MicroPlace: Investing to End Poverty

It sounds too good to be true: an organization that allows you to invest and make money while you help others out of poverty. That is exactly the mission of MicroPlace, and it is not only legitimate, it is thriving by helping the working poor across the world out of poverty.

MicroPlace, a company founded by business executive Tracey Pettengill Turner, works on the concept of micro-finance, in which small businesses and entrepreneurial ventures are funded with small loans. MicroPlace works with affiliates in impoverished areas around the world, giving "micro-loans" to working poor to start their own small business. Anyone who visits MicroPlace's website can choose a particular business project to invest in, and invest any amount of money they choose.

By providing workers in poor countries the chance to establish their own business, MicroPlace helps break the cycle of poverty by providing opportunities, not short-term relief. Turner saw the effect micro-financing had in alleviating poverty when she worked with Grameen Bank in Bangladesh, whose micro-financing efforts were awarded with the Nobel Peace Prize.

MicroPlace has established a large network that extends to every major continent. Not only are they able to help people in places like Latin America, Africa, and Southeast Asia, but they also invest in projects in the United States. One project will invest $7,000 in a small Peruvian cafe in Miami started by an impoverished mother who could not secure traditional financing. Another project in Kenya will invest $3,700 into a hardware and construction company owned and run by women in extremely poor situations. An initial loan by MicroPlace of only $730 helped get the business off the ground.

Each project on MicroPlace's website outlines the rate of return on investment, usually 2% to 3%, and the period of repayment, anywhere from one to three years. Investors can designate any project they wish to invest their money, and even browse projects in particular countries.

The reach of MicroPlace was greatly enhanced when eBay bought the company and has designated it as one of their organizations in which they invest millions. The move has also increased exposure for the company, which has brought in a number of new investors via the auction site and PayPal. Since the amount to invest is low, it has become a popular way for many young people without much to invest the chance to be socially responsible while they earn interest.

Source: MicroPlace.com