The SBE Microfinance Initiative

While many Americans have only begun to learn about microfinance, the MicroCredit Summit estimates that Microfinance has already served over 100 million people around the globe and that at least 3,000 institutions are engaged in its delivery. (State of the Microcredit Summit Campaign Report 2007) 

Microfinance has emerged over roughly the last 30 years as a revolutionary way to combat poverty.  In short, it involves providing small scale financial services (like loans, savings accounts and insurance) to the poor.  Many of the clients use loans to help start, stabilize or expand small businesses in industries such as agriculture, animal husbandry, soap production, crafts making, textiles, transportation, and small retail operations, just to name a few.  The increased income produced from their business often leads to better nutrition, health, housing and the ability to send children to school. 

Clients are typically women who often lack a consistent income stream and collateral, and may even be illiterate, so they cannot access traditional/formal financial services.  In many cases, 95%+ loan repayment rates have been reported.   When loans are repaid, the funds are recycled and re-lent, often to new recipients, beginning a new cycle, and leading to an exponential impact from the same funds. 

A unique and appealing feature of microfinance is that it relies less on charity and more on a “hand up.”  Moreover, microfinance is more financially sustainable since credit services rely on loans that are repaid and recycled rather than purely charitable funds that are exhausted once they are spent. 

As part of its Social Enterprise programs, the School of Business & Economics at Seattle Pacific University started a Microfinance Initiative in 2007.  In addition to offering one of the first undergraduate level courses in Microfinance during the Winter Quarter of 2008, we are also in the process of developing and formalizing several educational partnerships with microfinance organizations and advocacy groups. 

The following are links to help you learn more about the emerging field of microfinance and related activities at Seattle Pacific University. 

Initiative Chair: Dr. Kenman Wong, klwong@spu.edu

• BUS 3690 Microfinance
• Recommended Reading: Books on Microfinance
• SBE Involvement: Service and Partnerships
• Online Resources and Information on Microfinance
• The School of Business and Economics Social Enterprise page.

The 2009 Pacific Northwest Microfinance Conference.

Learn more about this exciting event held May 8 and 9.