- It also reduces the reliance on the social systems (welfare, food stamps..)
- Positive effects on families. Children see their parents succeeding (dignity building). Has inter generational affects.
- Micro finance enables creativity on a local and personal level
- 'Micro Equity' products are now emerging
- ME lending is a 'wrap around' process including basic financial literacy training, etc...
- Hear beyond the need for a loan.
- "Grow' loans. Start small with clients, help them step up to larger loans.
- Develop network of business owners. This can protect the investments by mutually growing businesses.
Micro Equity Product:
- VC usually don't go down to ME lending
- Identify individually already in portfolio who have potently
- Specifically picking individuals
- Education about VC is part of the process
- pros and cons of VC money
- EQ2 products end up as debt
- For profit LLC finds investments to consolidate (need to do more investigation on this, check with Anne from Accion New Mexico)
Accion looks at character. As loans increase greater standards are in place.
Competition - you will never beat Wal Mart, Starbucks... However service, creativity, etc... there is an opportunity for niche markets.
When casting vision, talk about real people... not just numbers...