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Microloans Work Best With Proven Entrepreneurs

1,000 rupees = approx. $14 USD

Source: National Bureau of Economic Research

Microcredit programs are more effective when the money is lent to people who have greater entrepreneurial acumen/have prior business experience, according to a National Bureau of Economic Research (NBER) study on the long-term impact of a microlending program in India.

The program “had strong positive effects for households that were already engaged in what they call ‘gung-ho’ entrepreneurship and almost no effect for others,” the researchers found after studying 52 Hyderabad neighborhoods receiving loans from lender Spandana between 2006 and 2016.

Some used the loans to hire employees or invest in their business, while others paid off other loans or put the money toward their business on a less ambitious scale, researchers found. 

“The majority of business growth associated with microcredit comes from a small share of firms. Their growth generates employment opportunities for others who might otherwise become ‘reluctant’ entrepreneurs,” NBER wrote in its summary of the research. 

More Companies Concerned About Cyberattacks Than Natural Disasters

More technology companies are concerned about ransomware attacks than any other threat, shows a new risk report from Marsh. Forty-seven percent of respondents say that a cyberattack that shut down their operations or their suppliers would be a catastrophic threat to their company — more than double the response to that question only two years ago.

Another one-third of respondents say a ransomware attack leading to a data breach would be catastrophic. Data breaches are also considered risky, even if they aren’t catastrophic; 83% of respondents said threats to data security and privacy are the top risks to their company. Companies are also concerned about natural disasters and geopolitical events — the number of people who consider a trade war a significant risk is five times higher than two years ago.

As the conflict in Ukraine increases the likelihood of cyberattacks, companies, governments and organizations have had to tighten their cybersecurity protocols or risk substantial harm. The pandemic was also a driver of increased cybersecurity, as firms updated their security controls to account for employees working from home.

What Do Consumers Cut Back On in a Recession?

High inflation in the U.K. has lowered consumer confidence and disposable incomes and raised the specter of a recession, reports Investment Monitor. Britain’s inflation rate hit a 30-year high in March at 7% and is expected to rise to nearly 9% later this year.

A survey by the Office for National Statistics (ONS) revealed that 87% of U.K. adults had seen their cost of living increase in the past month, up from 62% in November. Real incomes have also fallen by almost 2% since last year and are expected to fall another 2.3% this year, according to ONS. As a result, Brits are cutting back on spending, with over half reducing their spending on non-essentials, 45% cutting back on their energy use, and 33% spending less on food and other essential items.

The Bank of England has been under pressure to decrease inflation by raising interest rates without causing a recession.

EV Charging Stations Will Pop Up Across Europe

There could be 5 million electric vehicle (EV) battery charging stations across the EU by 2030 — and double that by 2035, according to a new report from Transport and Environment (T&E). 

As part of the European Green Deal, the EU aims to reduce transportation-related greenhouse gas emissions by 90% by 2050 (compared to 1990 levels), and EVs are a large part of the solution. However, after an audit of charging infrastructure across the EU, the European Commission found that charging stations were placed at irregular intervals across the region. 

The EU’s draft infrastructure bill requires EU states to install charging stations at a rate high enough to keep pace with the rise of EV fleets, easing consumer concerns of being on the road without access to sufficient charging stations.

Fabian Sperka of T&E says: “Public charging is a key concern for drivers, and governments will be required by law to address this by expanding national networks in line with the electric car fleet. European lawmakers don’t need to hold back on setting higher car CO2 targets for fear of a lack of charge points.”

Global Donations to Ukraine Top $1.5 Billion

Institutions and companies around the world have donated over $1.5 billion to Ukrainian charities since the start of the crisis in February, according to the foundation Candid.

Corporate giving programs account for the majority (60%) of the grants and pledges given to Ukraine at over $900 million. Public charities and foundations combined account for 31% of donations raised, with high-net-worth individuals accounting for almost 5% of donations. The top funder so far is Epic Games, which raised $144,000 by donating the money that Fortnite players spent over two weeks. 

Almost a third of the grants went to organizations in Ukraine, with others going to the Red Cross and other international organizations. Of the donations directed toward a certain population, half are for the relief and resettlement of the over 5 million Ukrainian refugees. Over a quarter of those donations are for the care and protection of children. Only women, children, and the elderly are able to flee the conflict, as Ukraine has banned all able-bodied men between 18-60 years old from leaving the country. 

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