Kiva - Empowering Individuals and Groups to be International Financiers

In high school (early 1990s for me), I remember rich and famous people like Bill Gates and Ophrah visiting poor people around the world.  They made donations, gave speeches, started foundations and were hailed as making a difference.  However, there seemed to be a large gulf between “them” (rich, famous people) and “us” (regular people like me).

I thought, maybe in 20 or 30 years, I will be relatively wealthy and successful and make a difference in the future.  It was a vague dream like writing a novel or climbing Mt. Everest — yes it really could happen, but it is extremely unlikely.

Then something amazing happened.  The internet exploded and transformational organizations like Kiva.org enabled regular people like me to become international financiers and helping needy micro-entrepreneurs all over the world.  In my first batches of Kiva loans, I made loans to entrepreneurs in 5 different continents (no Australia yet; Antarctica may be tough :).  The businesses have included farming, a beauty parlor, grocery store, and construction.  Unsurprisingly, 100% of my loans were paid back.  Though these are small businesses and not revolutionary, they serve real community needs and provide a better quality of life for the family - better nutrition, housing as well as education for the children.  Grameen Foundation has conducted some research to capture these quality of life improvements with its “Progress Out of Poverty” metrics.

By using an innovative internet model and strategic partnering with effectively run local MFIs, Kiva.org has empowered ordinary individuals like you and me (and now ordinary communities - schools, businesses and even blog communities to become powerful internationial philanthropists who are giving impoverished people a hand out and not a hand out.

If you love Kiva.org, I encourage you to spread the word and to be “happy microfinancing” as the blogger Gavin put it.

Finally, please check out my Facebook application Cool Duels where you can both help the environment AND earn real money to donate to Kiva.org or your favorite cause.

Kiva.org - My MicroEntrepreneurs Paid Off the Loan… No Surprise

My portfolio of micro-entrepreneurs came through again. I had two entrepreneurs just repay my loan. I’ll need to look for some other people to loan to on Kiva.org.

It is one thing to read about 97% or 99% payback rates in articles. It is another thing to witness firsthand that 100% of your borrowers have paid back every single payment, week after week after week. Personally experiencing repayment makes you feel part of the “success” as that person’s business must be doing well to repay the loan. And now, you have money to loan the next person.

Microfinance has a supportive culture where borrowers encourage each other to overcome sickness and setbacks. This mutual support and positive “peer pressure” achieves very high payback rates.

As Nobel Prize Winner, Muhammad Yunus, noted, there is a sub-prime crisis in the US, but micro-entrepreneurs are faithfully making their repayments at about 99%. That default rate of about 1% or less, contrasts sharply with the US mortgage default rates of 2.7% for prime, 5%+ for alt-A and 16%+ for sub-prime.

Progress Out of Poverty

Grameen Foundation has done some breakthrough research to help understand how well microfinance does to actually lift people out of poverty. Determining how many people are in poverty is difficult because the cost of living [food, shelter, clothing, health care] varies by country and countries measure poverty differently. Grameen Foundation has studied several countries so far and will expand their statistics.

For more details, see the official Progress Out of Poverty website.

My Kiva.org Friends

Kiva.org is an innovative way to loan money to micro-entrepreneurs around the world. You can make payments to individual entrepreneurs and then are paid back. [Kiva has local partners who disburse funds, so your resources may be pooled, but it is still cool to feel a connection to the micro-entrepreneurs.]

Loans are as little as $25, so start today! Kiva.org

Check out my Kiva.org portfolio:

Jane Iyoha Retail, Nigeria Paid Back 100% repaid

Juan Alberto Gonzalez Construction Supplies, Paraguay Paying Back 67% repaid

Penina Lam Chung Agriculture, Samoa Paying Back 39% repaid

Mahmadusuf Soliev Clothing Sales, Tajikistan Paid Back 100% repaid

Amelia Sánchez Food Production/Sales, Ecuador Paying Back 76% repaid

Suleyman Valiyev Animal Sales, Azerbaijan Paying Back 47% repaid

Elena Alechanova Clothing Sales, Ukraine Paid Back 100% repaid

Norma Isabel Serrano Castro Paper Sales, Mexico Paid Back 100% repaid

Create your own portfolio… it has never been easier to be an international financier for microfinance.

Welcome

I support microfinance! Small loans can make a big difference. Over one billion people live on less than $1 per day. Many of these people have skills and energy to work, but don’t have the capital to create their own small business. With a loan of $50-200, an individual can buy her supplies for a business and start earning extra money. To learn more, please visit websites at the Grameen Foundation, FINCA and Kiva. The Grameen Foundation uses use microfinance, technology and innovative solutions to fight global poverty. I organized an event for them in April 2007 and met founder and executive director, Alex Counts. Read about the "Big Laughs for Small Loans" event here.

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