Over the last several years, the world has woken up to the enormous market potential of serving 2-3 billion people at the base of the economic pyramid. A growing cadre of investors recognizes that we can create new ways to meet the needs of this huge population in a sustainable, business-like way. A new wave of socially responsible funds, institutional investors, microfinance investment vehicles, banks and even conventional venture and private equity funds collectively have raised billions to invest in social enterprises.

Some portion of the optimism stems from the success of microfinance – the provision of financial services to help those living in poverty. Today, microfinance has grown to reach over 200 million clients around the world who previously were ignored by mainstream financial services providers. As a result, 200 million people have access to loans and an increasing array of services including savings, insurance, payments and remittances that help them improve their lives and weather financial uncertainties.

Most of the incoming money, however, has been focused on more established enterprises. The newest, smallest – and perhaps, most innovative – companies are left out, considered “pre-investable.”

Conventional investment strategies may not fit the emerging demand. An April 2012 report from the Monitor Inclusive Markets in collaboration with the Acumen Fund finds the impact movement hampered by a “lack of sufficient absorptive capacity for capital” – that is, “an imminent lack of impact investing opportunities into which large amounts of capital could be placed investors’ required rates of return.”

This shortage does not bespeak a lack of bold innovation among entrepreneurs. A host of new entrants, many of them based in Africa, Asia and Latin America, are pioneering innovative solutions to help the poor access quality financial services, building on technological advances such as the spread of mobile phones, expanding access to the Internet, and new ways of doing business with cloud computing and big data analysis to improve outreach, reduce cost, and increase convenience and affordability. Frontiers include:

Mobile phone-based businesses aspiring to create a world of branchless banking that may include services like savings accounts, remittances, credit and micro-insurance;
Specialized credit to finance micro, small and medium sized enterprises, housing and education, and sustainable energy initiatives;
Online or social media approaches that are pioneering peer-to-peer lending and other internet-based financial services;
Pay-as-you-go or lease-to-own models for energy products, modular housing and other “embedded” financial services.
These start-ups have the potential to both complement and disrupt completely our concept of how to provide services to the poor. They run into trouble, not because they don’t have passion and ideas, but because they face extraordinary challenges in undeveloped markets – isolated and uneducated customer bases, suppliers with limited capabilities, and poor infrastructure, to name just a few. They need formidable resources – financial and managerial – to successfully prove their new business models and technologies.

Can impact investors provide the right kind of help at the right time? At present, as the Monitor report notes, “few impact investors seem prepared to provide money and technical assistance in these earlier stages…This poses the question: how will promising inclusive business models get to these later stages where they become investable without support earlier on in their journey?”

What’s required on the financial front is patient investing, focused on businesses that are earlier in their development cycle than those normally considered “investable.” This capital must be risk-tolerant, provided in combination with technical and strategic expertise, as well as access to potential partners and, when appropriate, later-stage investors. At this critical stage, small amounts of capital with hands-on support can have a huge impact.

To that end, Accion has launched a new initiative – Venture Lab – dedicated to providing seed capital and management support to start-ups at a stage when their product or service is ready to test the market but has not yet proved its ability to generate revenue. The amounts are small – usually $100,000 to $300,000 – but tailored to the needs of companies at this stage. Venture Lab will provide not only convertible debt and equity to portfolio companies, but also a dedicated team to assist with early-stage tasks such as path-to-scale strategy, analytics, financial modeling and business development

Small amounts of well-deployed capital can make a big difference in the lives of individuals; we see this every day in the microfinance industry. We are confident that the same will prove true of investment capital for those trying to meet the broader needs of the huge market at the base of the pyramid. The right amount for the right company in the right market may have a truly disruptive and catalytic effect.

Michael Schlein is President and CEO, and Diana Taylor is Chairman of the Board, of Accion, a global non-profit organization dedicated to building a financially inclusive world. Accion’s Frontier Investments and Venture Lab both provide patient capital and support to financial inclusion entrepreneurs world-wide.

Balinese Hinduism, called Agama Hindu Dharma, originated from Java and is a blend of Shivaism and Buddhism. The theological foundation for the religion comes from Indian philosophy while indigenous beliefs form the backbone of the rituals. This blending is perfectly acceptable in Bali as the saying goes “The truth is one; the interpretation, multiple.”

