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Written by: Sindhu Palaniappan
Seminar in Micro Lending, a new course first offered here at Bentley last year, paved the way to create a brand new organization here on campus. Spear headed by some determined and business minded individuals teamed with Professor Roy Wiggins, the group has become an established name on campus and in the surrounding community.
The student-run, non-profit organization gives students a chance to actually deal with microfinance loans, lending loans from anywhere between 1,500 dollars and 6,000 dollars. These loans go out to real local entrepreneurs below the poverty level who need the money to kick start their companies. That’s right; it’s real experience and real money, funded by alumni and parents, on its way up to becoming a total loan portfolio of 300,000 dollars.
Finance professor and group advisor Roy Wiggins says that it provides “hands-on, real-world banking experience while also furthering the Bentley mission to send future business leaders into the world who are socially responsible.”
In regards to using actual money, the group found that this type of thing would be viable and realistic for Bentley students. Along with providing these startup companies with the micro loans that they need, these students can offer what they have learned from the academics here at Bentley, and they can benefit from this application, as well.
Microfinance in and of itself is a pretty new concept, having been around for only the last four decades. The common misconception is that those who lack collateral are not worthy of credit, but most of these startups simply need the money to get going in order to pay it back. The group here on campus serves primarily below the poverty line in the local area. Recent microfinance activity around the world shows that those below the poverty line might in fact be the most creditworthy of all, based on the reliability of their payments.
Bentley’s Microfinance Group recently held a global summit in the LaCava Executive Dining Room. Students and adults alike from all different schools and areas attended and were able to hear firsthand accounts from professionals regarding their experience in the professional world of microfinance as well as their commitment to giving back to the community. Students were allowed to ask questions and hold a panel discussion with the professionals, as well as speak with them privately at the event’s conclusion.
This year’s theme was “Investing in India’s Underprivileged,” where microfinancing habits have recently been thriving. Michael Page, the Vice President of Academic Affairs and the Dean of Business, along with Roy Wiggins, the Director of the Bentley Microfinance Initiative, helped put the event together. Diane Kellogg, the Program Director of the Mmofra Trom Project, introduced speakers and moderated the panel discussion during the event.
The event included notable speakers who shared their insight and experience from working with micro loans at non-profit companies. Venkat Srinivasa, the CEO of Rage Frameworks, spoke and entertained questions about working at a top-level company focused on Business Process Automation solutions.
Cynthia Kinnan, a doctoral candidate in economics at MIT, also spoke and answered questions. Venkatesh Raghavendra, the Chief Philanthropic Officer of the American India Foundation, discussed the conditions and solutions to be presented in India for the poor and provided great insight from the ethics and social responsibility side of business. And finally, Ana Hammock, the Program Director at ACCION USA, talked about her experience thus far working for a microfinance firm and with those below the poverty level who receive the loans.
“The summit was a signature event and unprecedented in Bentley’s history,” said E-Board member Jonathon Walton.
“It marks a concrete and asserted effort toward the real implementation of microfinancing in the Bentley Community.” In conclusion, he said, “The event was an enormous success and embodies Bentley’s desire to expand students’ responsibilities in real- world scenarios.”
The group and audience members agreed that this is unlike anything Bentley has ever done before, and the group is looking to further expand its already new and broad horizons. Shweta Katyal, another E-Board member and the organizer of the event, said that she “felt like the event was able to accomplish everything it was meant to do – to educate Bentley students, staff, faculty, as well as members of the Boston community from schools, such as Northeastern and Harvard, about what microfinance is and what is being done about it now.”
The event not only showcased Bentley’s Microfinance Group and its efforts in the local area, but also informed people of the efforts being implemented in other areas of the world, especially since this year’s summit focused on India’s underprivileged. For more information about this organization or the recent summit, visit bentleymicrofinance.org
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