Week 15 Reading Reflection

Harvard Business Review:
Business Basics at the Base of the Pyramid

1) The part of this article that stuck out the most to me was the fact that the company only supplied loans to poor women. It is interesting that they do this because women are more likely to reinvest their profits into building their portfolio.

2) One part of the reading that was confusing to me was how they turned over a profit. I wasn't sure how low or how high the interest rate was on the loans, especially for those who are poor.

3) First question for the author: Do you find that supplying Nokia phones to your borrowers causes an increase in repayment rates? I want to know if this a good strategy to ensure that borrowers pay their loans back on time.
Second Question: How quickly do your borrowers invest their money and see an increase in their daily income? I want to know if Saryamma was an outlier or a good example of borrowers making their income increase.

4) I disagree with the way the author initially started the business. Starting as a non-profit and collecting donations to get started is a good strategy, but I believe it is the wrong thing to do. If you know you are going to be for-profit, then start out that way.