Microfinance Shrinking Because of Economic Downturn?
I don't believe in fueling the rampant doom and gloom mantra of mainstream media, but it was curious to see our friends at Christianity Today writting about the decrease in anticipated giving towards microfinance.Albeit the thing that is missing is the relative comparison to the drop in total giving that is also being projected with churches and missions agencies across the country. What about you, do you anticipate see microfinance levels dropping in the coming months?
Here's the Christianity Today intro and link to the rest of the article: "When Mama Atiya's husband died in 2006, her in-laws claimed the family property, a patriarchal tradition in the Democratic Republic of the Congo. Wholesaling smoked fish eventually provided her and 10 children (four adopted) a home, food, and schooling.
Atiya's entrepreneurial success originated with a $55 loan from Hope International, a Lancaster, Pennsylvania, microfinance ministry. Yet despite the promise of microfinance—including a 2006 Nobel Peace Prize for pioneer Muhammad Yunus—the worldwide interbank lending squeeze is expected to decrease the number of loans extended during 2009.
The fourth-quarter credit crunch forced Opportunity International to cut its 2009 forecast of 30 percent growth in half. World Vision's microfinance arm, Vision Fund, slashed its projected increase from 47 to 15 percent, meaning 200,000 entreprenuers will lose the opportunity to grow their businesses. And year-end giving—which was forecast to decline seriously—could force further adjustments.
"As financial institutions are struggling with their liquidity, they have less money to lend to microfinance institutions, which in turn means we have less to lend to the poor," said Joanna Wasmuth, communications director for Vision Fund.
Although many Christian microfinance organizations use donations to fund initial start-ups, they also use bonds, short-term loans, and other financing to fund loan pools.
"Our model … is leveraging donations," said Wasmuth. "One dollar that may be donated may be leveraged and become two or three dollars that we are able to lend."
As tighter credit markets squeeze several organizations, so does the reality that more microfinance organizations are tied to banking systems. "Increasingly they are becoming more formalized and regionalized by central banks," said Covenant College professor Russell Mask, author of two books on Christian microfinance. "So they are more connected."
"It's harder to get intermediate and long-term loans," said Ken VanderWeele, president of Opportunity Transformation Investments, which operates 17 banks in 16 nations. "These markets have really dried up. As we look at funding our first quarter growth [in 2009], we see a huge decline in available borrowed funds."
At the same time, Christian microfinance organizations are somewhat insulated from economic shocks by the nature of their operations. In addition to ongoing donations, loan repayments fund additional loans, creating self-sustaining momentum.
And some see a positive impact from the economic pinch. Amid Treasury bills' short-term yields sliding beneath one percent last fall, Hope president Peter Greer said several investors told him that the Hope fund's 3 percent return has been one of their best recent investments. Greer said his 10-year-old organization completed its first-ever private placement (an investment not offered to the general public) of $2.8 million last September, and recently embarked on another capital campaign to raise $6 million in private investments.
"We're finding that family foundations and [other] funds are targeting more of their resources toward microfinance investments," Greer said. "So I see [the financial crisis], in some sort of crazy way, as a very positive impact to hopefully channel more resources into the field."
Labels: Christianity Today, Hope International, Mark Russell, Microfinance, Opportunity International, Peter Greer
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Business as Mission Meeting Coming to Alabama
I am pleased to announce that the next Global CEO Network meeting will be held in Birmingham, AL on March 25 - 27th, 2009. We recommend that you attend the dinner for participants the evening of March 25th at 7:00pm if at all possible.More details will be coming in the next few weeks regarding the hotel and meeting details.
Chuck Welden of Southeastern Property Development will be helping to organize this meeting. For more information on the Global CEO Network visit www.globalceonetwork.org.
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Labels: EC Group, Events and Conferences, Global CEO Network
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Stop Learning
Jason Jagard, of Mosaic Church in Los Angeles and adjunct professor at Golden Gate Seminary wrote a great post for Neue and Relevant Magazine that I highly recommend. The article really hits home on the idea of action vs. getting caught up in theory and definitions. Here's first few words and check out the link at the bottom to read the full article."I recently got an email from a friend I met a little while back. He asked me a question that I get asked a lot and that I hear others ask a lot and that I’m tempted to ask a lot.
“What books could I read to learn more about…”
Usually after the dot dot dot comes something along the lines of “following Jesus better, growing in my faith, etc.”
My answer is usually different depending on who’s asking me. If someone is brand new in their journey with Jesus it’s important to guide them towards the scriptures. This sounds obvious to people who are familiar with Christian spirituality, but to a new generation of normal Westerners it just isn’t.
