Willie and Microfinance, Part I

I met William today. William or "Willy", also goes by ZZ as his appearance to the legendary front man Billy Gibbons is uncanny. He stopped in today and we got to talking for a half-hour or so. As it turns out, Willy has family in Maui having gone to school there and lived for many years, and is trying to find his way out there. Willy had a falling out with his family some years back as his addictions to drugs and alcohol raged.

Willy is homeless.

He'd like more than anything else to make his way back to Hawaii and show them that he's clean. That he's turning his life around. That he's trying to dig his way out. Trouble is, hitching rides may be easy, but getting across the Pacific is another story.

How much is a one-way ticket to Maui? He wondered.

I looked it up.

It's roughly $390.

I almost winced at the amount. $390 is a lot of money to anyone, let alone a homeless man. How on earth to raise the money he wondered? He had a plan.

Willie likes to surf. He hasn't lately, but loves the break here in San Diego - much like Maui, not as warm, but just as peaceful. He has two old boards that have fallen in disrepair. As I understand it, these boards are made by a legendary board-marker. I didn't quite follow who the maker was, nor did I fully understand as he explained their repair. My knowledge of anything surf-related is minimal, and that may be generous. Anyhow, with some work toil and repair, they ought to fetch almost $1,500 each with the right market. In Hawaii, the boards ought to fetch even more as Willie explained the market out there is a bit better than here. Does he have them fixed here, then pay to have them brought aboard an airline?

Depends on the airline's fees for the weight of the two boards. He says thinking out loud.

His next stop, he explains, is the surf shop down the street. They'll be able to give him a good idea of what is costs to transport surfboards. That's step one, but he's afraid the fees will be too high.

Maybe he sells the two boards to someone in Hawaii from here, and then has them pay the shipping? Not favorable, he muses, as people like to see boards before they purchase. He does not want to sell them here, as they'll surely not fetch half as much money as they will in Maui or Honolulu. This is a man who understands economics. He understands the buyer's market. He knows Craigslist is probably his best shot at selling to the largest population, for the cheapest price. He's weighing his options. This man is an entrepreneur.

Willie is working to save the several hundred dollars it'll take to have them fixed first. This of course will take him awhile.

First he has to get his VA benefits to come through.
Then prove he's clean to find part-time work.
Then get a bank to let him open an account, maybe take a loan.
He has no collateral though. And herein lies the problem...

The homeless, the poor, the weak, the disenfranchised, those that live in the "ghettos" are not stupid. They're not there because their incapable. Sure, some are unwilling. Some don't put forth the effort. But most of the time, poverty is as a disease: It cannot be shed. It leads only to further despair. These people don't have access to money. Heck, most don't have access to computers. Those living in the deepest ruts of poverty cannot get loans from banks. They cannot start the American (or any other countries) dream. They are limited.

In some ways, the truly poor are the ultimate travelers. They are the ultimate entrepreneurs. These poor souls live on what they can beg for. What they can produce with their hands. What they can produce by collecting cans, bottles,or work here and there. They can live for years, eat, sleep at night, with nothing. They can find their way from one side of the country to the other, for free. They, like Willie, use what they have to buy/sell for a profit. If Willie was loaned the money to fix his boards, could he make $3,000? Good question. Even if he could, could he be trusted to repay it? Good question as well. This is going to be Part I in a series of blog entries about our thoughts on microfinance:

What it is.

Where it is.

Why it works.

And why, with regard to poverty, it might change the world.

To be continued....