Three experienced social entrepreneurs share valuable insights – 3 steps to understand your business, 4 steps for success, and 5 steps to create sustainable ventures in a panel hosted by Suresh Kotha, Professor of Management and Center for Innovation and Entrepreneurship Research Director, University of Washington Foster School of Business.
Guest post by Cynthia Sánchez (UW English major, graduating in 2011)
I used to believe microfinance pertained only to those in the banking industry. However, I’ve discovered this is not the case. Microfinance can be utilized by many banks, but also individuals seeking to help others. I learned microfinance does more than lend money. It helps people save, build their resources and reduce their vulnerability.
Microfinance repayment gathering in India
Meeting with Grameen Bank in Bangalore, India allowed me to witness the difference the bank makes by giving 97% of their loans to women while they also strive to educate the next generation. Our meeting with Grameen Bank began by attending a repayment meeting. We arrived at the gathering location—encountering a few goats along the way—and entered an open space. A group of women sat leg-crossed chanting the sixteen decisions, a set of values, followed by the recitation of a vow. This was the way they commenced meetings. They welcomed us with smiles and requests to sit next to them, tapping the floor beside them to signal open spots. The women wore saris and a few cradled their children. We took our seats barefoot and watched each member sign in. Their glass and golden bangles slid up and down, synchronized to the movement of their arms.
The session was quick. The women were prepared with the money stacked in their hands, like a deck of cards. They all sat attentive waiting to hear their name to pass the payment to the lender. The money circulated, hand in hand, until it reached him. He counted the amount and recorded the amount in the borrower record sheet which contained the borrower’s picture, her name, the names of her children and spouse and dates of all the past payments.
We learned from the women that with the money they borrowed they had paid for their children’s education, started businesses, resolved personal issues and emergencies and also had the opportunity to expand their knowledge of business. Obtaining a loan from Grameen Bank had empowered them to decide what was best for their families and their future. Women who were once considered “uncredit-worthy” are now beginning to move away from poverty in a country where 41% of its population is still “unbanked”—demonstrating the difference a small loan can make.
Cynthia is a University of Washington student participant in the Foster School of Business study tour during fall quarter 2010. The trip, focused on Women Leadership in India, was organized by Foster faculty member Cate Goethals.
Guest post by Emily Gerloff (UW business major, graduating in 2011)
“Nearly everything you do is of no importance, but it is important that you do it.” -Mahatma Gandhi
I was told that India is life-changing. After hearing this on several occasions, I remember thinking to myself: What a strange concept. How can a country be life-changing?
After spending a month on the Half the Sky Exploration Seminar via the UW Foster School of Business, I am still unable to express exactly how India changed my life, but I know with absolute certainty that it did.
Emily (far right) sits with Indian women at a microfinance repayment gathering.
During the micro-lending meetings I expected to see poor, impoverished women with sob stories capable of making me instantaneously empty my pockets. I was surprised and relieved to find it was nothing like what I had imagined. These women did not have an ounce of desperation in their voices as they told their stories. They are an absolute testament to the power of hope and determination. They live their lives with an innate sense of duty and purpose I can only compare to an American’s sense of equality and freedom.
Another surprise was how closely the lives of these women parallel my own. The micro-loans they receive are similar to the loans that fund my education. I come from an underprivileged family (by American standards) and would be unable to attend college if it weren’t for the grants and loans provided to me by the government. Although I am occasionally jealous of my fellow students who will graduate with zero debt, it doesn’t change the fact that I am extremely grateful for the opportunity to better my life. I don’t think I am any less deserving of an education just because I was born into a family that couldn’t pay for one. This is a similar stance these women take regarding the micro-loans they receive. They possess gratitude and a humble belief that they deserve the right to prove their worth.
India changed my life. I have seen first-hand the power of hope and determination and won’t deny myself the chance to see how far my own hope and determination will take me.
Emily is a University of Washington student participant in the Foster School of Business study tour during fall quarter 2010. The trip, focused on Women Leadership in India, was organized by Foster faculty member Cate Goethals.