Many businesses serving lower income communities languish because they can't raise enough money to fund their growth. To meet their needs, a new breed of private equity investment—development investment capital—has emerged. Although this style of investing is still in its infancy, it is already showing promise.
Peter Liu started his working life as an engineer at the oil giant Chevron Corp. The experience turned him into an avid environmentalist. Several years later, it also led him to co-found the New Resource Bank, which calls itself the nation’s first “green” commercial bank.
The Public Radio Fund gives investors a chance to protect nonprofit airwaves. With its help, KTOO-FM in Juneau, Alaska, recently debuted a 24-hour news show and two locally-hosted Alaska-flavored music stations.
Michael Parker pays his new Spanish tutor $17 less than he paid his old teacher in Iowa. But his new teacher, Yesenia Mateu Grave, takes away double her normal fee. Thanks to Web conferencing, Mateu Grave teaches students around the world from her hometown in Antigua, Guatemala, via a site called Speak Shop, combining audio, video, and online chat for a classroom-like experience.
The beginnings of the Bangladesh Rural Advancement Committee (BRAC) were fraught with uncertainty. Initially surviving entirely on donations, it has since earned back two pennies for every one it has spent on welfare activities, and is today the largest, self-reliant international NGO, employing more than 97,000 people. In this audio lecture, Fazle Hasan Abed reminisces about the organization's humble beginnings and shares the organization's achievements.
Despite the hoopla over microfinance, it doesn't cure poverty. But stable jobs do. If societies are serious about helping the poorest of the poor, they should stop investing in microfinance and start supporting large, labor-intensive industries.
Building Wealth: The New Asset-Based Approach to Solving Social and Economic Problems
Based in Silicon Valley, Kiva is an innovative social enterprise that uses the internet to connect lenders with small businesses around the world. In this audio interview, Jessica Flannery talks with Design for Change host Sheela Sethuraman about starting the organization, and reflects on some of the reasons for its rapid growth and success.
