Tongan women at SPBD Centre Meeting

As business school students, it is rare that we have the opportunity to see the intersection of theory and practice.  However, in January 2011 our group of four Columbia Business School (CBS) students had just that chance, thanks to Columbia’s Pangea program and SPBD.

The Pangea program, an organization sponsored by Columbia’s Social Enterprise program, allows CBS students to gain an inside understanding of microfinance in developing nations.  Through separate application processes, students and microfinance lenders are chosen to participate in consulting projects that address critical organizational challenges and access to financing.  In our particular case, we had the opportunity to conduct due diligence on SPBD in anticipation of funding from Microlumbia, another Columbia sponsored organization that provides capital to microfinance institutions.

During the fall semester of 2010, our group worked diligently to understand SPBD’s organizational structure, financial profile, growth plans,  and competitive positioning within the South Pacific’s microlending industry.  We met weekly as a team to review our progress, and had the opportunity to conduct phone calls with various members of SPBD’s management team to gain additional insight.  The culmination of our project involved a week-long trip to Nuku’alofa, Tonga to witness the SPBD process in action.

During the course of our visit, we had the opportunity to meet with SPBD’s Centre Managers, Clients, and Managers, gaining tremendous insight into the direct impact that microlending has on the community’s economic growth.    The ability to visit SPBD clients’ businesses and to hear first-hand stories of personal growth and wealth accumulation that have resulted from the organization’s investment in entrepreneurship brought the microfinance industry to life for us, tangibly illustrating the importance of the work we had completed over the course of the fall semester.

Our time in Tonga was undoubtedly a turning point for many of us – exposing us to the realities of life in developing nations, providing us an understanding of microfinance’s role in encouraging financial development, and leaving us with a deep appreciation for organizations like SPBD that work tirelessly to improve the quality of life for its clients and the communities in which they live.

Watch this video from Fiji 1 News for more.

Greg Casagrande receives 2010 Global Social Innovator Award from Penny Low, member of Singapore's Parliament

Greg Casagrande was awarded a 2010 Global Social Innovators Award from Penny Low, a member of Singapore’s Parliament for his work with MicroDreams and SPBD. A big thank you to the GSIF and congratulations Greg!

Learn more about Singapore’s Global Social Innovators Forum

Click for more information about the Microfinance Recognition Awards

SPBD-Samoa General Manager Maros Parreno Apostol (2nd from left) with The Body Shop Inspiration Scheme members (from L to R): Louisa Trombin, Adam Valvasori, and Lawrence Cupido

Samoan retail shop ladies are about to get a business makeover.

The Body Shop Australia, The Wise Foundation, and South Pacific Business Development of Samoa (SPBD-Samoa) have teamed up to launch a small business training and mentoring program for several small retail shop owners in Samoa to help them further develop successful micro-enterprises.  In addition to the training, the Wise Foundation also provided a $A30,000 grant to SPBD-Samoa for the expansion of its micro-enterprise loan program.

Five Body Shop employees will visit Samoa for a week, pro bono, to initially train 10 SPBD members who have started their own retail shops in merchandising, marketing, customer service, and business planning.  The Wise Foundation will also assist in the development of the curriculum for the small business training and mentoring program.  This inspiration program will offer Samoan women entrepreneurs the opportunity to grow and develop their businesses and entrepreneurial skills, and provide Australian entrepreneurs a unique challenge and cross-cultural exchange.

The program will officially start October 2010.  Read the full press release here.

Maros Parreno Apostol, GM of SPBD-Samoa, Greg Casagrande, and Lorisa Canillas, GM of SPBD-Tonga

This article from the October 10 issue of Fiji Sun newspaper announces the launch of SPBD microfinance in Fiji! Following the success of SPBD in both Samoa and Tonga, SPBD-Fiji will help thousands of Fijian women and families break out of poverty through their own initiative.

Lionel Somaratne, who transformed Nationwide Microbank of Papua New Guinea into the largest, commercially-viable, sustainable microfinance organization in the Pacific, will be the General Manager.

MicroDreams is proud to be a long-time supporter of SPBD throughout the Pacific.

Recognizing that the low income sector needs a variety of financial services not just credit and savings, SPBD developed a life micro-insurance product to address clients’ needs and help them reduce their hardship and vulnerabilities. According to SPBD’s General Manager, Lorisa Canillas, the specific objective is to offer a simple and affordable insurance product that will reduce the burden of funeral expenses to families of SPBD members…

During its first year in Tonga, SPBD disbursed 2,500,000 Pa’anga of unsecured loans for women to start or grow micro-businesses. SPBD now has 2,200 members from 37 villages in Tongatapu. Members also participate in a small savings scheme and 224,000 Pa’anga in savings have been mobilized.

The insurance will cost 15 pa’anga (about US$ 7.50) for one year, and in case of a member’s death, will pay out between 1,000-5,000 pa’anga (US$ 500-2,500) to the designated beneficiary to help pay for funeral costs.

You can read the full press release here: Micro-Insurance Tonga Press Release 17 Sept 2010