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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.

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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.

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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. We know that microfinance alone will not break the poverty cycle.

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The 3 Preconditions for an Entrepreneurial Society

Harvard Business Review

But in the post-industrial world, most of us are knowledge workers at least in part — the means of production is our brainpower, which we retain ownership of no matter what our job is. And if you need access to money, crowdfunding platforms and microfinance options make that easier than ever. What about motive ?

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Using Games to Get a Handle on Bank Risk

Harvard Business Review

Here, the protocols from other industries can provide some insight. The pharmaceutical industry also creates products with complex interactions and potentially dangerous side effects. The gaming industry has created much of the infrastructure required for both the learning and monitoring required.

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Making Sense of the Many Kinds of Impact Investing

Harvard Business Review

Currently, impact can mean anything from venture investments in new health technologies to microfinance loans in Peru; from affordable housing in the US to renewable energy in India; from social impact bonds to private equity funds that create jobs. Or third, and more common, is that they sit on the impact-investing sidelines.

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Give Impact Investing Time and Space to Develop

Harvard Business Review

Hospitals, parks, educational systems, sanitation infrastructure, low-income housing — globally, risk-seeking investors build these solutions in partnership with the public sector, which plays its part to adjust incentives, act as a major customer, and provide subsidy where needed. Surely we can do the same for impact investing.