Free Essay

Sustainable Microentrepreneurship

In: Business and Management

Submitted By Praveen88
Words 4845
Pages 20
Sustainable Microentrepreneurship:
The Roles of Microfinance, Entrepreneurship and Sustainability in Reducing Poverty in Developing Countries

About 90 percent of the people in developing countries lack access to financial services from institutions, either for credit or savings1, which further fuels the “Vicious Cycle of Poverty” (refer to Fig. 1). If the people of LDCs have a limited capacity to invest in capital, productivity is restricted, incomes are inhibited, domestic savings remain low, and again, any increases in productivity are prevented. A lack of access to financial institutions also hinders the ability for entrepreneurs in LDCs to engage in new business ventures, inhibiting economic growth, and often, the sources and consequences of entrepreneurial activities are neither financially nor environmentally sustainable (existing for continuing future use). Microfinance serves as a means to empower the poor, and provides a valuable tool to assist the economic development process.
However, unavoidably, various barriers and obstacles limit the roles of microfinance, entrepreneurship and sustainability in reducing poverty in LDCs around the world.


Robinson, Marguerite S., 2002, “The Microfinance Revolution: Sustainable Finance for the Poor”

Fig 1. The Vicious Cycle of Poverty
In addressing this issue, two key questions arise:
(1) To what extend does microfinance empower entrepreneurship in LDCs, and are these processes economically and environmentally sustainable?
(2) To what extend do real-world case studies suggest that these processes reduce poverty in LDCs regarding the economic development process?





It is impossible to evaluate a development process without criteria to be addressed. Thus, economic development can be defined as “the process of improving the quality of all human lives”, (Todaro, 1994), which incorporates three equally important aspects: raising incomes and consumption; fostering self-esteem through institutions that promote human dignity and respect; and increasing people’s freedoms. This criterion has a distinct application to this particular development process. Robinson (2002: pp. 39-41), contends that “the first thing that many poor families do when their incomes rise is improve their nutrition, and send their children to school.”
This is fundamental to economic development, but also, “Because financial services help the poor expand their economic activities and increase their incomes and assets, their self-confidence grows simultaneously.” And finally, “Large-scale sustainable microfinance helps create an enabling environment for the growth of political participation and democracy.” Thus, the economics of microenterprise make it a compelling anti-poverty strategy (Rubinstein, 1993).
With a loan of $100, in a poor country one can start a small business; repay the loan in a year, while still owning the productive assets. Over time, a poor person can earn enough to escape poverty. The concept of “Sustainable MicroEntrepreneurship” is neither formal, nor derived, but rather a development process combining the three aspects of microfinance, entrepreneurship and sustainability. It refers to the specific practice of “social-conscious-driven entrepreneurship”2, perpetuated by a sustainable access to credit, and without bearing undesirable externalities on people or environment. Sustainable MicroEntrepreneurship is a small-scale, self-sustaining active development process initiated by the poor to help themselves break free from their poverty.

The extent to which microfinance, entrepreneurship and sustainability are interrelated is dependent on the extent to which it addresses the economic development process. Yunus (1994), claims, “If we are looking for one single action which will enable the poor to overcome their poverty, I would go for credit. Money is power.” Credit invested in an income-generating enterprise as working capital or for productive assets leads to establishment of a new enterprise or growth of an existing one. Profit from the enterprise provides income, and a general strengthening


Yunus, Muhammad, 1994, Extracts from the keynote address delivered at 85th Rotary International
Convention help in Taipei, Taiwan, on June 12, 1994

of income sources.3 A variety of financial institutions, worldwide, have found ways to make lending to the poor sustainable and to build on the fact that even the poor self-employed repay their loans and seek savings opportunities. The challenge is to build capacity in the financial sector drawing on lessons from international best practices in micro, small enterprises and rural finance.4 However, ensuring environmental sustainability is equally important as sustaining microenterprises financially. The Sustainable Financial Markets Facility (SFMF, 2004) recognises the importance of promoting “environmentally and socially responsible lending and investment in emerging markets, thus stimulating sustainable markets/sustainable private sector activity5 and enhancing other sustainable initiatives in the developing world. Thus, the interrelated nature of microfinance, entrepreneurship and sustainable development is evident.
The extent to which microfinance, entrepreneurship and sustainability are interdependent is becoming increasingly recognised by experts in their respective fields of work, associated with economic development. Over 500 million poor people around the world run profitable microenterprises and often cite credit as the primary constraint to business growth (IFC, 2002) thus, credit is essential for poor entrepreneurs in LDCs. Additionally, firms supplying the finance to these entrepreneurs are equally dependent on them for business, and to expand their services to more villages or urban areas. However, this dependency belies the assumption that microfinance can be profitable in LDCs. Robinson (2002), a prominent expert in the field of microfinance, notes that “The formal sector has begun to realise that financing the poor can be both economically and socially profitable.” The dependency of environmentally sustainable initiatives, however, can be slightly more controversial. The Environmental Business Finance Program
(EBFB) suggests that, “Private sector support is crucial to help solve the world’s environmental problems”, however, “incremental costs deter the private sector from pursuing many environmental business opportunities.”6 This is particularly true among small enterprises due to a lack of access to finance.
The interrelationships and interdependency of microfinance, entrepreneurship and sustainability in LDCs further exemplify the informal practice of “sustainable microentrepreneurship” among the world’s poor. But although interrelated and interdependent, each of the aspects must be further explored individually to gain a greater understanding of the complexities of the connection between them. This will also aid in evaluating the case of sustainable microentrepreneurship in reducing poverty in LDCs.

