If those patchwork clothes become even semi-popular, Magnolia's business will be obliterated by competitors using sewing machines. We can assume sewing machines are quite expensive investments, but like all investments, they will pay themselves back if there's a market. I'm not sure if Magnolia is willing to make that investments on behalf of the the people rescued from the slum. They are kind of meant to be self-employed, but would they feel that way if their work depended on expensive machines Magnolia provided? A loan would be another option, but especially if she's planning to have grannies and mothers with small children do the work, a big loan to destitute people might also not be attractive. They could also feel like they are being exploited, getting bound to a loan.
Maybe some kind of co-operative could handle it, although I'm not sure uneducated people of the slum would have the know-how to take care of everything, especially if there's competition. And let's be realistic: there should be criminals/addicts living in the slum. Sooner or later they would infiltrate if money and expensive equipment enters the picture.