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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. First, they may reduce financial institutions’ costs. For the 2.5 Our findings are captured in a working paper which we summarize below.

Innovating The Brick-and-Mortar Injustice Infrastructure

Mills Scofield

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

Learning from Microfinance's Woes

Harvard Business Review

A few weeks ago, I attended a lecture about microfinance, and got sucker-punched. Expecting to hear a litany of pros and cons about the business, and an exploration of good and bad models, I was instead greeted with a knockout punch: Microfinance doesn't work, at least not in the way we think it does. Nonprofit microfinance ANDE

Guest Post: An Entrepreneur's Thoughts on Market Incentives & Foreign Aid

Mills Scofield

I think that microfinance is one of those rare game changing social initiatives that manages to use market forces to drive social change.

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.

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. So I made sure revenues exceeded costs."

How One Startup Developed a Sales Model That Works in Emerging Markets

Harvard Business Review

Experiment #5: Microfinance Institutions. In emerging markets, microfinance has been a key economic engine in helping low-income households fund businesses and other important purchases in daily life. It was a daunting investment, but well worth the quality-of-life improvement. I am the cofounder and CEO of BioLite.

Give Impact Investing Time and Space to Develop

Harvard Business Review

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

Facebook Presence Is an Important Clue to a Social Venture's Future

Harvard Business Review

Which are likely to achieve significant social impact within an attractive business model? It turns out one of the best clues may be on Facebook.

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.

It's Not All About Growth for Social Enterprises

Harvard Business Review

Successful examples of this approach are still rare; most people point to microfinance. The assumption is that company growth is good. Maybe.

Making Sense of the Many Kinds of Impact Investing

Harvard Business Review

Everyone agrees that impact investing is on the rise. Faced with this uncertainty, most investors have chosen one of three options. Type of impact.

Servant Leadership Observer ? November 2010

Modern Servant Leader

Why Meetings Suck (Costs) & How to Reveal It. Peer-to-Peer Microfinance: A Sustainable Solution to Poverty. Twitter. LINKEDIN.

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. We know that microfinance alone will not break the poverty cycle. percent lower than its value in 2007. Finance Innovation Nonprofit CED

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

Harvard Business Review

Business cost structures in low-income markets are daunting: Operational expenses such as distribution frequently dwarf the costs that companies face in developed markets, while customer acquisition and retention often demand unusually intense — and costly — levels of consumer engagement. It was laid down by C.K.

The Smart Way to Make Profits While Serving the Poor

Harvard Business Review

Instead, companies seeking to improve the lives of the world's poor should focus on a more realistic route to profitability: They need to elevate gross margins far above the company average by pushing down variable costs and boosting the price consumers are willing to pay for a unit of product. Localize and bundle base products.

Using Games to Get a Handle on Bank Risk

Harvard Business Review

The use of gaming has the potential to provide win-win solutions for both consumers and financial institutions in the following ways: Consumer Insight: The most obvious benefit to gaming is the ability for both banks and consumers to learn at low cost. Bank marketing materials focus on the dreams, anxieties and goals of consumers.

The Downside of Focusing on Women and Girls

Harvard Business Review

Consider the undeniable costs of a caricatured bias toward women. David McKenzie's research in Sri Lanka, Mexico, Brazil and Ghana has shown that urban male entrepreneurs typically earn far higher returns from microfinance than women do (in Sri Lanka average returns on capital for women were 0%, for men 10%). Of course not. Gender