Imagine you are a poor woman in Bangladesh. You work hard almost every day weaving mats. In five days you can finish a mat that sells for less than a dollar. When your children get sick, there is no money for medicine. How much would it change your life, if you could borrow $65 to buy a sewing machine?


Daley-Harris, Sam, 2002, Pathways Out of Poverty: Innovations in Microfinance for the Poorest Families;
“Microfinance Impacts Directly and Significantly on Economic Poverty” pp. 22, 2002, Bloomfield, CT:
Kumarian Presss
Financial Sector of the World Bank Group, 2002, “Rural and Microfinance SMEs”,
(accessed 4 September, 2004)
International Finance Corporation, 2004, Sustainable Financial Markets Facility, (accessed 4
September, 2004)
EBFB, 2004, Why focus on environmental SMEs?” (accessed 4 September, 2004)

The above example7 is real. Joygon Begum was a poor mat weaver in Bangladesh. Joygon used her $65 loan from the Grameen Bank to buy a second-hand sewing machine, and started a small business making clothes, which her husband sells in the village market. Before her first loan,
Joygon and her family frequently went hungry, and never had money for family medical care.
She could not afford even the very small education fees for her children. Now, the family eats three healthy meals a day, with a diet including vegetables, grains, and a small amount of meat and fish. Her children attend school, and she has money saved up for emergencies (Rubinstein,
1993). Small examples such as this are a reflection of an emerging international industry.
In the last 20 years, the “microfinance industry” has emerged. During the 1980’s and 1990’s, particularly in Asia, Africa, and Latin America, thousands of microfinance NGOs (NonGovernment Organisations) were established to provide microloans, using individual and group lending methodologies. In the 1990’s, while many of the NGOs failed to reach scale or financial sustainability, others led the way in demonstrating that:
-Poor people, particularly poor women, are excellent borrowers, when provided with efficient, responsive loan services at commercial rates.
-Microfinance institutions can provide microloans to poor people in an efficient and financially sustainable way, once the numbers of clients reaches reasonable scale – 10 000 to 20 000 borrowers in most settings.
-Microfinance-lending savings, and other financial services to poor people – is an effective way to help poor people help themselves build income and assets, manage risk, and work their way out of poverty.8
Loans in LDCs are made for a variety of purposes. Loans are made for housing, and for “start up” loans so farmers can buy inputs to agricultural production: rice seeds, fertilizers and agricultural tools. But loans might also be used for a variety of non-crop activities such as: dairy cow raising, cattle fattening, poultry farming, weaving, basket making, leasing farm and other capital machinery and woodworking.9 Of course, funds may be used for a number of other activities, such as crop and animal trading, cloth trading and pottery manufacture. Credit is also issued to groups consisting of a number of borrowers for collective enterprises, such as: irrigation pumps, building sanitary latrines, power looms, leasing markets or leasing land for cooperative farming.
The potential for loan uses are virtually endless, and differ between villages and countries. And due to the fact that there is no such thing as a ‘typical’ developing country, loans provide a source of income for diverse activities chosen specifically by the borrower, to create their own life.
Strategies to promote the capability and capacity of microfinance to reach the world’s poor are a primary objective of the World Bank Group. They have announced a “strategy to increase access to financial services and low-income households”, which addresses three principal areas:
-Fundamental framework: the policy, legal and regulatory frameworks that allow innovative financial institutions to develop and operate effectively.


Rubinstein, Joel, 1993, Micocredit:“A poverty eradication strategy that works” (accessed 4 September, 2004)
Daley-Harris, Sam, 2002, Pathways Out of Poverty: Innovations in Microfinance for the Poorest Families;
“Improving the Social and Empowerment Impact of Microfinance”, pp.264-5, 2002, Bloomfield, CT:
Kumarian Presss
Yunus, Muhammad, 1994: Grameen Bank, “Major Uses of Loan Funds”, Bangladesh (1994)

-Institution building: exposure to and training in best practices that banks and microfinance organizations need to expand their outreach and develop sustainable operations, along with performance-based support for capacity building; and
-Innovative approaches: leasing, lending and other products to increase access of smalland medium-size enterprises to financial services.10
Despite the apparent benefits of microfinance in reducing poverty, inevitable controversy exists.
Microfinance has its critics. In a Research and Impact Assessment by the Department for
International Development (DFID), it was noted that, “International microfinance experience indicates that microcredit is not a suitable tool to assist the chronically poor”, suggesting instead,
“savings, can assist them to ride out crises by strengthening their economic security.”11 Hickson
(2001) claims “Most MFIs [MicroFinance Institutions] have far to go in finding ways of reaching extremely poor households…This possible belies a lack of understanding of the dynamics of poverty and the opportunities that exist for the provision of financial services to the extremely poor.”12 Opponents of microfinance have pointed out that valuable aid money from fatigued donor agencies has been diverted to untested and non-viable microfinance programmes - away from vital programmes on health, education etc. that are in dire need of such money.13 Additional barriers to microfinance included the perceived ‘myths’ surrounding the industry, such as that poor people are bad borrowers, especially women; or that microfinance is not profitable.
However, in the 80s and 90s, microfinance programs bucked conventional wisdom and showed that poor people, especially women, had excellent repayment rates, sometimes better than formal banks in most developing countries. Experience has also shown that the poor are willing and able to pay interest rates that allow microfinance institutions to cover their costs.14 Thus, conflicting views exist regarding microfinance, and its effectiveness at reducing poverty in LDCs.
Entrepreneurship is the active process of recognising an economic demand in an economy, and supplying the factors of production (land, labour and capital) to satisfy that demand, usually to generate a profit. High levels of poverty combined with slow economic growth in the formal sector have forced a large part of the developing world’s population into self-employment and informal activities.15 But this is not necessarily negative; microenterprises contribute significantly to economic growth, social stability and equity. The sector is one of the most important vehicles through which low-income people can escape poverty. With limited skills and education to compete for formal sector jobs, these men and women find economic opportunities in microenterprises as business owners and employees.16 If successful, entrepreneurship is likely to result in a small- to medium-enterprise (SME). They include a variety of firms – village

