Thus, in any given market, OI can expect competition from a wide number of microfinance institutions. In general, these institutions are charitable organizations based in Western countries. They each have similar objectives and are not motivated by profit, therefore there is low intensity of competition between them. Groups do not necessarily work together, but may instead avoid each other's territories. The competition keeps OI's operations small in many countries, but it also provides more choice for entrepreneurs in those countries to receive financing.
The main impact of competition for OI is with respect to funding dollars. OI must work hard to compete against not only other microfinance organizations, but charities of all stripes for the finite dollars available from both private and institutional donors. They have been able to secure a number of prestigious donors over the years, which enhances their fund-raising potential.
Since initiating its microfinance operations in 1992, Opportunity International has grown to become one of the largest and most prestigious microfinance institutions the world. They have enjoyed tremendous success because of their strong business model. The microfinance industry is poised for strong growth in the coming years, mainly because the concept has been so successful at fostering economic development. In that span, Opportunity International has ambitious goals for expansion. Much of its expansion plans hinge on its ability...
OI has no competition in this sector, and has rapidly grown the program thus far. By providing crop insurance and AIDS insurance, OI has encouraged stability by allowing citizens of developing markets to avoid the catastrophic financial consequences associated with these disasters.
By enhancing stability among the world's poorest people, and providing them with an opportunity for growth, Opportunity International has not only been successful by the measure of any financial institutions, but has also made a positive impact on the communities in which it operates. The organization is rated by highly by charitable watchdog groups for its effectiveness, and has created thousands of jobs around the world. There is little doubt that the future is bright for Opportunity International. The organization's global orientation and ability to successfully replicate its model around the world bodes well for its ability to continue to expand and provide the seed capital that budding entrepreneurs in the developing world so desperately need.
Works Cited:
Opportunity International website. Retrieved April 23, 2009 from http://www.opportunity.org/
Bill & Melinda Gates Foundation website. Retrieved April 23, 2009 from http://www.gatesfoundation.org/Grants-2007/Pages/Grant-48772.aspx
Mixmarket.org website. Retrieved April 23, 2009 from http://www.mixmarket.org/en/partners/partners.quick.search.asp
