Co-Creation for Impact Investment in Microfinance

Exogenous capital is required to break the vicious circle of poverty. Venture capital firms use the concept of co-creation to create a multi-pronged attack on poverty while maintaining a profit motive. Technology companies are realizing that if the poor can use telephones, then that is sufficient for them to get into the field and provide them micro-services which make it possible to lower transactions costs in dealing with them. Constant checks may help raise health consciousness and increase the productivity of these micro-entrepreneurs and reduce the risk of the microfinance institution.