In-class Exercise & Presentations Feb. 21, 2012

THREE TEAM DESIGNS FOR NEW MFI START-UPSBUS. MGT. 490R

Group 3: Nasa, Rebecca, Liz, Phoebe, Hugh, Carri,

PARAGUAY MICROFINANCE

Targeting the rural, landless poor

19% of Paraguayan live in extreme poverty

Of that, 71% live in Rural areas

30% of those are landless

How would we develop a new microfinance with

$20,000?

What are the existing social networks…

-Start with people that have a social network

-Are there established market networks?

-Work with marketing networks that are already established

HOW TO CONNECT WITH PEOPLE

Use a director that is native to the country. We want someone that is already familiar.

Have the “country director” or person in charge of the bank search for those in need.

Country director also administers the loan and training.

Two different types of loans

Solidarity Groups: Similar to the traditional model where they get a loan as a group.

Individual Loans: Individuals get loans, meet with loan officer to determine payments etc…

-They still meet together for training and meetings with others getting loans.

-These loans provide more autonomy and motivation

Flexible Repayments

-Make sure that you have dates that are chosen by the person. Ex. Repay after harvest

-Make smaller payments on a schedule

-Rigidity within the flexibility

Training and Logistics

-Those getting loans would come together at a scheduled time

-Individuals would share their business plans and support one another.

-Hardship Tokens: Each person would get two tokens that they could give turn in at the time

of aloan payment to ask for time. Those tokens

would be used if their was a disaster or problem and

the individual didn’t make enough money.

MINI GRAMEENA new MFI in India

Jennifer BritoLance Stanley

lindsay DaytonZachary Pinkston

Ava HuangLin Liyun

• Develop voluntary fundraising team at BYU.– Posters advertising

• India contacts:– Church– Bureaucratic HQ’s to contact individuals

applying for loans• Approximately 5000 within first 6 months for

loans.

THE BEGINNING

• Solidarity groups of 5 women

• First Loan: Approximate Max. amount 100US

• Interest Rate 24 APR

• Term 12 months with some exception

SIMILARITIES

• Term: Monthly required payment with flexibility

DIFFERENCES