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Startup Spark

Helping Other Entrepreneurs Earn A Better Life

by Ben Yoskovitz on January 4th, 2007

Put your money where your mouth is.

OK.

After a great discussion about the power of microcredits and microloans I decided to find some worthwhile causes at Kiva.org.

Kiva.org allows you to donate small amounts of money to entrepreneurs and business owners in need around the world. At this moment, most of the opportunities are in Bulgaria, Azerbaijan and Togo. I’m guessing it’s because the loan partners (i.e. credit unions, funds, etc.) that support and manage the loans in those countries are the most active with the project.

These entrepreneurs need the money. They’re trying to improve restaurants and clothing shops, buy some cattle or a piece of farmland, or buy equipment to help their business. These are such small things for so many of us. And most of the people are working their tails off to put their kids through school or just feed them decent meals.

Kiva.org works. They have a huge rate of return on the loans, most of which get paid back in 12-18 months.

I’ve just made a very small loan to Kossi Joseph KOTSI, a carpenter in Togo, Africa. Kossi has already received one loan in the past, which he repaid, and that allowed him to open up his workshop, which he named, “Aimons la Vie” (translated: “Let’s Love Life”.) As a result of opening his workshop, Kossi was able to help his wife get training as a hairdresser. He requested a $1,500 loan for new equipment, materials and to open a hairdressing salon for his wife.

I’m hoping once Kossi gets the money and gets rolling he’ll post updates on the Kiva.org website (or the loan partner, Microfund Togo will) so we can track his progress. And if there’s any information to share with you, I’ll do so.

I plan on making further loans so I can get a bigger sense of how microcredits and microloans work and their efficacy.

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POSTED IN: Entrepreneurship, Social Entrepreneurship

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