Global Design And Business

Introduction: the challenge of growth This paper examines the difficulties inherent in the prudent management of growth in microfinance organizations and identified potential limits to the greater efficiency, profitability and sustainability that are usually expected to achieve growth and higher dimensions.

To illustrate these dilemmas, the paper uses the experience of Banco Solidario SA (BancoSol) in Bolivia. For the formalization as a bank BancoSol brought the prospect of faster growth and, consequently, a number of challenges, unexpected problems, new sources of costs and adjustments of the second generation. From this experience you can learn lessons very interesting, because few microfinance organizations in Latin America have grown so much and so fast.

The objectives of this paper are to analyze how growth has occurred in the case of BancoSol, considering the challenges that this growth creates for any microfinance organization and identify conditions that must be met for prudent management of growth. Given the history of the creation of BancoSol, would be impossible to understand the lessons of this experience if the analysis does not consider, where appropriate, the first steps taken during the PRODEM.

The growth has at least three positive implications for a microfinance organization. First, growth is the central mechanism to increase the reach of the institution, which is one of the main indicators of its success. A growing number of customers improved amplitude range. Given that in developing countries there are large numbers of family businesses that may be subject poor credit but who lack access to financial services, microfinance organizations should always searchan growth.

In this article summarizes the current state of ideas and policies on financing for micro and small enterprises. Based on recent literature, mainly on Latin America, we present the main lessons to be derived from programs and microfinance institutions (Small Maggots) by academics, development specialists and government officials. It identifies three main areas and are widely discussed. The first issue discussed is the context for economic activity in the Small Maggots and their customers, micro and small enterprises (MSEs). The second aspect is the dual objective for Small Maggots: self-sustainability and coverage of target groups. The third aspect is the innovation in offering cost-effective products designed to meet the specific demands of MEPs.

The economic climate may be an incentive or an obstacle to the performance of the Small Maggots and their customers. Profitability of Small Maggots is affected by direct and global economic policies, by government regulation, and the Small Maggots linkages with other markets, including incomplete or non-competitive markets. The reforms and policies needed to create an enabling environment for Small Maggots and their clients are the same as to generate a favorable environment for the entire economy. The authorities should pursue those policies, not because they favor Small Maggots and MEPs, but because they encourage a stable global economic growth and sustained.

The sustainability and coverage of the target groups are two objectives that have been seen as antagonistic by some, and as complementary to others. In this article, states that sustainability itself is not a goal but only a method of reaching a goal. Sustainability is important only when it increases the coverage of target groups over time. The dilemma is that sustainability requires Small Maggots profitable, and that profitability requires higher prices, which reduced the benefits received by each customer. Some recent experiences show that both objectives can be compatible because the decrease in benefits received by each client can be offset by the increased number of customers over the long term. From a social standpoint, the net present value of a sustainable MIFI higher net present value of an unsustainable MIFI.

The financial product design must consider both MEPs use by their contribution to organizational self-sufficiency of the MIFI. On the supply side, the Small Maggots require products that can be administered at minimal cost. On the demand side, the MEPs require products that fit their demands for capital and cash flow. Customers want to minimize transaction costs as much as the cost of the interest rate. Those who design financial products for MSEs should ask not only “What customers demand?” But also “What can you offer a price that covers costs?”

Few escape the fate successful ideas that someone used to make money. The blog is no exception. Started as a personal diary that N.N. the world used to say about what pleases them. Today, some charge for writing. When he appeared, the blog was conceived as a simple tool for people to express their thoughts, feelings, emotions and so on heaven and earth.
A blog, they said, is a personal diary, a forum for opinions about politics, economics, business, social or whatever and then receive comments and share ideas or discuss with other people. Specifically, is a website set up, with little technical knowledge, for people who need or desire to publish their ideas and share them with others.

When the blogs were millions who populated the Web, came from the idea of advertisers using them as a new marketing channel, is for brand campaigns, or to sell, or promotions.

So, little by little, began the original blog denaturation. Today its meaning is another. Its looks more professional appearance and content, often used to market products and services. Today you can make money with blogs.

Questioned by reporters about the success of their venture, Nick Denton, director of Gawker Media, emphatically rejected their marketability. Gawker is a huge network of weblogs in constant growth, one of which is Gawker, site specializing in news and gossip. “People ask me for my empire. What empire? Please do not make me laugh.”
He said the only reason he formed the company, was more attractive to advertisers with its network of blogs. At a time when we are discussing the potential of the form, where it is rumored that blogs can change the course of business, Denton is indifferent, disbelieving, skeptical. “Please come with me what the blog revolution, this type of site serves more to destroy people, careers and brands to promote.”

Throughout the conversation with the journalist, he attributes all the fuss about the supposed new revolution of marketing professionals who believe in a new chapter. But beyond the contempt and indifference with which Denton refers to that “no revolution” seems indisputable that he and his team are trying to convert the form online diary on the job, if not lucrative, at least viable. Big advertisers like Audi, Nike and General Electric have tried to draw eyes on Gawker’s blogs.

