IOCC Program Supports Small Business in Rural Bosnia and Herzegovina

Long after the Balkan conflict subsided, economic troubles continued to reverberate throughout the region. Such was the case for Mihajlo, 36, and his wife, Natasa, 31, in northwestern Bosnia and Herzegovina. They were struggling to support themselves, their three young children, and Mihajlo’s parents—even though Mihajlo was working two jobs.

Looking to build a better life, Mihajlo and Natasa turned to an IOCC microloan program in 2009. The program, started in 2002, makes loans averaging $2,000 (with the opportunity to borrow larger amounts after successful repayment), mostly to
small business owners in rural areas who can’t get financing from traditional banks. Since its inception, it’s given over 16,000 families a chance to make their entrepreneurial goals a reality.

Mihajlo and Natasa combined funds from their loan with their own money to buy land and dairy cows. The farm was a success, and Mihajlo used a total of seven microloans to finance further expansion, repaying each loan in full. And Mihajlo is not alone. The microloan program has an impressive 99% repayment rate.

Thanks to your support, the farm is prospering, with 27 cows producing milk. In addition, Mihajlo has leased 25 acres to grow feed for his cattle. His most recent microloan was used to purchase a tractor so he can expand his operations even further.