When I began Eco Child’s Play over a year and a half ago, I pledged to make Kiva loans on behalf of our blog. After making several Kiva loans, I’ve decided it is time to donate to and highlight different organizations helping families and/or the environment around the world. This month, I have made a donation to Women for Women International on behalf of Eco Child’s Play.
By now you’ve likely heard of microfinance, and the idea behind it — lending a small amount of money to support a person in the developing world create or enhance a business, and they pay back the money on very palatable terms. A small amount goes a long way, coupled with the ingenuity born of necessity. Sound familiar, entrepreneurs? It sounds like a fine idea, but you haven’t gone there yet. What’s stopping you? Perhaps it still somehow sounds like charity.
Do yourself a favor, and go watch the introductory video on the new KivaB4B site, which makes the most clear, compelling connection between entrepreneurs like yourself, and people in the countries that microfinance serves. It shows, side by side, the similar needs and activities we all have as entrepreneurs — a little boost, a bit of advice, and a lot of encouragement and community.
In a powerful synergy, Kiva, one of the top players in this realm, has partnered with Advanta, a credit issuer that is highly supportive of small businesses, to create KivaB4B. It’s simple really: You as a business owner put money towards someone via Kiva, and Advanta matches it, dollar for dollar, up to $200 a month. This may sound small, but think about it this way: If only 1% of Advanta’s 1.3 million customers put even $50 towards this, that would mean $1.3 million going to these people. Dollars that go a lot farther then they do here, making for a potentially significant positive impact for people just like yourself, really.
Periodically, we make a small loan to a business on Kiva.org to fulfill a pledge of social responsibility we initiated when Eco Child’s Play began over a year ago. If you are not familiar with Kiva, this organization helps you empower an entrepreneur in a third world country by lending small amounts of money (as low as $25) to a specific entrepreneur, helping end global poverty one person at a time. Once you make a loan, you will receive email updates about the businesses you are supporting. A typical loan lasts 6-12 months.
Inspired by Beth’s post “Getting Less to Give More: The New Birthday Party“, I decided to let my six-year-old daughter pick out our Kiva loan recipient. She picked out a baker in Kirkuk, Iraq, whose identity is protected.
For those of you who are stumped about gifts this holiday there is probably a reason. You ask yourself- what do we actually need? Amidst all of the news of poverty and destruction, most of us find ourselves in the upper economy and hopefully and simply grateful for what we have already. Our culture has created an opportunity to jot objects on our wish list that we think we need or really want. Now don’t get me wrong, there is beauty in giving a gift to someone you care about whom you know will appreciate it. But, if you want to maintain your spirit of giving this year yet do it in an alternative fashion, why not try giving together with someone you care about to someone who will appreciate it?
For the past five + years my family has been practicing different ways of sharing gifts for the holidays. We made gifts a couple of years. Then we decided to pool our funds and purchase one big gift for someone in the family that would inspire their lifestyle, creativity, and passion… This year we decided that no one really need anything and we would prefer to do something together as a family to improve the lives and economies of others- invest in a micro-fund.
Microfinance creates social lending networks that gives us lenders the opportunity to connect directly with borrowers who normally wouldn’t get the support of a bank. This allows people in poor countries and rural areas who don’t have access to traditional banks or don’t have the credentials necessary for a bank loan, to start a business. The neat things it that in all circumstances (weather your money is controlled by the organization through which you lend or you choose who your money goes to) you can more or less track your loan. This type of investment has already made profound impacts on developing nations as it funds businesses that support their local economies. Instead of weaving baskets to be sold in the global market, people are able to start water distribution businesses to improve quality of life in their own communities.
Did you know that we take a portion of our profits every week and make microloans to entrepreneurs in third world countries? We have an account at Kiva.org, a great website that handles everything in between you loaning out and the entrepreneur paying back.
For those unfamiliar with the concept of micro-loans, allow me to give you the quick rundown. Micro-loans is the act of giving small loans to entrepreneurs in the third world. [...]
Microfinancing, the loaning of small amounts of money to the asset-less poor, garnered worldwide attention last year when one of the leaders in this emerging field, Grameen Bank, and its founder Muhammad Yunus were awarded the Nobel Peace Prize.
Microfinancing reaches out to a massive economic underclass that has been shunned by the international banking and lending system by providing necessary seed capital for small ventures.
It may seem intuitive for some to
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