Introduction

Venture capital is defined as the funds made available for startup firms and small businesses with exceptional growth potential (www.investorwords.com). With the trend in popularity of many dot com companies, and other smaller business startups within the last decade in the U.S., we know that venture capital has become popular domestically. We will look at the establishment of the venture capital industry internationally.

Overseas, small business lending is becoming more and more popular – even in third world countries. These financing opportunities are available through governments, international financial institutions, and private organizations. We will take a closer look at borrowing opportunities available for businesses in Romania, the Philippines, Bolivia, Nicaragua, Bulgaria, and Kenya.

These countries were chosen because we were looking for an even geographical spread. Notice that we have chosen one country in Asia, one in Central America, one in South America, two in Europe, and one in Africa.

In examining third world countries, we discovered that there is a difference between borrowing in the U.S. as opposed to borrowing in countries where poverty is a major issue. The difference between venture capital and poverty amelioration is that venture capital has requirements that must be met before lending can occur. Entrepreneurs must have comprehensive business plans, must contribute a certain amount of capital themselves, and must promise a return on the funding from the venture capitalist.

U.S. Government Programs

U.S. Agency for International Development

The U.S. Government, under the Microenterprise Initiative, established the U.S. Agency for International Development (hereafter referred to as USAID) in 1994. There are three goals of the Microenterprise Initiative: 1) Maintain a significant overall level of funding for microenterprises throughout the Agency, particularly among field missions; 2) Increase attention on the poorest clients – of whom more than 50 percent must be women – within the microenterprise sector, particularly through poverty lending and; 3) Improve technical quality through quality programs.

In 1998, USAID provided $138.4 million in aid to foreign countries, 68% going to financial services and the remaining 32% going towards business development programs[1]. USAID has since begun many programs, one of which is the Microenterprise Innovation Project, which is the primary program for microenterprise development. Under the Microenterprise Innovation Project are several programs through which the project is implemented. Further information on these projects is listed in the chart below[2].

	Purpose	Who is Eligible?	Grant Distribution	Assistance Provided
Implementation Grant Program (IGP)	Provides grants to financial & non-financial microenterprise support programs for the poor	- U.S. PVO’s, International non-governmental org.’s, for-profit firms, cooperatives & credit unions, commercial banks - Good track record, proven efficient methodology	- $39M to 19 institutions to aid 22 countries in 1995-1997 - 202,953 borrowers, 85% women	Direct loans, improved financial administration systems, innovative loan guarantees, equity mechanisms
Program for Innovation in Microenterprise (PRIME)	To co-finance microenterprise projects designed & managed by USAID in-country “missions”	Financial & non-financial programs, local & international organizations, programs MUST be connected to broader USAID country development strategy	- $23M to 67 institutions to aid 25 countries in 1995-1997 - Largest amt. To Latin America	Training & tech. Assistance & regulatory & banking policy reform for MFI’s, expansion of fin. services
Microserve	- Provide training & tech. Assistance to USAID/Washington missions, regional bureaus - Emphasis on increasing women’s access to microfinance lending	Project implemented through assistance as opposed to grants – less selective as to who receives assistance, but heavy concentration on women	- $2.6M to 21 countries in 1996-1997	Expert tech. Services, training programs, design of fin. Services, operations eval.’s, sector & institutional assessments
Assessing the Impact of Microenterprise Services (AIMS)	Five year research project designed to determine how microenterprise services improves businesses and affects families	Not a specific program for assistance.	No estimation of amount spent on research.	Refining methodologies producing research series, development of monitoring & evaluations tools
Microenterprise Best Practices (MBP)	Stimulate & inform microenterprise development and provide understanding of successful microenterprise development strategies worldwide	Information intended to assist microenterprise development worldwide.	Research papers on 21 topic areas, sponsor 20 conferences, and provide over $2M in grants to support capacity-building, innovation, & exchange visits	Research & learning, grant facility, information sharing

Other Forms of Microenterprise Lending

Romania

Romania emerged from Communism in 1989. Since, the European Bank has ranked the country last in the transition process for Reconstruction and Development. Romania’s three-year long recession ended in 2000 and the new government is concentrating on economic reform. It is dependent on foreign technological and financial aid, without which, the country remains vulnerable to another financial crisis. The GDP for the year 2000 was $132.5 billion and is expected to grow at a rate of 2.2% per year. The highest GDP-contributing sectors are services (53.5%), industry (32.6%), and agriculture (13.9%). The unemployment rate in 1999 was 11.5%[3].