But if you’ve known Jesus for a while you’ve been introduced to the scriptures for a while. Parenthetically, maybe that’s the problem. But that will have to wait for another blog.
So after I plugged my friends’ books [Erwin, Eric, Steve, Nancy and anyone else who has the courage to put their thoughts into concrete] I said to my friend something like this:
So after I plugged my friends’ books [Erwin, Eric, Steve, Nancy and anyone else who has the courage to put their thoughts into concrete] I said to my friend something like this:
“I don’t know about books you should be reading, only risks you could be taking.”
Most people I know don’t need to read more books [including myself]. We need to change our lives. Sometimes we need to stop learning and start risking.
Most people I know don’t need to read more books [including myself]. We need to change our lives. Sometimes we need to stop learning and start risking.
Read the rest of the post here: http://www.neueministry.com/2008/12/stop-learning/
Labels: Editorials, Erwin McManus, Mosaic
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Making Cheese for Christ?
Can using your experience to make cheese really be an opportunity to share Christ?The purpose of this post is to continue sharing observations, reflections and lessons learned as we visit and interact with different Business as Mission practitioners. We hope this sharing will spark youto get involved
The Business as Mission (BAM) Journey is a program of immersion and observation. Participants are language and culture students. We then meet weekly to go through foundational Book passages and recent and relevant books on BAM. We discuss the theory in the books and then bi-weekly go out and visit BAM practitioners and businesses. We get to see, ask questions, observe and get a taste of the real challenge of making it work in this world - and then come back and discuss what we've seen. This note then relfects the case studies we write up after our visits. Our vision is that through this process our Father might raise up the next generation of entrepreneurs to set up profitable, sustaianbly and transformational businesses among the least-reached.
Case study - Food production in rural areas
Sector: Organic food production.
Market: Expats in-country, western restaurants and hotels
Structure: Wholly owned foreign enterprise (WOFE). Two expat partners and two full-time local employees. One partner does government relations, the other product development. Indirect support from sending agency.
Champion: European descent but raised in South America. Educational background in the Book. Raised on farm and father made cheese. Invested 2 years in full-time language study before moving to this area. Fluent in four other languages
Business formation: Did research and survey work for more than a year while continuing in language study in this province. Raised capital and registered WOFE in Spring ’08. Providentially found and hired two transformed national workers with minority backgrounds.
Vision: Business that fits in rural setting, allows access to remote minority areas and trains and equips transformed nationals to have value in these rural communities. Ultimately hope to have small scale cheese and meat processing facilities in 5-6 different key minority areas.
Story: Came over to do language study and surveyed area to see how he could gain access and be valuable in rural communities. Discerned that there was a lack of certain food items that they and other expats were accustomed to. Realized that his upbringing gave him practical background and interest in some food-making skills that related well to the rural communities that raise cattle and yaks. Self-taught about cheese and sausage making along with some animal raising and characteristic issues. Presently working as a consultant to a local cheese making facility. Developed vision to set up cheese making operations in rural areas, thus gaining access to rural farmers, providing critical income for them and filling the void for the expat consumers for these food stuffs. Spent months negotiating with one location, almost got deceived into either a debt-bound building or non-strategic location. However, providentially set up with an existing building in another strategic location from a venture that had established excellent value and relationship with the community. Hoping to start production of first cheese product line in Spring ’09
Lessons learned:
- Patience combined with optimism and perseverance.
- Skill set and experience has to be appropriate for rural work
- Product has to be perceived as valuable to the area.
Results: Encouraging work environment and vision for two nationalsGood location, enough perceived orders to start production in Spring ’09 in a rural areaObservations: Champion is optimistic and just doing it! Plan has been developed within the breadth of his life experience (ie he grew up on a farm and was exposed to cheese making). Appears to be a good working relationship with nationals. Has vision and ideas for expansion No clear articulation of BAM philosophy, but faith appears to be integrated in the way he goes about working and relating. Marketing to date seems all based on his perception of what expats in-country are missing and want. No detail thought yet on marketing and distribution. Lots of ideas and vision! Hope he can bring on board the detail and follow-through people to see these dreams realized!
Labels: A Twenty Something's Business as Mission Journey, Agriculture, Case Studies
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Own a Business as Mission Restaurant in Kathmandu
Recently received an email from a reader who is looking for someone who would be interested in taking over an established business in the heart of Kathmandu, Nepal.The Red Dingo Restaurant was opened a few years ago and quickly established a reputation for quality food and standards. The managing couple, Stuart and Shirley Forbes are returning to Australia in the early part of 2009 and are looking to find a Christian to take over the business. Red Dingo is also registered as a boutique inn so it is possible to have a guesthouse as well.
