Hui (Chinese: 會; Pinyin: huì) are a type of informal fund that can help aspiring entrepreneurs acquire the capital necessary to kickstart their enterprise, even in the absence of banks. It has contributed tremendously to the importance of SMEs, and the manufacturing sector in general, in Taiwan's economy throughout the 1960s and 70s.
A hui is operated by a group of reliable individuals, such as colleagues, friends, neighbours, who can guarantee mutual trust. Each month, they convene and contribute a set amount to the common fund. Then, each month a different member will be eligible to take the content of the fund and invest it as they see fit. Mutual trust is essential, since there is no other way to enforce the rules and guarantee everyone keeps contributing.
