Yenku Sesay: Survival to Success Yenku Sesay is a 30 year old Sierra Leonean In 2006 rebel soldiers cut off his hands as punishment for voting When he was 21 years old, Yenku was a double amputee, whose only prospects were begging in the streets of Freetown
Yenku Sesay: Survival to Success Yenku was approached by a microfinance institution The microfinance institution encouraged Yenku to take a loan of 300,000 Leones (about $100) to start a small business Yenku sold soap, biscuits and small items for a small profit As Yenku made a profit, he reinvested it into the business Yenku now supports his family of three children, and even pays for his younger brother’s schools fees
Hand up, not a hand out Supplies for a store Seed for crops Tools for carpentry Cloth for weaving Materials for making products Yenku’s story is not unique Millions of people around the world could help themselves if they just had access to money for starting or expanding their small business Whether they need tools, seed, fertilizer, cloth, store supplies, it just takes that first step, that start-up capital, to give them a chance to be truly self-sufficient However they cannot apply for a loan from a bank, credit company or credit co-operative because banks typically do not serve the poor
Introduction to Microfinance Microfinance is the provision of financial services to the poor For many in the developing world, savings accounts take the form of livestock Give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime. What if he knows how to fish, but just can’t afford a fishing net? <ul><li>The poor are typically excluded by financial service providers: </li></ul><ul><ul><ul><li>No collateral </li></ul></ul></ul><ul><ul><ul><li>No credit history </li></ul></ul></ul><ul><ul><ul><li>Illiteracy </li></ul></ul></ul><ul><li>The poor need financial services, and already use them informally: </li></ul><ul><ul><ul><li>Borrowing money from loan sharks with interest rates so high that it may be impossible to ever pay back </li></ul></ul></ul><ul><ul><ul><li>Savings accounts kept in the home, vulnerable to theft </li></ul></ul></ul><ul><ul><ul><li>Investing in livestock which is vulnerable to disease </li></ul></ul></ul>Microfinance works to provide the poor with these financial services, in a safe and controlled environment, through a microfinance institution
Microfinance Institutions <ul><li>Some focus on women in places where women don’t have the same rights as men and so have no economic empowerment </li></ul><ul><li>Some focus on the rural population in areas where people are isolated and cannot travel to cities to access services </li></ul><ul><li>Some focus on a comprehensive program which includes business training with financial products </li></ul>There are thousands of microfinance institutions around the world, and they all vary a little depending on the region they are in and people they are targeting to help What ties them all together, however, is a desire to help the poor by providing them with financial services
The Traditional Microfinance Lending Process Banks and NGOs <ul><li>Microfinance institutions typically get the money that they lend, from banks or non-governmental organizations, or both </li></ul><ul><li>This can be expensive , as it is often borrowed with interest </li></ul><ul><li>There may also be difficult application procedures to access debt capital from non-governmental organizations </li></ul><ul><li>Some organizations can even find themselves shut out due to the region they operate in, particularly post-conflict regions </li></ul><ul><li>Restrictions that microfinance institutions face ultimately affect the entrepreneurs, who rely on microfinance institutions to serve them </li></ul>Microfinance Institutions Entrepreneurs
The Kiva Microfinance Lending Process Entrepreneurs With Kiva, you can be micro-lender You can act as a banker and provide the funds to microfinance institutions that they then lend to entrepreneurs Microfinance Institutions You!
www.kiva.org Kiva.org is a website which allows you to lend to an entrepreneur in the developing world who needs a loan
www.kiva.org The Kiva website lists loan requests which you can browse , just like browsing items on eBay or another website
www.kiva.org Each loan request has a business page which gives you more information about the loan …
www.kiva.org Size of the loan and status Summary of the business and loan, including when it is expected to be paid back Information on the microfinance institution which is managing the loan on the ground Picture of the entrepreneur Description of the business and what the loan will be used for
www.kiva.org The business page also shows you all of the other people around the world who are contributing to this loan
Kiva’s Lenders 720,000 lenders from 196 countries have loaned $142 million in just five years
Kiva’s Borrowers Repayment rate of over 98% Working in Retail, Farming, Construction, Education and many other sectors Nearly 80% are women From Africa, Asia, Eastern Europe, Middle East, South America and Central America Average loan size of $450 333,000 borrowers in five years
Kiva has 112 Microfinance Partners in 52 countries and is still growing Kiva’s Microfinance Partners Nicaragua Honduras Togo Senegal Bulgaria Uganda Kenya Tanzania Cambodia Samoa Mexico Ecuador Nigeria Ghana Moldova Mozambique Ukraine Afghanistan Congo Indonesia Azerbaijan Cameroon Tajikistan Bolivia Haiti Dominican Republic Vietnam Iraq Nepal Paraguay Guatemala Sierra Leone Sudan Rwanda Benin Lebanon Bosnia & Herzegovina Mali El Salvador Peru Pakistan Mongolia
Kiva in the Press The organization has received a lot of attention in the press, as more people learn about this new and unique way to give back
What others are saying… “… a positive alternative to conflict.” “ An eBay for Microfinance” “ (One of) Ten things that will change your future” “ Peace through PayPal?”
