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  • Program Components

    There are four key components which make up Paradigm Shift's Program.
    Click below to find out more information about each one.

    Business Training

    Philosophy Statement:

    Paradigm Shift business training means teaching entrepreneurs practical tools such as planning, accounting, finance, organization, costing, pricing and marketing. Each of these are transferable business skills that can be applied to any enterprise.

    Why?

    Entrepreneurs who apply for loan capital are doing so because they want to expand a business. But expansion required more responsibility, which entrepreneurs must be prepared to handle. Many microfinance institutions have found that if business owners have access to capital but their skill level is not expanded to maximize the investment, the benefits will not be as significant. With practical skills and a simple business plan, entrepreneurs can map out where they want to go and learn how to get there.

    How?

    Paradigm Shift’s business training program is highly experiential and small-group based. Training provides opportunities for entrepreneurs to practice applying the tools to practical business scenarios. Entrepreneurs must complete a 12-hour Business Experience course before they are eligible to apply for a microloan. Each training will be conducted by a skilled team of volunteers from participating churches who will facilitate Paradigm Shift’s curriculum using experiential methodology. ACSI schools’ business students will have the opportunity to assist as table trainers.

    Discipleship

    Philosophy Statement:

    Paradigm Shift discipleship is intentional teaching directly from the Word of God in the context of a small group where everyone feels safe, cared for and connected.

    Why?

    Many of Africa’s poor are evangelized, but not discipled. As a result, the poor often know about God, but they don’t know how to have a relationship with God.

    How?

    Discipleship is integrated into every aspect of the journey of an entrepreneur who is a participant of Paradigm Shift’s program. Effective, Christ-centered discipleship is the focus and goal of each loan meeting and will have a special place in every aspect of the program. Paradigm Shift models its staff and volunteers after Jesus’ example - each person being discipled and each person discipling others. For entrepreneurs, this will occur in their loan group’s weekly meeting, which will be similar to a small group of the local church. Discipleship will also naturally happen when entrepreneurs are paired with mentors outside of the training groups.

    Microcredit

    Philosophy Statement:

    Paradigm Shift microcredit is small, low-interest loans that are repayable over a six-month cycle. Funds may be used only for the purposes of income-generating activities. They are not to be used for consumption, school fees or emergency purposes.

    Why?

    Today, 3 billion people in the world live on less than $2 a day. Chronic unemployment is the norm and self employment is the most common answer to provide for one’s basic needs. For this reason, over 50 percent of adults living in the developing world are self-employed. But because most of the world's poor have little or no collateral, and many are illiterate, managing a business and accessing affordable services and credit is a formidable challenge. Commercial banks will not consider providing these sole proprietors with credit, thus many entrepreneurs resort to moneylenders to access capital. Most local moneylenders charge exorbitant interest rates that typically range from 80-90 percent, which cripples the hope of the poor in gaining a substantial profit on any labor they provide or goods they produce.

    How?

    A Paradigm Shift-trained pair, including a Business Trainer and a Life Coach from a partner church, facilitate the Business Basics course for a small group of 15 entrepreneurs, teaching participants basic business and entrepreneurship skills, how microcredit works and life principles in following Jesus. Each entrepreneur completes the training with a simple business plan that outlines their plans for business expansion. If a plan is viable, an entrepreneur is given a small loan, which is followed by mandatory weekly meetings in which mentors coach entrepreneurs in business development and disciple them on their journey of faith. It is also in these meetings that loan repayments are made. Loans are guaranteed through the use of social collateral, with every entrepreneur belonging to a group of five other entrepreneurs. Each group member guarantees each other’s loans, understanding that if a payment is not made, the other members will cover it. Through the use of this kind of collateral, the responsibility is on the group to ensure repayment rather than on the church. One important financial aspect of microcredit is the recycling of loan dollars. Since each loan is repaid within six months, the money is then recycled as a new loan to another entrepreneur, thus multiplying the value of each dollar used in reducing poverty by creating multiple opportunities for economic growth.

    Mentorship

    Philosophy Statement:

    Paradigm Shift mentoring means long-term, one-on-one coaching relationships between a Christian who is an experienced business professional and an entrepreneur from the urban slums.

    Why?

    It is proven by many sources that mentoring works. When a person is mentored by an experienced business professional, incredibly higher levels of success results in the person’s life who is being mentored. So if someone comes along them who can walk with them in that process, the church can have a powerful impact in seeing poverty reduced and transformation take place. Moreover, mentoring builds relationships which last.

    How?

    Mentors are volunteers from local churches who do not have the time to serve as business trainers, but do have time to individually meet once a month with an entrepreneur, providing friendship as well as professional advice. Mentors attend a one-time training and are assigned and encouraged by Paradigm Shift staff during the course of their six-month commitment.

  • Who's Involved

    There are four groups of people involved in the Paradigm Shift Program.
    Click below to find out more information about how each group is involved

    Churches

    Philosophy Statement:

    Paradigm Shift works with and through local churches because they are the physical representation of Christ in their community.

    Why?

    Providing local churches with tools to reach the poor is the main thrust of Paradigm Shift. Paradigm Shift recognizes that poverty is a multi-faceted problem with fundamental solutions as a result of spiritual transformation. However, Paradigm Shift espouses a holistic approach to the presentation of the Gospel and believes that spiritual transformation directly relates to an economic and social transformation, as demonstrated in the New Testament. Ephesians 4:28 (NIV) “He who has been stealing must steal no longer, but must work, doing something useful with his own hands, that he may have something to share with those in need.”

    How?

