A Socially Responsible Model of Microcredit Delivery to Support Sustainable Community Development in Emerging Economies
This paper discusses the social responsibility models currently used to deliver microcredit services to the poor. It suggests a new model of delivery that addresses social responsibility issues, while supporting community development.
The model is currently being implemented in Beira, Mozambique by Despertai Mozambique, an NGO. The paper suggests that the model may have implications for other poor African nations as well as other developing economies if it is successful. Despertai Mozambique aims to:
- Provide financial support to microenterprises in Mozambique in a sustainable manner;
- Stimulate economic activity and provide clients and their families with resources such as education and health;
- Build capacity by developing basic skills in association management, microfinance and enterprise development;
- Develop international linkages between entrepreneurs in Mozambique and the developed world;
- Collect data and facilitate research into the process of enterprise start-up and growth in a developing economy.
Despertai Mozambique aims to design a viable working system that gives importance to the social responsibility of everyone involved. The project focuses on being sustainable over time. It focuses on local community involvement, capacity building, reduction of indebtedness risk, and new measurements of performance.
