I am constantly thinking on what challenges prevent local entrepreneurs in developing countries from growing their businesses. Can the G-20 governments and international organizations like International Finance Corporation help businessmen with new approaches to financial services for the poor? The Microfinance Gateway says that just a few days ago after having the summit in Pittsburgh, USA, G20 released the Final Communique on how to fight poverty. Great to see such an alignment among top 20 economies in the world in terms of breaking the cycle of poverty.
As an international business developer, I am very interested in helping the governments and international agencies to see numerous innovative approaches in starting up and sustaining businesses in developing countries. On, how glad I am that IFC and the G-20 will launch the Financial Inclusion Experts Group. From my own experience I know that the biggest challenge working poor may have in getting financing is inability to secure the loan, i.e. to provide any collateral. This is, by the way, one of the biggest hurdles in helping local entrepreneurs grow their businesses. No financing, no growth... But I am aware of one solution where any working poor may generate revenues for almost any business he or she is in AND provide this "solution" as a collateral for a loan. You wonder what it is... We call it "Basic Utility Vehicle" (BUV). Aside from being a wonderful tool to meet many transportation challenges in developing countries, a BUV is an income generator and with a product life of 20 years is a perfect collateral. You have a business, you have a BUV, and you can easily get a loan. Grow your business and help your community strive. I wish I could communicate this simple message to the G-20. Innovative solutions are available and working poor have such a great opportunity to strive with help of BUV. This is how BUV can help public (governmental) finance maximize the deployment of private finance on a sustainable and scalable basis.
