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| People Helping People |
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| Written by Healthy Wealthy nWise |
| Monday, 25 August 2008 10:48 |
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Microfinancing is loaning small amounts of money, but during the past few years these small loans have become big business. Until recently, Matt Flannery had never heard of the term microfinance, but it was something that would soon change the lives of people all over the world. He and his wife, Jessica, started Kiva to put poor people in touch with private lenders. Microfinancing was started by Muhammad Yunus. Yunus is a professor of economics in the poor country of Bangladesh. The concepts he teaches in class aren't at all what he sees in the real world around him. Banks don't make loans to people who need $50 for supplies to start a street side business, so people have turned to loan sharks only to find themselves further in poverty. Grameen Bank was founded by Muhammad Yunus to help fund interest-free microloans. He and the bank were jointly awarded the Nobel Peace Prize in 2006. In 2004, Jessica Flannery invited Matt to attend an event at Stanford University with her. The speaker would be Professor Yunus. The event would prove to be life-changing. Back then, Matt was still making software for TiVo. He'd never heard of microfinance, but he attended the event for Jessica's sake. What the two of them learned started the gears turning in their minds. They knew there was something they could do to help others around the world. They brainstormed for a year before Kiva's launch. During the first year of their marriage, Jessica spent several months in Africa. Matt decided to join her, and he was amazed at what he saw. It's common for Americans to get million dollar loans to start a business, but in the poorest parts of Africa, people need more like $100. With this money, they can become seamstresses, open bicycle repair shops, or provide food with a small retail store. What we commonly call "The American Dream" is actually a universal dream. People all over the world are driven to make a better life for themselves, their families, and their communities. Matt was an aspiring entrepreneur himself when he traveled to Africa, so it was easy for him to see his driving spirit alive and well in the hearts of Africans. One night back in America, Matt and Jessica were tired of brainstorming, so they jumped at the opportunity to build a website. They had heard so much negativity from people, but they knew Kiva would be something in which they could take pride. Today, www.Kiva.org is more successful than anyone thought possible. Individuals around the world can lend as little as $25 to help people start a small business. There are profiles and success stories to help lenders choose. When the loans are repaid, lenders can keep their money or re-lend it to someone else. In two years, Kiva reached over 250,000 people with loans totaling more than $25 million. About the Author: Matt Flannery has taken the lead from Muhammad Yunus in creating loans for people in poverty-stricken countries. Visit Matt Flannery to see how Kiva.Org uses the idea of microfinancing Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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