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Compose a 500 words assignment on kiva as a non-profit organization. Needs to be plagiarism free!
Compose a 500 words assignment on kiva as a non-profit organization. Needs to be plagiarism free! Kiva
Since Kiva is a non-profit organization. the mission of the company is to eliminate poverty from different countries and for this purpose, the company provides loan to those people wanting to start their own enterprise with the help of loan. The company was founded in 2005 and now it is working in more than 63 countries around the globe [Kiv12]. There are several reasons that are responsible for the success of Kiva in which the most important is the social network of the company created through the internet. This system helps millions of people to communicate with each other and with MFI, which provide lending to the people [Zen12]. Another reason of Kiva’s success is the popularity of micro financing for small investors and this financing motivates them to start their own business, and then payback the amount. The internet has benefited the company as there are no entry barriers and this is because company has been able to reach globally. The method of the transaction is easy and fast which is another advantage for the company. Many international celebrities are also responsible for the success of Kiva as they regularly supports the cause of the company by participating in different events organized by Kiva [Zen12].
The reason why Kiva is different from other organizations is that it employs different strategies that ensure the repayment of loans taken by people from different countries. The company has made different field partners who are directly responsible for providing and collecting loans for the company [And07]. These partners are either small firms or individuals working in different countries for making operations of Kiva unique from others. The product philosophy of Kiva also makes the company different from other organizations as lending is perceived as a method of communicating with other people [And07]. The company believes that lending is related to exchange of information, and it creates a strong binding and communication between the people involved in this trade. The focus of Kiva is not on profit, and this is because it is different from other lending organizations. The company believes in making business relationship with people rather than benefactor association and unlike other non-profit organizations that are appealed by people’s compassion, Kiva is attracted towards them because of its interest in businesses [And07].
The Kiva model can work for larger loans if the company is able to make strong chain of field partners in countries where heavy loans are provided to large firms or organizations. Heavy lending will require complete evaluation of the firms, but if Kiva will be able to scrutinize the applicants then the present model of Kiva can be implemented for providing heavy loans. Moreover, if the company can provide complete training of their field partners and making them aware of all the loopholes of financial setup, then they can provide heavy loans to the firms. The lending system of Kiva can also be implemented for other kinds of businesses such as trading, new industry, manufacturing etc. because Kiva wants to eliminate poverty from the countries therefore, heavy investment in other businesses means more employment and decrease in inflation. This means that Kiva’s business model can work for larger loans and for different types of businesses.
