To Catch A Dollar – Microfinance in the USA
On March 31st, To Catch a Dollar, a film that explores the beginnings of the Grameen Bank in the United States, will be shown in theaters around the country.
In recent months, many questions have arisen over whether microfinance is capable of achieving its goal of aiding the poor. However, in the United States microfinance has been hailed as one of the roads to economic recovery. The idea is that increased lending to small businesses and entrepreneurs will create jobs and stimulate the economy. Microfinance seems to appeal to the American Dream: If given the opportunity and if you work hard, you will be able to succeed. Is there something different in the microfinance approach in the United States? Perhaps To Catch a Dollar may hold some answers.
Discuss this topic and more at the Microfinance USA Conference.
Watch a preview for the conference here: http://www.youtube.com/watch?v=OcH1Y7lxQnU
ACCION USA Partner Spotlight: Citi
ACCION USA has had the pleasure to be partners with Citi for the last 7 years. Citi serves as great support on a national and local level, funding everything from our micro lending and financial education programs, to product innovation, to program expansion, to even some of our new strategic initiatives like our green loan program.
Currently Citi and ACCION USA have teamed up in Miami to strengthen small businesses in Miami. In 2009 Citi awarded grants totaling $90,000 to Miami-Dade College’s School Of Business and ACCION USA to address these issues. ACCION USA has provided more than $6 million in over 1,100 loans to low and moderate income micro entrepreneurs in Miami-Dade County since its offices opened there in 2003. ACCION USA also offers a Small Business “Bootcamp” where we provide “speed coaching” to empower entrepreneurs. In providing funding as well as financial education, both Citi and ACCION USA are ensuring that small businesses in Miami have the tools they need to survive. Small businesses create jobs and by creating jobs, we are doing our part to help with the economic recovery.
For more information about Citi’s community development programs visit their brand new website: http://www.citicommunitydevelopment.com/
Got a small business question? Ask Tory Burch!
If you could ask a question to Tory Burch, what would it be? The Tory Burch Foundation is offering the chance to ask your questions. The Tory Burch Foundation in late February launched a new online Mentor Q&A feature. In addition to asking a standard set of questions to a leading entrepreneur every month, the Tory Burch Foundation is also giving small business owners the chance to submit their own questions. Submit your questions by March 31st to info@toryburchfoundation.org.Tory Burch is a fashion designer, mother, and entrepreneur who believes that one of the most important ways to create change is to empower women. Tory Burch was launched in 2004 and has grown to work with clients such as Michelle Obama, Oprah Winfrey, Gwyneth Paltrow, Julianne Moore, Katie Holmes, Uma Thurman, and Hilary Swank. The Tory Burch Foundation is a non-profit 501(C)3 organization that provides economic opportunity to women and their families in the United States.
Microfinance Week in Review: Week Ending March 25, 2011
Some of the week’s news in the microfinance, green business intiatives and the small business sectors:
City Council Speaker Christine C. Quinn today launched Credit Ready NYC – a Citywide initiative to increase lending throughout the five boroughs by providing resources to small businesses struggling through the credit crunch. The Council partners included: ACCION USA, Chase Bank, Citibank, New York State Small Business Development Center, NYC Business Solutions, Project Enterprise, Queens Business Outreach Center, Seedco Financial Services, Inc., Sovereign Bank, State Bank of Long Island, Sterling National Bank, TD Bank, N.A., Dime Savings of Williamsburgh, United States Small Business Administration, and the NYC Department of Consumer Affairs. Read More
- “Small Business Needs Funds to Compete – Geithner” – Wall Street Journal
U.S. Treasury Secretary Timothy Geithner on Tuesday told policy makers and entrepreneurs that U.S. small businesses need greater access to capital to spur innovation. “The financial crisis caused a great deal of damage to the capacity of innovators to access capital, and we can’t promote innovation and investment in the United States unless we help innovative companies get the funding they need to succeed,” Mr. Geithner said in remarks prepared for a Treasury-sponsored conference. Read More
- “Crowd-funding sites getting attention from investors“ - Los Angeles Times
Fundraising websites that rely on social media focus on helping people raise money for such things as hospital bills and tuition. But recent six- and seven-figure campaigns show that they could be another way for start-ups to secure funding. Read More
- “To Catch a Dollar: Poor Women, Small Business And a Chance to Succeed in America” – Huffington Post
To Catch a Dollar, a documentary opening at the end of the month, follows industrious women on their quest to pull themselves out of poverty with the help of Grameen America, an arm of Nobel laureate Muhammad Yunus’ iconic microcredit bank. The film explores Grameen’s efforts to empower struggling women by providing them means to establish their own businesses. Read More
How Does Microfinance Impact the United States?
