Five Facts from the World of Micro finance

January 27, 2009
By Rang De Team

Fact -Walt Disney and his brother, Roy, arrived in Hollywood in 1923, they borrowed $25 from Roy’s girlfriend and $500 from their uncle to launch the startup that became the Walt Disney Company! Self-financing (savings) or borrowing from a close social network has generally been used for business start-ups, at least from the early days of the Industrial Revolution.

Fact –The world learned about microfinance in 2006 when Muhammad Yunus, founder of Grameen Bank, won the Nobel Peace Prize. Micro credit organizations have since had a transformative effect on the developing world.

Fact — According to a recent report released by the Microcredit Summit Campaign, more than 106 million of the world’s poorest families received a microloan in 2007surpassing a goal set ten years earlier.

Fact –A Pre feasibility report on Microfinance in India says that the industry is expected to grow nearly ten times by 2011 to a Size of Rs 250 billion at an annual growth rate of 76%.

Fact — Microfinance has an effect in the economic development of a country. In Africa, with small loans families have graduated from micro-enterprises to semi-medium enterprises.

If you are still ruminating about investing in the cause, here is what Bill Gates has to say in his annual letter about his work at the Gates Foundation. Referring to the economic crisis he says that he is “ impressed by individuals who continue to give generously even in these difficult times”. He believes that the wealthy have a responsibility to invest in addressing inequity. According to him, we will come out of the economic downturn in a world that is even more unequal, with greater inequities in health and education, and fewer opportunities for people to improve their lives.

If you want to engage in micro philanthropy, Bill Gates has this to say to you — The key thing is to pick a cause and get some in depth knowledge about the cause. Then pick an organization to support with donations or volunteer time.

We give you the cause and the opportunity to learn at Rang De. All you have to do is try it.The only difference between you and Gates is scale.