Contributions and challenges in the struggle to end poverty: the case of Kiva

ABSTRACT

This study discusses the American microfinance nonprofit organization, Kiva Microfunds, its organizational development and the impact of its approach to microfinance on the microfinance industry generally. The paper sees Kiva’s particular contribution to the field of microfinance as drawing on internet technologies to bring microfinance to a global user base. As it grew, it maintained is leadership in the niche it created, but it also faces many challenges. We conduct a SWOT-inspired analysis in which we specifically focus on what have been some of the key factors that have led to Kiva’s success and what may be areas of vulnerability that threaten its position of strength, particularly the high interest rates it charges, and the emergence of competitors that may be more effective than Kiva in their shared mission to alleviate poverty. We briefly examine some literature that challenges the received view on the overall value of microfinance and consider some implications for Kiva and conclude by noting that in the current market, Kiva will need to draw on its corporate history of innovation if it hopes to maintain its position of leadership in the face of new organizations like Acumen Fund and One Acre Fund that take different routes to the same goal of reducing poverty.