It was started as Stuart and Shirley were looking to stay in Nepal for their daughters adoption papers to go though. Restaurants was all Stuart and Shirley knew, so the Red Dingo started. They have done amazingly well for the first year. They live up stairs above the restaurant in a 3 bedroom house. The Stuarts have 2 children so it has been to spend as much time with them as possible and the same could be true for any new owners.
With their daughters adoption finalized they thought they would stay a few more years to recoup their investment. But with their parents ill they need to return to Australia.
Its a great opportunity for mission minded people to live in Nepal. If anyone is interested in a Business in Kathmandu Nepal, please email Shirley on stuartandshirley@yahoo.com.au.
Labels: Kathmandu, Recruitment and Job Opportunities
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What’s so different about Business as Mission?
Editorial by Sarah Dusek - With the huge explosion of mission terminology in recent years the potential for confusion abounds. Terminology such as Business as Mission (BAM), Tent Making, Work Place Ministries and Enterprise Development all refer to very different mission strategies but all fall under the banner of economic-based mission or Kingdom Business. For the purpose of understanding where one term ends and another begins a brief explanation of the major terms currently being utilised will be explored here.Tent Making
In recent years Tent Making has been a commonly used practice, enabling individuals to use their professional skills to gain work in another country, in order to relate to nationals and in turn communicate the gospel. The concept of Tent Making originates from the apostle Paul, whose profession was making tents, which he successfully combined with church planting. Since Paul’s adoption of this method of combining work and ministry, Tent Making has been utilised by numerous groups of people in history. In fourteenth century Italy the Waldensians are reported to have travelled about as peddlers preaching and teaching wherever they went. Similarly the Moravians went out to establish new villages with all of the trades necessary for a small town1 and in the early nineteenth century David Livingstone pioneered the themes of ‘Christianity, Commerce, and Civilisation.’2
Today Tent Making specifically refers to the use of professional, business or trade skills to work for a living in a cross-cultural situation in order to witness for Christ. It is a ministry which takes place primarily in a commercial context.
Work Place Ministries
Similarly to Tent Making, Work Place Ministries focuses on utilising the work place as a means for presenting the gospel to work colleagues. However, in contrast, Work Place Ministries occurs within the same cultural setting, no cultural or national boundaries need to be crossed in order to minister the gospel.
Enterprise Development
Enterprise Development is close in definition to BAM as it refers to the start up of small enterprises through the use of micro-finance loans. Its aim is to empower those affected by poverty to start small scale businesses and in affect change their communities. Enterprise Development focuses largely on community development and it represents a more passive Christian model. Its intention is not necessarily to actively promote the communication of the gospel but encourage development and the alleviation of poverty.
Business as Mission (BAM)
BAM is the newest branch to emerge within the Kingdom Business movement, the term BAM first being coined in 1999 in the UK and subsequently confirmed in 2004 by the Lausanne Committee for World Evangelization in Pattaya, Thailand.
BAM recommends a holistic and inclusive approach to mission which is not intended to be simply an access strategy or only a source of income for missionaries. BAM’s focus is the creation and utilisation of businesses in least evangelised places for the purpose of bringing Kingdom transformation. BAM believes in the redemptive potential of business itself and attempts to make an impact on a financial, social, spiritual and environmental level. BAM insists upon a concerted effort within the company to witness for Christ both overtly and through holistic lifestyle evangelism, for example, through Bible studies, as well as training in literacy, health care, child care, and nutrition. It is intended to be an integral holistic mission strategy that specifically aims to meet physical as well as spiritual needs in the least-evangelised and least-developed parts of the world.
BAM Companies often promote leadership training and development from within the company, with the long-term goal of turning over management and possibly ownership of the company to national employees. This is a distinct difference from Enterprise Development micro-finance initiatives, which are based on local entrepreneurial activity and ownership from the outset. BAM is a missionary strategy that aims to bring outside resources of personnel and finance into an area in order to create businesses that will affect the immediate community and, potentially, the country’s economy. Rundle and Steffen suggest that there is no limit to the form a BAM Company can take but that there are some basic characteristics that they all have in common which enable a BAM Company to be defined as: a socially responsible, income producing business managed by Kingdom professionals and created for the specific purpose of glorifying God and promoting the growth and multiplication of local churches in the least evangelised and least developed parts of the world.
