How do you think a microlending program may work in the United States versus a developing nation? How did you experiences in Belize help you draw these conclusions?
I think a microlending program in the United States wouldn't necessarily Not work, but it would operate much differently than a program in a developing nation. For instance, Belize has a smaller population which means less competition from large companies like Walmart. Loan money is targeted for small businesses, many of which are in the food industry, clothing, and agricultural industry. Loans in less developed economies have high success rates because it is easy for recepients to pay back their small loans and quickly turn a profit without much government involovement. In the United States beginning a small business requires more capital because there are more issues with licensing and paying taxes. In a developing nation a loan recipient could receive a relatively small amount of money that could go toward a building, or a piece of vital equipment that can transform a business. The same amount of money in the U.S. would not be able to buy a small building and therefore would not be able to support a new business. From my experiences in Belize I have not seen monopolized companies such as McDonald's, Walmart, etc. and this leaves a lot of room for small businesses to capture the small population without stepping on each other's toes.
If a microlending project were to work in the United States, it would have to be in an area with a low amount of large company competition and in an area with lower income levels. From what I saw in Belize, loan recipients are specially targeted because they are determined to pull their families out of poverty, so they do whatever it takes to make their business work in a community effort. Belize Enterprise for Sustainable Technology tailors their loans to their clients. The same customization would have to apply for a non profit group in the U.S. and it would require more money and more thought out business ideas to work around the competition but I do think it is possible.
Monday, March 22, 2010
Monday, March 15, 2010
Blog Entry 4
Compare your observations and experiences in Belize to your chosen major or discipline and career aspirations. Include at least two of your favorite photos from the trip.
-To begin, I am a business and economics major at Bellarmine which has taught me a lot about how a company operates and how to plan for the future. I observed numerous new techniques and ideas of how the non profit organization B.E.S.T. runs their business. BEST really tailors their business practices to the small time client that receives their loan. Whether it's making the application forms illiterate friendly, knowing the loan recipients through first hand experience, screening for the best possible clients, or deciding how to raise more capital, BEST knows the business. These techniques proved to me that there is no definite answer of how to run a company because it always depends on the situation. When our group got to experience how a client is interviewed for a loan, it made me feel like I was finally getting to use some of the skills I have been taught in college. For example, my business trained mind immediately started to weigh out risks of whether or not I believe a pig farm would be a good idea or not. My heart wanted me to give the family a loan for the obvious reason of helping someone in need but the business side of my mind said to analyze the situation more deeply. Unfortunately, the pig farming setup was not as planned out as I had hoped, but suggestions of having a more thought out financial plan made me believe that it had potential for success.
For myself, I would like to be an entrepreneur in the future which has its postives and negatives. On the positive side, owning a business gives you the power to control your own destiny which appeals to me. On the negative side, failure of the company is your responsibility which can make it risky. The Microfinace project is an excellent way to prepare myself for the future and get a first hand look at how a small business can be successful if the correct resources are in order. In fact, being involved with the group over the past few years has helped me decide on what type of job would fit me best. I would like to pursue a career in business consulting because I like to support small businesses, always have a changing venue, and I enjoy helping people help themselves. With all of these ideas in the back of my mind, my favorite pictures from the trip are when I operated the dangerous power saw, the Rotary lunch, and being on top of Xunantunich. Operating a saw reminds me of lending a physical hand to people in need, the Rotary reminds me to always think of people who need financial help, and being on top of Xunantunich reminds me that possibilities are endless when you work hard for something. Go Team Belize!
-To begin, I am a business and economics major at Bellarmine which has taught me a lot about how a company operates and how to plan for the future. I observed numerous new techniques and ideas of how the non profit organization B.E.S.T. runs their business. BEST really tailors their business practices to the small time client that receives their loan. Whether it's making the application forms illiterate friendly, knowing the loan recipients through first hand experience, screening for the best possible clients, or deciding how to raise more capital, BEST knows the business. These techniques proved to me that there is no definite answer of how to run a company because it always depends on the situation. When our group got to experience how a client is interviewed for a loan, it made me feel like I was finally getting to use some of the skills I have been taught in college. For example, my business trained mind immediately started to weigh out risks of whether or not I believe a pig farm would be a good idea or not. My heart wanted me to give the family a loan for the obvious reason of helping someone in need but the business side of my mind said to analyze the situation more deeply. Unfortunately, the pig farming setup was not as planned out as I had hoped, but suggestions of having a more thought out financial plan made me believe that it had potential for success.
For myself, I would like to be an entrepreneur in the future which has its postives and negatives. On the positive side, owning a business gives you the power to control your own destiny which appeals to me. On the negative side, failure of the company is your responsibility which can make it risky. The Microfinace project is an excellent way to prepare myself for the future and get a first hand look at how a small business can be successful if the correct resources are in order. In fact, being involved with the group over the past few years has helped me decide on what type of job would fit me best. I would like to pursue a career in business consulting because I like to support small businesses, always have a changing venue, and I enjoy helping people help themselves. With all of these ideas in the back of my mind, my favorite pictures from the trip are when I operated the dangerous power saw, the Rotary lunch, and being on top of Xunantunich. Operating a saw reminds me of lending a physical hand to people in need, the Rotary reminds me to always think of people who need financial help, and being on top of Xunantunich reminds me that possibilities are endless when you work hard for something. Go Team Belize!
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