Top Four Reasons Why I’m Going To SOCAP 09
I can think of over a hundred reasons to attend the SOCAP conference in San Francisco September 1-3, 2009.
What is SOCAP 09?
SOCAP (Social Capital Markets) “brings together a unique mix of the world’s top social innovators, investors, donors, entrepreneurs, and thought-leaders, today’s leading catalysts of change from across the globe. [to] celebrate the renewed will and determination of these pioneers investing for social impact.”
The top four reasons why I’m attending…
- YOLA.com ACCION USA is partnering with Yola.com, a company that provides free web building and hosting tools. We are excited to bring technology and marketing tools to the microentrepreneurs that we serve. SOCAP is a chance to discuss this exciting new partnership.
- KIVA.org ACCION USA is in its third month of its pioneering partnership with Kiva.org, which speaks to the innovation that ACCION USA is bringing to the domestic microfinance industry. As the former Kiva fellow and current Kiva coordinator at ACCION USA, I am excited to hear Premal Shah speak about the future of social innovation on the web and Chelsa Bocci discuss Kiva’s community outreach initiatives.
- Sonal Shah from the White House’s office on Social Innovation is the keynote speaker and will be addressing the government’s new socially minded strategy to “effectively streamline government towards investing in what works.” This one speaks for itself.
- Day 3 Keynote: “An aspirational look at the future of our economy and society at large. Focusing on lessons learned outside of western society and the holistic nature of blended value ventures.” Bringing blended values to socially minded business sounds like a song to me and is a perspective that deserves considerable discussion.
I am looking forward to the opportunity to engage and learn from the list of over 100 speakers on panel discussions ranging from “Social Media That Moves People to Action” to “Alternative Financial Services for the Unbanked.” Check out the complete list. I look forward to my return to NYC after the conference as ACCION USA continues to expand and grow, generating innovative ideas and continuing to provide fresh products and services to our clients.
Tags: accion usa, chelsa bocci, erica dorn, kiva, premal shah, SOCAP 09
TwitGift.ly The Virtual Gift that Keeps Giving
Giving virtual gifts is a staple of online friendship. Who doesn’t love getting for their Facebook birthday a cake full of candles that will never burn out or drip wax on the frosting? Or giving a diamond engagement ring to your best friend/Facebook wife? Now you can give a virtual gift and change somebody’s life at the same time!
TwiftGift.ly, a virtual gift website, has added gifts that support charities to their collection of fun, goofy, and thoughtful presents. For a $5 donation you get a fistful of cash to give to friends. All proceeds go to ACCION USA, which will leverage your money to make an entrepreneur’s dreams come true.
Five Things to Do with a Fistful of Cash
- Tell a small business owner about our financing by sending them an ACCION USA gift
- Give your friend virtual birthday money (comes with $5 of good karma)
- Explain charity to your child via the virtual gift and your $5 donation to ACCION USA
- Tell a story and say: And then I found $5!
- Play poker: the winner gets virtual cash and we make the money into microloans
I challenge you to make a sea of cash on the Internet that will become a sea change for our entrepreneurs. You can send this gift via Twitter, Facebook, email, and all your social networks. If you and nine friends give a virtual gift this weekend instead of getting a $5 milkshake then we are halfway to helping a private school bus driver buy a car seat for the children. How many businesses can you help? The sky’s the limit.
And who doesn’t want a fistful of cash?
Honoring a Community Development Lion
Sen. Kennedy meets with an ACCION USA client from Lawrence, Massachusetts in 1999.
It is with heavy hearts that we at ACCION USA heard the news of Sen. Edward Kennedy’s passing.
As a great supporter of ACCION USA, Senator Kennedy will be missed dearly. His commitment to economic justice made him a natural ally to the microenterprise and community development fields. And as he did throughout his 43-year career in the United States Senate, Senator Kennedy put his beliefs into action – and got results. Among his long list of accomplishments, Senator Kennedy:
- Introduced legislation that created the SBA’s Program for Investment in Micro-entrepreneurs (PRIME), which has provided assistance to organizations that help low-income entrepreneurs for nearly ten years
- Fought to keep intact the Community Development Block Grant (CDBG) program of the Department of Housing and Urban Development
- Consistently pushed for increased funding of the Community Development Financial Institutions (CDFI) Fund, work which appears to be paying huge dividends in the FY2010 budget.
Although Senator Kennedy is no longer with us in body, his advocacy and work on behalf of low-income Americans will endure for decades. And so on this day of mourning, we remember the words of Senator Kennedy’s iconic 1980 speech, in which he vowed that “the work goes on, the cause endures, the hope still lives, and the dream shall never die.”
Hail Mary, Full of Grace, I Really Need This Microloan
No one usually likes to get “no” for an answer. However, a recent Wall Street Journal article regarding irresponsible lending practices in India demonstrates why it’s important for microfinance institutions (MFIs) to put their foot down with debt-ridden borrowers. Mission-driven MFIs (the most popular kind here in the U.S.) must be wise enough to acknowledge that a microloan brings nothing but further hardship to a borrower that is already indebted beyond his or her capacity to repay.
