Essays on KIVA Project Assignment

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Kiva project reportIntroductionSmall businesses need financial boost to be able to grow faster (Koehler, Koehler 2000). This report is about the criteria used to qualify Geoffrey for a small business loan. He is a Kenyan running a cereals business and he desires to get a loan to expand it. Geoffrey is among the many people on the website seeking for loans to do business. He has previously been awarded a KSH 30,000 loan from Faulu Kenya and now needs another loan of KSH 60,000 for further expansion. Geoffrey sells maize, beans, sorghum among other things and has been found to be dedicated to the business.

His business is an important one considering the fact that it involves selling food to the locals. Geoffrey has been found suitable for this loan because he has the capacity to repay it, his business fall in the agricultural sector which is the backbone of his country’s economy; he fulfils the condition of buying equipment or expanding the business among other things. His business is not exposed to bad risks and therefore it has the potential for success in the future.

The businessman is trustworthy and hardworking and therefore deserves alone based on this and the other criteria enlisted. The criteriaGeoffrey is a Kenyan and the economy of Kenya is still young. More than 60% of Kenyans live below the poverty line on less than 1 dollar per day. Because of the high levels of poverty in Kenya Geoffrey qualifies for the loan because there is enough proof from the size of his business and family income that he is among the poor of Kenya.

Even though the economy is the strongest in the East African region it is way below that of developed countries and therefore Kenya is classified as a poor country with a total nominal GDP of $ 34.8 billion. The economy is yet to become industrialized and therefore relies heavily on agriculture. This puts it in a vulnerable position because the prices of agricultural products on the world market keep fluctuating (Koehler, Koehler 2000). I have chosen to give the loan to Geoffrey who is a male because of the huge role he plays in his family as a father.

He is the bread winner and provider in his family and having come from the African setting he is definitely required the support his extended family. Supporting the extended family is a common requirement of men in many African cultures. The assumption behind this decision is that Geoffrey needs to grow his business fast so that he can attend to the huge responsibilities awaiting him including educating his child who is due for primary school. He qualifies for the loan because he must be placed in a position where he can expand his business, increase his profits and by extension his income and therefore take better care of his wife, child and relatives (International Monetary Fund 2010). Geoffrey’s business falls within the tertiary sector because he provides retail services to the general population.

However in some economies such as that of Kenya it would be referred to as the agricultural sector because he sells farm produce and cereals in particular to consumers. Agriculture forms the leading income earner for Kenya’s economy and therefore is very important to the country.

Since Geoffrey deals in agricultural produce he promotes agriculture and therefore deserves the loan. In the Kenyan context the agricultural sector is a critical one because of the aspect of feeding the nation. People dealing in such businesses deserve to be promoted and giving a lone to Geoffrey is one major way of doing this. Since his business can also be classified as a small enterprise within the sector it requires a lot of attention in terms of financial boosts to grow (Kiva 2005).

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