World Bank Group, 2001, “Microfinance and Small- and Medium-Size Enterprises” (accessed 4 September, 2004)
DFID, 2001, “Maximising the Outreach of Microfinance in Russia”, Research and Impact Assessment;
Terms of Reference for FORA (London: DFID, 2001).
Hickson, Robert, 2001, “Financial Services for the Very Poor – Thinking Outside the Box”, Small
Enterprise Development 12, no. 2 (2001)
Srinivas, Hari, “Microfinance is not Enough…” (accessed 4
September, 2004)
World Bank, 2004, “Afghanistan: Pioneering Donor Coordination for Microfinance”, February 4, 2004, (accessed 4 September, 2004)
Financial Sector of the World Bank Group, 2000, “Rural and Microfinance/SMEs”
The IDB and Microenterprise: Promoting Growth with Equity, “What is a microenterprise?” (accessed 4 September, 2004)

handicrafts makers, small machine shops, restaurants, and computer software firms – that possess a wide range of sophistication and skills, and operate in very different markets and social environments. In most developing countries, microenterprises and small-scale enterprises account for the majority of firms and a large share of employment (refer to Fig. 1). In Ecuador, for example, firms with fewer than 50 employees accounted for 99 percent of firms and 55 percent of firms in 1980; in Bangladesh, enterprises with fewer than 100 workers accounted for 99 percent of enterprises and 58 percent of employment in 1986.17 Finally, it has been noted that, “SMEs constitute the most dynamic segment of many transition and developing economies. They are more innovative, faster growing, and possibly more profitable as compared to larger-sized enterprises.”18 Hence, the role of entrepreneurship in reducing poverty in LDCs is promising.
It has already been identified that entrepreneurship is a major contributing factor to economic growth, however, entrepreneurial ability and leadership tend to be relatively lacking in LDCs.
Collier and Batty (pp. 491/492) have identified five primary reasons for the shortage of entrepreneurs in LDCs. Firstly, this includes the limited profit opportunities which exist in LDCs as a result of lower per capita incomes and limited markets. Secondly, poorly developed capital markets make it difficult for potential entrepreneurs to borrow the funds needed to establish new businesses and take advantage of new investment opportunities. This ties in closely with the role of microfinance in empowering entrepreneurship. Thirdly, poorly developed infrastructures hinder the development of new commodity and resource markets as well as inhibiting the efficient operation of existing ones. Fourthly, sometimes social, cultural and religious beliefs and attitudes attach little importance to monetary gain, restrict economic and social mobility, or assign very low status to entrepreneurs. And fifthly, an unfavourable economic and political climate might discourage the development of entrepreneurial talent and initiative. It is often argued that in light of these barriers, governments hold the key in opening doors to aspiring entrepreneurs in LDCs.
The governments of LDCs can play an important role in improving the quantity and quality of entrepreneurs in a number of ways. Collier and Batty (pp. 534/535) suggest a number of policies to reduce the shortage of entrepreneurs in LDCs, such as the establishment of specialist educational institutions offering courses in business management and administration, and the establishment of specialist government agencies and departments to provide advice and assistance to local entrepreneurs about to take up a business venture are likely to aid the process.
Additionally, tax relief, subsidies, investment allowances and other incentives may encourage entrepreneurial activities, similarly, the provision of credit facilities to finance appropriate new business ventures might help. And finally, the attempted maintenance of an economic, social and political climate, which is favourable to entrepreneurs, is essential. It has also been suggested that official policies often make business difficult for microentrepreneurs. Improved business regulations, tax regimes, licensing requirements, financial sector reform and bank supervision will promote better conditions for microenterprise development.19 A final optimistic suggestion, according to economic theory, implies that the income expenditure multiplier effect may also help to create chain reactions through developing economies, thus helping to break the cycle of poverty. 17

Hallberg, Kristin, “A Market-Oriented Strategy for Small- and Medium-Scale Enterprises”, World Bank
Washington D.C., International Finance Corporation Discussion Paper Number 40
The World Bank Group, 2001, “Microfinance and Small- and Medium-Sized Enterprises” (accessed 4 September, 2004)
The IDB and Microenterprise: Promoting Growth with Equity, “What is a microenterprise?” (accessed 4 September, 2004)

