A lot of start-ups talk about changing the world but Kiva is actually doing it. I haven’t seen a huge amount of coverage in the technology press, I guess because they will never have a billion dollar exit. Kiva will do far better than that.
The Kiva website brings together a number of different microfinance lenders and packages it up in a way easy enough for lazy, Internet addled people like me. I first became aware of microfinance when my mum started lending through shared interest years ago. I finally became a member of Kiva last month and I recently received my first loan repayments. No interest is charged and a voluntary 5% donation is suggested to cover the running costs of the Kiva office. When your loans are repaid you can loan the capital to other entrepreneurs. I am now officially a venture capitalist – take that Mr Adelson.
Before microfinance the only interaction between between western citizens and others around the world was government to government or through charity. I believe in both of those methods but what I love about microfinance is that it makes a direct connection between individuals and that by lending you are encouraging the type of enterprising people who are the key to real development. Ultimately it is trade, not aid which will end poverty and we in the West have a long way to go in abolishing destructive subsidies and tariffs. But it is no reason not to start and microfinance gives us as individuals the chance to do something now rather than wait for our governments or the WTO to do something.
I know from my own family in Somalia that there are many incredibly capable and enterprising people in the developing world who deal with far more and do far more than I ever will. Kiva gives us the opportunity to support them so what are you waiting for? Sign up now and start supporting the people who really are changing the world.
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