In Balinese Hinduism, the indigenous beliefs manifest in the belief that nature is “power” and each element is subject to influence from spirits. Ancestor worship is also a part of the beliefs. Spirits and ancestors are treated with respect, and they are housed in a shrine and feted with offerings made from agricultural products.

As Gunung Agung is the abode of the gods and the ancestors, it is revered as the “Mother” mountain and is highly sacred to the Balinese. As water and volcanoes – considered as the wrath of the gods – come from Gunung Agung, the mountain occupies the pole of purity, kaja.

In contrast, the pole of impurity is the sea, or kelod.Balinese Hinduism revolves around this kaja-kelod axis and determines the spatial organization of rituals, architecture and daily life. One sleeps, for example, with one’s head in the direction of the mountain.

Religion in Bali varies according to three principles: desa (place), kala (time) and patra (circumstances). Hinduism acknowledges five pillars of faith. They are belief in the one Supreme God (Brahaman of Sang Hyang Widdhi Wasa); belief in the soul as the universal principle of life and consciousness (atma); belief in the fruition of one’s deeds (karma phala); belief in the process of birth and death (samsara); and belief in ultimate release (moksa).

One of the consequences of the principles of karma and samsara is the existence of the caste system where an individual inherits his status as a result of his or her past life. The four castes in Bali are the brahmana, who deal with religion and the holy texts; the satria or rulers; the wesia or merchants and the sudras, the lower class.

God has a variety of names. Being multiple and all pervading, he is the Ultimate Void or Sunya expanding in an infinity of murti of manifestations from which people select one as lstadewata or a personal god. Some of the names are indigenous; Sang Hyang Embang, and others of Indian Origin, Sang Hyang Parama Kawi. Ultimately however, all gods are seen as emanating from a single source.

The principle gods are Brahma, the God of Creation; Wisnu, the God of Providence; and Siwa, the God of Dissolution. These three move the world through an unending process of birth, balance and destruction. Man, a microcosm of the world, is subjected to the same process until he or she achieves moksa, blending into the Cosmos and God. The cosmos and it movement is symbolized by the swastika.

Man should endeavor to maintain the harmony of the whole system, hence the role of ritual. Only by adhering to the proper rules of behavior can the proper balance be kept between the two sets of godly and demonic forces. Balinese religion is known to the world through the richness of its rituals. Gods and demons seem to be every where and the life of the Balinese is therefore replete with rituals.

As the tools for maintaining the balance of the world there are rituals for everything imaginable, from knowledge, cleansing machines to marriage and birth ceremonies – all of different types and levels. Rituals consist of calling down the gods and the ancestors for visits from their heavenly abode in their country above the mountain. They come down during temple festivals and are entertained with dances and feted with offerings. They can also be called down through the entreaties of a priest.

Balinese rituals are ruled by a complex calendar system, a combination of the Indian Saka calendar and the Wuku calendar. The Saka year rules the agricultural cycle and is divided into lunar months and fitted into the solar calendar by the addition of an extra month, every thirtieth month. The full moon and the dark moon are the most important ritual moments of this calendar. The first day of the Saka year, however, usually in March is the day of Silence and of profound importance throughout Bali.

The Wuku year consists of a cycle of 210 days divided into thirty wuku weeks, each of which corresponds to a specific activity. There is a week of weapons and one of animals, for example. There are then other types of weeks varying from one to ten days, each having a name and number, being auspicious or inauspicious. The most important days in this system are Galungan and Kuningan, when all the ancestors come down to visit.

Temples in Bali are simple walled open yards from which people can-communicate directly with their gods and ancestors, Gods and ancestors normally “visit” their human worshipers or descendants during temple festivals (odalan). They reside in miniature houses set in the temple, the pelinggih shrines and alight with effigies of gold, coins or offerings.

During the length of their stay, the gods and their companions are symbolically bathed. feted, put to bed and entertained with dances and other shows. Meanwhile members of the temple come and go over three or more days, with offerings and to get their share of holy water sprinkled over them and the offerings during the collective prayers.

