What I find puzzling is that microfinancing does not seem to be attractive domestically. I see no reason why these programs could not be useful here. After all, if we can use a tax "rebate" to stimulate the economy, why can there not be mini-loans for entrepreneurs? Some years ago the Small Business Administration had a very small loan program, but it was a subject of great contention, as the small unsecured loans required little documentation and thus were perceived as a great opportunity for fraud. I do not disagree with this. However, if one were to open up a program specifically aimed at micro-financing, steps could be taken to minimize the risk of fraud. The risk of loss cannot be minimized, given the nature of the loans. Nevertheless, for the loans that pay off, the payoffs are extraordinary. My favorite social entrepreneurship project involves a gift to African women that enabled them to create products that allow them to be self-sustaining. More can be found here:
http://usinfo.state.gov/af/Archive/2006 ... 03306.html BTW, I have no affiliation with this organization at all except that its principal founder is an alumnae of my undergraduate school.