Can you explain the revenue model for the organization? I really like how you combine traditional loan groups with the diaspora community through technology, but how are you planning on creating a sustainable funding model for the organization?
Your discussion in the entry really helps me understand your business model.
I have a new question, however - how would you manage the accountability of the recipient? In other words, if someone requested funds to start a small business, but then spends the money on entertainment or other irrelevant expenses, how is that dealt with? With traditional credit circles, the peer pressure of other participants prevents this; but with the added international/diaspora element, it seems a bit harder to enforce.
You are right, it will be indeed hard, but we will demand proof of the participants ( once in a while ) after a couple of months to show if they spent the money on what they said they would. But you are right, we won't be able to check everything and some might spend it on other things, which is why we will promote and offer free publicity to people who indeed spend the money on what they said they would and actually achieve something.
Comments
Can you explain the revenue model for the organization? I really like how you combine traditional loan groups with the diaspora community through technology, but how are you planning on creating a sustainable funding model for the organization?
I updated it.
Your discussion in the entry really helps me understand your business model.
I have a new question, however - how would you manage the accountability of the recipient? In other words, if someone requested funds to start a small business, but then spends the money on entertainment or other irrelevant expenses, how is that dealt with? With traditional credit circles, the peer pressure of other participants prevents this; but with the added international/diaspora element, it seems a bit harder to enforce.
You are right, it will be indeed hard, but we will demand proof of the participants ( once in a while ) after a couple of months to show if they spent the money on what they said they would. But you are right, we won't be able to check everything and some might spend it on other things, which is why we will promote and offer free publicity to people who indeed spend the money on what they said they would and actually achieve something.
Post new comment