Small Money Big Impact: Fighting Poverty with Microfinance

Make your money make a difference and enjoy attractive returns Small Money, Big Impact explores and explains the globally growing importance of impact investing. Today, the investor?s perspective has become as important as the actual social impact. Based on their experience with over 25 million micro borrowers, the authors delve into the mechanics, considerations, data and strategies that make microloans and impact investing an attractive asset class. From the World Bank to the individual investor, impact investing is attracting more and more attention. Impact investing is a global megatrend and is reshaping the way people invest as pension funds, insurance companies, foundations, family offices and private investors jump on board. This book explains for the first time how it works, why it works and what you should know if you?re ready to help change the world. Impact investing has proven over the last 20 years as the first–line offense against crushing poverty. Over two billion people still lack access to basic financial services, which are essential for improving their livelihood. Investors have experienced not only social and environmental impact, but have received attractive, stable and uncorrelated returns for over 15 years. This guide provides the latest insights and methodologies that help you reap the rewards of investing in humanity. Explore the global impact investing phenomenon Learn how microloans work, and how they make a difference Discover why investors are increasingly leaning into impact investing Consider the factors that inform impact investing decisions Part social movement and part financial strategy, impact investing offers the unique opportunity for investors to power tremendous change with a small amount of money expanding their portfolios as they expand their own global impact. Microfinance allows investors at any level to step in where banks refuse to tread, offering opportunity to those who need it most. Small Money, Big Impact provides the expert guidance you need to optimize the impact on your portfolio and the world. INDICE: Foreword ix .Preface xi .Acknowledgments xiii .About the Authors xv .CHAPTER 1 Introduction 1 .1.1 Fighting Poverty 2 .1.2 Investing in Financial Infrastructure 7 .1.3 Content Overview 8 .Notes 9 .CHAPTER 2 Microfinance the Concept 11 .2.1 History 12 .2.2 Definition and Goals 15 .2.3 Double Bottom Line 18 .2.4 Financial Inclusion 21 .2.5 Market Participants 24 .2.6 Impact Investing 25 .2.7 Preliminary Conclusions 29 .Notes 31 .CHAPTER 3 The Microfinance Value Chain 33 .3.1 The Protagonists and Their Tasks 34 .3.2 Regulatory Environment 36 .3.3 Development Finance Institutions 37 .3.4 Market Overview 39 .3.5 Geneva: Birthplace of Modern Microfinance 42 .3.6 Preliminary Conclusions 46 .Notes 47 .CHAPTER 4 Micro Entrepreneurs 49 .4.1 Definition 50 .4.2 Needs and Requirements 52 .4.3 Micro Entrepreneurs 59 .4.4 Preliminary Conclusions 67 .Notes 68 .CHAPTER 5 Microfinance Institutions 71 .5.1 Definition and Goals 72 .5.2 Types of MFIs 73 .5.3 MFI Funding 76 .5.4 Services 85 .5.5 Regulation 88 .5.6 Preliminary Conclusions 94 .Notes 96 .CHAPTER 6 Lending Methodologies 99 .6.1 Traditional Credit Theory and Microfinance 100 .6.2 Lending Methodologies 101 .6.3 Socio –Economic Factors 104 .6.4 Late Payments and Over –Indebtedness of Clients 108 .6.5 Default Prevention and Restructuring 110 .6.6 Occupation: Loan Officer 113 .6.7 Preliminary Conclusions 114 .Notes 116 .CHAPTER 7 Loan Pricing 119 .7.1 Interest Rate Components 120 .7.2 Setting Sustainable Interest Rates 127 .7.3 Regional Differences 127 .7.4 Loan Recipients Willingness to Repay 129 .7.5 Preliminary Conclusions 130 .Notes 132 .CHAPTER 8 Social Performance Management 133 .8.1 Social Performance 134 .8.2 Measuring Social Performance 135 .8.3 Measuring the Outcome of Microfinance 149 .8.4 Social Rating Agencies 151 .8.5 Technical Assistance 153 .8.6 Linking Social Performance with Profitability 156 .8.7 Preliminary Conclusions 157 .Notes 159 .CHAPTER 9 Beyond the Reach of Microfinance? 161 .9.1 Prejudices and Reservations 162 .9.2 Preliminary Conclusions 171 .Notes 172 .CHAPTER 10 Investing in Microfinance 175 .10.1 Market Development 176 .10.2 Microfinance Investment Vehicles 177 .10.3 The Investment Process 181 .10.4 Loan Agreements and Pricing Policy 187 .10.5 Microfinance in the Overall Investment Portfolio 191 .10.6 Incentives for Investing in Microfinance 195 .10.7 Preliminary Conclusions 197 .Notes 199 .CHAPTER 11 Real and Financial Economy 201 .11.1 Microfinance Is Crisis –Proof 202 .11.2 Real Economy and Local Influencing Factors 203 .11.3 Financial Economy 205 .11.4 Stability Mechanisms 207 .11.5 Preliminary Conclusions 208 .Notes 209 .CHAPTER 12 Discussion of Results and Conclusions 211 .12.1 Win –Win –Win 212 .12.2 Onwards and Upwards 212 .Notes 215 .APPENDIX A Example of a Loan Application 217 .APPENDIX B Due Diligence of Socio –Economic Impact Factors 221 .List of Abbreviations 227 .Glossary 229 .References 233 .Photo Credits 243 .Index 245

• ISBN: 978-1-119-33820-8
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 272
• Fecha Publicación: 24/03/2017
• Nº Volúmenes: 1
• Idioma: Inglés