Visit Your Local PBS Station PBS Home PBS Home Programs A-Z TV Schedules Watch Video Donate Shop PBS Search PBS
Go
July 8th, 2009
Microfinance and Entrepreneurship
Lesson Overview

(Click here for a printer-friendly version of this lesson.)

GRADE LEVEL: 9-12

TOPIC / SUBJECT MATTER: Economics, Business, Entrepreneurship, World History

TIME ALLOTMENT: Two 45-minute class periods

OVERVIEW:
In this lesson, students will be introduced to the practice and industry of microfinance, learning how the provision of unsecured loans to low-income, small-scale entrepreneurs in the developing world has improved the business prospects and quality of life for many desperately poor people around the world. In the Introductory Activity, students will define key terms relating to entrepreneurship and business lending, and will explore “case studies” of hypothetical entrepreneurs in the developing world, brainstorming how these small business owners could potentially expand their businesses if they were to have access to monetary loans.

In the Learning Activity, students will view segments from the PBS series The Ascent of Money to compare two economic models for the global alleviation of poverty, one based on property ownership and the other – microfinance – based on unsecured lending. The students will be introduced to the concept of microfinance and will explore how the model of creditworthiness used in microfinance differs from the traditional “bank” model.

Lastly, the students will view profiles of real microloan applicants on the kiva.org website, preparing reports to present the stories and businesses of real-life entrepreneurs to their classmates.

This lesson is intended as a stand-alone resource, but also follows nicely upon the “You Can Take That to the Bank!” lesson on the Ascent of Money website.

MEDIA RESOURCES
VIDEO

Clip 1:

Is property the route to wealth?

Clip 2:

Microfinance

Access the streaming and downloadable video segments for this lesson at the Video Segments Page.

WEBSITES
CitiFinancial: Resource Center: All About Credit
http://www.citifinancial.com/resourcecenter/allaboutcredit_lender.php
This Web site from Citibank details criteria for granting a loan or issuing a credit card.

FRONTLINE/World – Uganda: A Little goes a Long Way
http://www.pbs.org/frontlineworld/stories/uganda601/video_index.html
A 15-minute video produced in 2006 for the PBS series “FRONTLINE/World” showcases the small business entrepreneurs in Uganda who were helped by the microfinance lending organization Kiva.org in its first year of business.

Kiva.org
www.kiva.org
Kiva.org is a person-to-person microlending web site started in 2005 by a young American couple, Matt and Jessica Flannery. The site enables individual lenders all over the world to provide localized microfinance institutions with the capital for loans to needy entrepreneurs, and allows the lenders and loan recipients to have ongoing contact through email and the internet.

STANDARDS

National Standards for Economics
Standard 10: Role of Economic Institutions

• Institutions evolve in market economies to help individuals and groups accomplish their goals. Banks, labor unions, corporations, legal systems, and not-for-profit organizations are examples of important institutions. A different kind of institution, clearly defined and enforced property rights, is essential to a market economy.

Standard 14: Profit and the Entrepreneur

• Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.

Standard 15: Growth

• Investment in factories, machinery, new technology, and in the health, education, and training of people can raise future standards of living.

McRel Compendium of K-12 Standards
Business Education
Standard 15: Knows unique characteristics of an entrepreneur
Level IV [Grade 9-12]

• Benchmark 2.Knows that entrepreneurship relates to the capacity to take responsibility for one’s own future, to initiate creative ideas, develop them, and to carry them through into action in a determined manner.

Standard 20: Understands the financing necessary to start a business
Level IV [Grade 9-12]

• Benchmark 1.Knows factors that affect the amount of money needed to start a business (e.g., nature, size, and location of the business; current economic conditions; credit policies)

• Benchmark 5.Knows the financial statements a lender would evaluate when considering whether to grant a loan to an entrepreneur (e.g., projected income statement, cashflow statement, balance sheet)

National Standards for History
World 5-12 Standards
Era 9 – The 20th Century Since 1945: Promises and Paradoxes
STANDARD 3: Major global trends since World War II.
Standard 3A: The student understands major global trends since World War II.

Therefore, the student is able to:
• Analyze causes of economic imbalances and social inequalities among the world’s peoples and assess efforts made to close these gaps.

MATERIALS

For each student:
• “Terms and Definitions” Student Organizer (PDF) (RTF)
• A description of an entrepreneur, cut from the Entrepreneur Descriptions sheet (PDF) (RTF). See the “Prep for Teachers” section, below, for instructions.
• “Profiles of Microloan Applicants” Student Organizer (PDF) (RTF)

For the class:
• Terms and Definitions Answer Key (PDF) (RTF)
• A computer connected to an audiovisual projection system, for viewing video segments

OBJECTIVES

Students will be able to:
• Define key terms related to entrepreneurship, lending, and microfinance;
• Understand that poverty is a wide-reaching global problem, and describe two economic models designed to ameliorate it;
• Name the criteria used by banks to evaluate the creditworthiness of a potential loan grantee;
• Describe the difference between a “traditional” bank loan and a loan given by a microfinance institution;
• Understand that poverty in and of itself is not opposed to creditworthiness;
• Give examples of entrepreneurs in developing countries who might benefit from a microfinance loan;
• Discuss the ideas and actions of the American entrepreneurs Jessica and Matt Flannery, who founded kiva.org and expanded it into a successful social enterprise.