The concept of sustainability is difficult to define, and its precise definition varies within differing contexts. However, regarding the development process, two primary aspects of sustainability emerge: economic and environmental sustainability. Both tie in with the notion of sustainable microentrepreneurship; economic sustainability refers to a continual supply of finance to meet a person/community’s needs, usually in the form of secure and accessible loans from a microfinance institution; and environmental sustainability is the aim to preserve environmental resources for use by future generations. Littlefield (2004) claims, "If you're going to provide financial services permanently to people, they've got to be sustainable, and that means charging interest rates that cover your costs."20 Similarly, the IFC (2004) notes, “Well-managed microfinance institutions…have convincingly demonstrated that they can become profitable and sustainable institutions while making major contributions to poverty reduction by increasing economic opportunities and employment.” This is core to sustainable microentrepreneurship.
Sustainable development bears relevance to the developing world, primarily due to the role of the private sector in reducing poverty (such as microfinance institutions, business organisations and multinational corporations). This affects them because the growing public awareness of corporate governance and of environmental and social issues is driving changes in consumer behaviour, investment, and policy or regulatory adjustments. All signs point to continued pressure on the private sector to demonstrate that economic growth and sustainability are compatible.21 In an examination of ‘ordinary’ businesses in LDCs, who have strategically integrated sustainability into their operations, it was noted that, “the evidence confirms that there are compelling commercial reasons to take action, despite a common assumption that sustainability is a luxury which emerging markets cannot afford.”22 Thus, economic and environmental goals may be pursued simultaneously, and it is now becoming apparent that this may be in firms’ interests.
Strategies exist to promote sustainable development in LDCs all over the world. However, it is argued that, "Sustainable development will only be achieved by ensuring that the economic, social, cultural and environmental dimensions of development be addressed in an integrated and balanced manner. This requires breaking down institutional and mental barriers between different sectors of society…”23, and in forging close cooperation between the sectors of LDCs.
However, there are challenges as well as opportunities in putting a greater emphasis on sustainability in emerging markets. Some may argue that the business case for sustainability does not apply in markets where incomes are low and mostly spent on basic needs, but also firms might not see benefits from improving environmental or social performance. However, others argue that businesses resisting sustainable practices, may put themselves at a long-term competitive disadvantage by missing opportunities, such as economically efficient and environmentally sound production methods that allow new market entrants to produce for less.
Such businesses may also face greater downside exposure to changes in the competitive environment and consumer behavior. 24 Whereas non-sustainable operations were in the commercial interests of firms in the past, this may not be the case in the future, especially in the developing world, where efficiency and cleanliness are vital to the development process.

Littlefield, Elizabeth, 2004, “Afghanistan: Pioneering Donor Coordination for Microfinance”, (2/4/04)
IFC, 2004, “Investing in a Sustainable Private Sector” (accessed 5/9/04)
SustainAbility, 2004, “The Business Case in Emerging Markets” (accessed 5
September, 2004)
UN, 2001, “Mobilizing Minds: UNESCO’s Environmental and Sustianble Development Activities”
IFC, 2004, “Investing in a Sustainable Private Sector” (accessed 5/9.04)

Most of the growth in the microfinance industry over the last ten years has taken place in the absence of specific financial sector policies for microfinance. Today, about 40 million lowincome entrepreneurs, mainly in the developing countries, have access to microfinance.25
In Bangladesh, where about one third of the world’s estimated 30-40 million microborrowers reside, the growth has come from specialised microfinance NGO’s and Grameen Bank. What began with a few small grants and loans from international donors, has now provided over 100 million dollars in loans. The most distinctive feature of the credit delivery system is the absence of middle men between the credit supplier and end user. The bank’s cumulative recovery rate is an astounding 98 percent.26 Grameen Bank has its own special legal structure, and does not fall under regulatory oversight of the central bank. The bank also aims to raise health and environmental consciousness. Each of its members must plant at least one sapling a year as part of an afforestation programme. Grameen is perhaps the only bank in the world that encourages birth control, sanitation and a clean environment as part of its lending policy (Yunus, 2001).
In Bolivia the microfinance revolution emerged in the 1990’s. Large-scale commercial credit is provided there by BancoSol, a privately owned bank for microentrepreneurs, and by a number of competitors following hotly on BancoSol’s heels (and profits). By 1997 BancoSol, financed by a combination of domestic and international commercial debt and investment and locally mobilized voluntary savings, provided loans profitably to more than one quarter of Bolivia’s clients.27 The
Wall Street Journal (15 July, 1997) notes, “The real measure of its success is that BancoSol has spawned a slew of competitions.”
In India, despite the large size and depth of its financial system, the majority of the rural poor do not have access to formal finance and financial services. For this reason, innovative microfinance initiatives pioneered by nongovernmental organizations strove to create links between commercial banks, NGOs, and informal local groups to create the "SHG Bank Linkage".28 The success of SHG Bank Linkage has been largely attributed to good policy and strong leadership, in conjunction with facilitating government policy and legal framework. India’s approach to microfinance – making it profitable and so widely available – helped the country reduce the incidence of poverty from about 40 percent of the population in the mid-1970’s to about 11 percent in 1996 (Robinson, 2002). Members of SHG recognise that “several challenges lie ahead,” but still believe it has “the right ingredients to be scaled-up into offering mass access to finance for the rural poor while improving sustainability.” (World Bank, 2003)
The economic benefits of sustainable microentrepreneurship in LDCs are compelling, and its potential effects on the development process are equally promising. In terms of development and social impact, the microfinance industry allows significant improvements in quality of life for the microentrepreneurs of LDCs around the world. They can now stabilise the cash flow of their economic activity, bringing security to the enterprise. This allows them to better manage

Development Gateway, 2004, “Microcredit and Microbusiness Development”, July 8, 2004, (accessed 5 September 2004)
Yunus, Muhammad, 2004, Grameen Bank,
Robinson, Marguerite S., 2002, “The Microfinance Revolution: Sustainable Finance for the Poor”, pp.34 28
World Bank, 2003, “India: Scaling-up Access to Finance for the Rural Poor” (accessed 5/9/04)

spending, which often generates savings; and this provides better standards of living to their family, and dependents in terms of housing, nutrition, health and education. Finally, an access to banking and increased security promotes a sense of entrepreneurship, and thus their self-esteem and reputation increase. The initial small loan of usually less than $100 can eventually reintegrate these entrepreneurs into formal networks of the economy and foster the structural and sustainable development of local communities. Furthermore, estimates indicate that today only 5% of the micro-credit demand is fulfilled29, thus, the microfinance industry is expected to grow significantly in coming years. Despite several challenges ahead, this emerging industry, and the process of sustainable microentrepreneurship combine to offer a potential alleviation solution to the poverty crisis of the 21st century, and into a sustainable future.

