Loving the San Francisco Bay Area... Community development, urban ministry, trying to defeat poverty, faith, religion, politics, good music, the quest for the perfect pizza, the Yankees, motorcycles... All in a 'day's life'

Tuesday, November 06, 2007

Micro Enterprise Summit Keynote speech from Federal Reserve Chairman Bernake


Goal of Micro-enterprise: Offer small loans to people so they can increase their income and promote self employment.

Theme: Development of ME development in the US

Goals:
  • expand opportunities and community economic development
  • more flexible terms than banks
In US credit is only one part
    • education and training are important part
      • improves survival rate / credit repayment
      • laws are regulations are significant here, more so than the informal setting outside of the US
      • There are alternative sources for credit in US
      • Lending is not essential to the broader mission of starting businesses
  • Huge benefit to families and communities
Small business = less than 500 employees.
Micro business= less than 5

ME programs are about more than the extension of credit... mentoring / networking / training / sales programs / connections to banks, colleges... Offers borrowers technical support thereby helping sucess rates.

Can ME programs become self sustaining?

  • Income from check cashing and remittances
  • Reduced costs through technology
  • Partnerships with mainstream banks. Partnership helps mainstream institutions gain new customers.
Affirms role ME programs have in starting successful businesses and how vital they are to individuals and the economy.

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