Article Writing Homework Help
Hi, I am looking for someone to write an article on situation analysis: how to systematically introduce elements of for-profit business in a social entrepreneurship business Paper must be at least 100
Hi, I am looking for someone to write an article on situation analysis: how to systematically introduce elements of for-profit business in a social entrepreneurship business Paper must be at least 1000 words. Please, no plagiarized work! A closer analysis of the facts provided in the case study would suggest that there are two groups of people who will be typically affected if Kiva starts to pay interest to its lenders. Kiva’s existing business model does not allow lenders to receive interest against the funds they loan however. Kiva’s field partners charge the interest from the entrepreneurs. Though this rate is lower however, it is considered as enough to meet the requirements of the Kiva’s field partners.
One group which obviously be affected by this will be the poor entrepreneurs because if start paying the interest to its lenders, this cost will certainly be passed on to the actual borrowers. Secondly, by not paying the interest, Kiva’s lenders are being affected though most of its lenders lend the money to gain the emotional returns rather than the financial returns.
The situation described above, therefore, indicate towards the adaptation of a business model which can effectively combine both the elements together in order to create value for each of the stakeholders in terms of financial rewards.
A closer analysis of the facts would suggest that Kiva is facing two important problems i.e. strategic as well as of operational nature. It is Strategic in the sense that paying interest rates to the lenders may dilute its overall appeal and can significantly reduce its overall public image. Further, it also needs to maintain its operational viability therefore in order to attract more funds, it may require paying interest to the lenders. Apart from this, a change in the business model of the firm would also force it to change its very character, therefore, may further require it to complete important legal requirements in order to comply with the existing legal requirements for the commercial organizations. .