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.
Comments
13 Comments so far
In fact, I have just placed $350 in loans to 5 business entrepreneurs (in Kenya, Mexico, Cameroon and Azerbaijan)…
[...] 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 [...]
[...] 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 [...]
John,
Comments: http://www.wayneporter.com/2007/08/22/micro-financing-entrepreneurs/
Thanks: http://www.kiva.org/lender/wayne2248
regards,
Wayne
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…
[...] action was based on his blog post that I found after John had left some feedback on Ender’s [...]
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.
“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….”
very interesting, but I don’t agree with you
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…
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.
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.
[...] Indonesia[2 loans], Tajikistan, Uganda and Ukraine) - and a $100 donation to Kiva. Adding to my previous loans of $350. Since our last post the Oprah Winfrey Show, President Clinton’s newly released book Giving [...]