Gawker Media is a business based in New York that is created on the basis of a basic model of content delivery. Denton, UK and former Financial Times journalist, was one of the few who bought into the dot-com boom and came out rich two technological entrepreneurship. It refuses to disclose whether Gawker is profitable, or how much they paid to the “editors” (bloggers, or people who provide the content).

Lockhart Steele, the managing editor, was recently interviewed and that conversation gave the specific data that eludes Denton. He is the person who is in constant communication with publishers, divided between New York and around the country. Each publisher has signed a contract requiring it to publish 12 times a day in exchange for a flat fee: $ 2,500. We recommend posting, if possible, eight times before noon, to make readers return again and again. Steel said his company is testing an incentive program to pay writers based on the traffic they attract.

“We’re profitable,” he added. “We are small, we have no overhead, no office. They all work at home. Gawker Nick founded with the idea of creating a set of blogs in specific topic areas, hire independent editors, get much traffic and then sell advertising. Knowing that no site would in itself to make fortunes, at least 10 sites serve to create an interesting business. ” This harsh description angered Denton, who went on to say that the data had been misinterpreted.

The simplicity of the model alone explains the zeal to discredit Denton brings enthusiasm generated by the commercial potential of weblogs. He knows perfectly well that the models are copied. He also knows that competitors have larger networks than yours and they are already copying the Gawker model.

The model: The idea was to attract advertisers to a universe – of blogs – they do not know where they feared and incursions. By bringing together blogs, the company acquires an air of respectability. Advertisers treat Gawker titles more seriously because it is part of a group. In places, the cost per thousand of a notice can range from $ 4 to $ 50.

“I will not get rich publishing blogs. It is not about money. Nor is it corrupting the art of the blogger. If someone accuses me of posting as a routine – 12 times a day – is true. We believe in publishing schedules . But we do nothing to prevent the emergence of other models in this sector, or independent writers continue doing what they used to. There is room for both. “

As the beginning of our study was to reflect the
different stages of any negotiation of a
financing transaction with a financial institution.

The financial needs analysis is done
calculating the liquidity that we currently or short
term. For this study the treasury account,
where we can check the entries and exits
money within a period of 12 months.
Every month we will see the money gained from the difference
between revenues and expenditures to forecast
of our funding needs, and watch the months
liquidity that we have to use it
more efficient.
Now we would be in the proper position for
develop a financing plan.
Prior to the visit to a financial institution to request
A provision is appropriate as much information visit
several. So we know what the market trend
(if rates are rising or falling, commissions, etc.)..
Where we place special emphasis on the
negotiating terms with the bank, so
we have to know beforehand:
• What is our financial need
· Our ability to deal with the real cost of
loan and repayment conditions. If not
will have to try to reduce them.

If we reach an agreement with the bank will be sought
operation and deliver the information that they requested.

Let’s see the definition of each of these products
and differences between them in order to assess
the election.
A loan is a contract by which a customer obtains
a financial institution, a certain amount, to
which we have discounted a number of costs
formalization of the contract. We have the
obligation to return such funds within or
several, as agreed at the outset, in addition
to commit to pay interest and commissions
have been agreed.
A credit is another way of funding, through the
which the financial institution agrees to make available
quantities we need, to an agreed limit.
Therefore, the fundamental differences between these
products are:
• Availability of the amount.
In the loan, the bank or gives us all
amount requested from the outset.
The provision, any amount not available, but
do have the right to have when we want a
maximum amount during a specified period not
the obligation to use it all, only the part that
really need.
• Interest.
Pay interest on the loan amount for all
applied and credited only pay interest on the
amount that we used, not all that
we have available.
• Contributions.
The fees payable on the loan are regular in the
Assessed time and we know from the outset.
In credit, the only commitment that exists in this
sense is that we must return the amount used
the end of the existing term.
• Advance payments.
In lending, we can make advance payments
the amounts we owe to the bank but are usually
penalized with fees, as set comes
in the contract.
In credit, we can refund the money that we
ready at any time.
• Purpose.
The loan is advisable to purchase goods with a
longer duration (for example, a local business)
or investments of any importance are linked
fixed assets of the company.
Credit is a financial product most appropriate for
professionals and companies who need to address
momentary liquidity needs and a stud
inferior to those used for a loan (eg
to purchase consumer goods or goods
meet the needs of customers).
• Possibility of renewal.
The loan is not renewable but it can start
another loan agreement when you finish the previous one.
Credit can be renovated and expanded many times
As agreed with the entity.

The first microcredit program in Bolivia under innovative schemes of guarantees, such as solidarity group, was started in the early 80s. This was driven by the Confederation of Private Businessmen of Bolivia, Calmeadow Foundation and ACCION International, which promoted the creation of the Foundation for the Promotion and Development of Microenterprise (PRODEM) in 1986.

