Transcript bauer microfinance program ppt brief lendforamerica

Promoting Entrepreneurship in
Houston through the
Microfinance Program
Kelli Lewis- Chairman of the Microfinance Initiative
Presentation at the 2014 Lend for America Summit
November 15, 2014. UC Berkeley, CA
Poverty is a problem in Texas,
especially in Houston
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17.9% of Texans live in poverty (4.56 million people) (2013)
49.8% of Texas households are One Crisis away from slipping into
poverty (2014)
27.9% of Houstonians live in poverty (2009)
9% of Houstonians live on <$2/day
Yet…….
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Houston’s GDP totaled $442 Billion in 2011. It grew by 3.8 % in
2011, more than double the growth rate of the U.S.
If Houston were an independent nation, it would rank as the
world’s 30th largest economy
• Poverty in Houston is not a result of a weak economy. It is a
result of other limiting factors such as insufficient education
and impaired access to capital
Microfinance is the key to
breaking the cycle of poverty
• Microfinance typically refers to microcredit, savings,
insurance, money transfers, and other services (such as
education) targeted at poor and low-income people
• The core product of microfinance is microcredit: small
loans with a short payback period intended to help
people start small businesses
• Microfinance is not a payday or title loan solution that
charges usury rates but operates more like a traditional
financial institution focusing on customer service
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Objectives of the
Bauer Microfinance Program
• Prepare entrepreneurs for microfinance loans by
providing financial literacy and entrepreneurship
education
• Grow local small and medium-sized enterprises by
promoting the expansion of microfinance in the
Houston community
• Establishment of a robust and innovative program for
graduate level students that combines classroom
research into global Microfinance models with direct
application through the Bauer Microfinance Program
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The focus of the program is
making an impact in Houston
• Focus exclusively on Houston-area projects
Local
• Inclusion of financial literacy education
• Formalization of entrepreneurship education
Education • Provide business plan consultation by Bauer College students
Inclusion
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• Collaborate with local microfinance organizations, local
branches of international organizations, and businesses in the
communities we serve
Structure of the
Bauer Microfinance Program
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Frequency: 2 programs per year
– Programs are concurrent with the Spring and Fall academic
semesters
Location: Rotates each program
– Held in underserved areas
– Space is provided as an in-kind donation by our program
partners
Duration: 12 weeks per Program
Timing: Saturdays from 9am-1pm
Participants: Between 30-50 participants per program
Achieving success requires the program to
dive further into education
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A fresh approach can tackle the root
cause of poverty
Adjusting the original mission…..
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The mission for Microfinance is to combine entrepreneurship for
participants and education opportunities to help break the poverty
cycle in disadvantaged neighborhoods across Houston and the U.S.
Adding savings…..
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Microfinance institutions globally are seeing an increased demand for
savings products (ex. Jipang KuSave in Kenya)
Yields a new approach to Microfinance in the U.S.
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Linking children’s enrollment and success at school to a reduced interest
rate for the parent
Investing the difference between the regular payment rate and the
discounted payment rate into a 529 savings account, Coverdell
account or other savings mechanism for a child’s education expenses
Designed to promote education which is the most important tool in
breaking the cycle of poverty
Thank you for your time and
your enthusiasm of the
Microfinance Program at the
University of Houston!
Contact Us:
Saleha B. Khumawala Ph.D., CPA
Professor of Accounting
Founder & Director, Nonprofit Management and Microfinance
C.T. Bauer College of Business
Voice 713.743.4829
[email protected]
www.bauer.uh.edu/microfinance
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Program Assistant: [email protected]