Micro- finance Project research paper
The primary goal of this project is to experience the challenges of evaluating and funding projects with incomplete information. This is done by selecting and funding an actual micro-finance project. Micro-finance relates to the issue of providing very small loans to entrepreneurs who may not have alternative access to financing or only have access at high interest rates. For this assignment, your group should first develop criteria that will be used to select the project. The criteria should be a mix of measurable quantitative and qualitative factors.
You should do outside research as needed to develop some of your criteria. For example, country population may be a criterion you choose. You may need to do outside research to determine population sizes. Then your criteria could specify a particular population (minimum or maximum) that you use to reduce the number of target countries. In contrast, a criteria that is ˜large country’ would not be so useful, since the term ˜large’ varies by person.
After you develop the criteria and your reasoning for the criteria, you are asked to go to www.kiva.org to apply the criteria to the different loan opportunities to select the best one.
Optional : If multiple loans meet your criteria, then you will need to develop additional criteria to select the best project. Then, using the course account fund, you are to provide $25 to fund the project. (Please do not lend more than $25 and please do not give additional donations to Kiva).
Since others are also providing loans as you evaluate them, you may find that your loan gets funded during the selection process. If that happens, you should go to the next project on your list.
The approximate length for the write-up (not including exhibits) should be 5-7 pages; 1.5 space.
(1) Are the criteria varied and well defined ïƒ (40%);
(2) Is the reason for the criteria well explained ïƒ (30%);
(3) Is the selection process for your final recommendation clear ïƒ (20%);
(4) Could I take your criteria and identify the same project? ïƒ (10%).
1. It is recommended to have numerical cut-offs for criteria where appropriate, rather than simply using qualitative criteria.
2. It is bad form to identify a project you like and then develop criteria based on that one project.
3. Please note that while the original lender (you and me) in the Kiva process does not earn a financial return on the loan, the borrower does pay interest. So, I encourage you to not focus on this as charity, but on evaluating this as an investment within the limitations that you are operating under
4. A good assignment provides depth/critical thinking and uses both qualitative and quantitative (numerical) support for your arguments.
5. As an additional way to understand Kiva, please watch this video: http://www.youtube.com/watch?v=meVAPscrGsI