13A - Reading Reflection #1

Twenty-Seven Dollars and a Dream

What surprised you the most?

Muhammad Yunus is a clever entrepreneur and social businessman making his name through unconventional means. I was very surprised to hear that Yunus has operated small rural banks through Bangladesh that cater primarily to Muslim women. I did not think that his vision of microfinance would be socially acceptable for that specific country, however he was able to convince women it was a sound idea. The small loans were even paid back at over a 98% return rate meaning that the very poor were still able to stay true to their promises.

What about the entrepreneur did you most admire?

I appreciate Yunus’s vision of battling the true issues that plague his country’s lower classes, which include poverty and lack of empowered women. Growing up middle class in his country (it is noted that this is still very poor), means that his motivation comes from the experiences he's had growing up in his home country. I admire that even with less networking opportunities, which were common for children of businessmen, he was still able to succeed at an early age. He was gifted in school and even secured a scholarship later on to get his PhD from Vanderbilt University. Although he liked his stay in the United States, he still desired to go home especially during the succession of Bangladesh from Pakistan. I admire that Yunus stayed true to his vision throughout his later career and moved home to fight poverty and empower women.

What about the entrepreneur did you least admire?

The interest rates of his Grameen Banks are higher than most corporate banks throughout the world. The rates can be as high as 20%, however there is no collateral that is exchanged for these loans in any case. I believe that even with the costs of their staff traveling to villages and the lack of collateral, the rates are still too high. Previous loans have been repaid over 98% of the time, therefore collateral does not seem like a major issue unless more people begin to default.

Did the entrepreneur encounter adversity and failure? If so, what did they do about it?

Yunus encountered adversity throughout most of his upbringing and business career. As a kid living in poverty, Yunus had to help take care of his younger siblings while his dad worked. His mom developed a mental illness that relinquished her roles by the time he was ten. Later on, his idea of using microfinance to end poverty was a concept that many opponents could not get behind. One of Yunus’s greatest achievements is winning the Nobel Peace Prize, however there were many vocal critics that criticized the legitimacy of microfinance loans that carry higher than average rates. His more recent efforts to encourage social businesses throughout Bangladesh has also seen less than optimal results.He continues to remain optimistic and stated that “gradually it will take shape and some of the seeds will sprout, some of them will not sprout, and people will see what resonates for them.”

2) What competencies did you notice that the entrepreneur exhibited?

Yunus possesses the natural ability to lead people in both a business and social sense. Ever since he was a kid, Yunus found great success in starting small enterprises such as a stamp business and a box business while still being young. He also displayed a true passion for innovation. As an entrepreneur, Yunus brought new ideas of business that many people had not seen before, especially in his home country. Implementing microfinance in  way that simultaneously empowers women is an innovative way to fight poverty at its true core. Muhammad Yunus also exhibits a high degree of confidence that has allowed his ideas to create real results. A great example of his confidence was his lack of preparation for his Nobel Peace Prize speech. Most people who receive the award prepare for weeks to make a compelling speech, however Yunus only took a few hours in his hotel room the day before. His ability to speak from the heart and articulate his ideas in a genuine fashion will continue to aid him in his social business and banking endeavors.

3) Identify at least one part of the reading that was confusing to you.

The relationship between Yunus and his ex-wife, Vera, was hard to understand in terms of its ending. Yunus and his wife had just had a baby together who they named Monica, however Vera immediately insisted they move back to the United States now that she was born. They both had previously agreed that they would move to Yunus’s home country, Bangladesh, however she decides to annul it once they already have a child. Fortunately for Yunus, it is later established that he possesses an important relationship with his daughter.

4) If you were able to ask two questions to the entrepreneur, what would you ask? Why?

1. When starting the Grameen Banks, if you found little to no success drawing Muslim women outside the social norms of taking loans out in their name, what would you have done?
2. If you were to relive your life, would you have spent more time establishing a relationship with your daughter oversees or continue to prioritize the idea of the Grameen Banks?

5) For fun: what do you think the entrepreneur's opinion was of hard work? Do you share that opinion?

I believe that Yunus would hold the belief that hard work pays off. During his childhood, Yunus prioritized his education and interest of social issues to bring himself out of the confines of the lower class. His achievement in education paved the way to his education overseas and allowed him to become the successful businessman he is today. Although he is most likely aware that hard work paid off for him, he might also hold the view that sometimes it can only do so much. Yunus also found success in the seizing of opportunities, not always from basis of hard work. Growing up in a country that also many not reward hard work as well may also weigh in on his opinion.