Using principals of Microfinance to do things other than offer loans

At the core of microfinance is providing opportunities for credit that would normally be unattainable through conventional means, such applying for a loan. Much of the recent reading focused on microfinancing as a means to an end, whether that was building a sustainable home for low-income people at the bottom of the pyramid, or financing insurance for people in developing countries at affordable premiums. But if we can use the model of microfinance to power access to transportation.

Whenever possible, I try to promote local social innovation in Pittsburgh. In this case it happens to be a peer-to-peer car sharing company co-founded by my brother, Robert Hampshire, who is also a Professor at Heinz College along with Craig Gates a graduate of the Tepper School of business. There efforts are allowing people to access cars, that are rented out by owners.

Below is a quote from Mr. Gates, after winning the McGinnis Competition in New York.

“There are over 237 million private vehicles owned and operated in the United States today, many of which sit idle much of the time,” said Gates. “We tackled the problem of why there are so few car-sharing services in smaller cities or neighborhoods. TransportCHAIN’s analytics will enable people who leave their cars idle for most of the day a way to recapture some of their investment—to become mini-entrepreneurs themselves. We can make car-sharing a cost-effective, environmentally-friendly alternative to vehicle ownership.”

Their business model represents a win-win for everyone involved. This is proof that collaborative efforts exemplified by microfinancing can be applied to other areas of need. What other ways can you think of to adapt the model of microfinancing to address social needs that you are most passionate about.