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Transcription of this question: 3.Kiva, the Acumen Fund and Corporate Social ResponsibilityLending to small businesses in the world’s poorest countries is growing rapidly. An example isthe Acumen Fund. Set up as a “venture capital fund for the poor” by Jacqueline Novogratz,the Acumen Fund uses e-commerce to link small businesses in the developing world with increasedgenerosity from wealthy individuals in the developed world.The Acumen Fund has invested $20 million in firms varying from an ambulance service in Mumbaito a mosquito net factory in Tanzania. It provides venture capital funds from the United States forsocially responsible businesses with potential to expand rapidly and become financially independent.It particularly targets health care, housing, water and energy.Another example is Kiva, which has been operating as an e-commerce source Of funds fordeveloping start-ups for two years. Investors can provide as little as S25 to help fund start-ups,from Kenya to Vietnam. Again, socially responsible projects are targeted.However, despite much needed funds reaching these projects, concerns surrounding venturecapital remain. This capital is essentially short-term, volatile and investors can be impatient forquick returns. The “dot-com” boom Of 1999-2000 highlighted that it can be removed veryquickly if external factors change with devastating consequences for the business start-up.Some analysts have argued that Other more sustainable sources Of finance may be more appropriatefor the developing world.[Source: adapted from The New Zealand Herald, 18 September 20071(a)(b)(c)(d)Define the following terms:(i) corporate soc ial respons ibility(ii) e-commewt•e.Explain one advantage and one disadvantage for an organization such as KivaOf becoming more socially responsible.Examine two difficulties faced by new business start-ups in the developingworldTO what extent is “venture capital” from the developed world an appropriatesource Of finance for new business start-ups in the developing world

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