The abandonment of communism has done little to improve opportunities for educated Romanian people to start their own businesses. The Romanian financial institutions have made it difficult to obtain small business loans, requiring high collateral and enforcing lofty interest rates. The Romanian American Enterprise Fund (RAEF) began as an initiative of the U.S. government, but is now a privately run American corporation dedicated to promoting entrepreneurship in Romania through loans.

The RAEF implements its goals through four main lending programs. First, there is the Major Transaction Program (MTP), which provides loans between the amounts of $500,000 and $5 million to medium and large corporations. The MTP uses a mix of equity, hybrid financing, and straight debt to assist these businesses. Prospective entrepreneurs must submit a business plan and investment memorandum to be approved by the committee. MTP loans are presently found in various industries including banking, knitwear, printing, and data communications, among others.

The Micro Loan Program (MLP), in cooperation with the CAPA (Creditare, Asistenta si Pregatire pentru AfaceriFoundation) and the Cooperative Housing Foundation, supports small businesses by providing loans to local entrepreneurs (loans available in specified geographic areas). These loan amounts range between $2,500 to $15,000 and extend up to a period of 18 months. Members of the MLP enjoy fixed interest rates and flexible collateral requirements. To be eligible, entrepreneurs must operate in the same industry for one year, possess strong managerial skills, and have excellent personal references.

The Small Business Investment Fund (SBIF) was established to provide financing and small business management skills to SME’s (small and medium-sized enterprise). The SBIF has already contributed a total of $3.27 million to 14 Romanian businesses as of June 2001.

The Small Loan Program (SLP), in cooperation with Banca Romaneasca, is aimed at small and medium businesses. These loans are only available in certain geographic areas. Loan amounts range between $20,000 and $150,000 at fixed interest rates for a period of up to three years. The bases for these loans are cash flow and quality of management rather than collateral. In the case of startup businesses, the entrepreneur must contribute at least 30% of the startup required capital. Other requirements include less than 70% foreign capital and restrictions on spending. Financial statements and other documents are required for consideration.

Worldvision is a Christian humanitarian organization, which helps poor families in over 100 different countries. In January of 1996, Worldvision’s Microenterprise Investment Council established CAPA, a program that provides loans to small businesses. This program requires a minimal amount of collateral, but a contribution greater than the amount of the loan from the entrepreneur. CAPA also requires that the entrepreneur take classes in marketing strategy, draft business plans, and repay their loans on time. CAPA loans range from $1,500 to $15,000 and charge an annual interest rate between 22 and 26 percent. The loan period runs from about six months to three years. In FY 2000, CAPA loaned $1,439,950 to 621 businesses (an average of $2,318 per loan) and created 975 new jobs[4].

Romania is among one of the more developed third world countries we have looked at in terms of the venture capital industry. Romania receives funding from public sources including several foreign countries. Privately, the RAEF is providing a strong connection between the U.S. and entrepreneurs in Romania. As the people of Romania become more educated and the country moves further out of its communist roots, opportunities will arise for entrepreneurs in this country.

Philippines

The Philippine economy is a mixture of agriculture, light industry, and supporting services that has deteriorated as a result of the Asian financial crisis and poor weather conditions in 1998. Growth fell to -0.5% in 1998 from 5% in 1997, but recovered to about 3% in 1999 and 3.6% in 2000. The government is promising to improve the financial condition of the Philippines through implementing reforms. The GDP is $310 billion. The real GDP growth rate is 3.6%. Agriculture contributes 20% of the economy, industry is 32% of the economy, and services are 48% of the economy. The inflation rate is 5%[5].

One program called the Rural Microenterprise Finance Project was designed to create employment opportunities and enhance rural incomes for about 300,000 poor Filipino families. The project was supported by a $20 million loan, approved by the Asian Development Bank on April 23, 1996. The project supported organizations that employ the Grameen Bank Approach (GBA) of providing credit to the poor through the People's Credit and Finance Corporation (PFCF). This project seeks to increase the availability of credit assistance through GBA Replicators to the target group for investment in income and employment generating microenterprises; expand the formation, growth, and strengthening of self-help groups comprised primarily of rural poor women; and promote and achieve a rapid growth of savings and savings mobilization schemes among the target group. The project strengthens the financial capacity of the GBA Replicators to be able to offer loans to the poor families[6].

