Comments on: Implications of For-Profit Microfinance http://www.defeatpoverty.com/2006/06/implications-of-for-profit-microfinance.html A conversation on global economic issues, ideas & data to help us all become better contributors to defeating the scourge of extreme global poverty Thu, 02 Feb 2012 03:26:56 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Valerie Rozycki http://www.defeatpoverty.com/2006/06/implications-of-for-profit-microfinance.html/comment-page-1#comment-40 Valerie Rozycki Thu, 22 Jun 2006 09:46:00 +0000 http://www.defeatpoverty.com/2006/06/implications-of-for-profit-microfinance.html#comment-40 I completely agree with the benefits of for-profit or commercialized microfinance. As long as the leadership maintains a focus on the poorest sectors, this is the key to sustainability, expansion, and involvement of private institutional investors and other players who can help expand the sector. This is a very thorough post, thanks!<br/><br/>Another benefit to a movement towards for-profit models is that it creates opportunities for the involvement of the general public. For example, Kiva.org is a peer-to-peer lending web platform that allows individuals to make loans directly to micro-entrepreneurs overseas. The more efficient the MFI, the more possible it is to make a "loan" (even if it is 0% interest) to a micro-entrepreneur rather than the traditional model of a philanthropic "hand-out". There is still room for pure philanthropy, but a model like Kiva.org makes participation in social efforts like microfinance much more accessible! I completely agree with the benefits of for-profit or commercialized microfinance. As long as the leadership maintains a focus on the poorest sectors, this is the key to sustainability, expansion, and involvement of private institutional investors and other players who can help expand the sector. This is a very thorough post, thanks!

Another benefit to a movement towards for-profit models is that it creates opportunities for the involvement of the general public. For example, Kiva.org is a peer-to-peer lending web platform that allows individuals to make loans directly to micro-entrepreneurs overseas. The more efficient the MFI, the more possible it is to make a “loan” (even if it is 0% interest) to a micro-entrepreneur rather than the traditional model of a philanthropic “hand-out”. There is still room for pure philanthropy, but a model like Kiva.org makes participation in social efforts like microfinance much more accessible!

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