After two years of work, success was evident PRODEM, insomuch that it was difficult to meet the growing unmet demand in a sustainable manner. This, among other factors, were crucial to undertake the creation of Banco Solidario, a project that began in 1988 and culminated in 1992. Since then, BancoSol Bolivia is the only bank with services targeted exclusively to the microenterprise sector.

PRODEM Besides, other NGOs have been created to address this market by applying different methodologies microenterprise credit. Examples include the Foundation for Development Alternatives (FADES), founded in 1986, geared exclusively to rural areas and especially known for using his methodology of “credit associations and the Center for Promotion of Economic Initiatives (FIE) was founded in 1985 as a pioneer in the use of the methodology “individual”, which in turn was integrated with non-financial services.

On the other side there is the Institute for Support to small production unit (IDEPRO), created in 1986 with the aim of providing “business development services as a complement to its financial services. IDEPRO, as some institutions, financing activities beginning years since its foundation in 1991.

Also in 1986, I think PRO-CREDIT organization working in urban areas with the methodology of such “individual”. The enormous success of this institution was motivated to create a specialized financial institution under the guise of Private Financial Fund (FFP) in 1995, called the Savings Bank and Loan Los Andes, FFP. Similar decision takes to create FIE FIE, FFP in 1997.

In 1991 national Women’s Programs (PRO WOMEN), institution targeted exclusively to low-income women in peri-urban areas of different cities of the country. PRO WOMEN introduced the concept of “community banks or associations” as a new methodology in order to reach the poorest segments of the population.

The growth of the microfinance market, both institutional, methodological and normative, has allowed Bolivia to become a model for other countries. In the “model Boliviano” highlights the transformation that has suffered some financial NGOs into regulated institutions and self-sustaining, incorporated in FFPs. With this institutional structure is intended to regulate financial intermediaries engaged in small and micro enterprises. Moreover, empowering these institutions to raise funds from public deposits, opening the possibility of providing savings services to microentrepreneurs.

However, not all institutions followed the pattern established by the above model. In 1996 national FA $ $ IL, institution that was born as FFP to offer their services to microentrepreneurs in the department of Santa Cruz.

On the other hand, also have developed methodologies “upstairs” in the case of the Foundation for Production (FUNDA-PRO) and Nacional Financiera Boliviana (NAFIBO SAM). The former has developed a program of institutional credit since 1993 with a variety of financial institutions, mainly non-banks, and the second has been created as a specialized financing entity in 1996 to meet credit requirements for regulated financial institutions. Both institutions have come to establish a methodology for an efficient channeling of resources to various industries of the economy through intermediary credit institutions. FUNDA-PRO, which is the oldest institution among them, has placed emphasis on providing financial services to entities engaged in microenterprise activities.

Beyond the creation of FFPs and institutions “upstairs”, institutional development has taken a variety of ways. In the private sector, two associations have been organized to provide support services to microfinance institutions: the Corporation of Private Institutions Microenterprise Support (CIPAME) for institutions serving the urban area and the Association of Financial Institutions for Rural Development (FINRURAL) for those in rural areas.

In terms of regulation, has found a way to regulate financial intermediation in the microcredit market by the Constitution of FFPs. Furthermore, it has created a Quartermaster nonbank financial institutions, part of the Superintendency of Banks and Financial Entities (SBEF), whose central function is to precisely regulate the activities of such institutions.

In published material, the government of Gonzalo Sanchez de Lozada created the Program to Support Microcredit and Rural Finance (PAM), which was meant to support, financially and institutionally microfinance NGOs.

With the new government installed in August 1997, has established that the new Vice-Ministry of Micro and FONDESIF coordinate their efforts to meet the needs of training, technical assistance and financing of microenterprise.

Specifically in regard to funding has designed a program called Microcredit Fund, which defines the strategy and policies to guide government efforts in this field.

International agencies, meanwhile, have played an important role in the development of microfinance activity, focusing primarily on strengthening support institutional development and strengthening of portfolio management, support that was given to most microfinance institutions.

Finally, the paper highlights some of the challenges facing the microfinance market, such as the provision of new financial services, institutional strengthening and balance-sheet financial intermediaries and the development of regulatory standards appropriate to their activities.

As we have seen successful results with the various terminal types, the difference in use between a type mobile “standard” and a touch-screen is huge, plus the difference in use, generally, the rate of access is also much higher in the latter.

If we look at the designs of the last terminal, it is clear that everyone wants to follow the lead of the iPhone, with touch screens that occupy almost 100% the size of the terminal, I’d say this is the future, but all depends on many factors, including knowing the target of our client, not the same think on a website for mobile phones aimed at young people whose most certainly be a standard, a mobile web aimed at executives, whose phones do not only be the most avant-garde, if not they will have a flat fee paid by the company …

In short, as always, seek to apply common sense. In any case I do not see a single point solution or a single truth, all I have clear is that it is essential that those sites that want to monetize their users through Internet, they must have a website designed specifically for mobile.