Another program available is that of the Canadian International Development Agency (CIDA). This agency attempts to promote sustained and profitable growth by strengthening the private sector in developing countries. The Philippines is a significant part of their program. The main objective of this agency is poverty reduction by contributing to the creation of small enterprises in hopes of creating employment and income for the poor. A CIDA-funded project aims to improve the industrial balance, by promoting micro and small enterprises in three less-developed regions of the Philippines. The project enables government departments, private sector groups and other agencies to provide technical assistance, training and other services to micro enterprises. Project partners help small businesses get loans through one of the Philippines’ 125 existing credit programs, and build links between micro, small and medium enterprises. The CIDA also works with the government to make public policies more supportive of micro enterprises[7].

Mercy Corps is a non-profit organization based in the U.S. & Scotland. In 1991, Mercy Corps helped establish an independent local nonprofit agency called Merciphil Development Foundation, Inc. (Merciphil). Today, Merciphil consists of three autonomous area field offices in Iloilo, Laguna and Zambales, with a national headquarters in Manila. The Iloilo office operates microenterprise and sustainable agricultural development programs that provide agriculture training, short-term loans and income-generation opportunities for more than 6,000 families. Low-income farm families, women entrepreneurs and the urban poor are the focus of these programs. In the southern Luzon provinces of Laguna and Batangas, Merciphil implements microenterprise and cooperative development programs that provide assistance and training to the urban poor in the areas of credit, savings/guarantee funds, enterprise development and management and marketing. In the northern Luzon province of Zambales, Merciphil is working with Aeta Indian people and other marginalized groups to improve health, agriculture, literacy and economic opportunity[8]. This program is still active today and continues to help the poor Filipino families improve their daily lives.

Borrowers must go through a screening test before being qualified for funding. Their monthly income must not be more than peso (P)10,000 (US$200). They have to be permanent residents in the area for at least one year, and must not have regular jobs or be white-collar employees. Members must be willing to organize into groups of five members. They are also required to initially take a seven-day training course to make sure they know what group liability is, and what they must do to stay in the group. If they are selected to receive funding, they must still attend weekly meetings with the provider and make weekly payments.

In the Philippines, there are many NGOs (Non-government organizations) that specialize in funding for the poor. But now rural banks are becoming a major provider in microfinance because of its strong profitability[9]. The borrowers are very capable of making repayments of the loan and still have enough money to support themselves. Participants are able to improve their lives through micro-finance. It is seen that the poor Filipinos are capable of utilizing initially small amounts of capital productively and paying back their loans. Improvements in the income of the poor, especially women, almost always translate to improvements in the socio-economic welfare of their families. This demonstrates that the poor are bankable and that microenterprising will continue to improve the economic conditions of the low-class.

The lives of many poor Filipino families who engage in the micro-finance funding programs are improving greatly. In addition, the funding programs are also benefiting from the hard work of the people receiving the funding. It is becoming a profitable business for the funding programs since the families are able to keep up with the interest payments. The only fear is that not all of the people who qualify for funding will receive it. But it is a start to help rebuild the lives of the low-class Filipino families.

Bolivia

Bolivia is one of the poorest and least-developed countries in Latin America, but has made significant advancements toward capitalism with the privatization of several key industries. Beginning in 1999, Bolivia’s economic growth was hindered by the Asian financial crisis and the civil troubles and GDP growth was reduced to only 2.5% in 2000. Total GDP for Bolivia in 2000 was $20.9 billion, divided among services (53%), industry (31%), and agriculture (16%). The unemployment rate was 11.4% in 1997.

The Inter-American Development Bank (IADB) created the Small Projects Program in 1978 to further develop the opportunities for microenterprises in member countries. Since 1990, the IADB has $452 million to small businesses. In 1998, the IADB granted a $35 million soft loan to Bolivia for the development of small businesses and microenterprises. The loan was intended to provide entrepreneurs in Bolivia with longer-term loans and financing for investment projects.

In 1993, the IADB established the Multilateral Investment Fund (MIF), to step up the efforts to promote microenterprise financing. MIF plans to spend over $200 million over the next four years. Governments in this geographic region have not focused much attention on microenterprise lending because of its lack of popularity. Financial institutions are in need of improved financial management standards, adding to the reason for lack of financing opportunities. The MIF programs are not only intended to provide financial assistance, but technical and supervisory assistance as well.

