Homestrings, Inc.: Diaspora-Based Financing and the Crowd Funding of Development Harvard Case Solution & Analysis

Homestrings, Inc.: Diaspora-Based Financing and the Crowd Funding of Development Case Solution 


Why are the diaspora important? In what ways can diaspora ties be used for business models?


Importance of Diasporas and Compatibility with Business Models

The idea for the establishment of an organization like Home strings came to the mind of the founder of the company after he realized the potential that was available in the investment and money transferred by the Diasporas around the globe to their home countries. After attending the World Bank conference that majorly focused upon the Diasporas and what platform can be provided to them through which they can support their business activities and other daily expenses.
Diasporas are the scattered population that have migrated from their homeland and reside in different territories from their original homeland. Diasporas send a handsome amount of their earned incomes to their homes to their loved ones through which they are able to support their families. Some diaspora groups own efficient performing business organization. Eric was not sure of the amounts which were being sent back home by the diaspora every year and these numbers were increasing every year. After the conference at the World Bank, which majorly focused on Diasporas, it brought his attention towards the available potential to be capitalized as an investment industry.

A large number of Diaspora residing in different locations of the globe has been sending money in large amounts to their homes. These sent finances can be facilitated while channel ling them into worthwhile investments for the development of the home countries. Remittances sent by the Diasporas to their homeland can be very well utilized if managed effectively and efficiently which can result in increasing the pace of the progress and enhance the level of job opportunities. Diaspora can be a source for the progress of the project that lack resources back home if their sent money is channelled through excellent managerial activities.
Through the management and channel ling of the received investments from across the globe from Diasporas to their homeland, a number of efficient and effective establishments can be conducted out in their home countries. With increase in the development the countries that are on the receiving side of these investments can experience a significant increase and progress in their establishment of project processes and increase the economic condition of the territory. More jobs are expected to be created with development of new business organization that are supported by these investments. The overall condition of the home countries can experience a positive change as increased level of investment in developmental activities and other progressive activities in the country have the potential to drive the economy towards increase patterns.


What have been the key factors for Homestrings’ success to date?


Success Factors

After the rapid success of his business idea, Eric was well aware that a number of steps must be taken into consideration for the survival and expansion of the company into further dimension which can help the organization in growing. The company’s performance was up to the standards and provided a viable generated level of revenues in order to support their business activities. Eric brainstormed a number of steps that could be beneficent for his business to grow and efficiently implemented them in his business operations.
The steps he took significantly added value to his business operations. Firstly he realized that a large potential lies in expanding outside of diaspora market since the market was smaller in comparison with other individual who were also sending large amounts of money to their home countries. Eric was well aware that his business operations can drastically improve and enhance if his business activities expand outside of diaspora market. A number of investors were already interested in the firm’s operations and were looking forward to getting involved in business activities that can be fruitful to them................

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