IE Application Essay Question - H

Pablo Hidalgo Monroy November 2013

pablo.hidalgo.monroy@gmail.com

• Emerging markets have become the engine of growth for

the world economy.

• Increased capital attraction to sustain their expansion.

• Microfinance was born as a need to provide capital and

fulfill demand in this economies.

– Double bottom line:

• Social impact – impact investing

• Profitability & regulation

• MSME* sector: pillar of world’s economy.

• 95% of registered business are MSME1.

• > 65% of world’s GDP is generated by MSME1.

• Source of income, employment & growth.

*MSME: Micro, Small & Medium Enterprises

• Investments done with the aim of generating social,

environmental and financial value1.

• Positive impacts beyond financial return.

• Reaches specially the bottom of pyramid population in

emerging countries.

• Development tool to include low-income households in

economy’s virtuous growth cycle

• Actual financing options doesn’t meet their needs

• MSME normally depend on:

• Self-financing or informal financing solutions

• Gap between financing demand & supply in MSME

sector is of US$ 2.1T - US$2.5T1

• Vicious cycle preventing growth &development

• Factors in banking activities that prevent financial

inclusion2:

• Costs & requirements

• Deficient customer care & tools for assessing risk

• Level of income and lack of formality

• Bottom of the pyramid isn't able to access & use

financing

• By 2050:

• 70% of world’s population will live in urban areas 3

• 63% of population of developing countries will live in cities 3

• In LATAM, housing deficit: 37% of households 4

• > 21 million households lack of at least 1 basic service 4

• Low-income population needs financing mechanisms to

access housing

• Non-affiliated workers: unattended relevant segment

An entrepreneur & articulator of

investment initiatives to boost and

develop sustainable housing for low-

income population in emerging

countries (specially LATAM region).

Socially Responsible

Investors Articulator

Housing developers

and/or Mortgage providers

Low-income population and/or non-

affiliated workers

• Housing = shelter = basic need of everybody

• A home is a legacy - heritage for the family

• It dignifies people’s standard of living, promoting welfare

• Sustainable housing = homes with eco-technologies in order to

use resources more efficiently and save money.

• Low-income population hasn’t adequate options to access to

home, they need specialized financing products.

• Housing is an engine for economic growth, value creation and

development of communities.

Be an agent of change, by devoting his

knowledge, abilities and effort to assist the bottom

of the pyramid from developing countries to access

a home, thus improving their quality of life and

welfare.

• Proactive person who seeks for socially

responsible investors who would like to invest

with the aim of providing low income population

access to a heritage for their family.

• Knowledgeable person who identifies key

housing construction or mortgage providers

players in emerging countries in need of

financing for sustainable housing development.

GMBA+ will play an essential role in allowing the articulator

achieve his objective.

• Knowledge, leadership skills & networking

• Tools that will enhance Pablo’s current abilities to

achieve his goal and foster sustainable housing for

low-income population and shared value creation.

• MSME in Emerging countries constitute an engine of

world’s growth & development.

• Low-income population isn’t able to access & use financial services.

• Housing = basic need, welfare, quality of life.

• Pablo would like to support the bottom of the pyramid to

access to housing, thus creating shared value.

• IE strategic tool for him to become an agent of change.

1. Impact Investing in Latin America: a deeper look at the corporate role. September 2013. Symbiotics.

• http://www.syminvest.com/papers

2. How to contribute to Financial Inclusion? Inventory of products and services available. 2012. FOMIN.

• http://services.iadb.org/mifdoc/website/publications/9c6e93d5-7e00-4d60-904f-bcab92bd8fde.pdf

3. Global Report on Human Settlements 2009.UN Habitat. • http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=2838

4. Un espacio para el desarrollo: los mercados de vivienda de America Latina y el Caribe. 2012. IDB.

• http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=37714821