Kiva Picture

The company Kiva, which offers micro-loans to those in need, has a demand surplus.  This concept may seem strange because the idea behind Kiva is to help those in need by lending small portions of money.  Normally, people have a hard time finding loans when they need them and with Kiva, somehow too many people want to loan money.  The idea of micro-loaning has become so popular that Kiva has had to limit the amount of money people can loan.  People can now only lend $25 per “borrower.”  This company, a social entrepreneurship, has had success that any company would would want.  Companies normally start up a business with the main goal to make a profit rather than with a social mission.  This was not the case with Kiva, it began with the vision of little contributions making a huge difference in people’s lives that need loans to get back on their feet.  This is much different than philanthropy.  Money is not simply thrown at a problem to be fixed.  Kiva gives people the means to help and find a sustainable solution and shows that businesses can be non-profit and set up to make change and not the stereotypical, unmoral business that cares of nothing more than making a profit.

An important part of starting up a business, is how to differentiates from competitors and give consumers a unique product.  One way to accomplish this is to define your business’s niche market.  Another blog, talks about how to find a niche while not limiting yourself from potential customers.  I think this is extremely important because, as difficult it is to differentiate yourself as a company, it can also be a hindrance by excluding potential buyers.  It is best to focus on who is being targeted in the market but not forget about others who could help to expand your business when coming up with a marketing plan.  For example, as stated in another blog, many companies start out a niche market company and then when they grow, they expand to complimentary products and services. The Forzani Group started in 1974 as one store in Calgary in a niche market of selling running shoes and clothing because at the time, these stores simply did not exist.  Since then, the company eventually expanded into other sporting goods, such as skis, hockey equipment, etc.  Currently it is the largest national sporting good retail chain in Canada and was recently bought by Canadian Tire.