Join the Live Talkathon for Kiva on March 18th
I’m a big supporter of the concept of microcredits or microloans — which are tiny amounts of money you loan to entrepreneurs in 3rd world countries to help them get their businesses off the ground.
One organization that helps promote the idea is Kiva – and back in January, I used Kiva to loan some money to Kossi Joseph KOTSI, a carpenter in Togo, Africa.
The total loan amount was $1,500 (my loan was only a small portion of that.) Since January, Kossi has paid back $200 and he’s right on schedule. Kiva keeps a profile of Kossi and his progress.
I was recently made aware (from Chris Brogan through Twitter) of a 24-hour talkathon being hosted online by TalkShoe scheduled for Sunday, March 18th.
Sounds like a very cool opportunity to hear others talk about Kiva and their experiences with it and learn about microloans and the organization itself.
They’re starting at 12pm EDT – I expect it’ll make for a very enjoyable and educational 24 hours.
I am currently consulting with a software company that develops loan management software. I had the honor of meeting Dr. Yunus at the Microcredit summit last Nov. I also met Premal during one of the sessions. Kiva’s a fascinating, yet simple concept.
However, I must point out that microlending as is practiced in North America is quite different from countries in Asia, Africa and South America.
Lenders in North America can’t be termed microlenders – since their loans range from $5000 to $150000 (There are organizations in the US that lend micro amounts as low as $500). In Canada most of this lending is from the Community Futures program. CDFCs, CBDCs, SADCs, Aboriginal Community development organizations, etc. manage the loans and help entrepreneurs. In fact they have programs to promote startups – especially to low income groups. But they all receive funding from Industry Canada – ACOA in the Atlantic regions, Fednor in Ontario, WD in the four western provinces and SADC in Quebec. These community futures typically do not go out into the market for funds.
It is a whole different story out in the States. While there is the Small Business Administration program, most CDFIs have to depend on private donors, investors and the general public for funds.
Kiva, however, focuses on economic development of regions outside North America – as I understand it. They make loans as low as $50 out there. But it is an awesome service – and I hope Kiva is able to consistently provide microcredit to deserving entrepreneurs in developing countries.
Thank you for the comment. It is important to note that microloans in North America are significantly different. They’re still small by NA standards but it’s a different mentality and style.
I think there’s plenty of room for the microloan market in North America. If a small business can be started up with $5,000 and help give people a job (and maybe create more jobs) and it’s shown that that size of loan is often repaid, it seems like a no-brainer for someone to show more interest.
I agree. In fact the mandate of CDFIs and other such community economic development organizations is to provide small loans to low income people in their community. It helps promote entrepreneurship and hopefully will lead to more jobs, and eventually the economic development of the community.
CA – I think the concept behind Kiva is great – and it looks like it genuinely helps. To me it’s gotta be more meaningful and valuable long-term to give a small loan to someone in a developing country than a handout.
And in developed countries there’s plenty we can do too. Sure, the average person can’t give out $5,000-$25,000 loans but I could see a niche loan business developing in that range to help people in poorer communities step out and do something great.