A history of microfinance | Muhammad Yunus | TEDxVienna

Summary

The transcript details the inspiring journey of a visionary who started with minuscule loans to poor women, challenging traditional banking norms. By forgoing collateral and focusing on the future rather than the past of borrowers, he established the Grameen Bank, which is now owned and operated by its borrowers, predominantly women. The narrative underscores the entrepreneurial potential in every individual, including beggars, and the transformative power of social businesses designed to solve societal issues without profit motives, harnessing human creativity and technology for social good.

Takeaways

• 🌟 The speaker started with a small loan initiative, lending as little as $27 to 42 people, which grew into a significant movement.
• 🏦 They faced resistance from banks but overcame it by offering to be a guarantor, demonstrating commitment and risk-taking.
• 🌱 The Grameen Bank was created as a response to the rigid rules and procedures of conventional banks, aiming to serve the poor and women.
• 🚫 The bank operates without collateral, lawyers, and detailed past inquiries, focusing on the potential and future of borrowers.
• 👩‍💼 The bank is owned and run by the borrowers, primarily poor women, which is a unique model in the banking industry.
• 🔄 The speaker challenges the conventional banking model by inverting its practices, targeting the poor, women, and rural areas instead of the rich and urban centers.
• 💡 The concept of 'social business' is introduced, where businesses are created not for profit but to solve social problems.
• 🌐 International collaborations are highlighted as a way to scale social businesses and address issues like malnutrition and disease.
• 🛍️ The speaker shares examples of social businesses, such as producing affordable shoes, clean water, and fortified yogurt for children.
• 🌐 The speaker emphasizes the potential of human creativity and technology to solve global problems if directed towards social good.

Q & A

What was the initial amount of money used to start lending in the Grameen Bank model?

The initial amount of money used to start lending was very small, a total loan of $27 to 42 people, which is less than a dollar per person.

Why did the banks initially refuse to lend money to poor people?

Banks refused to lend money to poor people because they were stuck with their rules and procedures, which did not accommodate the needs of the poor.

How did the founder of Grameen Bank overcome the banks' refusal to lend to the poor?

The founder offered himself as a guarantor, signing all the papers and taking all the risk, which eventually led to the creation of Grameen Bank.

What is unique about the ownership structure of Grameen Bank?

Grameen Bank is unique in that it is owned by the borrowers themselves, with 97% of them being women.

Why did the founder decide to lend to women instead of men?

The founder chose to lend to women because conventional banks tended to lend to men, and he wanted to reverse that trend to empower women.

How does Grameen Bank differ from conventional banks in terms of collateral?

Grameen Bank does not require collateral, which is a departure from conventional banks' practices, making it accessible to the poor who typically lack collateral.

What is the significance of the 'Beggars Bank' initiative mentioned in the script?

The 'Beggars Bank' initiative demonstrates that even the poorest individuals, such as beggars, can become entrepreneurs. It provides them with small loans to start door-to-door sales, helping many to stop begging and improve their lives.

How successful has the 'Beggars Bank' initiative been in terms of reducing begging?

The initiative has been quite successful, with over 22,000 beggars out of 100,000 stopping begging completely within the last 5 years, as they became successful in their new sales roles.

What is the concept of 'social business' as introduced by the founder?

Social business is a concept where companies are created to solve social problems rather than make profits. Any profits made are reinvested into the business to expand its social impact.

Can you provide an example of a social business venture mentioned in the script?

One example is the joint venture with Danone to produce fortified yogurt for malnourished children in Bangladesh, which helps improve their health without the intention of making a profit.

How does the founder view the role of technology in addressing social issues?

The founder believes that technology is a powerful tool that can be harnessed to solve social problems if human creativity is channeled towards this end, potentially leading to a new civilization focused on problem-solving.