BlueOrchard Finance s.a., Microfinance Investment Advisers, 2004: “Micro-enterprises”,
(accessed 21/9/04)
Daley-Harris, Sam, 2002, Pathways Out of Poverty: Innovations in Microfinance for the Poorest Families;
“Microfinance Impacts Directly and Significantly on Economic Poverty” pp. 22, “Improving the Social and
Empowerment Impact of Microfinance”, pp.264-5, 2002, Bloomfield, CT: Kumarian Presss
Development Gateway, 2004, “Microcredit and Microbusiness Development”, July 8, 2004, (accessed 5 September 2004)
Department for International Development (DFID), 2001, “Maximising the Outreach of Microfinance in Russia”,
Research and Impact Assessment; Terms of Reference for FORA (London: DFID, 2001).
Environmental Business Finance Program (EBFB), 2004, Why focus on environmental SMEs?” (accessed
4 September, 2004)
Financial Sector of the World Bank Group, 2002, “Rural and Microfinance SMEs”, (accessed
International Finance Corporation (IFC), 2004, Sustainable Financial Markets Facility, (accessed 4/9/04); and “Investing in a Sustainable Private Sector”(2004) (accessed 5/9/04)
Hallberg, Kristin, “A Market-Oriented Strategy for Small- and Medium-Scale Enterprises”, World Bank Washington
D.C., International Finance Corporation Discussion Paper Number 40
Hickson, Robert, 2001, “Financial Services for the Very Poor – Thinking Outside the Box”, Small Enterprise
Development 12, no. 2 (2001)
Littlefield, Elizabeth, 2004, “Afghanistan: Pioneering Donor Coordination for Microfinance”, (2/4/04)
Robinson, Marguerite S., 2002, “The Microfinance Revolution: Sustainable Finance for the Poor”, pp.34, Washington
D.C.: World Bank Office of the Publisher; (May 1, 2001)
Rubinstein, Joel, 1993, Micocredit:“A poverty eradication strategy that works”
(accessed 4 September, 2004)
Snodgrass and Biggs, 1996, p.53 Based on industrial census data from 14 countries, mainly in the 1960s and 1970s.
GDP per capita in real terms. 1985-88; firm size based on the number of employees
Srinivas, Hari, “Microfinance is not Enough…” (accessed 4 September, 2004)
World Bank, 2004, “Afghanistan: Pioneering Donor Coordination for Microfinance”, February 4, 2004, (accessed 4 September, 2004)


BlueOrchard, 2004: “Micro-enterprises”, (accessed 21/9/04)

SustainAbility, 2004, “The Business Case in Emerging Markets” (accessed 5 September,
The Inter-American Development Bank (IDB) and Microenterprise: Promoting Growth with Equity, “What is a microenterprise?” (accessed 4 September, 2004)
The World Bank Group, 2001, “Microfinance and Small- and Medium-Sized Enterprises” (accessed 4 September, 2004)
United Nations (UN), 2001, “Mobilizing Minds: UNESCO’s Environmental and Sustianble Development Activities”
World Bank, 2003, “India: Scaling-up Access to Finance for the Rural Poor” (accessed 5/9/04)
Yunus, Muhammad, 1994: Grameen Bank, “Major Uses of Loan Funds”, Bangladesh (1994); and Extracts from the keynote address delivered at 85th Rotary International Convention help in Taipei, Taiwan, on June 12, 1994
Yunus, Muhammad, 2004, Grameen Bank, (accessed 5/9/04)

Similar Documents

Free Essay

Media Analyse Germany

...Media that depicts an instance of intercultural communication can give a good insight in other cultures and their values. By analyzing my media selection, I will describe the preferred personality and the relationship between humans and nature in Germany. At first I will give a brief description of each topic and then I will illustrate how the particular pictures are regarding to it. I tried to find appropriate pictures on the web that describe the topics best. The first three pictures refer to the preferred personality. There are three different kinds of personality. Those are “doing”, “growing” and “being” orientation. “Doing” orientation, which is the most common one in the United States and also in Germany, emphasizes productivity. The “growing” orientation emphasizes spiritual growth. This orientation is not really widespread, merely in some Asian cultures. The third solution emphasizes “being” and stresses on who you are. In my opinion, this is an important part of German culture as well. Germans are stereotypically hard-working, productive and efficient. Germany is well known for its car companies like Mercedes, BMW and Volkswagen. The first picture shows people working on an assembly line in a Porsche plant. Porsche is part of the Volkswagen group, as well as Audi, MAN, Bentley, Bugatti, Ducati, Lamborghini, Seat and Škoda. In 2012, it produced the third-largest number of motor vehicles of any company in the world, behind General Motors and Toyota. This picture is...