In the wake of the controversy surrounding Muhammad Yunus and the recent anti-microfinance sentiment, one cannot help but wonder about the role of microfinance in the United States. The case study in India may present a negative view of microfinance, but in the United States there seems to be a different story developing. (Learn more about the case study in India at the Microfinance USA 2011 Conference)
The Small Business Jobs Act that was signed last year suggests that the United States is moving in the direction of microfinance to improve the economy. This Act increases the amount of loans available to small businesses and entrepreneurs. Will this help communities in the United States? From what I’ve seen as an Accionista, I believe that it will.
Microfinance helps the development of small businesses in the United States. Many budding entrepreneurs are unable to get a loan from the bank to start their business. Microfinance institutions are able to provide these smaller loans to medium to low income entrepreneurs. The impact of their small business then has a ripple effect on the local community and its economy.
Small businesses improve the community. When a small business opens in an area, that business owner creates ties to the area and the people in it. The health of his business becomes dependent on the health of the community surrounding it.
Small businesses create jobs. Small businesses on average create between 3-5 jobs each year. These jobs also tend to hire members of the community in which they open. Not only does this create jobs in the community in which it opened, but it also improves ties between members of the community.
Sandra Talks With Her Customers
Small businesses inspire quality.
Small businesses have a lot of competition from large corporations here in the United States. One thing that small businesses can offer over many large corporations is a commitment to quality and customer service. Small businesses need to rely on their customer’s opinion of them, rather than the promise of cheap prices. Therefore maintaining a high quality product or service is more important to a small business than it is for larger businesses.
Because of its ability to help increase the development of small businesses, I believe that microfinance in the United States is extremely important, especially on the road to our economic recovery and I am happy to be involved.
Do you think microfinance in the USA is important? Share your ideas and come to the 2011 Microfinance USA Conference to discuss with top industry professionals whether microfinance is important in the USA. Register now to take advantage of the Early Bird Discount that ends today: www.microfinanceusaconference.com
Microfinance Week in Review: Week Ending March 18, 2011
Some of the week’s news in the microfinance, green business intiatives and the small business sectors:
- “Claudia Cardozo from ACCION USA to Address RILPBN” - Providence Business News
Claudia Cardozo a business development officer at ACCION USA, to address RILPBN Friday April 8, 2011 6:00 PM at El Macuto (Ada’s Creation) 1137 Broad Street Providence, RI 02905. she will be talking about access to capital for micro-entrepreneurs in Rhode Island. Read More
- “Online Video Offers Low-Cost Marketing For Your Company“ - New York Times
Online video is becoming a first stop for many customers. It is akin to what the Web page was a decade ago — something that can give early adopters an edge over competitors. It gives them a channel to talk directly to customers in ways previously accessible only to large companies that could afford TV advertisements. Read More
More than 128 million of the world’s poorest families received a microloan in 2009—an all-time high, according to a report released today by the Microcredit Summit Campaign. Read More
- “SBA Salutes Small Businesses that Drive America’s Economy at National Small Business Week May 18-20“ - Business Wire
The nation’s top entrepreneurs will be honored at the U.S. Small Business Administration’s National Small Business Week events May 18-20 in Washington, D.C. Under the theme, “Empowering Entrepreneurs,” a series of events and educational forums will mark the 58th anniversary of the agency and the 48th annual proclamation of National Small Business Week. Read More
Registration Now Open for P2P Lending Pre-Conference Webinar
Whether you’re an active Kiva, Prosper, or Microplace lender or you’ve yet to get your feet wet in peer-to-peer microfinance, you won’t want to miss Microfinance USA’s pre-conference Webinar “P2P Lending: Overcoming Barriers to Access” (March 30, 2011, 5 – 6 PM EST).