Here at ACCION USA, this realization has meant an increase in the number of loan declines as the economy has worsened. It’s a necessary evil in remaining true to our mission of empowering, not burdening, individuals with access to credit. But it’s not an easy message to deliver to financially strained borrowers, especially when they feel like a microloan is their “Hail Mary” – their one, last minute attempt at business survival.
I’m acquainted with one ACCION USA borrower, who has benefited greatly from this tough love policy. Originally seeking capital to pay debts to vendors for her printing business, her loan consultant realized that taking on more debt wasn’t the answer to boosting sales and income to get out of the red. Instead, ACCION USA staff worked with her on low-cost marketing, and her business is getting back on track.
As the recession continues to strain local small businesses, U.S. MFI’s face a complex challenge. There is an unprecedented opportunity to support struggling small businesses, but the duty to do so responsibly remains. Saying “no” to a financially strained small business owners and instead focusing on providing them with the financial education resources needed to get their debt in check actually provides their best chance at staying afloat. Nobody ever said that small business ownership was an easy road.
What Makes an Entrepreneur an Entrepreneur?
ACCION USA borrower Frederick at his emissions testing center.
“The driving need isn’t different, and the dreams aren’t different, and the final outcomes may be influenced by different factors, but in essence [U.S. and international borrowers] aren’t different,” said Gina Harman, ACCION USA’s CEO, shortly before the organization formed its groundbreaking partnership with Kiva, regarded primarily for its work in the developing world. She stressed the importance of conveying what a massive change small business ownership can mean for a client – “it’s about the human desire to provide, and the devotion to doing whatever has to be done to make it work.”
Her words describe exactly what I’ve been experiencing for the last few weeks, as I meet with clients and hear stories revealing their drive for success. I know if I had a business idea that my local bank didn’t seem to believe in enough to give me a loan, I would probably just resign myself to thinking it was harebrained in the first place and call it a day. ACCION USA borrowers do just the opposite—when they are turned down by a bank, they come to us instead.
Just last week I spoke with Frederick, an ACCION USA borrower who had tired of working for government agencies as a fire inspector and dreamed of starting his own emissions inspection business. After he told me he was turned down by a bank before he came to ACCION USA, I asked him why he was so devoted to starting his own business.
“What makes you happy?” I asked him.
“Giving others the best service I can,” he said. “I knew I couldn’t do that unless I was working for myself.”
How often do we complain about our lack of professional fulfillment without attempting to do something about it? When people like Frederick share their stories and express the devotion with which they tackle, as Gina said, “whatever has to be done,” it should make us all reflect on the choices we have to pursue our own ambitions.
Elise Tosun has a background in economics and has worked on designing financial products for farmers in India and for a microfinance investment fund in New York. She is currently the Kiva Program Intern at ACCION USA.
Tags: accion, accion usa, elise tosun, entrepreneurship, gina harman, kiva, kiva.org, us microfinance
A Mainstreet Microfinance Mission
On one of my very first missions as a Kiva Fellow, I wandered through a maze of food cart vendors searching for a borrower. A newbie to the profession, I thought his address would be enough to locate him to take a the photo needed for his profile. As anyone who has ever tried to find anything in a developing country, region, or neighborhood will tell you, I needed much more than just an address. I was surrounded by food carts in all directions, slinging everything from fruit and pretzels to dumplings and falafel. Where was I? Not in India, or Kenya, or Guatemala. No, I was in downtown Manhattan.
As a Kiva Fellow for ACCION USA, I learned that New York borrowers were more similar to international borrowers than not. If 75% of ACCION USA’s borrowers are immigrants, it’s even possible that some of them could have been microloan borrowers in their home country before applying at ACCION USA!
Perhaps one of the most revolutionary aspects of ACCION USA’s jump into the person-to-person lending market is just that: the divide between Kiva lenders and borrowers has grown much smaller. As one Kiva/ACCION USA lender recently conveyed to me, her son was inspired by Ray’s business in Atlanta. Her son receives his allowance in Kiva cash, and he is an avid lender. Seeing a successful small business being built closer to home has inspired him, and has made the other business he sees around the world that much more real and respected.
My last attempt to contact the elusive food cart borrower landed me at a hot dog cart smack dab in the spot where my guy had been 10 minutes prior. I decided to strike up conversation with his replacement.
“So where are you from?” I asked.
“Bangladesh,” he said- sounded like music to my ears. I bought the quintessential NYC treat from him, as we chatted about Muhammad Yunus and the American dream. We both concluded that New York City is an incredible and magical city. I couldn’t have asked for a better end to my Kiva mission – to learn that microentrepreneurs here in the U.S. are as inspiring and resourceful as those in the developing world.
