© 2017 Peter Fanconi and Patrick Scheurle
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Library of Congress Cataloging-in-Publication Data
Names: Fanconi, Peter, author. | Scheurle, Patrick, author.
Title: Small money big impact : fighting poverty with microfinance / Peter A. Fanconi, Patrick Scheurle.
Description: Hoboken : Wiley, 2017. | Translation from German of Small money-big impact, [2015] | Includes index.
Identifiers: LCCN 2017002364 (print) | LCCN 2017004723 (ebook) | ISBN 9781119338208 (hardback) | ISBN 9781119338192 (ePDF) | ISBN 9781119338246 (ePub) | ISBN 9781119351481 (ebk) | ISBN 9781119338192 (pdf) | ISBN 9781119338246 (epub)
Subjects: LCSH: Microfinance—Management. | Business enterprises. | Marketing. | BISAC: BUSINESS & ECONOMICS / Finance.
Classification: LCC HG178.3 .F3613 2017 (print) | LCC HG178.3 (ebook) | DDC 332.7—dc23
LC record available at https://lccn.loc.gov/2017002364
Cover design: Wiley
One of the main goals of the World Economic Forum is to improve the state of the world. Improving the state of the world inevitably means improving the economic and social living standards of vulnerable and destitute segments of the population; with the help of collaborations and projects based on public–private partnership. Microfinance is unique and presents exceptional opportunities in achieving this goal.
Microfinance and impact investing – topics of interest for me for quite some time now – manage to generate financial and social returns at the same time and largely fall into the category of corporate social responsibility. The triple bottom line measures the economic, environmental and social returns of microfinance. Investors and enterprises that are committed to the triple bottom line contribute towards an environmentally friendly and sustainable economic development of poor regions of this world.
Small Money – Big Impact is comprehensive, and more importantly, informative and explanatory. Fanconi and Scheurle have successfully illustrated the nature and potential of the world of microfinance and impact investing, and displayed how social and financial interests can indeed go hand in hand and contribute towards the implementation of the United Nations' Millennium Development Goals. This book's detailed description of the loan granting processes of microfinance institutions outlines to what lengths private and public investors have gone over the last 15 years in their fight against poverty. Microloans foster financial integration and empower millions of people to progress economically. The results and the statistics are promising; however, we still have a long way to go.
This book is a standard reference that covers all the relevant information in the field of microfinance. It is an invaluable contribution towards the further development of current strategies in the fight against global poverty, and it aims to convince investors that both the financial and social returns that are generated by microfinance are attractive in equal measure.
Prof. Klaus Schwab
Founder and Executive Chairman of the World Economic Forum, Geneva.
In 1990, when the world population was 5.2 billion, 36 per cent of the world lived in extreme poverty. Today – with 7.3 billion people – an estimated 12 per cent live in poverty. Over the past 25 years, the world has gone from nearly 2 billion people living in extreme poverty to fewer than 1 billion.
World Bank Group President Jim Yong Kim
Dear reader,
In our world, we witness on a daily basis, how small money can have a big impact. A microloan of just a few dollars empowers people in developing countries to be economically independent and therefore able to safeguard their own and their families' future.
Microfinance has established itself as a vital instrument with leading development banks in the fight against poverty. The geopolitical relevance of microfinance is undeniable. Institutional and private investors alike have come to realize the value of microfinance investment vehicles for their portfolios and appreciate the double bottom line of social and financial returns. Judging by the positive experiences and results of this asset class, the microfinance industry is emerging and breaking ground into impact investing, aiming to achieve a positive impact in areas such as education and climate change.
Microfinance and impact investing are a mega‐trend and change the way we invest, offering unique investment opportunities that put the interests of investors and recipients on the same level and have a positive impact on the lives of millions of people. We have been able to witness these positive changes again and again, on numerous journeys to developing countries.
Small Money – Big Impact aims to share these developments with a broader public in an explanatory, illustrative and objective manner. It sheds light on the processes and investment vehicles in microfinance, and at the same time raises awareness and recognition of this asset class as a powerful tool in the fight against poverty.
Enjoy your journey through the world of microfinance.
Peter Fanconi
Patrick Scheurle
This book is the result of sustained efforts of our experienced BlueOrchard investment team. Ebony Satti, Maria Teresa Zappia and Chuck Olson, as well as many other individuals, have generously shared their wealth of experience in the fields of microfinance and impact investing. Our special thanks go out to our families, especially to Daniela, Chiara and Sera, for their unwavering support and understanding during the time of this book's creation.