By Shaina Bauman, JVA Consulting

There’s no doubt that “social enterprise” is a hot topic, in both the nonprofit and the business worlds. This makes sense, as social entrepreneurship combines the social mission of nonprofit organizations with the business savvy of for-profit companies. Though the term may be new, the idea is not. Microfinance—the provision of financial services (such as credit) to those deemed too risky by formal financial institutions—is one of the best contemporary examples of social enterprise, and it has been around for decades. There are currently hundreds of microfinance institutions serving more than 150 million low-income individuals around the world.

While microfinance may most often be associated with poor, rural populations in foreign, developing countries, Grameen Bank, a pioneer in the sector, has come to the United States—bringing with it many lessons that U.S. based nonprofits and entrepreneurs can learn from. Grameen Bank, the Bangladesh microfinance organization founded in 1983 by Mohammad Yunus, established its American branch in 2008, as highlighted here. Grameen America now operates seven branches in the United States on the same principle of offering credit to those unable to access it through the traditional banking system.

According to Grameen America’s website, the microlending organization provides small loans and other financial services to those living below the poverty line who want to grow or start a small business. As of June 2012, Grameen America served 10,000 borrowers in the United States with loans worth $45 million. All borrowers participate in financial literacy trainings and meet weekly in groups to discuss financial and business strategies.

This success of this community-driven approach may seem strange in the land of rugged individualism, but it is a poignant example of successful models that can come from East to West, South to North. The revolution of the “micro” method paradoxically works best when the individual is not isolated, but rather can rely on institutional and social support. Social enterprise capitalizes on this same interconnectedness by refusing to view social impact and for-profit venture as mutually exclusive. Just as the U.S. is learning from the successes of microfinance in developing countries, we can also learn from social entrepreneurs living around the world who are creatively imagining new ways to solve problems in their communities. Perhaps it is time for us to pay more attention to innovative solutions to poverty that are being implemented around the world, since, as demonstrated by Grameen America, they may be as applicable in the United States as they are in Bangladesh.

What innovative, entrepreneurial work is going on in your communities? What do you think that the U.S. social enterprise community can learn from the global social enterprise community?

Shaina Bauman was JVA’s Social Enterprise Intern in 2012. Shaina graduated in 2012 with a Master of Arts in international human rights from the Josef Korbel School of International Studies at the University of Denver, with concentrations in the Middle East and intercultural communication.