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Erica Dorn served as Kiva’s first domestic Fellow, she now coordinates the Kiva program at ACCION USA. Learn more about Erica’s U.S. microlending adventures at Vimeo.
Tags: accion, accion usa, erica dorn, kiva, kiva.org, microfinance, Muhammad Yunus, us microfinance, Yunus
AUSA Financial Education Programs Get Webinar Techonology Boost
Today, small business owners are thirsting for a leg-up in the down economy. ACCION USA’s small business loans can provide the much-needed capital for today’s entrepreneurs to maintain, strengthen and grow their small businesses. We could stop there, but that’s just not our style.
As a leading microlender, AUSA has always focused on complementing loans with financial education, which gives businesses an even bigger boost towards long term success. Now, ACCION USA has taken financial education to a whole new level by launching an online workshop, or Webinar, series. We’re bringing live credit and business education to business owners where it’s most convenient for them—in their homes, at their businesses, or on-the-go.
This innovative strategy is helping us to streamline our financial education efforts—ACCION USA staff spends less time in transit, setting up workshop locations, and waiting for workshop participants to arrive—meaning we can reach more people with less effort and budget.
Webinars are gaining ground in the world of financial education, and ACCION USA is leading the pack. You can help ACCION USA reach even more small business owners with financial education by spreading the word about our Webinars. Our first batch, focused on business survival, take place twice a month in English and Spanish. Visit our workshop calendar for our upcoming online and in-person workshop schedule.
ACCION’s Center for Financial Inclusion Provides Compelling Argument for Microfinance in the U.S.
Today, our friends at ACCION International’s Center for Financial Inclusion post a compelling argument for microfinance services in the United States. Through the story of Ozzie, a handyman and immigrant entrepreneur, CFI’s business manager Emily Leeding puts a face with the name of a problem shared by countless immigrant entrepreneurs: insufficient credit history.
Ozzie, who has struggled because of his lack of financial know-how, was lucky to have crossed paths with Emily (a former ACCION USA staff member!) who pointed him in the direction of our financial education curriculum and taught him how to pull his credit report. But so many immigrant entrepreneurs still fall through the cracks, never receiving the opportunity to learn how the financial system works in the U.S., and keeping them from reaching their highest potential. It’s a nationwide problem that ACCION USA works every day to remedy.
I hope that Emily will keep the microfinance community updated on Ozzie’s financial progress—and look forward to the day that Ozzie becomes an ACCION USA success story!
Who Is Lucy Valena and Why Does She Rock Our Socks Off?
It seems like everybody’s talking about Lucy Valena these days.
And I’m no exception.
Lucy Valena started making a splash right away when we met her in September 2008. From the start, each AUSAer she spoke with felt her (caffeinated?) energy/excitement and recognized her determination, especially as she moved quickly through the loan process. Our $4,000 loan allowed her to purchase the equipment to launch her mobile espresso catering business, Voltage Coffee, an idea brewed from her barista days in Seattle and lifelong love of espresso.
Right after her business opened and the foam started flowing, the notes in our internal communication system show something different than your daily roast variety of comment strings. In December, Sherri, one of our illustrious loan officers, called to congratulate Lucy on the article about Voltage Coffee in the Boston Globe. Most recently the Boston lending team gathered around a computer screen to watch Lucy in a nationally televised CNN clip.
One Small Business Loan Disbursed, 27.2 Million to Go
Risa Sherman, a consultant for Samuel Adams/ the Boston Beer Co., our delicious corporate partner for Brewing the American Dream, hit the bull’s eye in her post about Lucy’s success:
Lucy is an example of the amazing spirit of small business heroes who put it all on the line every day in dedication to their craft. She is representative of the many independent, small business owners who are the faces of Main Street America. Her business and her life are so inextricably intertwined – the success of one is synonymous with the stability of the other. ~ Risa Sherman on Causenation.com
This is evident from Lucy’s own words, given in a speech just last year:
This summer, the time I wasn’t working my day job or sleeping was mostly divided between writing my business plan and research and development. I crunched numbers, wrote and rewrote until my ideas made sense, and conducted experiments with espresso and an assortment of random ingredients in hopes of finding tasty combinations. When my business plan was finally finished, I went to the SBA and met with a representative from SCORE to discuss what I should do next. I needed a loan, but because of my age I am not exactly the first person an average bank would hand cash to, even back in August. The business councilor at the SBA literally read my entire business plan cover to cover (while I squirmed in my seat), and afterwards suggested ACCION as a good place to start. (Read the full speech on Risa’s blog)
Lucy’s struggles and successes stand as one story that gets repeated every day through out the US since 27.2 million people run their own small business (SCORE) If you know somebody running a business or looking to start one, let them know about us! You never know if your favorite coffee shop’s bank just increased their minimum credit score by 50 points.
p.s. This is just cool: The Latte Zoo (Thanks Boston Food Monkey!)
Tags: CNN, coffee, entrepreneur, Sam Adams, small business