Words: 718 - Pages: 3

Free Essay

Street Car

...SHORT CASE 3: STREETCAR 1. Do you think it’s possible to use and apply an idea like Streetcar in Pakistan? What would be the problems/challenges to overcome? Well, yes it is possible but it depends on the market they are targeting on. Like in Pakistan most of the people are middle class families who cannot afford to drive a car so for them this scheme does not create any difference for them. Secondly, it would be an expensive deal for Pakistani market because as per petrol prices are rising day by day and as the crime rate are increasing and car snatching is so common that no company would take risk to invest in Pakistani market. 2. How would this idea compete with the traditional car rental industry? Unlike traditional car rental industries, it eliminates the long lines and frustration at the rental-car office, and gives its members the grab-and-go convenience of renting a vehicle 24 hours a day, paying only for only as long as needed, and usually with little advance reservation notice. And with no fuel, insurance or maintenance costs, Street Car has become a great option for drivers with minimal transportation needs, and those with no interest in the price and parking headaches of vehicle ownership. It also provides ease and convenience, which are the greatest advantages of car sharing, behind the obvious financial savings. Unlike a traditional rental-car office, Streetcars clients climb behind the wheel and drive off the parking lot in seconds with no lines...

Words: 348 - Pages: 2

Free Essay

Critical Path Whistler Ski Resort

...Sustainable Companies Sustainable development is a concept that looks to meet “the needs of the present without compromising the ability of future generations to meet their own needs” (Lawrence & Weber, 2011, p. 223). Weyerhaeuser and The Stow Company are two companies that are known for their production of sustainable products and their commitment to social responsibility. Weyerhaeuser has been in the business of making wood products for over 100 years. During this time, their commitment to the sustainability of the environment has been unwavering. Weyerhaeuser has always been concerned with the sustainability of the forests that they log and as environmental concerns have arisen and technological advances have been made, they have adapted their sustainability goals to include such things as a 10 percent reduction of waste water discharge, a 40 percent reduction of emissions, a 20 percent energy efficiency improvements in their facilities, a 10 percent reduction in solid waste, and a supplier code of ethics (Progress towards sustainability, 2011). Weyerhaeuser’s efforts to improve their social responsibility commitments has helped them to increase their net sales, revenues, and net earnings despite the housing market slump over the past 5 years (Financial results, 2011). Weyerhaeuser’s vision and mission statement is “to release the potential in trees to solve important problems for people and the planet. We do this through strong leadership, unwavering values,...

Words: 1016 - Pages: 5

Premium Essay

Organic Farming

...Why the government should Subsidize Organic Farming Organic farming is a farming method focused on advancing environmental and ecosystem benefits, as opposed to the external output in farming. It promotes the health of the ecosystem, biodiversity, and the soil biological activity. Government subsidies farmer receive are aimed at promoting healthy and beneficial and responsible farming. To understand why it is crucial for the government to subsidize organic farming, it is good to evaluate the benefits that accrue from organic farming. The aim of this paper is to evaluate the gains achievable if the government was to subsidize organic farming. One of the focuses of most governments is the reduction of greenhouse gases (GHG). A UN framework for climate change is now a key focus for most governments. One way of achieving this is the subsidizing farmers to do organic farming. The aim of doing that is that, by the use of organic farming methods, the increase in greenhouse gases reduces. The essence of this is to reduce the number of energy intensive farming that have a negative impact on farming. In addition, using less energy intensive methods means more saving on the inputs and additional benefits to the farmers. This is important since, over the years, the gains and benefits for farming have reduced. That is because, of among other things, bad weather, and scares of public health. Therefore, promoting a method that will directly benefits the farmer and the environment......

Words: 928 - Pages: 4

Premium Essay


...Max Altschuler ENVD 3115 Professor Marcel S. de Lange December 8, 2013 Earthship Design, Materials, and Sustainability Earthship design is a movement initiated by Michael Reynolds. Earthship Biotecture is a method of architecture and design that incorporates recycled materials, earthen materials, and renewable energy sources into a sustainable and self-sufficient home. The purpose of this according to Michael Reynolds it to achieve energy independence, sustainable housing, and relieve the burdens of stress on the environment from conventional building methods while keeping cost minimal. Utilizing waste and earthen materials, Michael was able to construct comfortable living, beautiful architectural design, and self-sufficiency with sustainable technologies. In achieving low cost construction methods, as little as $20 a square foot, a new way of living can be imagined in which utilities, mortgages, and sustenance cost are reduced. This reduction in expenses provide for the availability of greater opportunities due to decreased economic constraints, but furthermore provides a cost effective and sustainable method for supplying homes for those stricken with poverty. The purpose of this writing is to discus some of the materials and methods required and the various components that work together to create a dynamic self-sufficient home. The first concept discussed is the principle of thermal mass to maintain a constant temperature. Houses are built with south......

Words: 1225 - Pages: 5

Free Essay

Organic Wines Market Analysis

...MM110 Assignment 1 Market anaylsis of organic wines in australia xiangyun Dai, SID:220113354 MM110 Assignment 1 Market anaylsis of organic wines in australia xiangyun Dai, SID:220113354 2013 2013 Unit coordinator: Fredy-Roberto  Organic Wines Organic wines are made from wine grapes produced under organic agricultural practices, as defined by the International Federation of Organic Agriculture movements as the ‘production system that sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions’ with its core principle in achieving high yields without artificial fertilizers and pesticides (IFOAM, 2008). With over 11 million certified hectares of land, the Organic agricultural industry in Australia has received rapid growth in the recent years due to the trend to a more ‘healthy, and environmentally responsible’ consumer culture and a willingness to pay more for their values (Remaud, 2008). In the following years the industry is expect to continue to receive respectable double digit growth. The recent growth in organic produces has translated well into the growing market for organic wine (107% growth during 2010-2012) and it is expected to continue into the future (Mascitelli, 2012). While the average consumer are not so willing to pay the premium for the ‘organic’ label on their wine, research have found that a significant cluster (~14%) of Australians are willing to pay up to a 9%......

