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Unit 7 – Microfinancing

Explore the reasons why the poor are excluded from financial services and discover how microfinancing can empower them to start and expand their businesses. Join a lending game, where entrepreneurs pitch their ideas and lenders evaluate loan requests to make wise investments.

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Unit 7 – Microfinancing

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  1. Unit 7 – Microfinancing Entrepreneurship 110 Mr. Van Beek

  2. Respond to the following…

  3. Stopped Here – tues, nov. 10 (5th period)

  4. Microfinancing Microfinance is the provision of financial services to the poor. The poor are usually excluded by financial service providers. Why?? STOPPED HERE – TUES, JAN 10

  5. Wednesday, January 11 HOMEROOM INFO Friday, Jan. 20: ELPA Rewrites and Tutorial Centers

  6. Today We Will… Continue Microfinancing A Lending Game Final Assignment: Pick an entrepreneur to profile **Unit 6 Quiz Tomorrow**

  7. Why are the poor excluded? No collateral No credit history Illiteracy

  8. Informal systems of lending Borrowing from loan sharks with huge interest rates Savings in cash, vulnerable to theft Investing in livestock, vulnerable to disease

  9. http://www.youtube.com/watch?v=meVAPscrGsI

  10. How it Works

  11. How it Works

  12. How it Works

  13. How it Works

  14. How it Works

  15. How it Works

  16. How it Works

  17. How it Works

  18. How it Works

  19. A Lending Game Three Groups: • Entrepreneurs • Each entrepreneur is looking for 1-10 units of capital to start or expand their businesses • Lenders – ten pieces of paper to each of the lenders • Each paper represents capital that the lenders have available to loan • Field Partners • Will help Entrepreneurs and lenders evaluate each loan request.

  20. Ten Minutes to Brainstorm… Entrepreneurs What is your business? Why do you need the loan? How and when will you repay the loan? Why is investing in your business the best choice?

  21. Ten Minutes to Brainstorm… Lenders What is your motivation to lend money? What specific types of businesses would you like to support? How will you judge if a business is a wise investment? What will you do if the loan is not repaid?

  22. Ten Minutes to Brainstorm… Field Partners How will you learn about an entrepreneur’s business? How will you judge whether an entrepreneur’s business is a safe investment? How will you convey this information to the lenders?

  23. The Process Entrepreneurs have one minute to make their pitch Fieldpartners each ask one question to the entrepreneurs. Lenders are not allowed to ask entrepreneurs questions directly – they must rely on the information provided by the field partners.

  24. The Process Field partners vote to select 5 loan requests. Lenders can ask the field partners questions if they want to. Lenders identify on their pieces of paper who the loan is intended for. STOPPED HERE – WED, JAN 11

  25. Thursday, January 12 HOMEROOM INFO Friday, Jan. 20: ELPA Rewrites and Tutorial Centers

  26. Today We Will… Franchise Quiz Entrepreneur Portfolio Project **Unit 6 Quiz Tomorrow**

  27. Monday, January 16 HOMEROOM INFO Friday, Jan. 20: ELPA Rewrites and Tutorial Centers Exam Week – morning exams, report at 8:45 afternoon exams, report at 12:45 If you are ill, you require a medical excuse for a rewrite Jan 30 and 31: Turn Around Days Wed, Feb 1: Semester 2 begins

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