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Kiva - Loans that change lives
Submitted by Paul on Wed, 04/11/2007 - 10:28.While on a business trip last night I watched the PBS show Frontline World. One of the segments was on microfinance in Uganda. Microfiancing is a practice that is not new to developing neighborhoods in the world. There are many Non-Government Organizations that have provided small loan financing to upstart companies around the world.
However, I found Kiva.org to be a great resource for people that have funds that they would like to provide to individuals in other parts of the world. This small organization based on San Francisco manages a site that allows you and I to fund projects that need relatively small amounts of money to get started. The projects highlighted on the Frontline segment ranged from a neighborhood peanut butter manufacturer to a made-to-order furniture business.
The pre-existing microfinance organization have already established the terms and conditions that new business people must meet in order for their project to be highlighted at the Kiva web site. Kiva is providing a platform whereby you and I can fund the projects that have been inspected for their business worthiness.
This is not a way to make money as investors. It is, however, an inspirational use of capitalism. My hope is that as these small businesses grow, they will continue to use sustainable business practices that improve the social and environmental network in which they live.
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