Microlending is one of the most transformative ideas in social development to come along in a while. Kiva.com makes it easy for anyone to participate.
I recently helped finance a Bolivian restauranteur expand operations of his modest establishment. I am not a professional financier, nor am I particularly well-versed in the art of economic development.
Through the webiste Kiva.org it was easy to research projects and entrepreneurs in need of small loans, choose one to support, and make a small loan.
Microfinancing, made popular by Nobel lauriate, Muhammad Yunus in 2006, has changed perceptions of how to address poverty and how to distribute capital in developing nations. One of the biggest hurdles for this model is how to connect the capital to those who need it.
Kiva networks with microfinance organizations around the world to find prospective entreprenuers and then provides an easy to use virtual network to connect lenders to those in need of capital.
My small loan, along with those of a dozen others, is making the expansion of a Latin American restaurant a reality. The $776,450 loaned just this week is giving hundreds of businesses, families, and individuals around the world the opportunity to grown, expand, and prosper.
