Comments on: HBS SE Conference Keynote by Linda Rottenberg of Endeavor http://blog.ambientengines.com/2009/03/04/hbs-se-conference-keynote-by-linda-rottenberg-of-endeavor/ Exploring Entrepreneurial Ideas that Address Social Issues, Enhance the Environment, Sustain Development and Transform the Developing World Fri, 16 Jul 2010 19:12:00 +0000 hourly 1 http://wordpress.com/ By: What is your theory of change? « Sasha Dichter’s Blog http://blog.ambientengines.com/2009/03/04/hbs-se-conference-keynote-by-linda-rottenberg-of-endeavor/#comment-226 What is your theory of change? « Sasha Dichter’s Blog Tue, 10 Mar 2009 14:00:46 +0000 http://socialecosystem.wordpress.com/?p=379#comment-226 [...] keynote by Linda Rottenberg kicked off the day, providing perspective on the arc of the social enterprise sector over the last decade.  Linda [...] [...] keynote by Linda Rottenberg kicked off the day, providing perspective on the arc of the social enterprise sector over the last decade.  Linda [...]

]]> By: Acumen Fund Blog · What’s your theory of change? http://blog.ambientengines.com/2009/03/04/hbs-se-conference-keynote-by-linda-rottenberg-of-endeavor/#comment-218 Acumen Fund Blog · What’s your theory of change? Fri, 06 Mar 2009 20:18:16 +0000 http://socialecosystem.wordpress.com/?p=379#comment-218 [...] keynote by Linda Rottenberg kicked off the day, providing perspective on the arc of the social enterprise sector over the last [...] [...] keynote by Linda Rottenberg kicked off the day, providing perspective on the arc of the social enterprise sector over the last [...]

]]> By: Raj Melville http://blog.ambientengines.com/2009/03/04/hbs-se-conference-keynote-by-linda-rottenberg-of-endeavor/#comment-214 Raj Melville Wed, 04 Mar 2009 21:55:54 +0000 http://socialecosystem.wordpress.com/?p=379#comment-214 Linda Rottenberg's complete remarks from the Keynote at HBS are at : http://www.endeavor.org/pdf/HBS_keynote.pdf Linda Rottenberg’s complete remarks from the Keynote at HBS are at :

http://www.endeavor.org/pdf/HBS_keynote.pdf

]]> By: Raj Melville http://blog.ambientengines.com/2009/03/04/hbs-se-conference-keynote-by-linda-rottenberg-of-endeavor/#comment-213 Raj Melville Wed, 04 Mar 2009 21:53:30 +0000 http://socialecosystem.wordpress.com/?p=379#comment-213 True about the 100% interest rate part. In Linda's complete remarks she says that when they were starting Endeavor, social investors complained because they were not really targeting the "poor" but encouraging entrepreneurship in the "middle class". All these terms being relative to the general level of economic development in that country. However one of the issues around MFIs is that while it might take the vegetable vendor out of being indebted to a moneylender at 10% a day and provide them with less expensive capital at maybe 24% a year, they still continue as a vegetable vendor. Is it better to put that money into a micro enterprise that will grow and lift 100 people out of poverty? True about the 100% interest rate part.
In Linda’s complete remarks she says that when they were starting Endeavor, social investors complained because they were not really targeting the “poor” but encouraging entrepreneurship in the “middle class”. All these terms being relative to the general level of economic development in that country.

However one of the issues around MFIs is that while it might take the vegetable vendor out of being indebted to a moneylender at 10% a day and provide them with less expensive capital at maybe 24% a year, they still continue as a vegetable vendor.

Is it better to put that money into a micro enterprise that will grow and lift 100 people out of poverty?

]]> By: Bhalchander Vishwanath http://blog.ambientengines.com/2009/03/04/hbs-se-conference-keynote-by-linda-rottenberg-of-endeavor/#comment-212 Bhalchander Vishwanath Wed, 04 Mar 2009 18:59:05 +0000 http://socialecosystem.wordpress.com/?p=379#comment-212 Hi Raj, Very nice post. However I do think that there is a false choice placed before us in the Mexico Microfinance study. The goal of microfinance is to help the poor, those living in absolutely poverty lead a better life, offer a better future to their children and eventually break out of the cycle of poverty. Their GDP is by itself is at such a low base since many of them might be earning less than $2 a day. Thus expecting the GDP to be significantly impacted by microfinance programs is unrealistic. Second, true microfinance is still nascent in Mexico. It would be interesting to see which Microfinance institutions were studied, as some MFIs in Mexico such as Compartamos charge interest rate of the order of nearly 100% which cannot be truly called as microfinance. Bhalchander Hi Raj,

Very nice post. However I do think that there is a false choice placed before us in the Mexico Microfinance study.

The goal of microfinance is to help the poor, those living in absolutely poverty lead a better life, offer a better future to their children and eventually break out of the cycle of poverty. Their GDP is by itself is at such a low base since many of them might be earning less than $2 a day. Thus expecting the GDP to be significantly impacted by microfinance programs is unrealistic.

Second, true microfinance is still nascent in Mexico. It would be interesting to see which Microfinance institutions were studied, as some MFIs in Mexico such as Compartamos charge interest rate of the order of nearly 100% which cannot be truly called as microfinance.

Bhalchander

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