Microcredit Business Venture Research Project

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Microcredit Business Venture Research project

1.0  Introduction

There exists several forms of business within the corporate industry established with an aim of making profits while other a pure not-for-profit motives. Social entrepreneur is a person who starts a business with a primary agenda of solving social problem. Due to the existence of many social problems that a venture may addresses, the most common ones are providing social amenities to the public, providing education, and proving financial guidance for members of a community. In particular, the issue of financial sustainability among people is the most sought for need. Therefore, this report seek to develop a research paper detain a business venture that is geared towards providing quick accessible loans for community in which it operates.  The major market segment is low income earners a well as developing nations which have high potential of growth but lack sustainable credit interest to fructify entrepreneurship dreams.

2.0 Company Background

The company, Microcredit Incorporation, aim to offer small loans (Microloans) mostly targeting the under developed nations and persons. The firm’s objective is to unlock the financial capability to the communities in need by providing them with favorable funds access alternative at a more considerate rate. Due to the diversity of the Philadelphia region, the business will have its headquarter at the City of Philadelphia. The business will adopt the strategy of certified B Corporation, this means, the organization will strive to balance between the profit motive and the purpose of serving the clients. At its initial stages, the company will not strive much in enhancing profitability, rather, the venture will strive at creating brand image, promoting livelihoods, and establish a strong market segment with third world country. The reasons for focusing on underdeveloped nation is driven by the fact that stable economies such as the United States already have certified B corporation such as San Francisco based company called Prosper.com that provides microloans services.

The mission of Microcredit Corporation is to “provide financial assistance and help those who do not have access to financial that they need around the world.” This aspiration is derived from the understanding that funding is one of the most contentious issue affecting many young entrepreneurs and even business that have not gained financial muscles in any part of the world. Therefore, the target of this mission is to help provide business operation capital as well as money for fructifying other social and economic agendas. The aspiration for the Microcredit Corporation is to provide funds assistance for the people in underdeveloped nation in assisting them to meet their basic needs such as food, shelter, clothes, and even furthering their education. Considering the mission, the company is more focused on service delivery and self-fulfillment if the stakeholder rather than countering the competition. This objective leads to the prioritization of the business; to “Achieving social impact and focus in the long-term profitability.”

3.0 How Does Microloans Work

The venture will utilize an online platform and post all terms and conditions that clients should aware about before completing any loans application procedure. The system will be categorized such that the users can follow step-wise approach in requesting funds, follow up, and including the repayment plan. The key advantage about an online platform is that it can reach a large market segment at the same time increasing convenience. For example, most people in the world have adopted digital technology an almost 6 out of 10 people even in the underdeveloped nations have access to access to a smart phone or internet which they can use to download the Microcredit Corporation business application. As such, the initial step towards accessing a lone will entail filling a form that will be accessible through the business application platform. This step will entail providing personal details such as names, residence, occupation, the amount desired, as well as the repayment plans.

The second step during loan request phase entails underwriting and approval stage. In this stage, the processing criteria will consider the qualification matrix for all loan applicants. The key aspect of approving a credit request is the provision of accurate information by the applicant. In this case, an applicant must not prove fake information regarding their personal details such as name, contact information, residence, and geographic location. Upon proving that the data providing is accurate the...