Industry/sector: Microfinancing
Geographic Coverage: Global
Year founded: 2005
Headquarters: San Francisco, CA
Get involved: http://www.kiva.org/about/do-more
Given that Kiva.org is the site and concept that truly got me excited about social entrepreneurship, it seems only appropriate to dedicate this first post to them. For those of you who haven’t heard about microfinancing, it is an idea that rather than having a top-down approach to developing social change in developing economies, to empower those from the bottom-up — one loan at a time. By lending directly to small businesses and entrepreneurs (a couple hundred USD), it enables individuals to grow their enterprises faster with capital that is not often easily accessible.
Matt and Jessica Flannery at Kiva take this one step further — rather than have organizations fund these growing enterprises, they reach out to the netizens of the world. Any one can lend $20, $30, or $100 to different mini-ventures all over the world. What makes this particularly interesting is that it allows you to do good, while not just giving cold cash. Along the way, you are able to see the returns these small businesses make with your support, and when they succeed, you are ultimately repaid as well.
Based in San Francisco, this organization has lent out over 8 million dollars worth of loans to budding entrepreneurs all over the world. Its unique model of integrating local microcredit organizations, the power of internet communications, and global netizens (primarily in the United States) has yielded an impressive 0.2% default rate.
As the world changes, we will need more of organizations like Kiva — organizations that step outside the box and think of innovative methods to address current problems by integrating technology, global knowledge sharing, and passion.
Tags: kiva, microfinance, social entrepreneurship, technology