The remainder of borrowing opportunities in Bolivia includes assistance from representatives in Germany, Belgium, IDB, Canada, Denmark, Sweden, Switzerland, the Netherlands, Spain, the European Union, and from USAID. Bolivia’s microfinancing future depends heavily on foreign aid. Other major donors listed include the World Council of Credit Unions, Chemonics International, Development Alternatives International, ACCION International, the Foundation for the Promotion and Development of Microenterprises, and the Center for Economic Initiatives. Most small loans are granted through the Bolivia Credit Union. Financed by USAID, this bank is the head of the movement to strengthen the credit union.

Bolivia does not have many options for entrepreneurs. The IADB works to establish programs to help people in the region, but programs dedicated solely to Bolivian entrepreneurs are hard to come by. Bolivia is completely dependent on foreign aid. The country is extremely poor and the government is unable to assist the growth of small businesses.

Nicaragua

Nicaragua, one of the world’s poorest countries, faces low per capita income, flagging socio-economic indicators, and has huge external debt. While the country has made progress toward macro-economic stabilization over the past few years, a banking crisis and scandal has shaken the economy. But due to institution financial funding and aid, the economy is improving. The GDP is $13.1 billion, growing at 5% annually. The economy is divided into three components: agriculture which is 13.1%, industry which is 22.8%, and services which is 45.6%. The inflation rate in Nicaragua is 11%[10].

Nicaragua Rural Credit Unions Program is a funded program from USAID (US Agency for International Development). The purpose of this program is to increase access to financial services for small savers and producers by re-establishing the capability of Nicaragua's credit unions to mobilize local savings for reinvestment in productive loans to small farmers and small businesses. Their objectives are as follows:

- Increase the volume of resources in the credit unions for lending and investment while efforts are underway to mobilize savings and share purchases by members;

- Establish innovative savings services to achieve full financial self sufficiency and grow through provision of competitively -priced, convenient financial services and growing at least 20 rate of inflation;

- Strengthen the financial condition of participating credit unions by improving earnings and balance sheets;

- Establish compliance with minimum operating standards and conditions that contribute to the safety and soundness of credit union operations;

- Expand outreach of credit unions to provide access to financial services to a greater portion of the population; and

- Restore confidence in the financial soundness of the credit unions[11].

Enterprise Development International is an organization that makes partnerships with other organizations in order to help build them into an independent, stable, and local financial lender. It partners with an organization in Nicaragua, known as CRADHC (Comité de Reconstrucción y Ayuda al Desarrollo Hermanos en Cristo, or the Brethren in Christ Committee for Reconstruction and Development). As an intermediary, Enterprise provides training and resources to enable these partners to provide poor entrepreneurs with management skills and credit. Their programs consist of training of trainers, institution building, program support services, replication of small enterprises and micro-enterprise programs, and many others. CRADHC has clients consisting of eighty- percent women. They have a successful small-business lending program, which has greatly improved the lives of Nicaraguan families[12].

The Center for Development in Central America (CDCA) seeks to address the needs that are born from poverty by helping communities to become self-sufficient and sustainable. The CDCA upholds many sorts of Microenterprise projects. They have a loan fund for creative initiatives. The CDCA makes loans to small businesses with the objective to establish a sustainable business for the poor people of Nicaragua. These small businesses consist of sewing organic cotton clothing, home-businesses that purchase a key piece of equipment available to the community, or agriculture. People bring the proposals, budgets, and studies of their project ideas to the CDCA and if the CDCA has the funding and feel the proposal can be self-sustaining, then the CDCA loan is made.  The signed loan contract includes collateral and payment schedules with penalties for failure to make payments.  Most loans include a 5% interest charge[13].

Nicaraguan banks are making loans at 18-20% interest when the loan is made in dollars and making loans up to 18-24% interest when made in cordobas, the national currency7. These loans by banks are usually only given to large businesses. It is almost impossible for the small entrepreneur to receive a loan from the bank. Their loan request is denied due to the lack of a guarantee in the face of the very high interest rates. Therefore the only hope for the small entrepreneurs is to receive funding from special microfinance programs. But even then it will be difficult to receive funding because the heavy competition among applicants.

Micro-finance funding programs are still growing in Nicaragua. Investors are realizing that this may be a beneficial to both themselves and the lives of the low-class Nicaraguans. Because of the small number of microfinance programs available it is difficult for these poor families to receive funding especially when there is an abundance of people qualifying. Hopefully, overtime there will be more micro-finance funding programs to improve the lives of the Nicaraguans. In turn, Nicaragua’s economy will step up to a higher scale.

