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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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  1. Rose Martin
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Experiment adopted

Lean Phase: Customer Segment/Problem Assumption: The customer segment is small businesses with the following attributes: Been selling products/ offering services for at least 18 months. Running the business by themselves or with at most two other employees. Mainly in food, retail, & service industries (repairs, transport and hairdressing) The problems faced by this customer segment are: Lack of access and/or awareness of financial advisory services....

by Lachlan Hogno
1 Votes
Comments 4
Lachlan Hogno
Experiment adopted

Lean Phase: Customer Segment Assumption : SoCon’s customer segment are Buka stove customers with the following characteristics: Women aged 20-60 yrs Work from home (often handicrafts) and cook for their families Have a preference for firewood as cooking fuel Both urban and rural location Prefer payment plan over upfront financing for the Buka stove because They can’t afford it upfront, and/or They prefer financing it over a period of time...

by Sian Cliffe
1 Votes
Comments 3
Sian Cliffe
Experiment adopted

Lean Phase: Problem/ Customer Segment Assumption: The purpose of this experiment is to validate our assumption that merchants face the issue of providing loans or other forms of capital to farmers (beneficiary of merchants) due to their inability to perform appropriate risk profiling methods to calculate customer risk. Time Box: 2 weeks Success Metric: Percentage of merchants who express providing loans to farmers is a current issue they face within their business without...

Brittannie Northey
by Brittannie Northey
5 Votes
Comments 5
Brittannie Northey
Proposed Experiment
Under Review

Lean Phase: Solution Assumption: SoCon team will receive the deposit and the first two payment plan repayments. This assumption is currently being used in conjunction with the financial model and survey results to determine the payment plan structure. [Purpose: By observing and analysing the default rates and demographic data we will be able to construct better risk mitigation system and better determine the payment plan components.] Time Box: 3 1/2 months. Success Metric:...

by Brittany Nipperess
3 Votes
Comments 4
Brittany Nipperess
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