A Billion Bootstraps

About the Author

Phil Smith and Eric Thurman bring a wealth of experience and passion to the subject of microcredit and philanthropy. Phil Smith, a philanthropist and former CEO of Prize Energy Corp. and Tide West Oil Co., has dedicated his life to purposeful living, aiming to make a significant impact on the lives of the impoverished. His co-author, Eric Thurman, is a renowned expert in international philanthropy, having served as CEO of Opportunity International, HOPE International, and Geneva Global Inc. Together, their combined expertise and commitment to innovative solutions for poverty alleviation make "A Billion Bootstraps" a compelling and insightful read.

Main Idea

The main idea of "A Billion Bootstraps" revolves around the transformative power of microcredit as a tool for poverty alleviation. The authors argue that microcredit, or the provision of small loans to impoverished individuals to start or expand their businesses, is not just a financial tool but a catalyst for social and economic change. By empowering individuals to become self-sufficient, microcredit fosters dignity, self-esteem, and sustainable development. The book advocates for an investment mindset in philanthropy, encouraging donors to seek measurable returns and long-term impact rather than short-term relief.

Table of Contents

1. The Power of What Works
2. Investment Philanthropy
3. Changing the World
4. Beyond the $900 Billion Black Hole
5. A Better Donor
6. Intelligent Giving
7. Giving Credit Where Credit Is Due
8. Barefoot Banking
9. Moving the World
10. Microcredit Plus
11. Beyond Good Intentions
12. A Thousand Battles, A Thousand Victories
13. The Best Due Diligence
14. Tough Love Leads to Happy Endings

The Power of What Works

In the opening chapter, the authors illustrate how Phil Smith transitioned from a successful career in the oil and gas industry to a mission-driven life focused on impactful philanthropy. Smith’s encounter with microcredit was a revelation, highlighting the potential of small loans to effect meaningful change. As he learned from an article about women in Chiapas, Mexico, who transformed their lives with $50 loans, Smith saw microcredit as a sustainable alternative to traditional charity.

"The women in Chiapas were repaying their loans, starting or expanding their businesses and sending their children to school as well." - Phil Smith

This realization set Smith on a path to explore how microcredit could be applied more broadly, especially in developing countries where traditional financial services were inaccessible to the poor. The chapter underscores the importance of understanding the practical workings of microcredit and its potential to create lasting economic stability.

Investment Philanthropy

Eric Thurman introduces the concept of investment philanthropy, where donors apply business principles to their charitable giving. This approach emphasizes the need for measurable returns on donations, similar to financial investments. By focusing on microcredit, donors can multiply the impact of their contributions exponentially.

"By focusing their giving dollars on microcredit loans in developing nations instead of on charities in the developed world, givers multiply the impact of their donations by much more than 100 times." - Eric Thurman

Thurman’s experience in managing philanthropic dollars and microcredit programs in over 30 countries provides a compelling argument for this strategic approach. He explains how microcredit not only supports individual entrepreneurs but also strengthens entire communities by fostering economic growth and stability.