Kindred partners with Kiva
From the beginning, Kindred has been committed to contributing to the social good by integrating a charitable component within its revenue structure. Fifteen percent of pre-tax profit (after expenses) will be donated to charities working to grow small independent businesses in developing countries. There is, of course, a very important reason for choosing to support these kind of charities, and not just because Kindred is all about growing businesses in general!
Developing small and independent businesses overseas contributes to the alleviation of global poverty.
With most people on the planet living on less than US$1.25 per day, poverty on a global scale is one of humanity’s greatest challenges. To give an example of how small business development can help empower local communities and eradicate poverty, consider that as much as 75% of the world’s poorest people work in subsistence farming. Farmers, however, lack the capital to grow their business beyond a basic subsistence level, making agribusiness alternatives dangerously tempting. Agribusiness, like any large-scale enterprises, have the usual result of removing local control and investment in the land and its produce, placing that power and control into foreign hands and doing little to nothing to alleviate poverty—not to mention doing nothing to grow the local economy.
Microloans, as provided by Kiva, empower business owners to grow their own businesses. In the above example, this means funding farmers to tend to their land, purchase the best seed, fertilizers, and more, so that they have a head start in cultivation. Agriculture is thus developed sustainably in a way that benefits the local community through jobs, produce, local pride, and importantly, economic independence from foreign corporations.
Kiva is one of the biggest charities offering microloans to small business owners in the world’s poorest places, with a large and established network and a track record of delivery and repayment. In fact, Kiva boasts a 98% repayment rate. What this means is that when Kindred donates money to Kiva, and Kiva lends it out to entrepreneurs in developing countries, the money is paid back and then can be lent out again, and again, meaning even one donation can offer almost limitless benefit.
Needless to say, entrepreneurship and small business ownership offers some tangible benefits in ‘First’ world countries as well, including a certain degree of independence!
To give readers a sense of what Kiva is about, here is an excerpt from their website:
“We envision a world where all people – even in the most remote areas of the globe – hold the power to create opportunity for themselves and others. We believe providing safe, affordable access to capital to those in need helps people create better lives for themselves and their families….Kiva works with microfinance institutions on five continents to provide loans to people without access to traditional banking systems. One hundred percent of your loan is sent to these microfinance institutions, which we call Field Partners, who administer the loans in the field.”
There is no doubt that Kiva and Kindred have shared values, hence Kiva is our first partner for our charitable component. In a conceptual sense, we think there is a nice flow of values and assistance both between our own mentors and mentees, and from Kindred to Kiva.
Help one another grow businesses in this world, and help others get a leg up in developing countries.