Helping Social Entrepreneurs - Microfinance & Poverty

The video explores the concept of microfinance, focusing on Kiva's role in providing small loans to entrepreneurs in developing countries. It highlights the impact of these loans on individuals in Tanzania, showcasing their business growth and challenges. The video also discusses Kiva's expansion into the US and the controversies it faced. It concludes with reflections on the effectiveness of microfinance and Kiva's strategies to address challenges like currency fluctuations and litigation risks.

What is the primary focus of microfinance as discussed in the video?

• Lending large amounts of money to established businesses

• Providing small loans to entrepreneurs in developing countries

• Investing in stock markets

• Funding large infrastructure projects

What is the default rate for loans on Kiva?

• 10%

• 5%

• 2%

• 15%

What challenge does Kiva face when expanding into the US market?

• Legal implications of larger loans

• Currency risk

• High interest rates

• Lack of borrowers

What is the maximum loan amount Kiva allows for small businesses in the US?

• $5,000

• $10,000

• $20,000

• $15,000

What strategy does Kiva use to protect against currency fluctuations?

• Currency swaps

• Hedging with derivatives

• Stop-loss protection policy

• Fixed exchange rates

How did Atuna diversify her business after receiving a microloan?

• By selling only cassava

• By opening a new pharmacy

• By selling fabric, phone top-up cards, and ice cream

• By investing in real estate

What was the impact of the microloan on Atuna's personal life?

• She retired from her business

• She could send her child to school

• She was able to buy a new house

• She started a new business in another country

What was a major controversy regarding Kiva's loan process?

• Loans were only available in the US

• High interest rates charged to borrowers

• Lack of transparency in financial statements

• Loans were not direct person-to-person as advertised

Why did Gloria, a US borrower, choose Kiva for her loan?

• She had a high credit score

• She wanted to expand her large corporation

• She needed a loan for a real estate investment

• Traditional banks did not fit her credit profile

What is a key benefit of using Kiva for lending, as mentioned in the video?

• High returns on investment

• Direct impact on entrepreneurs' lives

• Guaranteed loan repayment

• Access to exclusive business networks