Week 4- Patricia De Perio

Social Entrepreneurship promotes social innovation. Social Entrepreneurs aims to solve a problem that drives a social change and potentially have a "lasting, transformational benefit to society." For example, Muhammad Yunus, founder of the Grameen Bank, established a bank that provides microcredit to poor Bangladeshis who are unqualified to take out loans. Yunus recognized the dire circumstances of how the poor are taken advantage by money lenders by hiking up interest rates. Therefore, most of them end up simply beg on the streets. To provide an answer to Bangladesh's endemic poverty, Yunus wanted to prove that lending money to the poor allows them to make small capital of their own and eventually pay back the loan. This was proven when he lent 27$ to 42 women and they were all able to repay their loans while generating a small income of their own. Using that loan money opens up new doors for families to invest on some livelihood (ex. a sewing machine) that provides income which give them the capabilities to send their children to school, and hopefully eventually lift themselves out of poverty. Yunus direct action towards tackling his country's problem not only helped his community but inspired many countries to replicate his ideas to help their own countries.  It "spawned a global network of other organizations... the firmly established microcredit as a worldwide industry". 

Question: How can society build trust and confidence towards people under the poverty line so that they can establish a microcredit bank to help people who are in need? 

WorkCited: StanfordSocialReview.com