Bulgaria

Bulgaria, a former communist country struggling to enter the European market economy, suffered a major economic downturn in 1996 and 1997, with triple digit inflation and GDP contraction of 10.6% and 6.9%. But strong assistance from international financial institutions helps begin to turn the economy around. The economy is stabilizing but still needs to improve. The GDP is $48 billion and the real growth rate is approximately 5%. The leading industries are agriculture which holds 15%, industry which makes up 29%, and services which holds 56% of the economy. Their inflation rate is 10.4%[14].

One program existing in microfinance is the Modernization of the Bulgarian Mutual Kasa System. The purpose is to expand Bulgarian economic and employment opportunities. Increasing micro-enterprise and household access to reliable financial services (both credit and savings) does this. In order for this to occur, the mutual kasa system must to strengthen & modernize itself. The mutual kasa system is the prime financial institutions that provide financial services to Bulgarian households and entrepreneurs. The program involves technical assistance and training in financial disciplines in hopes for good financial decisions, and increasing financial outputs and performance. Also, the program focuses on the development of a legal, regulatory and supervisory framework that would protect members' savings[15]. Through the implementation of the program, the market economy is focusing on moving its economic structure from state-owned to private enterprises, having more and more citizens working for themselves.

The Economic Development Fellowship Program (EDFP) is designed to encourage mutual learning and the transfer of new ideas, approaches, and strategies between the United States and Europe in the fields of employment and local or regional economic development. People from Bulgaria who are managers or policy makers may come to the U.S. to meet their counterparts. In doing this, the hopes are to create jobs through strengthening small existing enterprises and the promotion of new conventional or non-conventional enterprises such as employee-owned firms, cooperatives, community development corporations, and credit unions. This program also directs their attention into the development of anti-poverty strategies based on the principle of building individuals’ assets. This is done through savings programs, transfer payment investment initiatives, microenterprise development, and other strategies designed to expand job opportunities by transforming existing welfare programs[16].

The process for receiving funding in Bulgaria through microfinancing is growing. It is difficult because of the high demand. The programs can only accept a low number of applicants in comparison to the number of applicants the various programs receive. The larger companies are able to receive loans much easier than the low-class citizens who have aspirations to become an entrepreneur.

Bulgaria’s economy is improving due to the growth of micro-finance programs. The low-class of Bulgarians who become participants in the programs are able to keep up with the interest payments and are still able to run a profitable business of their own. Their lives are greatly improving due to the assistance of the funding programs. Because of the creation of entrepreneurial business, new jobs are being born for the people of Bulgaria. The micro-finance funding programs are a huge contributor to the construction of a developing and improving economy.

Kenya

In the mid-1990s, Kenya experienced positive economic growth with assistance from the World Bank, the International Monetary Fund, and several other donors. After 1997, a slowdown in tourism, complimented by a lack of support from the government led to an economic downturn. A drought in 1999 and 2000 also disrupted agricultural production. Kenya faces many long-term barriers to economic growth including electricity shortages, a weak government, spread of disease, and rapid population growth. The GDP in the year 2000 was $45.6 billion and is expected to grow at just 0.4% per year. The major industries included in the GDP are services (62%), agriculture (25%), and industry (13%). The unemployment rate in Kenya in 1998 was 50%[17].

More than 50% of Kenyan households depend on microenterprise as their source of income. The World Council of Credit Unions (WOCCU), in cooperation with USAID, established the Microfinance Expansion Program (MEP) in an effort to strengthen management and improve the quality and variety of financial services offered to Kenyans under the methodology of the WOCCU. In Kenya, credit unions are called savings and credit cooperatives (SACCOs). There are over 2,000 of them operating throughout the country, but only 15 are associated with the MEP. The WOCCU is working to implement policy changes and improve technology in hopes of expanding the MEP’s services to all SACCO’s in Kenya. With the support of the WOCCU, SACCO’s in Kenya are receiving not only financial assistance but more credibility overall. Half of the Kenyan population depends on microenterprise, and thus microenterprise loans, as a source of income. We can also see that the unemployment rate is extremely high in this country. If microenterprise loans are more accessible throughout the country, it will make a huge difference to the over 1,000,000 Kenyans are members of SACCO’s.

