Category: Business
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Interest Rates
When the interest rates are high, the manufacturing industries slow down capital investment to avoid bearing high cost of investments and hence lead to flattening of long term growth. When the interest rates are low, the manufacturing industries intensify capital investments, leading to higher levels of automation and hence leading to increased levels of unemployment…
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Insights from G2012 Mexico Financial Inclusion Twitter Conference
On 25th July, 2012 I was invited to participate in the G2012 Twitter Conference on Financial Inclusion organised by Ashoka Changemakers and G2012 Mexico. There were three back to back sessions over six hours focused on technology and financial inclusion, financing livelihoods, and the future of financial inclusion innovation. I participated in the Session on…
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Margin contribution
What is the logic behind asking for a margin contribution from a debtor before you give a loan? I can hear/think of three potential reasons: 1.) Skin in the game/deterrent: “I am ready to risk my little amount of hard earned money to get this big amount of money from you. If I do not…
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How much equity and when?
When you judge a promoter on his interest in the business in terms of equity contribution brought into the business, what would you consider more sensible? A. bringing in equity capital in phases All start-ups are prone to initial setbacks but some of them can recover if further capital is pumped in to the changed…
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Beyond the Margin: Redirecting Asia’s Capitalism
On August 24, 2011 Avantage Ventures released a report titled ‘Beyond the Margin: Redirecting Asia’s Capitalism’, the first to analyse the Asian social finance market. I had the opportunity share some of my insight thoughts with the Avantage Ventures staff during the preparation of this report. The report has, for the first time, made an attempt…
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Who can you lend money to?
What I have assimilated in the last few months: bunch of things may be considered to decide upon who is “creditworthy”. 1.) Does the borrower have an intention to repay Whether he has a past track record of taking loans and what does that track record look like. If he doesn’t have a track record you…
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Human Resource: Could be a complete drain on resources
One out of the three first employees that I recruited, turned out to be a rogue! He forged reimbursement bills, made issues about the work that he was supposed to do, tried to “poison” other team members. The fact that we are start-up, complicated things a bit more for us. I was ready to take…
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How to “serve the BoP”?
I have come to a few conclusions based on three years of my personal experience of building businesses for the last mile remote rural customer. The segment that I have been looking at is similar in a lot of ways to the segment referred to as BoP in popular development literature. I, do, however, feel…
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