Research Help Needed

I am presenting a paper at an upcoming conference on "Emerging Financial
Markets," and am
looking for a little assistance. I am much more a practitioner than a
researcher/academic, and
am hoping to piggyback on other people's research/knowledge. I am interested
in the following:

1) articles/studies on sustainable microenterprise lending in the US and
developed world--what
are the barriers to doing small-scale lending here profitably? Who's come
closest to doing it
and how have they done it?

2) Case studies and innovations in the field--specifically relating to
lowering transaction costs.
I'm not as interested in risk mitigation.


Just let me know where to find an article or a study, or a contact name at an
organization you
know of that's doing something innovative. Thanks a lot!

Eric Weaver
Lenders for Community Development
LCDEW@aol.com


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>I am presenting a paper at an upcoming conference on "Emerging
>Financial Markets," and am looking for a little assistance. . .
>organization you know of that's doing something innovative.

As a practical example, use Netscape or America Online to preview
www.nll.com/nll on the Internet which contains 71 linked home pages to be
made public later this year showing the results of a $30,000 loan in 1988
from a mountain community bank to two women in Colorado running a small
research and development lab based on creating intellectual capital from
electronic information.

They became self-sustained through intentional slow-growth research
funding and patent development, taking on only the challenges they could
manage effectively. Their intention was to take risks in order to build
on breakthroughs by learning from small-scale affordable mistakes. The
company has maintained a no-growth policy in terms of personnel, spinning
off its successes into new organizations.

The laboratory now has obtained a patent on a new method of learning that
works, so far, in over 5,000 demonstration projects with all students --
regardless of prior school performance, race, age, socioeconomic level,
country of origin, parental involvement, neighborhood values, attitudes,
motivation, learning disabilities, athletes, dyslexia, academic subject
matter or IQ. Their work funded our non-profit laboratory and allows each
student to learn to the highest levels by matching their needs for
stimulation.

The work has substantial implications for inner city neighborhoods,
community development, third world development and is now being organized
into public health approaches to change community expectations of student
ability in a program called Just Say Know(TM).

Their original intention was to make a significant contribution to the
job problem by extending the life of small businesses to three years
instead of two and increasing minority self-employment by 10% per year.
To solve this problem, they had to find new ways to teach the risk-takers
who create most of our new jobs -- entrepreneurs whose early academic
experience was often frustrating for students and teachers.

The initial lab, Neogenesis, Inc., has become a small-scale business
incubator, creating models for others based on long-term bank
relationships, innovation, accountability and a long-term vision. Its
continuing work can be seen at www2.csn.net/nll/neogenesis.html. It has
just been selected to assist with training issues at the Olympics.

Electronic applications for socioeconomic problems have become an
emerging financial market for small companies -- particularly for those
working on the internet. This company believed strongly, in the face of
overwhelming advice from others about capitalization, that conventional
ideas about small business development were based on nineteenth century
thinking about factory and sweatshop production.

Based on the work of Paul Hawken, David Silver, Ben & Jerry's, La Mancha
Group, Inc. and a number of value-based businesses, Neogenesis believed
that the companies that would make breakthroughs in the information
business would be those who could become self-sustaining and creative
outside existing institutions -- and stay as small as possible, despite
the opportunities.

Rural communities, like inner cities, often become the spawning grounds
of new enterprises. They allow isolation, low costs, limited outreach and
a small-town regard for reputation and accountability. To be successful,
they often require the abandonment of limited-pie thinking by building of
economic bridges to other places, becoming major contributors to the
economy by bringing in new capital where it is needed.

The challenge in the emerging financial marketplace may be to explore
ways to grow and retain these enterprises in their communities of origin
-- perhaps by 1] building electronic economic bridges and 2] creating new
safe places within our communities for these opportunities to flourish
and 3] having these enterprises provide mentorship support to others.

A. Singleton Blocker, Director
The National Learning Laboratory


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>1) articles/studies on sustainable microenterprise lending in the US and
>developed world--what
>are the barriers to doing small-scale lending here profitably? Who's come
>closest to doing it
>and how have they done it?

If you want to see a negative article, take a look at the recent issue of
Inc. Magazine. Tim Bates has an article/column on the unreality of using
microenterprise programs to alleviate poverty.


++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++++
+ Woodstock Institute is a nonprofit applied research and +
+ technical assistance organization focusing on issues of +
+ community reinvestment and economic development. +
+ 407 S. Dearborn, Ste 550 Chicago, IL 60605 +
+ (312)427-8070 woodstck@wwa.com +
++++++++++++++++++++++++++++++++++++++++++++++++++ +++++++++


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Contact RoseAnne HErzog at the Ann Arbor Independent Living Center, MI via
BCGoodman@aol.com.....RoseAnne runs the only Ind. Liv. Center-based SBDC in
the USA and has been for 8 years. Her program works exclusively with people
who have disabilities severe enougn to prevent usual employment.

Good Luck
D. Rizzo, NJ Disability Loan Fund


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