the hundred dollar business

Several months ago I heard about Kiva (microloans for entrepreneurs in underdeveloped countries) through Jeff Barson’s daughter’s contribution to the microfunds. Recently I was reminded about it again on a friend’s blog.

The combination of projects I’ve been involved with the past few years (The HDB, startups dealing with hundreds of thousands & millions in funding, and now economic development in rural, low-income eastern Idaho), makes me extremely curious about these questions:

“How can we get the least amount of money into the hands of the greatest number of capable, business-savvy people who will appreciate it and maximize the economic impact & value of that capital? How can entrepreneurs become self-sustaining with the chances of failure mitigated as much as possible?”

When a business owner or entrepreneur accepts a loan or investment from an institution, but the business concept fails, it’s a sort of tragedy and has a serious economic impact on dozens of people.

But, when an entrepreneur fails to execute an idea properly through ignorance of or deliberate neglect of basic business information, thus making completely avoidable business mistakes, it is a preventable waste that unnecessarily disrupts the economic health of individuals and families.

There are some root causes of ghetto lifestyles that perpetuate widespread human suffering. Among them are lack of education, poverty, and the consequent disrupt of families.

These can be directly linked to the economic health and viability of an area. When the breadwinners can’t afford to feed, clothe, or educate their families, or work such extended hours to provide the basic necessities, things go wrong quickly.

You can see business owners as in the game of capitalism to make money only for him/herself & the stockholders, or you can see a business owner as a responsible party managing the resources, solutions, and opportunities that impact individuals, families, and nations.

Which makes specific business success in key geographic regions all the more compelling.

I think this is the pain point that I would eventually like The Hundred Dollar Business to provide value for, although I’m not sure how.

It would be an interesting mashup:

• An organization like Kiva providing micro-funding opportunities to deserving entrepreneurs in at-risk locales.
• The Hundred Dollar Business testing products & business models on a small scale to determine viability & then handing off projects to entrepreneurs in these critical regions.
• Some kind of entrepreneur-education group providing the skillsets entrepreneurs must have to be successful.

What do you think?