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Stanford Business magazine

 

Even Ordinary People Can Change the World

Never underestimate the influence of Oprah, the power of presidential praise, or the impact of a great idea.

Last fall, television host Oprah Winfrey welcomed former President Bill Clinton to her show. Clinton was promoting his latest book, a paean to philanthropy called Giving: How Each of Us Can Change the World. Front and center in the audience were Matt and Jessica Jackley Flannery, MBA ’07, who had founded the online microfinance site Kiva, praised in Clinton’s book for giving ordinary people everywhere the opportunity to change the world by making small loans to entrepreneurs in developing countries.

The day the Flannerys briefly appeared on Oprah, Kiva.org registered 4,388 new users and raised $145,000 in loans to businesses, almost four times the average daily total of the previous week. The following night, after raising another $153,000, Kiva “sold out.” Even with a temporary cap of $25 on all loans, every entrepreneur in Kiva’s portfolio was completely funded. Kiva was back in businesses in days, but the cap stayed on for much of the following two months.

Meanwhile, Clinton continued his book tour, and at every stop, it seemed, he spoke of Kiva. In what must rank as the highest praise given an internet startup in recent memory, here’s how the former president summed up the company on Fox News: “Kiva.org gives you a chance to do what Muhammad Yunus won the Nobel Peace Prize for.”