Kiva crowdfund has launched a new fund to serve women entrepreneurs. In this expansion into impact investing, Kiva has partnered with two institutions to serve women entrepreneurs in emerging markets over the next five years.
Kiva has partnered with the Inter-American Development Bank and the United States Department of State to launch the Women Entrepreneurship Fund. Kiva crowdfund will look to serve women owned small and medium sized enterprises in emerging markets.
The fund will go some way in closing the credit gap faced in women entrepreneurship. Kiva is looking to women entrepreneurs as it expands into impact investing. Julie Hanna, Kiva’s board chair, acknowledges women entrepreneurship and impact to society.
“We see time and again with Kiva that the most impactful, high leverage, accelerated way to change the world more positively is by getting money directly into the hands of women, and particularly women entrepreneurs.”
According to the International Finance Cooperation, there’s a credit gap of up to $320 billion for women entrepreneurs in emerging markets. Nevertheless, women reinvest 90% of their incomes into their families and communities. This is what has pulled Kiva crowdfund into the initiative.
The fund looks to enable 1 million women entrepreneurs access loans over the next five years. The loans will range from $450 to $100,000.
Kiva’s partners will bring their expertise to the table to complement the fund. The US State Department will invest in data collection and analysis on size and purpose of loans. This is in response to lack of data which disempowers banks to finance women entrepreneurs and makes support of regulatory changes difficult.
The Inter-American Development Bank will assist with its experience when it comes to regulatory issues. It will also provide technical assisitance to female entrepreneurs.
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