Week 15 Reading Reflection

Business Basics at the Base of the Pyramid

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1)       What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? 

I was surprised how SKS is making a profit by having women borrowers pay back there loan for as little as one dollar a month. I guess if you obtain enough clients, it can add up. The repayment rate also surprised me. I think it’s great that they can get almost a hundred percent repayment. SKS will need it, since they go to great lengths for customer needs. I also couldn’t believe that they are a 7.3 million dollar company. I thought it was very smart for SKS to start out as a nonprofit organization. If there are no investors, donations is a good start. Networking with firms that support microfinance to attract investors and more lines of credit was a good strategy.

2)       Identify at least one part of the reading that was confusing to you.

I’m confused on how SKS Microfinance is a 7.3 million dollar company. Is it the connections that help with the profit? Or is it because of the two million clients paying back almost one hundred percent? With the cell phone bundles and transportation on underdeveloped road, the costs seem high.

3)       If you were able to ask two questions to the author, what would you ask? Why?

How much does SKS pay their employees? Actually, I should ask what the average living standard is in India. I was curious to know how much it took to get someone out of poverty. SKS is helping the world be relinquished from poverty one step at a time.

If a client is poor and still can’t pay back their loan, what are the repercussions? I’m curious to know, because they wouldn’t be able to treat that customer like a normal credit loan. They would keep owing more, and still wouldn’t be able to get out of poverty.

4)       Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

The author was wrong about there being uninterested investors. The author originally said that there was no interested investors, when there was. He just needed to word his plan differently. He made an elevator pitch! If you first don’t succeed, try try again.

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