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
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
Microfinance Week in Review: Week Ending February 25, 2011
Some of the week’s news in the microfinance, green business initiatives and the small business sector:
- “Small Businesses Weigh Recovery Act” – Wall Street Journal
In the two years since President Barack Obama signed the $787 billion Recovery and Reinvestment Act into law, some small-business owners attribute their companies’ survival to the stimulus package—yet many say the provisions in the 1,100-page law have fallen short of their expectations. Read More
Treasury Secretary Timothy Geithner Tuesday said bank lending is improving for small businesses but remains constrained as community banks continue to repair balance sheets and adjust to new regulations. Read More
- “ACCION San Diego celebrates $15 million in micro-loans” – San Diego Union Tribune
ACCION San Diego, a local micro-lending organization that provides financing and free educational resources to small businesses, announced that it has issued $15 million in loans to San Diego County business owners since it was established in 1994. The nonprofit organization has grown steadily over the past 17 years, and saw a surge in demand during the recession for its loans, which range from $300 to $35,000 and are issued to business owners who lack access to traditional financing. Read More
- “10 essential online tax resources for small businesses” – USA Today
With record-keeping and quarterly payments, tax planning is a year-round event for the small business owner.Tax-related activities, though, inevitably take on a new sense of urgency as April 15 looms near. While tax time can seem overwhelming for the time-pressed small business owner, there are many online tools and forums available to make the process a little easier and stress-free. Here are ten of our favorites…Read More
- “Ten Minutes with an Entrepreneur: Tory Burch” – Tory Burch Blog
Check out this great advice by Tory Burch in spirit of last night’s great Small Business Mentoring Event by the Tory Burch Foundation for ACCION USA’s loan recipients… enjoy!
Microfinance USA Week in Review: Week Ending February 18
Some of the week’s news in the microfinance, green business initiatives and the small business sector:
- Citibank Survey Finds Increasing Optimism Among Small Businesses – Press Release
The majority of the nation’s small business owners believe 2011 will be better than (44 percent) or the same (42 percent) as 2010, with only 15 percent expecting it will be worse, according to the latest Citibank small business survey. Moreover, Citibank’s latest survey shows an increase in entrepreneurs’ optimism about both current and future business conditions, offering a strong indication that after battling through the recession, small businesses are finally poised for growth. Read More
The U.S. Small Business Administration faces a 45 percent drop in funding under President Barack Obama’s budget request after receiving extra funding in economic stimulus legislation. The agency, which supports companies through loan programs and disaster assistance, would get $985 million in the fiscal 2012 plan Obama proposed today, a cut from the spending levels of 2010 supplemented by $962 billion in stimulus funding. Read More
- “Peering into the Peer-to-Peer Lending Boom” – AOL Daily Finance
Peer-to-peer lending, or social lending, refers to financial transactions that occur directly between individuals without the involvement of a traditional financial institution. And it’s not some passing fad. The Lending Club recently announced it had passed $200 million in total loan originations. Not bad for a business that opened its doors in 2007. And it’s just one of many sites such as Kiva.org, Zopa.com, GreenNote.com, and Prosper.com. Read More
- “Boston Beer founder brings loan program to Ohio” – Cincinnati Enquirer
Founder of The Boston Beer Co., Jim Koch, center, was on hand Friday to announce the expansion of the philanthropic Samuel Adams Brewing The American Dream program, in conjunction with ACCION USA, the country’s leading not-for-profit micro-lending organization, and local micro-lending organization Bad Girl Ventures during a press conference held in the brewhouse of the Samuel Adams Brewery in Over-the-Rhine Friday February 11, 2011. The program will provide funding for qualified Ohio applicants of current or aspiring small businesses in the food, beverage and hospitality industry. Read More
Want To See The Way Microfinance Works From The Inside?
Join us, December 1st at 5:00PM EST for “Underwriting: Microfinance Behind the Scenes,” an exciting webinar about how to underwrite a microloan presented by the Microfinance USA 2011 Conference. We’ll be hosting two of the industry’s leading loan underwriters: Neil Boss, Senior Underwriter at ACCION USA and William Cardenas, Senior Loan Consultant at Opportunity Fund.
Their online presentation will include:
- Case studies of recent loan approvals
- Common microloan application strengths and weaknesses
- Internal processes (and the evolution of processes) that have lead to improved and quicker loan decisions
- Plenty of time for virtual Q&A with webinar participants
The webinar will give a sneak peek into the types of topics and sessions that the Microfinance USA 2011 Conference will explore. We’re excited to co-present the conference in New York City on May 23-24, 2011, in partnership with Opportunity Fund and Kiva. We’ll make sure you’re the first to know when registration opens later this year. In the meantime, this webinar is not to be missed! Register now and mark your calendars for this exciting event.
Tags: accion usa, kiva, loan, microcredit, microfinance, new york city, Opportunity Fund, United States
Do You Know a Micro-Social-Entrepreneur?
This blog was published in a different version on the New York Social Entrepreneurs (NYWSE) blog here.
I recently met an ACCION USA client named Maria. The day that I met her, she had just been approved for a loan to purchase more inventory for her NYC Green Cart, where she sells fruits and vegetables in the South Bronx. And just one week prior, Maria had given birth to her third child, who was in her arms while she completed her loan disbursement.