Kiva is… Kiva is the world’s first microlending website Kiva’s mission is to connect people, through lending, for the sake of alleviating poverty With Kiva, you can become a micro-lender to people like Yenku who just need a hand up Kiva allows Real People to make a Real Difference in the lives of the poor
Campus Kiva: Students Making a Difference Campus Kiva brings micro-lending to a whole new level: giving students the opportunity to play a direct role in changing lives. Through an international network of over 50 university chapters, Campus Kiva provides students with the perfect avenue to channel their desire to make a difference. What We Do Campus Kiva provides its chapters with the resources and the support to create an effective presence on campus. Our international network of chapters allows you to learn from the techniques of other schools and to interact with students from around the world. Campus Kiva’s continually expanding list of partners will help you maximize your chapter’s effectiveness and will give you a once-in-a-lifetime experience! Get Involved! Now you have the chance to get involved in the cutting edge of economic development. By participating in Campus Kiva at your school, you can help those in need while having fun with fellow students!
<ul><li>Starter Kit </li></ul><ul><ul><li>Includes everything you need to start your own Campus Kiva chapter </li></ul></ul><ul><li>Ideas Kit </li></ul><ul><ul><li>Includes dozens of fundraising and community outreach ideas </li></ul></ul><ul><li>Professors’ Kit </li></ul><ul><ul><li>Includes ways to integrate Kiva into the classroom </li></ul></ul><ul><li>Grants Kit </li></ul><ul><ul><li>Includes an introduction to the grant application process and several grant-making organizations </li></ul></ul><ul><li>Media Kit </li></ul><ul><ul><li>Includes press release tutorial and tips on how to get media coverage </li></ul></ul><ul><li>One Hen Kit </li></ul><ul><ul><li>Includes activities to help bring microfinance to elementary schools </li></ul></ul>Campus Kiva’s Resources
Campus Kiva in Action <ul><li>Since 2008, Campus Kiva chapters have lent almost $300,000 in loans and we’re just getting started. Here are some of the ways our schools are making a difference: </li></ul>Brown University: A Black Tie Ball in support of Kiva.org hosted by Delta Phi Beta. Dance the night away in support of entrepreneurs on Kiva.org at the inaugural Kiva Ball. Proceeds from the event were used to create a portfolio of microloans on Kiva.org. Nationwide: Every April, students throughout the country will become entrepreneurs for a week by participating in the Gumball Challenge, a competition designed to inspire entrepreneurship for social impact. Each team receives a $27 loan and 27 gumballs and must create as much as value as possible; profits are used to finance Kiva loans.
The Campus Kiva Network <ul><li>In just 2 years, Campus Kiva has expanded to over 50 colleges and universities worldwide. Students are making a difference at these schools: </li></ul>Amherst College Arizona State Univ. Bellevue College Boston College Bringham Young Univ. Bucknell Univ. Cal Poly SLO Chapman Univ. CSU Chico Davidson College Elmhurst College Georgetown Univ. George Washington Univ. Harvard Univ. James Madison Univ. Kenyon College Lehigh Univ. Luther College McGill Univ. Michigan State Univ. MIT Moorpark College North Greenville Univ. Northwestern Univ. NYU Oberlin College Point Loma Nazarene Univ. Santa Clara Univ. Sonoma State Univ. St. Anselm College Thomas Univ. Toccoa Falls College Tufts Univ. UC Berkeley UC Davis UCLA UC Santa Barbara Univ. of Alabama Univ. of British Columbia Univ. of Cambridge Univ. of Chicago U of Ill, Urbana-Champaign Univ. of Maryland Univ. of Miami UNC Wilmington Univ. of Oxford Univ. of Pennsylvania Univ. of Pittsburgh USC Univ. of Toronto Univ. of Utah Univ. of Virginia Univ. of Washington