Microfinance opportunities are growing throughout the world. The availability of data to support the microfinance trend is available from various sources. Depending on the location of the MFI, the cost of delivering the loan can be very low. SM: Can you cite that type of data? That is exactly the type of data you need,
Here the conversation directly addresses a common assumption that microfinance is not a profitable business model. SM: I would like to get back on topic and drill down on the assumption on returns. Microfinance may charge 18-25% interest and even so does not get even close to the types of returns the venture capital funds
The strategy of running an investment firm may vary, but the end goal is always healthy and compelling returns. SM: So you manage Unitus as a professional investment opportunity with similar goals as venture capital firms? CB: We look at investing very much as a derivative of venture capital. I would argue it is just
Here Chris details Unitus’ switch from being a non-profit firm to a for-profit firm. Much of the current interest in microfinance is generated by the fact that the discipline is now being viewed as a sustainable “business”, not just charity. Thus, large banks, venture firms, and serious entrepreneurs are starting to wake up to its
Chris Brookfield is the Investment Director at Unitus Investment Management Company. He has been a venture capital and private equity investor his entire professional career. In 2004 he co-founded Open Water Investors. Chris has also been an Associate at Redleaf Venture Management, a Silicon Valley seed stage venture investor, and is familiar with pure play
By David Stoker, Guest Author What is the next step for MicroFranchising? First there is an enormous need for innovation in Design. There are a number examples of current projects designing specifically for the bottom of the pyramid: the $100 Laptop, Tata’s proposed $2000 car, AIDG products, or innovations out of the D-Lab at MIT,
By David Stoker, Guest Author While the concept of microfranchising sounds simple and exciting, and successful models are starting to emerge, there are endless opportunities for research in methodology and impact evaluation. One university that is dedicating specific resources to researching the field of microfranchising is Brigham Young University in Utah. Their business school houses
We continue our discussion on India’s economic development, and the gaining affluence of the middle class. Harish challenges the common statements that there is high economic growth, countering that the growth only affects a very limited portion of the population. SM: So the middle class has created affluence. HH: 18% of the wealth is with