PREP FOR TEACHERS

Prior to teaching this lesson, you will need to:

Preview all of the video segments and Web sites used in the lesson.

Download the video clips used in the lesson to your classroom computer, or prepare to watch them using your classroom’s Internet connection.

Bookmark the Web sites used in the lesson on each computer in your classroom. Using a social bookmarking tool such as del.icio.us or diigo (or an online bookmarking utility such as portaportal) will allow you to organize all the links in a central location.

Prepare the “Entrepreneur Descriptions” for the class – cut out the individual descriptions along the lines so each applicant is on a separate strip of paper. Make sure there are enough strips for each student (or pair of students) to get one (multiples of each applicant are ok).

If you prefer, print out the “All About Credit” page from the CitiFinancial: Resource Center: All About Credit website for student reference in the Introductory Activity (otherwise students may visit this site online).

Make copies of the Student Organizers.

Next: Proceed to Activities

Lesson plans for THE ASCENT OF MONEY were created by the LAB@Thirteen, Thirteen’s Community and Educational Outreach Department.

  • http://www.bookmarkingsoftwarediscount.com/ bookmarking demon

    There are numerous techniques that you must use to promote your business, and social bookmarking is unquestionably one of those. If you want to grow the traffic to your website then a effective way to do this is by using a nice social bookmarking tool to automate the process.

  • http://www.laana.se Rosalba Rinkenberger

    Loans are the best life savers. I once took a loan due to a fire damage that had brought me a great loss of property. For sure, I had no possible way to recollect myself. In fact I had totally lost hope on life. The loan that I took managed to replace a few impairments and I suddenly began getting back on my feet.

  • http://profitinstrument.org Profit Instruments

    From where you guys get so correct info , i can’t even imagine

  • http://manamansalonkeidas.com/ credit crunch

    ya too bad about the economy though

  • http://designer-couch.com/ Loyd Zien

    Da meine alte Couch schon total durch gesessen und auch nicht mehr die schönste ist, möchte ich mir eine neue kaufen. Der Bezug des neue Sofas sollte ein bisschen was aushalten, da ich eine kleine Katze habe die des öfteren mal über das Sofa herfällt und ihre Krallen schärft. Hat hier vielleicht jemand Erfahrungen mit Haustieren und kann mir bei der Wahl des Materials weiterhelfen?

  • http://www.madisonflatfeemlslisting.com madison cheap mls

    Howdy,

    I wanted to let you know that I have been reading for a while and I would like to sign up for the feed. I’ll give it a try but I will need some assistance. This is a good find and I would hate to lose touch, and maybe never discover it again.

    Anyway, thanks again and I look forward to reading again in the future!

  • http://www.bronchitisreliefguide.com Lauri Terrezza

    I have been hunting for honest recommendations on natural health and think that your site is an excellent resource. It is hard to search for good ideas on the Web, but I think I can use this information! If you know of any more reliable recommendations, please don’t hesistate to publish them. Thanks a bunch!

  • http://www.kinokifootpads.org detox foot patch

    This blog was suggested to me by a friend. I have to say, reading this was time well spent. I will tell more friends about it as well.

  • http://www.paydayloansnocredit.net Tamica Mclagan

    I couldn’t agree less with your thought I believe if you’re able to discover the proper lender, that’s the suitable loan for you. There’s always somebody out there that you’ll be able to trust.

  • http://www.consolidationcredit.info Jenniffer Gaultney

    Great website and great information too. Congratulations and thanks for sharing this info to all your visitor… Btw how did you get a wonderful site like this? Once again thanks a lot.

  • http://www.bankfailures.us Tim Thomason
  • http://www.infokino.pl kino

    Excellent site. Lots of useful information here. I’m sending it to some friends ans also sharing in delicious. And obviously, thanks for your sweat!

  • http://www.infokino.pl kino

    Great beat ! I wish to apprentice while you amend your web site, how could i subscribe for a blog site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear concept

  • http://www.infokino.pl kino

    F*ckin’ amazing things here. I am very glad to see your article. Thanks a lot and i’m looking forward to contact you. Will you please drop me a e-mail?

  • Roger Spargris

    Why are the banks so strict when it comes to paying loans? When one is borrowing the loan he/she knows how he is going to repay it. After the entire bank once it agrees to give out loan don’t see why they should be harsh when claiming it!

  • http://www.theshemaletubes.com shemaletube

    I just have got to demonstrate this to my trainees and see what they will think about this.

