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Under Fire, Microfinance Faces Falling Out of Favor

Harvard Business Review

Microfinance has come under fire in the past 18 months, triggered in part by SKS Microfinance's IPO. Critics complain that the institutions supporting microfinance have become too greedy, and many are using this as an argument to deeply regulate or, even more, cut support to microfinance operations. I hope not.

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How Large NGOs Are Using Data to Transform Themselves

Harvard Business Review

Based on this insight, Habitat sought to address the deficit in more systemic ways. A critical part was adapting a proven model in a related field: microfinance. By increasing or jump-starting these institutions’ housing microfinance lending, Habitat aims to create robust markets for this financing that can continue on their own.

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The Innovation Mindset in Action: Shantha Ragunathan

Harvard Business Review

Sasikala, a Block Development Officer (BDO), talked to the Kodapattinam villagers about microfinance , only Shantha, of all the villagers, saw the opportunity and took action. Undeterred, Shantha persisted until she persuaded the required number of people to sign up for the microfinance project.

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Funders Can Give More than Money

Harvard Business Review

Six years ago, David and Donna Allman approached Opportunity with an idea that fell outside our traditional microfinance model: to build a Community Economic Development (CED) program in Nicaragua. Together, we've constructed school libraries, repaired churches, built roads, and, crucially, ensured clean water through new aqueduct systems.

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What Makes Social Entrepreneurs Different

Harvard Business Review

Social entrepreneurs have also been some of the most attentive followers of the academic debate between the likes of Mark Pitt and Jonathan Murdoch about whether microfinance really helps reduce poverty. Prahalad's " bottom of the pyramid ," that began life as academic research. That's because the stakes are higher for social entrepreneurs.

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Scaling Up Without Losing Your Edge

Harvard Business Review

Following Abed's twist on Schumacher — "small may be beautiful, but big is necessary" — it now touches the lives of an estimated 126 million people with healthcare, education, enterprise development, microfinance and a slew of other programs. Size inevitability leads to hierarchy, to rigidities in the system, and bureaucracy.

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How to Create Youth Jobs After Conflicts

Harvard Business Review

Upon graduation, the governments, nonprofits, or (more recently) microfinance companies give them loans to buy tools and opens shops. We developed a very cheap rechargeable lighting system and a model where a youth can operate a charging station using solar, grid, or human energy. Dropout rates are high; repayment rates are low.