Wednesday, November 09, 2005

Loaning to help the developing world

Kiva lets you connect with and loan money to small businesses in the developing world. By choosing a business on their website and then lending money online to that enterprise, you can "sponsor a business" and help the world's working poor towards economic independence.

This is a neat model, but it is too early to tell if it works - the site has only been up a couple of months. Clearly, not every single business will be able to repay the loan, but it will need success stories and full loan repayments to ensure repeat loans.

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