Social Microenterprise Initiative - Vietnam
Center for Economic Development Studies
Vietnam National University
Hanoi, Vietnam
$400,000 2005-2008 

www.vnu.edu.vn
2005 SMI-Vietnam Site Visit

Social Microenterprise Initiative (SMI) is a concept created by ABSF founder Arthur B. Schultz and originally applied in post-Soviet Russia whereby small businesses and fledgling entrepreneurs can apply for capital grant business loans. Such loans are typically used to enhance production capabilities and thus employment and growth opportunities. What makes the loans unique is that they are paid off in the form of free services to needy people in the businesses' immediate communities, usually centered around the businesses' products.

For example, dental and health clinics receiving SMI loans for new dental and diagnostic equipment must repay the value of the equipment in the form of free documented health and dental services to elderly pensioners and impoverished locals. A pig farmer getting a loan for more breeding pigs and veterinary supplies then gives away young pigs to rural families and trains them in their care. A printer gets a loan for new presses and pays for it by printing and distributing free textbooks to local schools.

The intention of SMI is to create additional economic opportunities in developing economies (Vietnam and Palestine) while fostering a lasting sense of social responsibility. It is expected that many businesses receiving SMI loans will continue providing services to their communities long after they have satisfied their loan requirements.

In the first three years of SMI-Vietnam from 2005-2007, 26 small businesses representing multiple economic sectors have grown their businesses with SMI loans.  Their required charitable loan payback programs have in turn benefited the lives of over 62,000 Vietnamese people. 

In 2008 we completed an evaluation for our current SMI programs.  To view this document, please click the following link: 2008 SMI Evaluation. 

   You will need Adobe Acrobat Reader to view, download or print the PDF files.