ValueXchange: The Value Beyond the Financials

Abstract

This honors dissertation examines the impact the company ValueXchange places on society. By scrutinizing what occurs after ValueXchange performs its core function of connecting small business owners with private lenders, the dissertation identifies alternative benefits that are created out of the core function. The primary benefit is when small businesses are able to obtain loans, they can continue to innovate, survive, and contribute to the local communities where they operate. Secondarily, when small businesses have the ability to receive loans to fund growth efforts, they create jobs and keep markets for products competitive for consumers. ValueXchange does, however, create trade-offs for society; ValueXchange may entice uniformed parties to take on the risks of receiving and providing a loan. Further analysis reveals, however, that the ValueXchange business model mitigates these trade-offs. The last component of the dissertation addresses the companies that have entered into the business of loans before ValueXchange. ValueXchange is unique from these earlier entrants in the value it provides for society. After the holistic analysis of the role ValueXchange has in creating alternative value, the paper concludes that in the company's pursuit for profit, ValueXchange is of mutual benefit to its customers and society at large.