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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. That's nice.

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

Harvard Business Review

We serve two markets that are very different but united by the common need for reliable, safe access to energy: outdoor recreationalists and low-income households in emerging markets. We found an ideal storefront near a busy market in central Bhubaneswar. A chaiwala in Orissa, India, brews tea on a BioLite HomeStove.

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How Large NGOs Are Using Data to Transform Themselves

Harvard Business Review

Army staffers now develop individual strategies to overcome these barriers, connecting families to community services to achieve self-sufficiency. By February 2016, more than three-quarters of the Central Territory Corps were trained in the new model. A critical part was adapting a proven model in a related field: microfinance.

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Global Entrepreneurs Need New Funding Models

Harvard Business Review

The White House has called this gap between the demand and supply of finance for small and medium enterprises a "market failure.[and] For me, it has been a problem of finance until LEDFC," he says, referring to the Liberian Enterprise Development Finance Corporation that offers Liberian-owned firms desperately needed small business loans.

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Funders Can Give More than Money

Harvard Business Review

At Opportunity International , where the focus is on providing loans, savings, insurance, and related training to clients in the world's poorest communities, our major donors like to see the work up close. We know that microfinance alone will not break the poverty cycle.

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An Approach to Ending Poverty That Works

Harvard Business Review

Microfinance and other market-based interventions don’t generally reach them. Discussion abounds in the development sector today about the best ways to empower the poor. At BRAC , where I work, we call this subset the “ultra-poor.” If we’re to end poverty, we can’t ignore them.

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It Takes a Village to Raise an Entrepreneur

Harvard Business Review

Take, for example, the issue of economic development. A hybrid approach is exemplified by startup Frogtek, which develops software for local shopkeepers in emerging markets to more efficiently track their inventory, leading to better purchasing decisions and greater profits.