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 example, digital platforms can be configured to improve the customer experience by offering sub-accounts or labeling accounts, and they can provide bank managers with real-time information and other decision aids that can help banks provide better service to clients. For the 2.5

Innovating The Brick-and-Mortar Injustice Infrastructure

Mills Scofield

This week''s post is by Andy Posner , Co-Founder & Executive Director of Capital Good Fund ( CGF ), a non-profit microfinance organization targeting the root causes of poverty through innovative micro-loans and personal financial coaching.

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Why CEOs have Liberal Arts Degrees

Mills Scofield

She's spending the summer in Dhaka doing microfinance. CEO Critical thinking Culture Education Leadership Liberal Arts Management STEAM STEMSome of today's top CEOs were history, political science, sociology, chinese and music majors in college.

CEO 73

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

Mills Scofield

Among this group has been a founder of a wildlife foundation, a married Wall Street duo, a management consultant, his digital artist wife, and an urban planner. This is a guest blog by Chia Han Sheng, Brown University '14, co-founder of MedInternational.

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. In a recent paper, Jonathan Morduch and Jonathan Conning explain the role of debt and equity financing in the microfinance industry.

The Conference That’s Trying to Reinvent How We Network

Harvard Business Review

When those in the group that had the job givers question pulled off their masks, they discovered that Muhammad Yunus , a Nobel Prize winner for his microfinance work, had been with them, listening carefully to all their suggestions. Networking Managing yourself Article

The 3 Preconditions for an Entrepreneurial Society

Harvard Business Review

And if you need access to money, crowdfunding platforms and microfinance options make that easier than ever. I have written elsewhere about the need for management innovation in large firms to make work more engaging and fulfilling. Entrepreneurial management Labor Digital Article

Can Technology End Poverty?

Harvard Business Review

Shameran Abed, who runs BRAC's microfinance program, explains what happened: "In the first couple months, a lot of our borrowers would send the money through their mobile phones and then physically show up at the branch to check with the accountant that the money had turned up.".

Can Technology End Poverty?

Harvard Business Review

Shameran Abed, who runs BRAC's microfinance program, explains what happened: "In the first couple months, a lot of our borrowers would send the money through their mobile phones and then physically show up at the branch to check with the accountant that the money had turned up.".

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. To participate in a microfinance campaign, the village had to form a Self Help Group (SHG) of about 20 people, with each member contributing a certain amount of money every month. Undeterred, Shantha persisted until she persuaded the required number of people to sign up for the microfinance project.

Scaling Up Without Losing Your Edge

Harvard Business Review

Following Abed's twist on Schumacher — "small may be beautiful, but big is necessary" — it now touches the lives of an estimated 126 million people with healthcare, education, enterprise development, microfinance and a slew of other programs. Forty years ago, British economist E.F.

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

Harvard Business Review

These colossal “beltway bandits” work everywhere from Afghanistan to Zambia and purport to offer expertise in everything from microfinance to micro-irrigation. Here are two surprising facts. First, the average American estimates that over 25% of the U.S.

3 Things Driving Entrepreneurial Growth in Africa

Harvard Business Review

A few of these companies manage to transcend national boundaries and scale to a larger size. It has managed to combine international standards with African tastes. In addition, Neo has its own fuel station, which makes it easier to manage what can be a fitful infrastructure. Firms are realizing what microfinance has known for a while: Local self-policing groups, or village headmen who police honor codes, can hedge cash flows in far-flung places.

Give Impact Investing Time and Space to Develop

Harvard Business Review

Without those, the institutions managing the billions of sector dollars won’t be able accurately to assess the risks they are taking and, more important, the returns, both financial and social, they hope to generate. Impact investing has captured the world’s imagination.

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. The pioneering microfinance institutions sought to provide credit to poor entrepreneurs who had no assets to pledge as collateral and, consequently, were denied access to capital by the formal banking sector.

Servant Leadership Observer ? November 2010

Modern Servant Leader

Why Technology Managers Make Great Leaders. How to Handle a Seagull Manager. Do You Have a “Seagull Manager”? Peer-to-Peer Microfinance: A Sustainable Solution to Poverty. Task Prioritization and Time Management – John Maxwell Style. Management.

Transforming Rural India Through Agricultural Innovation

Harvard Business Review

Since its inception in 2000, NAF has been involved in a range of interventions—infusion of technology, soil enrichment, efficient farm and water management, improved cattle development, functional literacy, rural sanitation and public health, human resource development, establishment of self-help groups particularly among women, self-employment opportunities and facilitating institutional credit—to address the problem of farm productivity in India.

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.

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

Harvard Business Review

But even more so, I believe that deep down, managers and executives feel that getting by on razor-thin margins is the morally correct way to do business among the poor. 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.

Global Entrepreneurs Need New Funding Models

Harvard Business Review

In January, Oxfam announced it would team with the asset manager Symbiotics to launch the Small Enterprise Impact Investment Fund (SEIFF), based in Luxembourg. We wanted to do this because we recognize that small enterprises are a very significant engine for development; they create employment, which tends to be more sustainable and better paid than you would find in the more informal microfinance sector," says Oxfam's Nicholas Colloff.

Using Games to Get a Handle on Bank Risk

Harvard Business Review

Risk management processes don't — but they should. Popular games also tend to spawn communities who share information and strategies about how to overcome hurdles, suggesting that peer to peer education is also possible (this has been seen in microfinance). The challenge of better risk management cannot be achieved through regulation alone. Finance Research Risk managementBank marketing materials focus on the dreams, anxieties and goals of consumers.

President Obama Can Make Start-Up America Succeed

Harvard Business Review

Microfinance (Bangladesh), securitization of revenues (Saudi Arabia), and royalty-pay-back funding (Israel) were all invented overseas. Daniel Isenberg is Professor of Management Practice, Babson Global, and founding executive director of the Babson Entrepreneurship Ecosystem Project.