcredit loans, and are slowly gaining the confidence to expand their markets and connect with other entrepreneurs and suppliers, including some from outside their states. It has enabled them to expand their horizons and potentially achieve their dreams.

This publication documents some of the significant lessons that can be drawn from this project. This volume is the ninth in a series of periodic publications reporting on UNDP Malaysia’s work in its energy, environment and human development practice areas. The large range of projects being undertaken in this portfolio is designed particularly to support Malaysia’s efforts to achieve the Millennium Development Goals (MDGs), especially to eradicate poverty, promote gender equality and ensure environmental sustainability.