10 Food Retail Projects View More
How it works: An entrepreneur purchases food items like grain, flour, meat and garden produce from farmers or wholesalers, and sells them to individual households, usually from small shops or market stalls.
Why it's important: A startlingly high proportion of food produced in developing countries spoils before it can be consumed, because of difficulties in distributing it to the households that want to purchase it. Food retailers help solve this problem by connecting producers of food with consumers, ensuring that farmers can sell what they produce and families can purchase it at a location and in quantities accessible to them. The presence of a food retailer improves nutrition for an entire community, by increasing the variety of food items available locally and reducing its price through greater supply.
What your loan can do: It is hard for food retailers to accumulate large sums of money, because they sell in small quantities and frequently allow low-income families to defer payment for food. A loan can provide the large sums they need to stock new varieties of food and to purchase inventory at wholesale prices, reducing the cost to the consumer while improving profit margins.