There are few societies in the world where religion plays a role such as it does in Bali. The incredible beauty and color that accompanies the rituals and offerings, which seem to be ever occurring, that Bali is continually harmonizing the world of Man with the cosmic world of the Gods.

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NGO Siola Gere and Indonesian development consulting company CV Tajage offer programs to put student’s previous learning, theory, experience and interest into practice by participating in environmental resource management, as well as social development projects in eastern Indonesia. RACI collaborated with the two organizations in providing students that participated alongside local people in community education, coral reef regeneration and protection, forestry conservation, and economic livelihoods.

Spotted Frog Productions was started in 2006 by Sue Useem. It is a not-for-profit documentary production agency dedicated to increasing awareness and education about misunderstood and forgotten conflicts and social issues around the world. Through the combination of filmmaking, new media, academic rigor and journalistic integrity, Spotted Frog strives to increase the dialogue on the causes and consequences of violent conflict, oppression, and human rights violations. RACI collaborated with Spotted Frog Productions in researching documentary content for “The Peace Agency,” and had joined the documentary production team on set in Central Sulawesi.

OMunity Bali is a community gathering place for global minded individuals to enhance environmental, cultural, and spiritual understanding. OMunity Bali tangibly bridges the gap between environmental concerns and human interests through practical education and sustainable Sudaji community involvement. OMunity is the platform where the three elements (environment, community, and sustainability) come together. Upon entering the green grounds of OMunity, one is faced by a large structure in the shape of an octagon, which depicts ‘unity of division,’ demonstrated by eight sides that meet together. The octagon, named Wantilan Nawa Sanga (the unity and totality) is where ideas are expressed and crystallized (literally, there are crystals at the top centre of the octagon). This octagonal environment garners discussion and different ideas that are solidified through action then spread throughout.

RACI has been volunteering in the village of Sudaji for over two years, with proven success in creating and implementing cultural programs, as well as engaging with the community, especially its youth, through environmental education presentation and workshops.

Green Spirit Bali supports and empowers the Sudaji community through the production and sale of locally grown organic commodities. Green Spirit Bali is derived from a need to counteract the negative environmental effects while enhancing community possibilities. The term ‘green’ references the environment and the term ‘spirit’ references the human spirit. Green Spirit Bali seeks to build human understanding, maintain tradition and culture through educating people, both visitors and locals. RACI participates with Green Spirit Bali in areas of community development through environmental initiatives in connecting organic farmers with sustainable, fair trade suppliers and formulating an organic products database for sustainable entrepreneurs.

Friends of the National Parks Foundation’s (FNPF) goal is to create a harmonious and sustainable situation between wildlife, habitat and the local communities. To protect wildlife, FNPF runs very effective rehabilitation programs to ensure that rescued and cage-bred animals can survive in the wild after release. FNPF supports this by trying to create secure environments for wildlife-by restoring / rebuilding habitat, and persuading local communities to protect them. In mid 2011, the Indonesian Government invited FNPF to take over the running of Bali’s only Wildlife Rescue Centre (1 of 8 in whole of Indonesia) in which FNPF cares for and rehabilitates for release wildlife that have been rescued from illegal captivity.

RACI assists FNPF in Nusa Penida through aiding in turtle conservation programs for the island; teaching local FNPF staff and community members English; contributing to garden and greenhouse; and monitoring the development of the Bali starling conservation project. In Tabanan, RACI is contributing to the development of the newly acquired Wildlife Rescue Centre, through print marketing and operational development.

Located inside an authentic Balinese family compound, Kopi Desa offers customers an opportunity to see the traditional coffee making process, from bean to cup. We personally process, roast and grind your favorite coffee in-house, specializing in organic, Indonesian coffee sourced directly through personal relationships with family farmers. We have fast wi-fi as well, so stop in to try our featured monthly roasts and drink a cup or two.

Today’s world is a global village and like a village square, Kopi Desa is a meeting and connecting point where community members present and introduce their projects and exchange their visions and ideas with both expats and locals. To show RACI’s commitment to one another’s future, RACI hosts a speaker series, titled, Fifty-two Conversations on Sustainability at Kopi Desa. Furthermore, RACI provides free English classes to local Balinese children every Saturday at Kopi Desa. Please send us your topic suggestions or sign up to be a featured speaker here.