About Microfinance
Microfinance refers to small-scale financial products, services and programs aimed at helping poor people in third-world countries start or expand small businesses. For example, a microcredit of $40 is given to a farmer in Ethiopia for seed and labor to plant it, assuming he’ll cover it back at harvest-time. In Peru, $90 microloan is given to a group of women to buy a loom for weaving shawls and blankets to sell at the village market. Repayment rates typically surpass 95%, substantially higher than in developed countries.
Microfinance Institutions (MFIs) are non-bank banks established in third-world countries, that receive funding from NGOs (non-governmental organizations) and disperse it in small amounts (usually under $100) to fledgling village entrepreneurs. They negotiate the repayment schedule and rate, and connect with the villagers via cell phone or by visiting the villager onsite.
MifiMentor is a global mentoring program pairing business people in the US and other developed nations with employees of microfinance firms as well as village entrepreneurs in third-world countries. After meeting in person, mentors connect with their mentees via cell phone and mobile-Skype, using an sms-portal on a social network, supported by technology translation and an Online Global Village that provides project resources and the sharing of global best practices.