Words: 1259 - Pages: 6

Premium Essay

Green Hrm

...Green HR: The Ultimate Change Management Tool for Sustainability Green HRM involves the use of HRM policies to promote the sustainable use of resources within business organizations and, more generally, promote the cause of environmentalism. Green initiatives within HRM are increasing as a result of mounting concern over global warming and the adverse effect of much business activity on the natural environment. The kinds of action taken within green HRM initiatives includes:- 1. Educating employees about climate change and other environmental issues 2. Reduce commuting - promoting and incentivizing more sustainable means of travel to work (e.g. car sharing or Ride Sharing or Car Pooling, Bicycle to work, public transport) 3. Auditing employee benefits to eliminate those that are environmentally damaging (e.g. unnecessary provision of a high powered company car). 4. Job Sharing 5. Reducing business travel - Using the internet or teleconferencing to cut down on business travel 6. Recycling 7. Going paperless - Encourage e-mailing 8. Some green HRM initiatives also make use of employee volunteering to support environmental charities and projects and to develop green initiatives at work. 9. Conducting an energy audit 10. Buying green - buying recycled, refurbished, or used products. Many companies currently have the following green programs in place: SoftChoice from Canada.  SoftChoice has a public transportation policy.  If...

Words: 363 - Pages: 2

Premium Essay


...Nature-based tourism involves traveling for recreational purposes.   Ecotourism, on the other hand involves traveling to undisturbed natural site for conservation and education which are also known as ecological, environmental, nature, green, sustainable tourism.   Ecotourism, short form for Ecological Tourism, is defined as “purposeful travel that creates an understanding of cultural and natural history, while safeguarding the integrity of the ecosystem and producing economic benefits that encourage conservation.”   Using case studies, this paper demonstrates the positives and negatives of ecotourism and the implications for the future. Ecotourism, deemed as a tool for sustainability and development, is growing at an increasing rate. With education as a primary goal, ecotourism can teach both tourists and local people the value of environment and culture and help develop a nature-conscience lifestyle. Ecotourism brings employment benefits to often previously disadvantaged rural populations. The expansion of ecotourism has undeniably boosted Nepal’s overall economic development with tourism revenues.   For example, in the Langtang Ecotourism Project, established in 1996, describes the Nepalese women effort in proactively developed sustainable tourism management.   Using a community-based planning approach, they chose to use kerosene instead of wood for cooking.   The kerosene depot was established which helped generate money.   The profit is then used for tree planting and......

Words: 280 - Pages: 2

Premium Essay

Sustainable Development

...SUSTAINABLE DEVELOPMENT Student Name: Student Number: Instructor: Class: Date: The concept of Sustainable development has in the recent past, raised concerns in all aspects of day to day living. Consequently, over the years a number of definitions and connotations have been associated with this concept, so as to apply it in different professional settings. Particularly, different professions have adopted various codes of ethical; conduct centered on sustainable development. Accordingly individuals working in various sectors constantly seek to adhere to these codes of conduct within their mandates. The engineering sector is one such area where the concept of sustainable development is regarded as a key tenet guiding ethical conduct among engineers. This paper traces the history of the concept of sustainable development and how it is practically incorporated into the engineering profession. Further, this paper examines the current Engineers’ Code of Ethics and how it addresses the issue of sustainable development. There have been various definitions regarding the concept of sustainable development. However, all these definitions revolve around the concept of need and limitation. The all time famous definition was one brought forward by the world Commission on Environment and Development in 1987 that termed sustainable development as, ”development that satisfies present needs without undermining the ability of future generations to satisfy their own needs.”. This......

Words: 1734 - Pages: 7

Premium Essay

Railroad Case Study

... The article I have chosen is “A Green Desk Powered By The Person Sitting At It”. Eddi Tornberg is the inventor of this desk that uses the potted plants, heat, and motion from your body to create energy to power the desk but it still has a long ways to go. The prototype only creates enough energy to power a small laptop for a short amount of time. The carpet has a special element in it that creates energy when you walk or roll on it. The chair has a special film that captures energy from the metal heating up while you are sitting at the desk. The plants in the area around the desk somehow serve as a microbial fuel cell. As of right now all the elements that make up the desk are very simple design and appear to not be very practicable for the common user. There are cords running from the chair, flowerpot, and rug to the desk. These cords transport the energy created, to the desk, which are accumulated and converted into usable energy. The desk has three outlets to plug into your devices. Mr. Tornberg hopes that one day he will get his prototype to have it mass marketed and make it part of our day to day living standard. He hopes that a major furniture building company will pick up on what he is doing and start mass producing furniture that can help our electrical needs in the future. My personal opinion is that green energy is coming. As......

