Skoll Foundation on the Impact of Social Entrepreneurs

The Skoll Foundation recently released an eight-minute video describing the spirit of social entrepreneurship.  Part history of the movement, part definition of the term, and part motivational speech, the video draws on a number of the pioneers in social enterprise, and is worth a viewing if you are new to the concept.

The Skoll Foundation was created by Jeff Skoll in 1999, and aims to promote and support social enterprise in the US and abroad.  The foundation also hosts a number of other videos about specific individuals using business models to drive social change.

Microfinance: Neither Miracle Nor Menace

There has been a fair bit of buzz around microfinance and it’s ability to lift individuals and their associated communities out of poverty.  In a nutshell, microfinance is a more recent form of loan with a much smaller line of credit that is extended to individuals or small groups of people in countries where credit is not as easily obtained and/or the borrowers have little in the way of collateral.  Since the idea was pioneered by Mohammad Yunus in Bangladesh, and later developed into the Grameen Bank, it has caught on widely as a form of social business that has potential to empower citizens within poorer nations.

As one of the figurehead leaders in microfinance, Kiva has been instrumental in bringing the concept of microfinance to a wider audience and in helping a number of microfinance institutions (MFIs) to flourish.  Indeed, Mohammad Yunus, through receiving the 2006 Nobel Peace Prize, and Kiva, through influential endorsements, including Bill Clinton and Oprah, have made microfinance the most widely recognized form of social enterprise in use today.

Because of its great success in Bangladesh in empowering women (the primary borrowers) and reducing poverty, microfinance gained a reputation for being a cure-all solution that could lift the world out of poverty.  Since such complicated problems are rarely solved by one simple answer, it was inevitable that all the hype would lead some to become disillusioned, or even to disparage microfinance as an ineffective/exploitative method.   Some recent studies that show marginal improvements in the lives of microfinance recipients lend some fuel to this argument, while other studies seem to show that microfinance can be effective to a certain degree in some environments.

For those of us who can find all of this a little confusing, I find that a new statement released by Kiva, as well as a recent New York Times article, strike about the right tone of neutrality, pointing out that microfinance can never live up to quite the hype that was attributed to it, but remaining firm on the matter that the method is effective in some contexts – and that MFIs are forging important pathways and networks in previously uncharted territory.

One Young World

A little bit further from home, but in keeping with our post last week, buzz this week is focused on One Young World, a summit that kicked off today in London.  One Young World is a gathering of youthful (25 years or younger) leaders meant to represent each of the countries of the world.  Over a thousand representatives from over one hundred countries will gather to and address such global crises as climate change, poverty and economic justice.

If this sounds nice and all, but perhaps a tad on the dreamy-eyed and unrealistic side, consider some of the heavy-hitters that are leading the discussion: 3 Nobel Laureates to start.  Kofi Annan, former Secretary-General of the UN, Desmond Tutu, activist and humanitarian, Muhammad Yunus, founder of Grameen Bank and microfinance.  Many other leaders within the humanitarian, political, and social enterprise sectors will be speaking with the delegates.  While it may be unlikely that any world-shaking ideas will be formulated over the course of the 3 day event, the delegates aim to gather intellectual capital and resources for creating effective social programs/businesses upon their return home.

Ultimately, One Young World hopes not only to be a forum for reform, but also to establish a network of active and talented young individuals across the globe.  It is hoped that this program may be useful in empowering the leaders of tomorrow, and that these individuals can be collected in their efforts.  And when a small group of thoughtful, committed citizens come together….  Well, you know the rest…