Frank attended the business skills training program in February 2012. His proposal was to utilise the poor road networks by starting a bicycle taxi business.
This is a business that requires a relatively low capital investment whilst providing a steady income for Frank and his family. Frank received his micro loan and got straight to work, purchasing five bicycles and employing five drivers. This business requires very little management – Frank is able to send the drivers out each day and they in turn will pay a fixed cost to rent the bike. He is currently charging 300 Kwacha per day per bike (About £0.60). Whilst this may not sound very much it is an\
income that equates to around 35,000 kwacha per month (around£67.00) – a very good income for someone living in rural Malawi.
Since August 2012, Frank has been able to reinvest enough capital back into the business to purchase a further three bicycles. One of the key principles we teach within the courses is to reinvest your capital in order forthe business to grow, we were delighted to see that Frank had taken this into account when operating his business.