More Than WE Know

One of the key challenges of running a small business is cash flow. The opportunities abound but you don’t always have enough cash to take advantage of them:

• You have orders piling up, but not enough cash to buy raw materials
• You could be more productive if you had better equipment, but can’t afford the investment
• You could get more done if you hired an assistant, but you don’t have enough money short-term to make the payroll.

These are the challenges faced by the Women Entrepreneurs I work with. These are also the challenges faced by the entrepreneurs who come to the Kiva organization.

Kiva is a non-profit organization that connects entrepreneurs in economically depressed areas with people like you and me.

Kiva partners with local micro-finance institutions to identify entrepreneurs who would benefit from a short-term micro loan (usually $150 -$1200 USD paid back in 6 to 12 months).

These loans help the entrepreneurs grow their businesses and obtain sustainable success.

While Kiva works with both male and female entrepreneurs, microfinance investments have traditionally helped Women Entrepreneurs. Many organizations find that women are very responsible about repaying the loans and invest the profits in ensuring a better life for themselves and their children.

According to Kiva:

“Microfinance programs have generally targeted poor women. By providing access to financial services only through women—making women responsible for loans, ensuring repayment through women, maintaining savings accounts for women, providing insurance coverage through women—microfinance programs send a strong message to households as well as to communities.

Many qualitative and quantitative studies have documented how access to financial services has improved the status of women within the family and the community. Women have become more assertive and confident. In regions where women’s mobility is strictly regulated, women have become more visible and are better able to negotiate the public sphere. Women own assets, including land and housing, and play a stronger role in decision making.

In some programs that have been active over many years, there are even reports of declining levels of violence against women.” (CGAP)

The women themselves report increased confidence and levels of self-esteem as they develop control over their own lives.

Kiva accepts loans of $25 USD. You select the entrepreneur you want to help, track their repayment process and get reports on their business progress. When the loan is repaid, Kiva returns your funds or enables you to re-loan the money to another entrepreneur.

Women Entrepreneurs have the ability to change the world, More Than WE Know.

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Did you hear about how MasterCard saved Christmas ice skating in Toronto? 

You can bet everyone in Canada has.  It seems that the city was planning to delay the opening of its 49 skating rinks until Dec 31st in order to save tax money.  The President of MasterCard Canada, who lives in Toronto, quietly stepped in and donated the needed $160,000 to the city so that the rinks could open on time at the beginning of December. 

MasterCard isn’t asking Toronto to rename any parks after them or paint their logo on the ice. They simply gave them the money and asked them to open up the rinks on time. This lack of requesting any kind of credit, made the story even more newsworthy. 

For the relatively small amount of money, MasterCard has gotten lots of free publicity and an increased level of goodwill in Toronto and other areas of Canada.

So, what is the lesson here for Women Entrepreneurs?

I’m not suggesting that you donate $160,000 to your town. But I am suggesting that there are lessons to be learned and followed from MasterCard’s example.

1) Find a cause or charity that aligns with the mission and values of your busines (for MasterCard, saving Christmas ice skating for local families and children was “priceless”)

2) Identify a unique, fundamental need that you can help with, rather than simply donating money to a general fund - the more personal and emotional you can make it - the more it will resonate with your customers

3) Don’t ask for advertising or recognition in return - this cheapens the perception of the value of what you have done - simply give money, time, merchandise or advice without a lot of fanfare 

4) It’s okay (even good) to create some press “buzz” around your charitable activity but ensure that it’s done in a way that highlights the charity and cause rather than your company - you want to promote the charity - not yourself.

Places to look for worthwhile causes:

1) Begin close to home - is there an organization that you have a long-standing relationship with? This lends more credibility to your efforts.

2) Look for logical alliances with your business. Don’t just jump on the bandwagon with the latest “fashionable” charity.

3) Do something unique that shows thoughtfulness, insight and an emotional connection. 

4) Make a long-term or regular commitment - don’t just do something quick for the holidays, really strive to make a sincere difference.

Depending on your interests, you can find organizations that:

• help women - domestic violence and temporary housing shelters, micro lending organizations, educational programs, job training programs
• help children - education, recreation, safety, health
• help animals - shelters, identification, training, health
• fight disease - cancer, diabetes, stroke
• promote health - obesity, lack of exercise, drugs, alcohol
• help the community - litter, recreation, safety, beautification
• help the environment - pollution, carbon footprint, land preservation

You can follow these same guidelines even if your main business is online. There are lots of virtual and national organizations that need help.

The bottom line is that you can think of your business as being more than just a personal asset. It can also be an asset to your community, whether it is local or online.  You and your business have an opportunity, and even a responsiblity,  to give back to your customers. 

And when your customers feel emotionally connected to you and your business, and that the world is a slightly better place because of it - they will work to support it and keep it in existence.  

And that kind of support? You guessed it - priceless.