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Microfinance at a Crossroads: Balancing Good Intentions with Critical Industry Structuring
As the microfinance industry matures, the cracks in the model have become more apparent. When an idea built from good intentions scales, hidden costs begin to grow and the call for more structure becomes louder. These cracks are not just on one side of the equation, and need to be addressed through collective effort by borrowers and lenders.
- Categories
- Social Enterprise
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The Doughnut Hole in Sustainable Finance
Despite the recent upsurge in attention to "social," "impact," and "clean tech" investing, there is still a structural gap ? a doughnut hole ? in sustainable finance. But this also means that there is a huge opportunity for visionary financiers to invent the new investment categories and asset classes needed to fill this gap.
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- Environment, Technology
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SOCAP11: Village Capital and the Value of peer-based Evaluation
What if microfinance and angel investing had a baby? Essentially, Village Capital is that offspring, using a peer-to-peer evaluation, learning and investment model where fellow entrepreneurs in the program decide who gets the allocated funding. From SOCAP11’s "People Powered Capital" we heard from several ventures using the Village Capital process.
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- Impact Assessment
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Why Should a Mainstream For-Profit Company Pursue an In-Kind BoP Partnership?
Many entrepreneurs and funders at SOCAP11 are skeptical about partnerships - and rightly so. But sometimes all the work to make partnerships click pays off. In the case of an ongoing partnership between UNICEF and for-profit Frog Design, the impact results in Malawi and Zambia include a 30% increase in early diagnosis of HIV/AIDS in children.
- Categories
- Social Enterprise
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Targeting the Urban Ultra Poor: Taking The Road Less Travelled
India’s urban population has surged from 78.9 million in 1961 to 286 million in 2001, and could double in another 25 years. To help those urban poor that are left out of microfinance programs, Kriti Social Initiatives decided it was essential for the pilot to include program components addressing livelihoods and healthcare.
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- Health Care
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SOCAP11: Waste Management that Works
Parag Gupta, founder and CEO of Waste Ventures recently told me that urban India produces a mound of garbage that weighs twice as much as the Empire State Building every week. In that big pile of trash, Gupta and his team identified a glowing opportunity for economic, social, and environmental impact.
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- Environment, Health Care
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NextThought Monday Gearing Up for SOCAP11: Milaap’s Service-Focused Journey
Anoj Viswanathan is co-founder of Milaap, a pioneering online platform that enables people across the world to lend to India’s working poor. He drew inspiration from Lilla Watson?s quote, ?if you have come here to help me, you are wasting your time. But if you have come because your liberation is bound up with mine, then let us work together."
- Categories
- Finance
- Tags
- microfinance
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Extreme Makeover: Social Enterprise Edition
Many nonprofit organizations are awakening to the idea that a for-profit model can often generate the same intended social impacts on a scale unimaginable while locked into a NPO state of mind. The road to financial sustainability is a rocky one; here are two stories of nonprofits that navigated that road to both profit and increased impact.
- Categories
- Social Enterprise
- Tags
- impact investing