Kava, a nonprofit micromanage company situated under the website “www. Kola. Org”, functions as an intermediate body between a large global infrastructures network of micromanage institutions. Ideally, Kava provides small loans towards entrepreneurs in developing countries worldwide. Kava works on a sustainable peer-to-peer microcircuit model marketplace that provides loans to borrowers who need it most in order to allow them a better chance of creating a better life. These loans given out are paid back under the assumption that the borrower will repay the loan under goodwill and faith”.
This can be seen as the primary agenda and alma for the company Kava. While riding the waves of online social media and news, Kava has successfully managed to become one of the fastest-growing nonprofits in history. However, a company of such stature is never free from the ever-growing controversies that inevitably follow. The first controversy to highlight is the Kava’s infamous but subtle misleading marketing campaign (Godparents. Org 2009). Kava advertises that the users make loans to specific borrowers through a peer-to-peer credited marketplace.
The reality of this is that it actually makes loans towards micromanage institutions, which actually makes and administers the loans. This could possibly imply that the borrowers have already received their money through these institutions before their loan has even reached the website painting a false image that the users are donating to the borrowers directly (Harvard Business Review 2009). Furthermore, the users are as well not tied directly to repayments made by the specific borrowers. There Is to a certain level of credibility that micro loans towards small business help developing nations.
However, micromanage is not the ultimate answer. There is only to a certain level of acceptance of the ideal that majority of economic issues in developing countries can be solved by micro loans (Caved. Org 2009). Again, these loans are given out and approved with the assumption that these loans will eventually be paid back. However, If there are circumstances preventing the payment of the loan, a default Interest Is charged. This leads to the questions eased regarding the Interest rates charged by Kolas ;field partners’ on the loans from external parties (Crestview. Org 2009).