The Webinar will offer microfinance practitioners and enthusiasts and in-depth look at the business models behind three separate organizations engaged in P2P lending—Kiva, Lending Club, and People Capital, and discuss how the industry is changing everything from the way we borrow and lend to the notions of philanthropy and investing.
Senior managers from each organization will address key issues such as:
- What can be considered P2P and what are the structures needed to operate in this space?
- How is P2P lending building better access to capital and impacting the lives of small business owners and others in the United States?
- What’s in store for the future of P2P?
Those located in the New York metro area will be able to take part in some “bonus” content and attend a Webinar “watching party” and a follow-up discussion in-person at NYU Stern.
WHEN:
March 30, 2011 5-6 PM EST
WHERE:
- Online (Register Now)
- NYU Stern’s Kaufmann Management Center M3-110. Registration is mandatory, in order to be added to the building security list (Register Now)
Microfinance Week in Review: Week Ending March 11, 2011
Some of the week’s news in the microfinance, green business intiatives and the small business sectors:
- “ACCION USA micro-lending organization aids immigrants, women, and small-business owners” - New York Daily News
- “Small Business News: The Miracle of Small Business Budgeting” – Business Insider
Long heralded as an enlightened way to lift the downtrodden out of poverty, “microfinance” has come under a cloud. The stories of lives being changed by a $27 microloan and picture-perfect scenes of smiling women with colorful handlooms, empowered by affordable credit, have been replaced by headlines about borrowers driven to suicide. At best, microfinance seems to be failing to achieve its most noble goal: poverty alleviation. At worst, some lenders are contributing to a cycle of indebtedness and abuse, just like the loan sharks they were to replace. Read More
100th anniversary of International Women’s Day -March
In commemoration of the 100th anniversary of international women’s day ACCION USA is happy to highlight some of the many inspiring women microfinance loan recipients who through their small businesses make a big difference in their communities every day.
Lucia Saenz — La Licuadora — Miami, FL
Originally from Peru, Lucia’s first job was working at a small café in Miami for minimum wage, to be able to provide for her 2-year-old daughter, Lucia worked 80-90 hours a week. After learning enough about the business Lucia was able to buy her own small café thanks to money collected from savings, family and friends. Two years later, she was ready to grow and opened a second restaurant thanks to a $14,000 loan from ACCION USA. Her new restaurant, La Licuadora, Peruvian food, has helped the community by creating 13 new jobs allowing Lucia to work fewer hours and spend more time with her family
Rebecca Irfan — Little Blessings Day Care — Fitchburg, MA
Rebecca’s home-based day care center was put at risk when the piping in her restroom needed to be replaced. A $3,000 ACCION USA loan allowed Rebecca to make the repairs and keep her business, which provides family income for Rebecca and services to local low-income families, open.
Lyn Genet Recitas — Neighborhood Holistic — New York, NY
After a traditional bank left Lyn $10,000 short of opening Neighborhood Holistic, a yoga center, ACCION USA stepped in to provide the extra capital Lyn needed. Today, a previously abandoned Harlem brownstone now serves as a community center that employs 12 people and provides Lyn with family income.
Milka Luciano — Abuela’s Cocina — New York, NY
An $8,000 loan from ACCION USA helped to finance a new refrigerator, allowing Milka to keep
the business that employs her whole family up and running. Milka’s loan also allowed her to
make other business improvements that boosted revenue and her family’s income.
Women perform two-thirds of the world’s work and produce half the world’s food, but earn just 10% of the income and own 1% of the property*. Use a microloan to support women! and let them enjoy the financial independence Lucia, Rebecca, Lyn and Milka now posses.
Gain financial indepence!
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