Not Poor Enough

Kiva recently posted results from a rough analysis of its loans and found that entrepreneurs were funded more quickly if they were smiling in their photo. (There were also other, more basic, factors like gender—women first—and location—Africa over Asia.) Kiva lets lenders feel connected to borrowers, and it makes sense that a smile makes this easier. This fascinating piece of information got us thinking about perceptions about poverty and need among microentrepreneurs in the U.S.

When Kiva first launched in the U.S. this past June, it kicked off a heated debate that seemed stuck on the question of whether U.S. borrowers were “poor enough.” One borrower in particular (a Caucasian male in a white button-down shirt, not smiling) was mentioned often as proof that Kiva had gone astray. While we don’t suggest that particular client was living in abject poverty, we do think it unfortunate that people jump to conclusions based on the very limited information that goes up on Kiva.

A reporter recently interviewed one of our (Opportunity Fund) clients about Kiva’s entry into the U.S. and afterwards called us in a panic, saying that she didn’t understand who we were making loans to because the small business owner she interviewed didn’t seem “poor”. Our client had told her that her daughter went to private school and she owned the land her business was built on. She didn’t tell the reporter that her daughter went to private school on scholarship and that the land she bought was from a small sum of money she inherited when her parents died tragically in a car accident. And the reporter didn’t know that, like the vast majority of Opportunity Fund’s clients, her income was well below the median for her region. Our client didn’t talk about being poor. She presented herself as a thriving businessperson, because there was going to be an article about her in the paper, and she wanted to talk about her success.

Our borrowers don’t “look poor” mainly because they don’t consider themselves poor. They are enterprising individuals who are working to build a life of dignity for themselves and their families, despite the many challenges they face. That said, we are definitely going to encourage more smiles on the Kiva profiles going forward!

Gwyneth Galbraith
Major Gifts Director