You be the bank!  Using the website Kiva.org you will connect with and lend money to small business owners in third world countries who are seeking to grow their businesses, but would not otherwise qualify to borrow money from traditional sources.

Microcredit is the extension of very small loans to the unemployed, to poor entrepreneurs and to others living in poverty. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimum qualifications to gain access to traditional credit.

Watch PBS FrontLine Reports and Video
“A Little Goes a Long Way”

 

Starting a business is a big step. You have to have a good idea, work out all the details needed to put it into operation, and be firmly convinced of your ability to make it work. Maybe you’d like to start a small business someday? For now your job is to decide what loan applicants to make loans to while learning about entrepreneurship and real people in our global community.

 

 

1. First, create a file folder with your name to keep your notes and assignments in. Next, define the following vocabulary words using the link below:

http://en.wikipedia.org/wiki/Micro_lending

• Entrepreneur
• Credit
• Collateral
• Developing Countries
• Poverty
• Dr. Muhammad Yunus

2. Research and answer the following FAQ’s about micro-lending:

Grameen Foundation Micro Finance Basics

• Why do some micro-lenders focus on women?
• Can very poor people actually start and run a successful business?
• Do very poor people repay their loans?
• Do people really get out of poverty?

3. At the Kiva.org site on the “Lend” page, review the most current applicant profiles and choose one you think is worthy of a class loan.

• Complete the following information:
• Name
• Type of Business
• Country
• Why you are choosing this business person as a potential loan recipient.

Now you will participate in a class discussion in which you and your classmates will choose entreprenuers to recieve loan money. Based on the amount of money raised by the class and on account with Kiva.org, you will also decide on specific disbursement amounts for each recipient.

5. Finally with all the information you have collected, create a class presentation. Presentations should include an overview about the loan recipient, their countries, business, and the current social and economic challenges they face. Presentations must include at least one visual aid such as a website, video, newsletter, brochures, PowerPoint and an audio component such as a Podcast or oral presentation.