Pride Africa is a group of microfinance investors headquartered in Nairobi, Kenya with operations in Kenya, Tanzania, Uganda, Malawi, and Zambia. Pride Africa provides financial services and business links to entrepreneurs in the East and South African region, ultimately aiming to promote business and stimulate the economy. The organization presently provides credit to over 80,000 entrepreneurs and has the largest client base in this region. In Kenya, the program was renamed Sunlink, and began in April 1999. By the end of 1999, Sunlink’s client base had grown to 500 and their portfolio had increased to $40,000. Since, the program has continued development, establishing Sunlink super branches in the more populated areas of Kenya. The goal was to increase the client base to 15,000 by the end of 2001.

In addition to loans, Sunlink plans technological advancements in Kenya as well. For example, Sunlink will build electronic information kiosks to link business clients, create innovative loan instruments, and introduce ATM’s and swipe cards to the region[18].

Kenya is probably the most rapidly developing country we have looked at in terms of entrepreneurship. There is a strong dependency on microenterprise lending and banks as well as private organizations are showing confidence in the growth of small businesses in Kenya. The Kenyan economy is suffering from several unforeseeable circumstances, but is looking to improve with assistance from private and foreign organizations.

Conclusion

The development of venture capital is more advanced in some countries than in others. For example, we can see that in Romania, there are more opportunities through private sources as opposed to Kenya, where a heavy majority of the loans come from an established financial institution. This is due to the differing amounts of risks involved with venture capital opportunities in each country. In order to receive additional amounts of funding, each country is going to need to prove that it is somewhat stable economically.

All of the third world countries we have examined are dependent on foreign aid for the development of microenterprise funding in their respective countries. The U.S. as well as the United Nations and the WOCCU have already made some progress with each of their programs, but much work is still to be done. Grants from private organizations such as Pride Africa, religious organizations, and individual banks will be vital to the progress of venture capital in third world countries.

Glossary of Terms

Assessing the Impact of Microenterprise Service (AIMS): research project determining how microenterprise services (financials) help clients.

Canadian International Development Agency (CIDA): established to promote sustained and profitable growth by strengthening the private sector in developing countries.

Center for Development in Central America (CDCA): addresses the needs that are born from poverty by helping communities become self-sufficient and sustainable.

Creditare, Asistenta si Pregatire pentru Afaceri Foundation (CAPA): established in 1996 by Worldvision Romania and the RAEF to support U.S. efforts to provide funding in Romania.

Economic Development Fellowship Program (EDFP): encourages mutual learning between the U.S. and Europe regarding employment and economic development.

Grameen Bank Approach (GBA): project that provides credit to the poor through the PCFC.

Gross Domestic Product (GDP): the total market value of all final goods and services produced in a country in a given year.

Microfinance Expansion Program (MEP): established by the WOCCU and USAID to improve the quality and variety of financial services offered in Kenya.

Inter-American Development Bank(IADB): regional and multilateral development institution dedicated to the economic and social development in Latin America and the Caribbean.

Implementation Grant Program (IGP): award distribution, examples of programs, etc.

Major Transaction Program (MTP): Program of the RAEF that assists medium to large businesses in Romania.

Micro Loan Program (MLP): Program of the RAEF that assists small business entrepreneurs in Romania.

Microenterprise Best Practice (MBP): stimulate inform, educate microenterprise development

Microfinance Expansion Program (MEP): established by the WOCCU and USAID to improve the quality and variety of financial services offered in Kenya.

Microserve: chief mechanism for providing training & technology assistance to USAID/Washington etc.; to carry out Agency’s Microenterprise Initiative.

Multilateral Investment Fund (MIF): Program of the IADB that supports microenterprise lending.

People’s Credit and Finance Corporation (PFCF): increases the availability of credit assistance in the Philippines.

Program for Innovation in Microenterprise (PRIME): projects in each country

Romanian American Enterprise Fund (RAEF): Private U.S. corporation dedicated to the funding of venture capital in Romania.

Savings and Credit Cooperatives (SACCOs): the technical name of credit unions in Kenya.

U.S. Agency for International Development (USAID): an independent government agency that conducts foreign assistance and humanitarian aid to advance the political and economic interests of the United States.

USAID program: women, poverty lending, and distribution across bureaus

World Council of Credit Unions (WOCCU): Development agency for credit unions, promoting easier access to financing options.

References

Anderson, J. Brady. “Microenterprise Program Gives Hope to the World’s Poor.” Front

Lines, Vol. 40, No. 4, 1-3, 20. Bureau for Legislative & Public Affairs, June.Jul. 2000.

