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Social Consulting

Fiji - Social Consulting and Microfinance

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SOCIAL OPPORTUNITY
Sustainable Development Goal Targeted: Decent work and economic growth

Social Consulting aims to address several issues in emerging economies:

Economic empowerment- small scale entrepreneurship in developing economies can be hampered by lack of access to capital, appropriate advice and a supportive ecosystem.

Limited education opportunities- fundamental business education and financial education for entrepreneurs and consumers can improve economic outcomes. By simply understanding the difference between ‘good debt’ and ‘bad debt’, consumers can be guided to purchase assets, which will help increase their wealth while reducing repayment risk.

Loan costs - microfinance institutions charge 40+% interest on their loans, which limit the potential social impact that these loans can have. The reason for this is that many institutions have high overhead costs such as the employment of loan officers who are commonly deployed to assess applicants’ risks, which is timely and costly in a developing world context.

Compounding debt- with limited education opportunities and cultural factors at play microfinance can create greater problems by compounding debt problems. For example, a borrower may engage secondary or tertiary loans to pay back an original debt at far worse terms or interest rates. Compounding the problem.

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SoCon Fiji has reached a pinnacle stage in its development on the back of three months of teams working on the ground. For February, the two teams operating on the ground focused effectively on the consumer and institutional space of the problem. Our higher goal across both teams was to evaluate, is it viable for PEV to operate as a Microfinance Institution in Fiji, and ultimately would that solve the underlying social issue of barriers to accessing this business capital.  The outcome of...

by Liv Hendy
1 Votes
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Liv Hendy

Reference To The Experiment Design Post:  https://projecteverest.crowdicity.com/post/967690 Assumption: It is viable for PEV to run a Microfinance Business in Fiji. Results Data BMC:  https://docs.google.com/spreadsheets/d/1b28ctX5_X4KAGl103gxIEdIZ9YBBGueh9pMYy02K5cQ/edit#gid=0 Results Spreadsheet (PNL):  https://docs.google.com/spreadsheets/d/1EVv73ncnJx23k9ll6-D6sEANmLqa0QFZVuBRswIHlfA/edit#gid=1071818701 SoCon II Results Spreadsheet:...

by Liv Hendy
5 Votes
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Liv Hendy

Lean Phase: Problem The purpose of this experiment was to narrow down on the pain-points of SMEs in Fiji and what blocks them from accessing financial solutions from traditional institutions. As can be seen below, this experiment proved that pain-points were much broader than we initially hypothesised, and thus we have validated a much broader range of pain-points in these results. Original Assumption: There are key barriers for small business owners accessing capital from...

by Georgina Hollsten
4 Votes
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Georgina Hollsten
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