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Making Microfinance More Effective

Harvard Business Review

The Grameen model of microfinance gained a great deal of attention in the international development field after early data showed that it was associated with high repayment and low default. For the 2.5 A major challenge for international development efforts is determining which financial tools provide durable buffers against such setbacks.

Innovating The Brick-and-Mortar Injustice Infrastructure

Mills Scofield

Business Model Innovation Capital Good Fund Innovation Leadership Micro Loans Microfinance Poverty 1] [link].

I'm a bank - well, with the help of Kiva.org!

Jason Womack

That's right, I found out how to be my own bank! Intercontinental Ballistic Microfinance from Kiva Microfunds on Vimeo. Will you join?

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.

The Microfinance Contagion Scenario

Harvard Business Review

So far, the Andhra Pradesh (AP) microfinance crisis has largely been viewed as a local issue, with relatively little impact beyond AP or India's borders. Other microfinance crises, in Bolivia, Nicaragua, Nigeria, and Bosnia, have not spread beyond the borders of a particular country. That's exactly what's happening.

Banking on Women and Girls: Key to Global Poverty Alleviation

Harvard Business Review

On this 100th International Women's Day , it is right to reflect on how women have become the heart of the microfinance industry. It is easy to forget that the initial motivation for microfinance roughly 30 years ago was, to a great extent, gender neutral. Microfinance is about much more than extending credit. fewer children.

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. The bank (in this case Indian Bank ) would then loan a matching amount, bringing the available funds to $400. At six, Shantha lost her parents. When Ms.

An Approach to Ending Poverty That Works

Harvard Business Review

Microfinance and other market-based interventions don’t generally reach them. And we may have found a way to do this.

Lessons for Social Entrepreneurs from the Microfinance Crisis

Harvard Business Review

The microfinance industry has in just a few years gone from making headlines for the Nobel Peace Prize to stories about limited impact, allegedly abusive tactics, client suicides, government crackdowns, major lenders struggling with insolvency and the forcible removal of Mohammed Yunus as Managing Director of Grameen Bank.

Entrepreneurship Needs to Be a Bigger Part of U.S. Foreign Aid

Harvard Business Review

Here are two surprising facts. First, the average American estimates that over 25% of the U.S. federal budget goes to foreign aid. That is wildly off.

Give Impact Investing Time and Space to Develop

Harvard Business Review

sanitation, housing, mobile banking). We allowed microfinance and the venture capital industry the time and space to develop over a few decades.

How Social Entrepreneurs Can Have the Most Impact

Harvard Business Review

That year, two global headlines raised the profile of social enterprise: Mohammed Yunus and the Grameen Bank won the Nobel Peace prize. Social enterprise in the U.S. is a fast-growing, but fragmented, movement. What happened in 2006? And is this kind of rapid growth good news? In the broader U.S. Take the issue of youth unemployment.

Using Games to Get a Handle on Bank Risk

Harvard Business Review

Bank marketing materials focus on the dreams, anxieties and goals of consumers. Most audits and regulations of banks are focused on certifying the integrity of data and controls. The truly critical issue, though, is the integrity of banks' assumptions about consumer behavior. Data suggests that these are not sufficient.

Businesses Serving the Poor Need to Get Over Their Unease About Profit

Harvard Business Review

The microfinance industry is a rare D and E success story. Microfinance banks, which provide desperately needed loans to low-income consumers, draw mainstream investors because of their attractive returns. Compare that to the 7%-10% NIM that is the norm for traditional banks serving wealthier consumers.

Global Entrepreneurs Need New Funding Models

Harvard Business Review

In low-income countries, according to World Bank data in a recent paper by the consultancy Dalberg, 43% of businesses with between 20 and 99 employees say that access to finance is a major constraint. The goal is "to develop sustainable banking products which are more accessible for qualified candidates and women in general."

The Smart Way to Make Profits While Serving the Poor

Harvard Business Review

Grameen Bank, the microfinance bank in Bangladesh, is well known for its use of peer groups: Self-formed clubs of five to 10 people, usually women, share responsibility for microloans. Any business that starts off needing a 30% or higher penetration rate is built on a shaky foundation. Localize and bundle base products.