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Can Impact Investing Avoid the Failures of Microfinance?

Harvard Business Review

Morgan projected up to $1T in investment would be deployed this decade — which would make impact investing twice the size of official development aid to the world’s less develop countries (as defined by the United Nations) , presuming historic levels of aid stayed constant since 2010. Lessons from Microfinance.

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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 could likely have consequences.

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Women as Microfinance Leaders, Not Just Clients

Harvard Business Review

This year my organization decided to give an award for "excellence in leadership," and among the elements of excellence we expect to see in the winner, we're putting one criterion front and center: the nominees' commitment to gender diversity in their leadership ranks.

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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 White House has called this gap between the demand and supply of finance for small and medium enterprises a "market failure.[and]

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How Large NGOs Are Using Data to Transform Themselves

Harvard Business Review

and globally, and Habitat for Humanity, which works in 70-plus nations to provide home construction, rehabilitation, and increased access to shelter and financing, gathered data from their sites to make the case for profound change. Next, the organizations looked outside for models that showed evidence of results in related fields.

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Funders Can Give More than Money

Harvard Business Review

With the country still dangling from the fiscal cliff, charitable organizations like ours are finding that the individuals and foundations we depend on are more discerning than ever in their choices of how to spend their philanthropic capital. We know that microfinance alone will not break the poverty cycle.

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Scaling Up Without Losing Your Edge

Harvard Business Review

Schumacher, one of the fathers of the Green movement, declared that "small is beautiful" and called for "a new orientation of science and technology towards the organic, the gentle, the non-violent, the elegant and beautiful." It's not easy, but organizations can do all of the above without staying small, just as BRAC has done.