Business DB Week 1

 
Kiva.org was created in 2005 to provide loans to entrepreneurs in developing countries in order to alleviate poverty and expand economic opportunity. The loans are small and referred to as microfinancing or microcredit. As anyone can make a loan through their website, Kiva brings a crowdfunding approach to microfinancing.
Review the Kiva Case in your textbook at the end of Chapter Two and/or video at the following link
https://tinyurl.com/2rvmwrd9 (opens in new window).  Respond to the following questions in the discussion forum:

Why is there a need for organizations like Kiva? Explains the principle of the “invisible hand” according to Adam Smith as related to entrepreneurs?
Why is lending money to entrepreneurs a better idea in developing an economy than seeking donations to alleviate economic hardships?
Discuss why many think capitalism gives entrepreneurs the best opportunity to be successful. Why would an entrepreneur in the United States need a microloan from Kiva.org?

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