Article provides information on new trends in microenterprise lending. Also, provides information on sources of funding in Romania.

Asian Development Bank. http://www.adb.org/Documents/News/1996/nr1996045.asp

(April 5) Asian Development Bank.

Provides information on microenterprise lending in the Philippines.

Canadian International Development Agency.

http://www.acdicida.gc.ca/cida_ind.nsf/vLUallDocByIDEn/2E07A17D0C61313B852564CA00461671?OpenDocument (April 6) Canadian International Development Agency.

Provides information on microenterprise lending program in the Philippines.

Center for Development in Central America. http://www.jhc-cdca.org/nvbus.html

(April 5) Center for Development in Central America.

Provides information on microenterprise lending programs in Nicaragua.

CIA World Factbook 2001. http://www.cia.gov/cia/publications/factbook/index.html

(April 4) Central Intelligence Agency, United States of America.

Provides information on economic background of each country.

The Economic Development Fellowship Program

http://www.cfed.org/sustainable_economies/gmFund/upcoming/bulgaria.html (April 5)

Provided information on microenterprise lending in Bulgaria.

Enterprise Development International & CRADHC

http://www.endpoverty.com/RecentNews/News_Nic1.html (April 5)

Provides information on microenterprise lending in Nicaragua.

Gomez, Arelis, et al. “Regulation and Supervision of Microfinance Activities: The

Philippines Case Study.” International Management & Communications Corporation. Dec. 2000.

http://www.mip.org/pdfs/mbp/binal_draft_philippines_Case_Study.pdf

(Feb. 22)

Inter-American Development Bank. Oct. 1998.

http://www.iadb.org/regions/tcfundinfo/sb.htm (Feb. 23)

Provided information on grants recently given to Bolivia for microenterprise funding.

Investorwords.com. 2002. http://www.investorwords.com (April 1) WebFinance, Inc.

Provided definitions of financial terms.

Lorin, Jean-Claude. “Microenterprise Best Practices Newsletter” Jul., 1999.

http://www.lists.w3internet.com/pipermail/enter-I/1999-July/000785.html (Feb. 23)

Mercy Corps. http://www.mercycorps.org/programs/philippines.html (April 5)

Provides information on microenterprise lending in the Philippines.

Office of Microenterprise Development. “USAID Microenterprise Activity Report,

1997.” http://www.mip.org/pubs/pubs-def.htm (Feb. 22)

Provides background on different programs started by the U.S. Agency for International Development to encourage and educate people about microfinancing around the world.

Pride Africa. http://www.prideafrica.com/PRIDEAFRICA.htm (April 6)

Provides information on the organization Pride Africa and their venture capital efforts in Africa.

Romanian American Enterprise Fund. http://www.raef.org (April 5)

Provides information on the funding program managed in the U.S. for Romania.

U.S. Agency for International Development. 2002.

http://www.usaid.gov/country/ane/ph/492-001.html (Feb. 23)

Provides descriptions of the programs, prospectus, country overview, and more background information.

World Council of Credit Unions, Etc. “Credit Union Development Projects.”

http://www.woccu.org/development/projlist.htm (Feb. 22)

Provides details on development efforts in 12 third world countries.

About the Authors

Michael Huynh is a senior undergraduate student at Creighton University. He is receiving a BSBA degree in finance in the College of Business Administration. Michael dreams of receiving his MBA and receive a job in the health industry.

Wendy Sasaki is originally from Honolulu, Hawaii. She is currently a senior at Creighton University. Wendy is a student in the College of Business and is majoring in marketing and finance. She is expected to graduate in May 2002. After graduation, she plans to return to Hawaii and pursue a career in the field of marketing.

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[1] U.S. Agency for International Development Microenterprise Results Reporting for 1998

[2] Table information provided by U.S. Agency for International Development

[3] CIA World Factbook

[4] Worldvision

[5] CIA World Factbook 2001

[6] Asian Development Bank

[7]Canadian International Development Agency

[8] Mercy Corps

[9] Asian Development Bank

[10] The World Factbook 2001

[11] World Council of Credit Unions, Inc.

[12] Enterprise Development International & CRADHC

[13] Center for Development in Central America

[14] The World Factbook 2001

[15] World Council of Credit Unions

[16] The Economic Development Fellowship Program

[17] CIA World Factbook

[18] Pride Africa