  • http://www.puntodidomanda.it/forum/profile.php?mode=viewprofile&u=159982 hp mini 210 review

    Hey There. I discovered your weblog using msn. That is a very smartly written article. I will make sure to bookmark it and come back to learn more of your useful information. Thanks for the post. I will definitely return.

  • http://royalwineandspirits.com/index.php?route=product/category&path=36 buy wine new york

    Great blog site here! Also your website loads up very fast! What host are you using? Can I get your affiliate link to your host? (send it please to aldalate2009@mailrelay2.megawebservers.com) I wish my web site loaded up as fast as yours lol… buy wine new york

  • http://flawlesskitchen.com/search.php?mode=search orx110

    I am really impressed with your writing skills as well as with the layout on your weblog. Is this a paid theme or did you modify it yourself? Either way keep up the excellent quality writing, it’s rare to see a nice website like this one nowadays.. Thank you, orx110

  • http://pilotfx.com Imelda Kriegshauser

    I do not even know how I ended up here, but I thought this post was great. I don’t know who you might be but definitely you are going to a famous blogger in case you aren’t already Cheers!… Heya i’m for the very first time here. I found this board and I find It truly useful & it helped me out considerably. I hope to give something back and aid other people like you helped me….

  • http://www.mbtscarpevendita.org MBT scarpe

    Thanks for the several tips contributed on this web site. I have observed that many insurance firms offer consumers generous deals if they favor to insure a couple of cars together. A significant volume of households include several automobiles these days, specifically those with elderly teenage children still residing at home, as well as the savings on policies can soon begin. So it makes sense to look for a bargain.

  • http://www.bing.com Elanor Lah

    i couldnt reach ou by email please follow this link to assure your weekly affiliate commission http://www.9oul.com/cash5

  • http://www.ourearphones.com/index.php?main_page=index&cPath=1 Beats Studio

    welcome our web side

  • http://www.howcast.com/users/bartashley12 hack facebook password auth code

    All I can say is, I’m not sure what to comment! Except naturally, for the great tips which have been shared using this blog. I’m able to think of a zillion fun methods to read the articles or blog posts on this site. I’m sure I will ultimately take action using your tips on those things I could never have been able to deal with alone. You’re so innovative to allow me to be one of those to benefit from your practical information. Please see how significantly I am thankful.

  • Cicely Essig

    I have been searching for a tutorial on how to make this book shelf. I think its a great example of digital craft as the bookshelf looks playfully real yet being created entirely from photoshop. I think it would work really well on a web 2.0 e-commerce book store

  • feliz aniversario

    This blog is presenting very essential and important information about Economics, Business, Entrepreneurship and World History and all these are related issue and the knowledge of all this is necessary to know and the same task is performed by the same . I like to visit this site. http://recadosme.com/recados-aniversario-orkut

  • Sachiko Hardie

    I do trust all the ideas you have offered on your post. They are really convincing and will certainly work. Nonetheless, the posts are very short for novices. May you please prolong them a little from next time? Thank you for the post.

  • Marlana Robicheau

    I’ve been using The Niche Blogger for two months now to build niche sites and I can already see some great income potential! I’m really excited to see where these niche blogs will go. Your new site is great, by the way.

  • http://www.discounttiffanyandcous.net/ tiffany wholesale

    Wonderful paintings! This is the type of information that should be shared around the net. Disgrace on Google for not positioning this put up upper! Come on over and visit my site . Thanks =)

  • http://www.jukeboxalive.com/blog.php?blog_id=3903677 Jefferson Pounders

    Great website. Lots of useful info here. I am sending it to some pals ans also sharing in delicious. And certainly, thank you on your sweat!

  • Love Quotes

    Wow, what a blog! Can I just say what a relief to find someone who actually knows what they are talking about on the internet. Thank you for this wonderful and great post. This indeed is helpful. Thanks’ again.

  • Facebook Status

    Thank you for this wonderful and great post. I am definitely enjoying this post and regularly checking for new posts. These posts are really good and definitely beneficial. Great stuff from this part of the internet. This is the best weblog for anyone who wants to know about this subject.

  • How To Blog and Make Money Online From Blogging

    This really is an invaluable web page, thanks’ for all the information. Looking forward for more exciting stuffs. These posts are really good and definitely beneficial. Quite a few thanks!

  • start a home business

    A powerful share, I simply given this onto a colleague who was doing just a little analysis on this. And he in actual fact purchased me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to discuss this, I really feel strongly about it and love reading more on this topic. If doable, as you become expertise, would you thoughts updating your blog with more details? It’s extremely helpful for me. Big thumb up for this weblog publish!

  • Kathaleen Hendershott

    I have a money making method that works. The more people you give it to, themore money you’ll make and others will too.

  • Otto Tilghman

    Another way how to earn little extra money is by creating your own products & use Facebook marketing.

  • Hallie Preisser

    I’m interest in 2008 e-feng shui…………….$9.90 information for luck….house feng shui…

Inside This Lesson

Produced by THIRTEEN    ©2014 Educational Broadcasting Corporation. All rights reserved.