Banco Compartamos – Microfinance_ Case Study

Paper instructions:
This is a Case Study for my Social Entrepreneurship class based on the concepts of micro-finance with relation to the business model to eradicate poverty and illiteracy created by Dr. Muhammad Yunus and his Grameen Bank. The case study is based on a different business model of micro-finance implemented in Mexico by Compartamos Bank. In essence, the idea is to compare and contrast the 2 entities and its methods through answering the 5 questions as the end of the “Banco Compartamos_Case Study” file. To complete this case study you must have a read the book “Banker to the Poor” by Dr. Yunus or at least have an understanding of his micro-finance business model and his values (All can be researched). I will upload some files to assist you in properly writing this case. I will upload a separate file called, “Banco Compartamos Case Study” which contains a brief summary of the entity in Mexico and how it evolved into the public bank it is today. This is the file that contains the 5 questions that must be answered throughout the write-up but it is not to be done in a simple question-answer form, but instead in an integrated writing. I will upload a sample case study to guide you, “Sample Case Study_different subject”

Question 1 deals with comparing the Compartamos Bank business model of a commercial micro-finance institution with the Grameen Bank business model of a village bank. Wikipedia has a good entry for Village Banking and I will also upload a couple of notes taken in class of what constitutes a Village Bank in term for Grameen Bank under the file, “Village Banking_Notes”. Further research the Compartamos Bank model other than information on Case Study File.

Question 2 deals with the evolution of the Compartamos banking model

Question 3 deals with researching what “pro-poor” is by industry standards as well as by Dr. Yunus’ definition and applying them to the Compartamos Bank.

Question 4 deals with how the IPO impacted Compartamos as a lender and if it swayed away from its original pro-social values. Write about how being a publicly traded company causes a conflict of interest as they must now strive to maximize the owner’s wealth iinstead of focusing on improving the lives of the poor.

Question 5 is more of an analysis of question 1 and a decision on which is better in terms of eradicating poverty.