Mission vs. Profit
Abe sent me a very interesting WSJ article today: A Global Surge in Tiny Loans Spurs Credit Bubble in a Slum.
“Some observers blame a fundamental shift in the microfinance business for feeding the problem. Traditionally, microlenders were nonprofits
focused on community service. In recent years, however, many of the
larger microlending firms have registered with the Indian central bank
as a type of for-profit finance company.”
When there is a profit to be made and private business pile in to cash
in on the opportunity, a larger-than-self mission to eradicate poverty
turns into a profit-making business and defeats the purpose. This is
where the non-profits are more suited than free enterprise.
Focus on the mission, the profit will come. Focus on the profit, the
mission is lost.
