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microplace

Microlending site now pays 5 percent

I've long been a fan of microfinance or microlending where a small loan can make a big difference. To date, I've made several small investments via both Microplace.com and Kiva.org. And, in addition to doing good, I'm doing well. Kiva doesn't pay interest but it does make it easy to give gift certificates. Microplace, in the past, paid up to 3 percent interest, but Tuesday it announced a fund that's paying 5 percent.

Have you checked bank and CD rates lately? Five percent is great compared to the rates paid by most banks … Read more

Microformats (II): The limitations of microloans

In an article in this week's New Yorker, James Surowiecki ("The Wisdom of Crowds") scrutinizes the effectiveness of microloans in bolstering the economies of developing countries. He posits that the hype around micro-finance neglects the small-to-medium sized enterprises (SMEs), the "missing middle" that is vital for a stable economy: "This isn't because microloans don't work; it's because of how they work," so Surowiecki.

The focus on the micropreneur, he argues, is "understandably appealing, but thinking that everyone is, and should be, an entrepreneur leads us to underrate the virtues … Read more