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Investing and Economics Blog

Microfinancing Entrepreneurs

Business Week has an article on Microfinance Draws Mega Players on how investment banks are getting into microfinance. I must admit that while I certainly am happy if the market can get involved in making microfinance aid development I think it might be better suited to non-profit, foundations and charities. I am happy to continue to fund organizations like Trickle Up to help people help themselves.

Kiva is another interesting organization that lets you loan directly to an entrepreneur of your choice. If fact, I have just placed $350 in loans to 5 business entrepreneurs (in Kenya, Mexico, Cameroon and Azerbaijan) – and a $50 donation to Kiva. Kiva provides loans through partners (operating in the countries) to the entrepreneurs. Those partners do charge the entrepreneurs interest (to fund the operations of the lending partner). Kiva pays the principle back to you but does not pay interest. And if the entrepreneur defaults then you do not get your interest paid back (in other words you lose the money you loaned). I plan to just recycle repaid loans to other entrepreneurs.

Add a comment with a link to your Kiva page and I will add a page to this site with links to all Curious Cat blog readers with a link to Kiva pages.

Related: Microfinance article from the New Yorker – Kiva: Microfinance Loans (posted on Christmas day 2006) – helping people succeed economically

The Kiva web site does a great job of using the internet to create a direct connection between those with money to lend and those in need of money to grow a business. Given how poorly banks treat rich customers in the USA I really can’t see them creating a win win relationship with the entrepreneurs. I can’t see subjecting entrepreneur in places like Kenya, Uganda, India, Mexico with the type of service I have to deal with from Discover Card (Morgan Stanley just spun off their Discover Card subsidiary today). Entrepreneurs deserve much better, and I am happy to help without any the typical customer hostility of financial institutions in the USA. In fact if Morgan Stanley or Discover respond to this blog post and agree to send the money they said they would send (that I still have not received a month later now – they did send me a “bill” [with a balance they owe me instead of me owing them so it is not really a bill] for the account they said didn’t exist which was the reason they claimed that they could not pay the cash back bonus they promised) – this is the money left over since they reversed the fraudulent charges and the money they never paid on the “cash back bonus” they promised, but now say they will not pay, I will loan that money and an equal amount from me to Kiva entrepreneurs.

July 2nd, 2007 John Hunter | 17 Comments | Tags: Cool, Economics, Investing, Personal finance

Comments

17 Comments so far

  1. Curious Cat Science and Engineering Blog » Microfinancing Entrepreneurs on July 2, 2007 6:50 pm

    In fact, I have just placed $350 in loans to 5 business entrepreneurs (in Kenya, Mexico, Cameroon and Azerbaijan)…

  2. Curious Cat Investing and Economics Blog » Customer Hostility from Discover Card on July 7, 2007 4:58 pm

    […] post if Discover Card pays the money they owe I will add an equal amount of my own money and lend that amount through Kiva (a charity that arranges loans from individuals to those in need worldwide on the micro-lending […]

  3. Wayne Porter on Attention Revenue » Blog Archive » Micro Financing Entrepreneurs on August 22, 2007 10:21 am

    […] grazing around his site I found this entry on microfinancing. Business Week has an article on Microfinance Draws Mega Players on how investment banks are […]

  4. Wayne Porter on August 22, 2007 10:23 am

    John,

    Comments: http://www.wayneporter.com/2007/08/22/micro-financing-entrepreneurs/

    Thanks: http://www.kiva.org/lender/wayne2248

    regards,
    Wayne

  5. CuriousCat: Economic Fault: Income Inequality on August 23, 2007 10:42 pm

    By the way there are many things that would be hard to live with but how do people even think of spending $500,000 on some kids birthday party (search for super sweet 16th if you have not heard of the crazy idea)? I really can’t fathom people being so ludicrously superficial and cruel…

  6. Wayne Porter on Attention Revenue » Blog Archive » Curious Cats and Saleh's Micro Loan on November 5, 2007 11:42 am

    […] action was based on his blog post that I found after John had left some feedback on Ender’s […]

  7. Wayne Porter on Attention Revenue » Blog Archive » More Progress on Micro Loans and MicroFinance on December 7, 2007 12:38 pm

    Saleh Lie continues to make progress on her micro-loan which started in August of this year. Since it is the holidays- consider micro-funding an entrepreur…… For more history on this project visit Curious Cats post. Thanks John.

  8. CuriousCat: A Child's View of the OLPC Laptop on December 12, 2007 7:55 pm

    “With no help from his Dad, he has learned far more about computers than he knew a couple of weeks ago, and the XO appears to be a more creative tool than the games consoles which occupy rather too much of his time….”

  9. Idetrorce on December 15, 2007 1:16 pm

    very interesting, but I don’t agree with you

  10. CuriousCat Science Blog » CMU Professor Gives His Last Lesson on Life on February 23, 2008 10:14 pm

    An inspirational story. For me personally, it reminds me of my father: Bill Hunter who honestly believed, as he was stricken with cancer, he was luckier than most people that have ever lived…

  11. Curious Cat: Provide a Helping Hand on February 28, 2008 12:14 pm

    Kiva is a great organization I have mentioned before (e.g. microfinancing for entrepreneurs). They let people to loan money directly to entrepreneurs around the world through their web site.

  12. Betty Fadina on April 5, 2008 3:08 pm

    The activities are quite facinating. We are in the process of starting a microfinance bank. Helping the less priviledge in the society to become self sufficient is quite inspiring and fulfilling.

  13. Helping Capitalism Make the World Better at Curious Cat Investing and Economics Blog on August 24, 2008 8:58 pm

    Kiva is lets you loan money directly to an entrepreneur of your choice. Kiva provides loans through partners (operating in the countries) to the entrepreneurs…

  14. athena banza on October 6, 2008 1:03 am

    a lot of institutions are into microfinancing now. what i dont really understand is how they ensure that loaners dont become delinquent in paying their loans. As i understand it, microfinancing is non-collateral. what are the safeguards so the project don’t fail?

  15. Financial Thanksgiving at Curious Cat Investing and Economics Blog on November 27, 2008 9:05 am

    For me, giving back to others is part of my personal financial plan… I believe in the power of capitalism and people to provide long term increases in standards of living…

  16. Curious Cat: Funding Entrepreneurs in Nicaragua, Ghana, Viet Nam, Togo and Tanzania on April 12, 2009 1:07 pm

    One loan in Kenya for bike repair shop (that for whatever reason I especially liked) and did connect me more to the troubles in Kenya recently. Kiva mentioned many banks were having trouble keeping in touch with clients as many people fled violence…

  17. Curious Cat Management Improvement Blog » Thanksgiving: Micro-financing Entrepreneurs on November 21, 2010 7:59 am

    […] Millennium Development Goals – Micro-financing Entrepreneurs – Nepalese Entrepreneur Success – Buy Less Stuff – by John Hunter   […]

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