I recently saw this video on YouTube.com produced by Grameen that shows how microfinance has proven to break the cycle of poverty. A great way to get acquainted with microfinance.

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Grameen Video

I was speaking with a colleague about the potential of tapping into IRAs and 401(k)s to help the poor, when I was asked what effect a few thousand dollars would have. Although I could calculate the impact of millions, it is important to boil these results down for the individual Social Entrepreneur. So, I set out to figure out how much money it would take from someone’s 401(k) to result in creating 401 jobs or businesses.

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Using the Calvert Foundation Social Return on Investment (SROI) Calculator, which is a great tool, I found that an investment of $5,000.00 for a 3 year term could finance 205 microenterprises and create 428 jobs in various parts of the world. This was close enough.

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Can you imagine – just $5,000 from your 401(k) for 3 years would create over 401 jobs or businesses. And, doing this while not foregoing any economic benefit, so your money is still growing. 401 people for just $5,000 investment (not a gift). Amazing! That’s what I call impact!