The connection of the business to the development of local churches, either their initial creation or support of existing churches, is a high priority for BAM.
Fundamentally BAM Companies are real enterprises which aim to be profitable and successful on numerous levels. Businesses which in affect are only fake businesses that act as fronts to provide visas in order to gain access to a country are not considered to be legitimate BAM enterprises.
Economic-Based Mission
Each of the four described approaches embraces the reality that work is not in itself evil but is an essential aspect of life in which Christ can be demonstrated and revealed. BAM undoubtedly takes this theological stand point to its fullest development with its holistic missional expectation of bringing Kingdom transformation by establishing businesses. However, this is not to dismiss the value and use of the other strategies. All forms of economic-based mission are relevant and offer unique missional opportunities in our constantly changing twenty-first century world. The challenge that remains therefore is to ensure that if we are engaged in business that we are intentionally missional and understand the mission which God has called us to.
Labels: Editorials, Sarah Dusek, YWAM
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Opportunity International's One Millionth Client
Opportunity International's commitment is motivated by Jesus's call to serve the poor, specifically from Matthew 5:42 that says, “Give to the one who asks you, and do not turn away from one who wants to borrow from you.”
Recently their organization celebrated their one millionth client. Here's a link to their video on YouTube.
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Recently their organization celebrated their one millionth client. Here's a link to their video on YouTube.
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Labels: Microfinance, Opportunity International
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Kingdom Economics Trumps Global Crisis in Dominican Republic - Jonathan Shibley
“We are not about money, we are about people!” says Carlos Vargas, leader of the Santiago Kingdom Business Network and owner of a timber import export business which employs over 100 people. Carlos’ story is one of true redemption. He was a successful businessman who had made lots of money yet had not found true fulfillment. He had become an alcoholic and womanizer. One day as he was ready to take his own life, he made one last desperate plea to God to reveal Himself. “It was like Jesus shot an arrow through my heart,” he told us while holding back tears. “Jesus met me there that day and my life has never been the same.” Now Carlos has a passion to use his business to glorify God and his influence in the community to impact others.Two years ago Global Advance planted a seed by conducting the first Marketplace Leadership Conference for entrepreneurs and professionals in Santiago, Dominican Republic. Our team challenged the audience of 200 to get a vision for what God can do through them in the marketplace to impact their nation. Since that time Global Advance has conducted three Marketplace Conferences, sent teams of U.S. business leaders to visit numerous local businesses, and helped to kick start the Santiago Kingdom Business Network (Red de Negocios del Reino).
Says Neftali, a business operator: “This is exactly what our nation needs. It is high time Believers in the marketplace stand up as ambassadors for Christ and take responsibility.” Neftali has experienced prosperity, but is severely affected by the global economic crisis. He runs the free trade manufacturing zone. Three years ago, he employed over 1000 people. Today there are just a few. Despite his current circumstances, however, Neftali is trusting God for provision, seeking alternative business strategies and ministering to other business owners who are struggling. “God has sent me here for an assignment.”
Jeanette owns Optica, a high-end fashion eyewear shop. Her desire is for her store to be “a place of worship” and for her customers to feel the Lord’s presence when they enter. She has a vision to expand to other locations and cities and looks to God for her strength as a single mother and business owner.
Global Advance brought a team of U.S. business leaders who desire to impart some of their talent and experience to the Dominican business leaders. “I love to use my gifts to make a difference” says KB Hill, who is a top salesperson for his company. “My wife and I are asking God to show us ways we can strategically invest our time and resources.”
Robert Allsup, an entrepreneur from Dallas, has adopted the Santiago Kingdom Business Network as a life project and is working as a liaison with Global Advance. The people feel and respond to Robert’s genuine love and concern for them. He’s made numerous trips to Santiago and prays daily for the business leaders by name.
The response on the ground has been nothing short of phenomenal. Several members of the Santiago Kingdom Business Network are already talking about other cities to launch new networks. They meet every two weeks for prayer, exchange of business ideas and encouragement. Global Advance is working with them to develop a Business Institute which will teach both Biblical and practical business practices. Our conference was powerful with almost 250 entrepreneurs and professionals in attendance. Hearts were stirred for using their business to further God’s Kingdom. The group from Dominican Republic gave a generous offering to support our Marketplace Missions conference in Indonesia!
Thank you for your prayers and support of what God is doing in the nations. Stay tuned for more to come!
- Jonathan Shibley, Vice President, Global Advance
Labels: Dominican Republic, Global Advance, Jonathan Shibley
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