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Finance & Skills Training

Fair trade is only the beginning of KiKati’s philosophy.  Our experience with Kiva has shown us that small business entrepreneurs require basic training as well as simply the provision of funds.

Our tailors have all expressed a desire to learn some budgeting skills – both business and for their household expenses.  They all pay school fees for the children that they care for.  This large expense is every four months and it’s rare that they have budgeted appropriately for this cost.

It is common practice in Uganda for small business owners to use up their entire inventory before restocking.  Not only does this mean they have limited stock towards the end of the cycle but it also means a large outlay at once – which they may not be able to afford.

Basic finance training enables our tailors to be able to calculate the appropriate costs to charge their customers.  It is not uncommon to see businesses only breaking even as they buy in bulk and then divide up and sell at a price that is too low.

With some basic training the tailors are making their businesses more sustainable and are better able to manage their household expenses as well as the continuing the operation of their business.

Adam, a qualified chartered accountant, spends time with the tailors one-on-one on a regular basis.  He teaches them some of the skills that enable the tailors to use their income in a more effective manner.  This enables them to provide a higher standard of living for their families.

Healthcare and School fees fund

We already pay our tailors a fair trade price for the bags they have made.  We take into consideration the market value of their work in the developed world when determining their payment. 

All additional profits from the sale of their bags are saved and placed into two funds which we have set up for the tailors.  A healthcare fund and a school fees fund.  These funds are shared amongst the tailors and are to be used when required.

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