Unitus Microfinance Microcredit Organization

Below is a video from Unitus Microfinance Microcredit Organization. This is not an organization that I am going to focus on, but here is a video that will give you some information about another worthy organization.

Presentation Reflection

Reflecting on my presentations in the senior economics classes I feel good about them. When I first got in front of the classes I was greeted by blank stares and puzzled looks when I asked if anyone knew anything about microloans.
The students showed a high level of interest in the concept as I began informing them of the mission of microloans. Several people asked very specific questions in regards to the process of making a microloans. Students wanted to know what the return rate was, if they would make interest on their loans, if there was any sort of security in case the business they funded failed, and other questions that implied that they were sincerely interested in making a loan. Furthermore, many students commented on their surveys that they had no money, but were in fact interested in making a loan.
Many students drew pictures as well. However, the pictures drawn were not the flippant doodles that often decorate seniors' papers. They were pictures depicting world unity, peace, and financial stability.
One student came up to me afterwards and said, "The presentation was informative and articulate, I learned a lot about microloans. They seem like a really awesome way for people with money to help people without money. What's weird is that I have never heard of them before. Why isn't there more publicity around them?"
To her question I didn't have an answer, I am unsure as to why there isn't more public knowledge about microloans. Another student said, "Microloans are extraordinary. I am definitely interested in making a loan. The brochure was great because now I have the information for several organizations so I can choose which one I like the best, and feel most comfortable loaning through." Hearing a student say that made all the work I put into the brochure truly worth it. I felt that I had really made a positive change.
The most negative comment I heard was, "Microloans won't work. Unless they get a s***load of money then there won't be a change. It's a waste of money." If people want to believe that change can't be made on the small day to day scale then that is their problem, because overwhelmingly the seniors I talked to believed either that they can change the world, or at the very least can't hurt it.
That was my goal when I went into the classes. To inspire in them a sense of change. A belief that sometimes the smallest amount of help can make the biggest difference. I feel that I truly achieved my goal.

Entrepreneur RSS feed

The link below connects to entrepreneur.com, a site that frequently has articles about microloans. While not all of the RSS feed relates to microloans they are interetsing to listen to none the less, and sometimes microloans, microfinancing, Kiva, FINCA, NamasteDirect, Grameen Family, Muhammad Yunus, or other related topics come up. To keep up to date subscribe to the feed.

http://www.entrepreneur.com/feeds/

Microloan Podcast

Below is a link to a website that has a podcast about the passing of the Microloan Amendments and Modernization Act. This is a very interesting issue, particularly because it relates to microbusinesses in the United States, not just other countries.

http://www.microenterprisejournal.com/JournalBlog/2007/09/10/podcast-major-microloan-tweak-passes-house/

Letter to the Editor

To Whom it May Concern,
I wish that your magazine would have an in depth article about the growing global trend of microloans. Seeing as the goal of your publication is to inform the public about the economy and various business ventures I would think that microloans would be easy to incorporate into any issue.
The truth of the matter is that microloans are a great way for people to make a contribution to the developing countries of the world, and the most poverty stricken people, without giving up time or money. While temporarily the lender has to part with their hard earned money they eventually get it back.
Many people express concern that the business that they support will not succeed and therefore they will not get repaid. This however, is an empty fear, for many reasons. First, the lender chooses to whom they loan their money. Therefore it is in the hands of the lender to choose an entrepreneur whose business they (the lender) believe will succeed. Second, microloans have a very high success and return rate. Third, should the business fail then the financial contribution of the lender is not so great a sum that it will prove to be a significant burden to the lender.
I feel that one reason that many people do not want to partake in microloans is because they are not tax deductible. With charity a person may do good, and receive a tax break. That is not the case with microloans. I wonder if microloans, if they were designated as cyclical donations, were tax deductible if more people would be willing to make a donation. A cyclical donation is a loan that is re-lent after it has been paid back.
Imagine the good that could be done if even a small percentage of the population donated as little as $100 in cyclical donations. The chain reaction of positive implementations is endless. Hundreds of small businesses could be funded, boosting the economies of developing countries.
Microloans were created on the idea that credit, not charity is the best way to end poverty. When we look at the chain of events cyclical donations can make it is apparent that credit is a great way to fight poverty. If your magazine would run an article discussing the benefits of microloans I feel certain that the number of loans made would jump. The biggest issue facing the microloan foundations is not the personal interest I mentioned earlier, but lack of public awareness. There are thousands of people who feel that the best they can do for society is to throw their spare change in the Salvation Army buckets. If people knew what a difference they could make for so little then surely they would be eager to help. Even running a pole about whether people would be more willing to lend if there was some sort of tax deduction would help boost public awareness. Microloans are a truly worthy cause. It is a shame that not more people know about them, and make the global difference that we are all capable of making.
Sincerely- Kat Brentano

Survey Results

I presented information about microloans to two senior economics classes, I also provided a brochure with information about the concept of microloans, and about the specific organizations. I had them fill out a survey to help me understand how much I was able to teach them, as well as see how many people were inspired to make a microloan. Here are the results of the in class surveys. 45 people were polled.

1. How much did you know about microloans before reading the brochure/hearing the presentation?
Percentage Breakdown- Alot- 8.9% Microloan? What's that?- 37.8%
Had heard of them- 35.6% A little- 17.8%

2. Are you Interested in making a microloan?
Percentage Breakdown- Yes- 11.1% No- 22.2%
Potentially- 60% I have no money- 6.7%

3. Which organization are you most interested in loaning with?
Percentage Breakdown- Kiva- 37.8% NamasteDirect- 35.6% FINCA- 26.7%

4. Do you believe microloans can change the world?

Percentage Breakdown- Yes- 44.4% I really don't know- 22.2%
No- 6.7% They can't hurt- 26.7%

5. How much did you know about microloans since reading the brochure/hearing the presentation?
Percentage Breakdown- Alot- 53.3% Microloan? What's that?-6.7%
A little- 40% Had heard of them- 0.0%


Comments-

I've already provided a microloan! It's a great idea. I've funded a supermarket in Chile and some others. :)

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I had never heard of microloans before this presentation. Now I believe they can be incredibly useful.

I don't know if they can change the world, but they sound promising.

Microloans are very interesting and more people should become party of this trend.

Microloans are a great way to slightly change poverty-stricken countries. Really poor to poor.

Dr.Muhammad Yunus; Nobel Peace Prize

Dr. Muhammud Yunus is a remarkable man. He comes from the poverty stricken country of Bangladesh. In his 30's he was a professor of Economics, but he didn't feel that his work was rewarding enough. So he founded the Grameen Foundation and Grameen Bank to help alleviate the pain of extreme poverty through microloans. Here are a few videos that will help you understand the inspiration and goals of Dr. Muhammud Yunus.

Overview of what Dr. Yunus Believes-


History of Bangladesh and Dr. Muhammud Yunus-


Q&A with Dr. Muhammad Yunus-