Sociopolitical

Anti-poverty program brings hope to Taiwan’s underprivileged

The CCF-TFCF anti-poverty program is giving people like Chen Ying-huey a chance to bring their lives back on track. (Staff photo/Meg Chang)

• Publication Date：11/05/2011
• Source： Taiwan Today
• By  Meg Chang

At a small eatery in New Taipei City’s Xizhi District, Chen Ying-huey is busy serving patrons her special pork rib soup with Chinese herbs, at the same time greeting everyone who passes the store. “This is a very demanding job, but I have found a thread of hope for my life,” she told Taiwan Today, beaming with pride.

Life has never been easy for the single mother, with one child in college and two elderly parents to support, and she has held many odd jobs just to eke out a living. Long working hours and a heavy financial burden have taken a toll on both her body and mind. Chen always believed she would never be able to pull herself out of poverty, until she learned of an anti-poverty campaign sponsored by Taipei-based Chinatrust Charity Foundation.

With a referral from the Taiwan Fund for Children and Families, from which she has been receiving financial aid for years, Chen obtained an NT$380,000 (US$12,460) microloan through CCF’s affiliate Chinatrust Commercial Bank, and used the money to start her business in July.

According to CCF Executive Director Roger Kao, Chen is one of the first 13 beneficiaries of the NT$100 million program. “From 2011 to 2014, the money will be used to assist 50 individuals a year to start their own businesses, with the maximum amount per loan capped at NT$500,000,” he explained. “If everything goes as planned, the project will help lift 200 families, or around 1,000 people, out of poverty.”

The loan periods for the extremely low-rate debt range between five and seven years. On an NT$300,000 loan, for example, borrowers have to make interest payments of only NT$400 a month for the first year. Even when they begin to pay back portions of the principal from the second year on, their monthly outlays will be just slightly over NT$4,000, he explained.

Kao said the project stemmed from an ambitious plan by CCF Chairman Jeffrey Koo Jr. to tackle the country’s poverty problem. The foundation has been sponsoring charity programs for years, including a savings campaign that encourages charity beneficiaries to save more money by matching the amounts of their bank deposits, Kao said. “But most of such assistance comes in the form of emergency relief and does not really address the root cause of the predicament.”

The Grameen Bank created by Nobel Peace Prize Laureate Muhammad Yunus was a great inspiration, but the Bangladeshi model leaves much to be desired, Kao said. “We want to do more than just providing microfinance, as money is only one of the many resources and support the disadvantaged need to face the hardships of their lives.”

CCF Executive Director Roger Kao expects the foundation’s initiative will help at least 200 families in Taiwan shake off poverty. (Staff photo/Chen Mei-ling)

The foundation began drawing up a plan two years ago to help create self-employment opportunities for people on its assistance programs, because starting a small business appears to be the best way to break the cycle of poverty. “Most of the people on our assistance programs possess great culinary skills and other capabilities. All they need is an opportunity to get started,” Kao said.

The result is collaboration among CCF, its affiliate CCB, the National Association of Small & Medium Enterprises, SME Credit Guarantee Fund of Taiwan and TFCF. Together these partners created “the most comprehensive anti-poverty project ever sponsored by Taiwan’s private sector,” commented Robert Lai, director-general of the SME Administration under the Ministry of Economic Affairs.

TFCF Specialist Lan Yuan-shan said the project represents “the last mile” of the foundation’s efforts over the past six years to help the country’s underprivileged shake off poverty. While Lan acknowledged that the odds are against these aspiring entrepreneurs, as statistics show that around 70 percent of all startups fail within one year, he believes the experience will provide them with invaluable assets when they face new challenges in their lives.

“These people are bound to encounter unexpected problems in running their own businesses, and hopefully they will learn to tackle these problems by themselves and build self-confidence in the process.” A benign side effect of the project is that it also brings family members of the business owners closer together. “We hope that the younger generations can truly appreciate the dedication their parents put into their businesses and see how hard they are trying to realize their own dreams in a dignified manner,” Lan said.

According to Shih I-chia, deputy director of the NASME’s Business Startup Guidance and Assistance Center, her group is responsible for providing professional consultations in every aspect of setting up a business, including helping the entrepreneurs convert their skills into marketable products or services, drafting business proposals, selecting store locations and seeking all available public and private resources.

“The procedure includes a six-month counseling period, followed by a comprehensive evaluation to see whether the candidate is professionally and psychologically prepared for the undertaking.” After the business is up and running, the center will continue to monitor its operations for a whole year, with all necessary assistance, Shih added.

Other than providing funds and assembling a team of the most experienced partners available to offer the necessary professional guidance, Kao said, the Chinatrust Group is using all potential corporate resources to make the initiative work, including more than 2,000 group employees nationwide who have contributed more than 100,000 unpaid hours to CCF’s various charity programs so far.

“We have volunteers assisting loan recipients with their bookkeeping and financial planning,” Kao said. Some CCB branch offices even came up with the idea of adopting the stores of loan recipients, patronizing their businesses and providing feedback on how the storeowners can improve their operations. They also report what they observe to the CCF on a regular basis, so that the foundation can provide timely assistance, he explained.

Although all 13 borrowers have been making repayments on schedule, Kao recognized the risk that some of the loans could go into default. But money is definitely not the CCF’s major concern, he said. “We are under tremendous pressure to make this project work, because we need to create several successful examples that can inspire other organizations to follow suit.” The CCF will be more than happy to share its know-how with those who are willing to help fight poverty, he added.

After three months’ hard work, Chen said her eatery business is getting on track, with revenues gradually increasing, as she had anticipated. She works nearly 12 hours a day and takes only one day off a month. The pressure is still there, because she is required to pay off the loan in five years. “But my life is getting much better than before,” she said. “I am grateful for the opportunity given to me, and I will do my best to repay the debt, so that the money can be used to help more people like me.” (THN)

Write to Meg Chang at meg.chang@mail.gio.gov.tw