Words: 720 - Pages: 3

Free Essay

“Sustainable Development—World Economies Need to Wake Up”

...“Sustainable Development—World economies need to wake up” World reached the mark of seven billion people. It forgets its weight over its head. Earth with menial resources, sustaining the life of human being. Man on the other hand forgetting these menial resources over using it leaving future generations in risk. The consciousness of conserving the environment had its root from Earth summit, Rio de janerio Brazil (3 June to 14 June 1992).This session opened great debate in all the participated nations. Within Very short span in every country a buzz word entered in the society. The word is sustainable ideologies/development ideas. Sustainable development in simple terms can be called a development strategy where present generation needs are fulfilled by not compromising for future generations. Sustainable development ties together concern for the carrying capacity of natural systems with the social challenges facing humanity. Ecologists have pointed to The Limits to Growth, and presented the alternative of a "steady state economy" in order to address environmental concerns. Every International conference talks more about sustainable development but does very less in action. Present Scenario of Climate change. Both Geo thermal Institutes of the world One in (Nalgonda ) India and other in U.S.A have confirmed the global temperature has raised to 1*C. The International Energy Agency (IEA)’s data is regarded as gold standard in emissions and energy.......

Words: 1497 - Pages: 6

Premium Essay

Est1 Task 1

...Part A Company Q does not currently have a positive attitude toward social responsibility. They recently closed several stores in higher crime areas. This has eliminated job positions that were held by residents of the area and taken away revenue from the community itself. This is not being socially responsible. The company just started offering a limited selection of health and organic foods despite that the demand from customers has been there for years. They have also made the decision to not donate day old food to the local shelters, opting instead to waste the food by throwing it away. Company Q needs to make several changes in their company behavior in order to become more socially responsible. Part B Company Q closed down several stores in a high crime area due to negative profits. Instead of closing these store locations Company Q should have made a comprehensive evaluation of the business to determine why they weren’t making a profit. This would have allowed them to determine what the issues were, find a way to fix them and turn the stores profitable. Being that the locations are in a high crime area, was there a large amount of theft resulting in the loss of product and income? Were the products and corresponding prices tailored to the surrounding community? For instance, selling higher priced items with brand names versus lower priced generic items in a low income community is going to result in low sales. Part of being socially responsible is......

Words: 738 - Pages: 3

Free Essay

Mode of Tansportation of Students

...I.D. no.________ College_______ Gender_______ Age_____ 1. What Mode of Transportation do you use going to school? A. Car B. Train C. Bus D. Jeep E. Others (specify) _______________ 2. How long is your trip going to school? _______ (min) 3. How much do you spend for your transportation weekly? _______ (pesos) 4. Are you satisfied with your current transportation? ___Yes ___No 5. What mode of transportation do you prefer? A. Car B. Train C. Bus D. Jeep E. Others 6. How many cars do your family own? _______ 7. Do you know how to drive? ___Yes ___No 8. How many can drive in your family? Z___________________ 9. Does your family hire a driver? ___Yes ___No 10. How many drivers do you have? (Skip if none) ___________________ Rate from 1 for strongly disagree, 2 for disagree, 3 for neutral, 4 for agree and 5 for strongly agree ______ 11. Using a car is the best mode of transportation ______ 12. Public transportation is for the poor ______ 13. Waiting in traffic is better than waiting for a train/jeep/bus ______ 14. Knowing how to drive is a privilege ______ 15. Someone who uses a car going to school is considered rich ______ 16. Riding in a train is more practical than riding a car ______ 17. Riding a jeep is better than riding in a train ______ 18. Driving is more tiring than standing in a train ______ 19. I am satisfied with my mode of transportation ______ 20. I would use a bike going to...

Words: 258 - Pages: 2

Premium Essay

Home Depot

...decline” (“Sustainable Development Strategies”, 2009). Sustainability means the balance of three things which are steady business, society and friendly environment. In other words, businesses must show crucial responsibility in terms of environmental impacts and social responsibilities. Consequently, businesses must utilize natural resources carefully, and the economic growth and employment rate of businesses must be increased (“Understanding Sustainability”, n.d.). Therefore, sustainability is an aim of businesses. The Triple Bottom Line or TBL is a significant tool advocating sustainability goals. The concept of TBL emphasizes three things, which are healthy communities (people), clean environment (planet) and stable profitability (profit) (“Slaper & Hall”, n.d.). In contrast with the past, many businesses, nonprofit organizations and government entities tend to follow this guideline. Home Depot is one of the best examples of companies which are following the TBL standard. Home Depot is the world biggest home improvement retailer (“​Did You Know”, n.d.). The company was established by Bernie Marcus and Arthur Blank in 1978. The first two stores opened on June 22, 1979, in Atlanta, Georgia. Today, Home Depot has approximately 2,200 branches around the United States. There are 40,000 diverse kinds of home improvement products, appliances, garden supplies and building materials (“Stores, Products, and Services”, n.d.). Additionally, Home Depot gives precedence to......

Words: 1929 - Pages: 8

Premium Essay

Sustainbale Media Journal

...Sustainability Media Journal 111857253 Xuxu Miao The concept of sustainable development spread first into the mainstream in the 1980s. These years, driven by internal and external factors, many corporations are beginning to integrate sustainability into their business models to gain competitive advantage in today’s market. This essay will introduce what forces the corporation to become sustainable and what corporation can do to achieve sustainability while listing an example of an ideal corporation in this term. Both of the external and internal drivers accelerate transformation towards sustainability for corporation. The worsening environment in China is prominent power for moving to sustainability currently. The push to clean up the country's air, land and water has forced company to transform its developing model. Though China has become the world's second- largest economy, it is still in the lower part of the world's industry chain and has a lot of industries with excessive energy consumption and high pollution. Due to social and economic factors, Hebei provincial government in January this year has banned approvals of new steel, cement, glass and nonferrous metal plants-these industries are both environment killers and economic drivers in Hebin (Jin Haixing 2014). It can be seen that these industries have to change their way of operation, which can add the most value with the least use of resources and pollution. Meanwhile, increasing public awareness of......

Words: 1971 - Pages: 8