For-profit Versus Nonprofit Microfinance: How Are the Poor Affected?

Weinberg, Brian. "For-profit Versus Nonprofit Microfinance: How Are the Poor Affected?." The Eagle Feather. University of North Texas Honors College, n.d. Web. 24 January 2010.

The Chiapas Project is obviously a philanthropy that is very near to Brian Weinberg’s heart. This organization uses money from recycled cell phones to fund microfinance loans. Microfinance lending occurs when institutions give nominal amounts to individuals in poorer nations hoping to ignite a sense of entrepreneurship and rising social status. In his article, Weinberg deconstructs poverty and some methods of microfinance lending.

There are two views of poverty: sociological and statistical. Sociologically, poverty can be defined as the existence deprived of the basic human needs such as food, clothes, shelter, water, and even education. Weinberg states that this is somewhat ambiguous and can be cemented further. The second view, statistical, is established by the World Bank to be somewhere around two dollars a day. Weinberg also mentions research leading to five factors—not causations—of poverty. Ultimately, he examines the for-profit and non-profit lending models that allow impoverished people to borrow money in the hopes of raising their socioeconomic status.

The strongest portions of Weinberg’s research were the tables (Appendix) allowing readers to compare the feasibility and economic soundness of each lending style. The weakest parts are comprised of his experiences in these third world countries, and the exclusion of references for some haphazard statistics. As simple as it sounds, Weinberg showed me that I should research something I truly care about. With that, my research will have depth, appeal, and relevance.