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When for-profit businesses take over not-for-profit initiatives

According to FORO, “The current microfinance revolution in Peru stems from the growth of non-profit microcredit institutions that were traditionally supported by funds from international donor agencies. Commercial banks are now continuing and scaling up these efforts, but maintaining, in most cases, the social mission that institutions like Grupo ACP have been promoting in the microfinance market.”

Implications from Institute for the Future:

A smooth transition from a not-for-profit initiative into a for-profit initiative taken up by interested businesses is a sign of a successful development initiative. The challenge for most all development work is how to make it sustainable, ideally, how to move beyond donor based aid to self supported growth. This case of microfinance in Peru is one such example.

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