A Billion Bootstraps - a must read
Filed under: Books, Business, Microcredit
A couple months ago I was in my local book Bookstore looking for Al Gore’s “Assault on Reason” (forthcoming review) and happened to stumble on a book called “A Billion Bootstraps“.
Being new to the idea of Microcredit, and a philanthropist at heart, this one caught my eye. I have to say, this book is a great introduction to the world of Microcredit and is a must read for the philanthropist or anyone trying to make a charitable difference in the world.
Microcredit essentially facilitates providing the world’s poorest “entrepreneurs” with operating capital to grow and expand their businesses. The only real difference between Microcredit and what you would expect to see in Small Business Loans in America is the fact that these loans are usually in very small amounts, sometimes just a couple hundred dollars. And the businesses the recipients are growing are to support their families and pull themselves out of poverty.
After reading the book, there are several highlights about Microcredit programs that grabbed my attention and have garnered my full support, interest, and investment dollars:
- It’s sustainable. The borrowers have to pay the money back to the bank, and that in turn is recirculated to other borrowers. This non-handout approach ensures that your contribution is helping multiple families over the course of many years.
- The small dollar amount of the loans means that a given amount of money can impact more people.
- We often take for granted that in America there is an infrastructure that empowers people to help themselves. In some of the world’s poorest nations, this simply isn’t the case. This program focuses on teaching these people some of the fundamental skills that we take for granted and gives them a ladder to pull themselves up on.
- It’s not just throwing money at a problem that perpetuates itself. It’s designed to solve a problem.
- Being an Entrepreneur and “Business Guy”, I can appreciate the value of capital in growing a business. I find it fascinating that the same concepts applied on such a small scale to individuals around the world can have such a big impact to peoples’ livelihood.
A Billion Bootstraps has several Appendixes with information on where to get started, as well as how to perform due diligence and research on the funds or programs that you are interested in.
Here is an example from the sample book chapter found here:
“Microcredit in Action
The Mikhayloynas were struggling in Ukraine. They were living in an unheated, half-built house that they could not afford to finish, and their government pension barely covered the cost of their food. With no money for medicine or other necessities, Galina Mikhayloyna started selling milk in jars at the local outdoor market where vendors sell everything from hand-knit socks to home-baked bread. She soon was able to add grain to her
merchandise, but did not have enough money to build up her supply or to stock other products. Galina obtained a $400 microloan which she used to increase and diversify her inventory with a variety of popular household products. Sale of these additional products produced enough extra income for the Mikhayloynas to be able to finish their house. Subsequent loans helped Galina move up to the best selling place in the market. She now has many customers and is known throughout the market as a strong businesswoman and savvy entrepreneur.”
If you want to help make a difference in the world, head to the bookstore and pick this one up today.
Posted on August 2nd, 2007 by Chris Crosby
3 Comments
August 13th, 2007 at 7:32 pm
This is really cool, I’d never really thought about this before. Great way to get involved in philanthropy and invest in emerging markets at the same time. I’ll definitely look into it further.
September 5th, 2007 at 1:06 pm
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January 26th, 2008 at 9:48 pm
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