How to Finance Small Businesses in Developing Countries

Microlending is the process of providing small loans in order to finance small businesses in developing countries. Many entrepreneurs in developing countries have ideas for businesses that would provide their families with ample food and shelter, but don't have the money needed to purchase the supplies and pay the overhead necessary to begin their businesses. You can help by donating small amounts of money to help finance these small businesses and help individuals in developing countries support themselves and their families.

Instructions

1. Visit a website that allows you to match your donations with an entrepreneur. Kiva is a company that lets you find an entrepreneur, view how much they need to start their business and donate accordingly in $25 increments (see Resources).

2. Click the "Lend" tab on the Kiva website. Here you can view all of the different entrepreneurs. You can even organize them according to how much they need and business type by using the drop down menus at the top of the page.

3. Read the descriptions of their business proposals by viewing the expanded version of their descriptions by clicking "More" on each description. You can also view whether they are asking for the money as a donation or whether they are asking for a loan and intend to pay you back through Kiva.

4. Choose an entrepreneur that you would like to finance by clicking the "Lend $25" icon on their profile. You can donate as much as you want in $25 increments.

5. Go to the Checkout page and enter in your information to register with Kiva and enter your credit card information to finish the financing.

References

• About Kiva

Resources

• Kiva