IB Geography Topic 5.1.3 Social Entrepreneurship Approaches Revision Notes (HL)

IB Geography Topic 5.1.3 Social Entrepreneurship Approaches Revision Notes (HL) | RevisionDojo

Written by official IB examiners

Innovative Solutions to Development Challenges

Imagine a small village in Bangladesh where women, once excluded from economic activities, now run successful businesses.
Or consider coffee farmers in Ethiopia who earn fair wages while protecting their environment.

These stories highlight innovative solutions to development challenges, such as microfinance networks, fair trade systems, and corporate social responsibility (CSR).

Microfinance Networks: Empowering Local Economies

What is Microfinance?

Definition

Microfinance

Microfinance refers to financial services, including small loans, savings accounts, insurance, and financial training, provided to individuals and small businesses who lack access to traditional banking.

Microfinance was started in Bangladesh in 1974 by Grameen Bank established by Muhammad Yunus (Nobel Peace Prize winner).
Originally it was targeted exclusively at rural women, now microfinance institutions operate in rural and urban areas of various countries and they include men and women.
It provides small loans and financial services to individuals who lack access to traditional banking.

Note

These loans are often used to start or expand small businesses, improve housing, or invest in education.

How Does Microfinance Work?

Small Loans: Borrowers receive modest amounts, often without collateral.
Group Lending: Loans are given to groups, fostering accountability and support.
Low Interest Rates: Interest rates are kept affordable to ensure repayment.

Example

Grameen Bank in Bangladesh is a pioneering microfinance institution founded by Muhammad Yunus.
It focuses on empowering women through small loans, enabling them to start businesses and lift their families out of poverty.

Benefits of Microfinance

Economic Empowerment: Microfinance helps individuals start businesses, creating jobs and boosting local economies.
Gender Equality: Many microfinance programs target women, promoting financial independence and decision-making power.
Poverty Reduction: By providing access to capital, microfinance helps break the cycle of poverty.

Note

Microfinance is most effective when combined with financial literacy training, ensuring borrowers can manage their loans and businesses successfully.

Challenges of Microfinance

High Interest Rates: In some cases, interest rates can be higher than expected, leading to debt cycles.

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Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Duis aute irure dolor in reprehenderit

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit.

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

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Innovative Solutions to Development Challenges

Imagine a small village in Bangladesh where women, once excluded from economic activities, now run successful businesses.
Or consider coffee farmers in Ethiopia who earn fair wages while protecting their environment.

These stories highlight innovative solutions to development challenges, such as microfinance networks, fair trade systems, and corporate social responsibility (CSR).

Microfinance Networks: Empowering Local Economies

What is Microfinance?

Definition

Microfinance

Microfinance was started in Bangladesh in 1974 by Grameen Bank established by Muhammad Yunus (Nobel Peace Prize winner).
Originally it was targeted exclusively at rural women, now microfinance institutions operate in rural and urban areas of various countries and they include men and women.
It provides small loans and financial services to individuals who lack access to traditional banking.

Note

These loans are often used to start or expand small businesses, improve housing, or invest in education.

How Does Microfinance Work?

Small Loans: Borrowers receive modest amounts, often without collateral.
Group Lending: Loans are given to groups, fostering accountability and support.
Low Interest Rates: Interest rates are kept affordable to ensure repayment.

Example

Grameen Bank in Bangladesh is a pioneering microfinance institution founded by Muhammad Yunus.
It focuses on empowering women through small loans, enabling them to start businesses and lift their families out of poverty.

Benefits of Microfinance

Economic Empowerment: Microfinance helps individuals start businesses, creating jobs and boosting local economies.
Gender Equality: Many microfinance programs target women, promoting financial independence and decision-making power.
Poverty Reduction: By providing access to capital, microfinance helps break the cycle of poverty.

Note

Microfinance is most effective when combined with financial literacy training, ensuring borrowers can manage their loans and businesses successfully.

Challenges of Microfinance

High Interest Rates: In some cases, interest rates can be higher than expected, leading to debt cycles.

Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

1 Changing Population3 subtopics

2 Global Climate - Vulnerability and Resilience3 subtopics

3 Global Resource Consumption and Security3 subtopics

4 Power, Places and Networks (HL only)3 subtopics

5 Human Development and Diversity (HL only)3 subtopics

6 Global Risks and Resilience (HL only)3 subtopics

Option A Freshwater - Drainage Basins4 subtopics

Option B Oceans and Coastal Margins4 subtopics

Option C Extreme Environments4 subtopics

Option D Geophysical Hazards4 subtopics

Option E Leisure, Tourism and Sport4 subtopics

Option F The Geography of Food and Health4 subtopics

Option G Urban Environments5 subtopics

IB Geography 5.1.3 Social Entrepreneurship Approaches Notes

1 Changing Population3 subtopics

2 Global Climate - Vulnerability and Resilience3 subtopics

3 Global Resource Consumption and Security3 subtopics

4 Power, Places and Networks (HL only)3 subtopics

5 Human Development and Diversity (HL only)3 subtopics

6 Global Risks and Resilience (HL only)3 subtopics

Option A Freshwater - Drainage Basins4 subtopics

Option B Oceans and Coastal Margins4 subtopics

Option C Extreme Environments4 subtopics

Option D Geophysical Hazards4 subtopics

Option E Leisure, Tourism and Sport4 subtopics

Option F The Geography of Food and Health4 subtopics

Option G Urban Environments5 subtopics

Innovative Solutions to Development Challenges

Microfinance Networks: Empowering Local Economies

What is Microfinance?

How Does Microfinance Work?

Benefits of Microfinance

Challenges of Microfinance

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account

Innovative Solutions to Development Challenges

Microfinance Networks: Empowering Local Economies

What is Microfinance?

How Does Microfinance Work?

Benefits of Microfinance

Challenges of Microfinance

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account