Beyond Microfinance
Two new players in the world's social investing scene seek financial returns along with social impact.
Two new players in the world's social investing scene seek financial returns along with social impact.
Kids win beads and help give loans to entrepreneurs in developing countries.
It's time to rethink the "C" in CSR.
How do you use for-profit activities to fund your social entrepreneurship mission? In this panel discussion at the Skoll World Forum, experts talk about how to combine for- and nonprofit activities for greatest effect. They show that business and nonprofit can mix, drawing on examples such as efforts to profitably provide water to poor villagers by training street children to run businesses, and franchising medical care to creating a transparent market place for handmade goods.
Pivotal pieces that have influenced the "base of the pyramid" theory.
By working closely with the clients and consumers, design thinking allows high-impact solutions to social problems to bubble up from below rather than being imposed from the top.
Fair Trade-certified coffee is growing in sales, but strict certification requirements are resulting in uneven economic advantages for coffee growers and lower quality coffee for consumers.
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.
Few microfinance institutions articulate what, exactly, their ultimate goals are and how to achieve them. If the goal of microfinance is to alleviate poverty, the authors say, then MFIs should focus on helping their clients build successful enterprises, rather than on making more and bigger loans.
Market solutions to poverty, which include services and products targeting consumers at the “bottom of the pyramid,” portray poor people as creative entrepreneurs and discerning consumers. Yet this rosy view of poverty-stricken people is not only wrong, but also harmful.