    Partner churches which are affiliated with a particular ACSI school will offer resources, including personnel to become trainers, finances for the loan-capital fund. As stated earlier, a partner school will offer its facilities as a training base for entrepreneurs who live in the slums within a 10-mile radius of their campus. Once church volunteers have been trained, they will be partnered with a Paradigm Shift staff member as well as three trained upper-level business students from the school. This group of six will lead the training of 15-to-25 entrepreneurs. Leaders will be committed to the success of their core 15 entrepreneurs for a minimum of seven months. Students are only responsible for assisting in the four sessions of the Business Experience course.

    Intended Outcome

    The major goal is to bring the Good News to the poor. Intended outcomes for churches: Committed believers expressing concern about and investing in the poor in their community The Body of Christ participating in spiritual and social transformation within their community Being agents of reconciliation and hope in a community filled with despair Involving the whole church by utilizing the giftings of business professionals Understanding discipleship from a holistic perspective 

    Schools / Students

    Philosophy Statement:

    We believe Christian schools can and should be a place of inter-denominational cooperation from many churches reaching toward the same goal of strategically impacting their communities both physically and spiritually.

    Why?

    ACSI schools are: An asset to the strengthening of a community Supported by 5-10 churches who are invested in their communities Predominantly express a desire to create more effective outreaches through their students and facilities Usually inter-denominational and therefore neutral ground for partnering in outreach Have the facilities for training and workshops Have business-focused students who desire to implement practical ways to apply their studies

    How?

    A partner school will provide its facilities as a “training base” for entrepreneurs who live in the slums within a 10-mile radius of their campus. Partner churches who are affiliated with a particular ACSI school will offer resources, personnel to become trainers, as well as finances to contribute to the loan-capital fund. Once church volunteers are trained, they will be partnered with a Paradigm Shift staff member and trained upper-level business students from the ACSI school. This group of six will lead the training of 15-to-25 entrepreneurs.

    Intended Outcomes

    The major goal is to bring the Good News to the poor. Intended outcomes for schools: Practical outreach happening as a result of offering their campuses as a resource Schools becoming agents of change within their communities Affiliated churches being more involved and fostering better relationships with the schools Business students using their knowledge and skills in effective outreach, and in doing so, furthering both their academics and their heart for evangelism Opportunities for students to fulfill community service hours 198 students actively assisting in facilitating the Business Experience course

    Entrepreneurs

    Philosophy Statement:

    Microentrepreneurs living below the poverty line in South Africa should have opportunities to develop and expand their small businesses and to participate in discipleship courses which communicate God’s hope, love and redemption for their lives.

    Why?

    Because Christ love compels us to reach beyond our comfort and security and into the lives of the hurting, broken and those without hope. Entrepreneurs escaping the poverty that surrounds them need much more than a handout, they need a community of encouragement and intentional involvement to help restore hope that is lost, both for their daily lives and the life to come.

    How?

    Everything first starts with the microentrepreneurs. Each one must want to improve their lives and have the initiative to faithfully attend the business trainings and commit to socially collateralize four other participating microentrepreneurs’ loans. This builds on the community already established. The involvement of the local school and churches adds another dimension of community and support to see the lives of these microentrepreneurs succeed and grow personally, spiritually and vocationally.

    Paradigm Shift Staff

    Philosophy Statement:

    Staff will be instrumental in carrying out the mission and vision of Paradigm Shift both in South Africa, the pilot country, and beyond into Latin America and Asia.

    Why?

    Paradigm Shift is bigger than one person and must be accomplished through collaborations, team work and service. Many individuals feel called to use their gifts, talents and abilities beyond traditional methods of missions work and Paradigm Shift provides an avenue to merge passions for business and missions.

    How?

    The core full-time staff establishes relationships with local partners who have the capacity and desire to reach out to their community in a meaningful way. The Paradigm Shift staff operate with the understanding and motivation to equip and empower our local partner to take ownership of the program and become completely self-sufficient by the second year of the program.

  • About Microfinance

    The Challenge

    Churches and ministries have found an undeniable need to confront poverty in meaningful and strategic ways. There is a paradigm shift occurring. Churches want to meet these pressing needs and subsequently create a credible voice where relationships and community can be built. It is within this context that Paradigm Shift empowers and equips churches and ministries to meet the physical needs of the working poor and simultaneously communicate - with clarity and authenticity - Christ’s love and desire to bring healing and wholeness.

    Today, 3 billion people live on less than $2 a day in countries where chronic unemployment is the norm and self employment is the only legitimate answer to providing for one’s basic needs. For this reason, over 50% of those living in the developing world are self-employed. But because most of the world's poor have little or no collateral, and many are illiterate, managing a business and accessing affordable services and credit is an incredible challenge.

    Commercial banks will not consider providing these small sole proprietors with credit. Most local moneylenders charge exorbitant interest rates that typically range from 80-90%, which cripples the hope of the poor in gaining a substantial profit on any labor they provide or goods they produce.

    Churches want to help, but the question is how. How do we effectively commit our energies, time, and resources to becoming an increasingly bright light for the gospel and a helping hand to those in desperate need. This is the cry that Paradigm Shift answers in communities where churches are asking these questions.

    A Sustainable Solution

    Microcredit, prefaced by practical business training and followed by individual mentorship, is a tool that empowers entrepreneurs. It has effectively enabled millions of people to improve the lives of their families.

    The church is poised to meet these needs and communicate God’s love in tangible ways. Paradigm Shift’s approach is dynamic in the fact that it integrates the local church and empowers them to become the catalyst for change and transformation in the communities around them.

    One important part of microcredit is the recycling of loan dollars. Each loan is repaid, usually within six months to a year, and the money is then recycled as another loan to another entrepreneur, thus multiplying the value of each dollar used in reducing poverty by creating opportunity for economic growth.
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