Ground-breaking fund to back Scottish entrepreneurs

aspiring entrepreneurs in low-income communities are to be targeted by a lending scheme being introduced to Scotland early next year.

The Grameen Scotland Foundation will identify business hopefuls “locked out” of the financial system who would benefit from small loans charged at competitive rates of interest.

The pilot scheme will serve Glasgow, Inverclyde, North Ayrshire and West Dunbartonshire, four of the five most deprived communities in Scotland.

Tesco Bank will provide £500,000 of the loan capital for what will be Grameen’s first venture in Europe. The model currently operates in 38 other countries.

The foundation has also attracted £100,000 from the Scottish Government and the same donation by Stagecoach founder and philanthropist Ann Gloag.

The Grameen system of lending was devised in Bangladesh in the 1980s by Nobel Laureate Professor Muhammad Yunus, the new chancellor of Glasgow Caledonian University, who will be installed today.

He said: “Poor people need to be given the right opportunities to be able to succeed in their own lives and this is what Grameen helps them to do.”

Foundation chair Martin Cheyne said: “It is about more than simply money – Grameen can lift people out of unemployment, improve health and give families a real opportunity to be independent.”

Tesco Bank chief executive officer Benny Higgins said: “We aim to play an active role in the communities we operate in, helping to provide opportunities and support to those who need it most.

“In partnering Grameen in Scotland, we will provide loan funding, guidance and access to our stores to help set up new businesses which, over time, can improve the local economy.”

The foundation is aiming to raise £3 million over the next five years to roll the initiative out to other parts of the UK.