Upon meeting Maria, I immediately connected her business with the mission of many social ventures. And while I’m only beginning to understand the breadth of the conversation surrounding the definition of “social entrepreneurship,” I intuitively feel that all female microentrepreneurs have an inherent social mission. My logic is in part derived from my experiences working in the microfinance field – experiences that have entrenched my belief in localized social change and the positive reverberations that it can cause. I’m now becoming more comfortable defending the belief that all female microentrepreneurs are social entrepreneurs, since well… no one can seem to agree on the correct definition anyway.
So if many female microentrepreneurs don’t intentionally incite a wake of social change, can they still be categorized as social entrepreneurs? Let us know what you think…
Tags: entrepreneurship, green cart, new york city, social entrepreneurship, success story, us microfinance
Beauty Salons Go Green
Entering your favorite beauty salon, the thought has probably crossed your mind: this chemical smell invading my nostrils cannot be healthy. Can products that stain, strip, and straighten hair take a toll on your body? On the other hand, can a “green” salon forgo the formaldehyde (yup, formaldehyde exists in your favorite hair straightening products) without sacrificing the quality?
By "going green," beauty salon owners are making their shops and customers healthier and standing out among competitors.
Some sure think so. On October 1st, greenSpaces announced that Fringe Hair Art of Kennebunkport Maine has completed its Green Business League Green Business Certification, making it the first Certified Green Hair Salon in the State of Maine.
What did the salon owners do to become green? They first directed attention to their space, using recycled glass and low-VOC paint to set the mood. Next, operations. The salon turned virtually paperless, and they ditched plastic cups for glass to serve water, tea, and coffee (how nice!). And then most importantly, addressing those pesky chemicals that give you a headache while you wait for your stylish highlights, Fringe Hair Art opted for ammonia- and formaldehyde -free hair styling products with a strong odorless claim.
It makes sense. In fact, www.TheBeautySchool.com blog states that “the new trend sweeping the beauty industry is going green.” But they warn that going green is not easy; you can’t skimp or try to fool your customers with faux-green products. Do your homework or hire a consultant to walk you through the greening process. To get you motivated, www.ehow.com has a list of considerations when starting a Green Beauty Salon.. And remember, it’s not just about your hair products: start simple with a commitment to reusing and recycling your business waste. Your world, and your customers, will thank you.
Not a business owner? As a consumer, check out green business directories like www.greenamericatoday.org and talk to your friends about greener options.
If you are a regular at the beauty salon, would green make a difference in your choice of salons? Let us – and beauty salon owners – know what you think!
Tags: accion usa, green, Green Business, small business
Beer, Pita Chips, and Burritos?
Jim Koch (right), founder of The Boston Beer Company, can relate to the struggles of a small business owner. At yesterday's Brewing the American Dream U, he offered advice and expertise to over 150 local entrepreneurs.
Yesterday afternoon, the streets of Boston were damp and a bit dreary. But indoors, things were bright: teachers dispensed knowledge, students absorbed every word, and both listened and learned from each others’ experiences. But this scene’s setting wasn’t the halls of Harvard or MIT. Rather, it was the second-floor ballroom of the Park Plaza Hotel, where ACCION USA and The Boston Beer Company presented the inaugural Brewing the American Dream U: a free, half-day event for entrepreneurs in the food, beverage, and hospitality industries to receive expertise from leading local business owners.
Over 150 entrepreneurs attended. For four hours, they listened as fifteen experts shared advice and fielded questions on topics including “What I Learned on My Way to the Kitchen” and “Getting Your Product Ready for Retail.” The advice was timely, inspirational, and most importantly, honest.
Jim Koch, founder of The Boston Beer Company, discussed the salesman’s mentality (every time he walked into a bar, he had only a few seconds to determine why the people sitting at the counter should drink his beer and why the person behind the counter should sell it). Stacy Madison, founder of Stacy’s Pita Chips, explained the importance of targeted marketing strategies (it’s like a fire hose: you have to focus your efforts, not just spray aimlessly). And John Pepper, founder of Boloco, emphasized the necessity of resilience (he pitched his business to 39 investors before he heard the word “yes”).
The event was an important step in strengthening the Boston Beer Company-ACCION USA partnership – appropriately named Brewing the American Dream – which launched in 2008. In the past two years, the program has provided loans to small business owners in Massachusetts and, in doing so, saved or created 282 jobs.
The partnership not only involves loans but, more so, financial education and “speed coaching” events designed to empower entrepreneurs with the knowledge they need to build their businesses. Together, these programs support entrepreneurs and prepare them for the many challenges of business ownership. And judging by an e-mail we received from an event participant this morning, these efforts are working:
“I just wanted to let you know how awesome yesterday was. I was amazed at how eager and enthusiastic all the panel members, Sam Adams, and ACCION were to lend a hand to micro entrepreneurs. It was truly inspiring and empowering. As a member of the food industry, I have many friends and colleagues with big dreams of starting their own venture and I’m certain they are not aware of these incredible resources available to them. I am excited to spread the word, and to seriously consider pursuing my dream as well.”
Help “brew” this entrepreneur’s dream by donating here.
Tags: accion usa, boloco, Boston, entrepreneur, Financial Education, jim koch, Samuel Adams Brewing the American Dream, small business, stacy's pita chips
What’s a Bike Doing In ACCION USA’s Bathroom?
What is MicroBike, and how do I get involved?
Upper Manhattan (10 miles) – Tanto Dulce Café, 3446 Broadway (at 140th Street)
