Every day new exciting businesses emerge in an attempt to take on the world. Half the entrepreneurs we’ve met here at Inc.Plan (USA) are already enjoying impressive success and they are only halfway where they want to be. The enterprise space seems to make room for every individual with a business mindset who strive to ideas into a successful reality. At least it may seem that way.
Countries in transition are often not yet able to offer a friendly economic environment where aspiring entrepreneurs can take their business from idea to action. Their residents, no matter how enthusiastic or able, may have a long way to go before enjoying the benefits of a strong financial system. In the meantime though, what happens to pumpkin farmers in Ghana, coffee-bean growers in Cambodia, fish sellers in Malawi? They too have a business idea, the audacity it takes to put it into practice, the necessary courage to believe they will actually make it. What they don’t have is money. It’s for this reason why Kiva.org was created. An online lending platform that offers people from the developed world the opportunity to endorse small businesses in transitioning countries,Kiva.org acts as intermediary between lenders and borrowers through the microfinance space. The question is… why should you become a lender?
Because Kiva.org works with experienced microfinance institutions that have the necessary expertise to identify and select eligible entrepreneurs in need
Not only do these field partners have direct access to borrowers who will benefit from the amount you lend, but they also upload their profiles onto official websites, which alongside information about the business you’re about to endorse, offers the story that stands behind these entrepreneurial goals.
Because you can lend as little as $25
And extend this sum to the full necessary amount. The transaction is performed via PayPal which doesn’t charge any extra fee. This means you’ll be spending nothing more than the amount you wish to lend.
Because the sum you lend will be refunded.
Kiva.org insures the sum you lend will be refunded once repayments are registered in Field Partners accounts. This way, repayments are redistributed according to each loaner’s credit and to this extent numbers registered so far are reassuring: 21.771 loans funded through Kiva.org of which 99.74% have been successfully reimbursed. It’s not a 100% rate because as any other lending system, Kiva.org is also prone to risk: business issues, health issues, bankruptcy, fraud, operational hazard and the list does not end here. Lenders however are not completely exposed to these risks. Along the process, each lender’s funds are protected by a separate Kiva entity that insures the safety of each investment.
Because you will be making a difference in the world.
The reason why the lowest amount you can lend is $25 is not to offer an incentive for fearful investors but a valid reason to acknowledge that one small donation at a time can in fact make a difference.
Because you too can contribute to creating opportunity in developing countries.
Once you decide to take part in actively supporting aspiring entrepreneurs in poor countries through Kiva.org, you should keep in mind that your action adds up those of others, regardless of the amount you choose to loan. This type of partly financial partly social really encourages change and helps take one step further towards transition from developing to developed countries.
The main benefit to you of Kiva participation is that for a low amount, and an even lower risk, you can make a difference for good, both in an individual’s life, and in the world. So give yourself the gift…of creating hope and decency in the world.