Microcredit

Microcredit
Microcredit can be defined as small loans, or microloans, for people around the world in extreme
poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world's
economy. Poverty alleviation and economic development are the primary goals of microcredit
programs, that is why they began in the developing countries of Asia and Latin America, economist
Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial
innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in
self–employment projects that help them to start a business and begin generating income and in
many cases leave poverty. Microcredit offers loans to poor people without ... Show more content on
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I will compare microcredit in the United States to microcredit in developing world, which includes
countries from Asia as well as Latin America. I will discuss about some of the goals, processes,
impacts and challenges of these developing countries.
Studies of the impact of microfinance in more than 24 countries have found high improvements in
household income levels (Carr, 2002). Access to microfinance allows the borrower to reduce costs
with lower interest rates and purchasing of raw materials. Income increases as the number of goods
or services offered grows and product costs are reduced. Microcredit was initially created in
developing countries where extreme poverty percentages are higher, but it also helps developed
countries in a significant way. Even though the United States is one of the world's greatest
economies, microcredit helps micro businesses to develop effective financial plans and have an
individual as well as collective growth.
In the United States, small businesses with less than 5 employees represent the 18% of employment
(Microfinance organizations, 2011). Around the country there is a huge need of microloans, 106
million people have limited access to financial organizations in the United States and 28 million
people are completely unbanked. One of the leaders in microfinance organizations in the United
States is Accion USA, which empowers small business owners to develop their credit, have greater
economic
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Microfinance Essay Examples
Introduction
In both developing and emerging economies, microfinance has vastly and increasingly been seen as
one of the most important means for enhancing the lives of the poor and therefore a major tool for
economic and social development mostly in rural areas. Lately, contrary to this widespread belief,
critics have raised eyebrows against this growing popularity of microfinance as a major tool for
enhancing economic development. Contrary to belief, they are of the opinion that microfinance is a
'make–belief' that is hindering economic and social development rather than enhancing it.
It is to this regard and in light of these growing controversies therefore, that this essay intends to
take a critical look at the context "microfinance" ... Show more content on Helpwriting.net ...
Anderson (2002) while highlighting the characteristics of MFIs, noted that the traditional sources of
finance of MSBs are from family and friends and the informal market which consists of rotating
savings and credit associations (ROSCA), various "club" system pooling members' savings for
loans, village banks, buyers' advances (both in cash and in kind) and money lenders. He however
noted that they may have some access to semi–formal microfinance institutions (legally organised
financial intermediaries that are not regulated by monetary authorities) such as non–profit NGOs,
large village banks, suppliers who provide credit and money brokers.
Another major characteristic of microfinance is that they have numerous loans to informally–
organised businesses which are often in small amounts over a short–term period with turnover of the
aggregate loan portfolio maturing several times during the year. These are unsecure loans with
simple repayment structure and documentation, but interest rates are generally higher than those in
the formal sector (Anderson, 2002).
Another distinctive feature of MFIs is their innovative means and ways of reaching out to the
undeserved and poorest clients using several methods and mixing unorthodox techniques such as
group

The Importance Of The Federal Minimum Wage
Across the United States, economists have debated the fruits of the minimum wage. Franklin D.
Roosevelt introduced The Federal Minimum Wage Act in 1938, was the first federal minimum wage
set in the United States. In the United States, the minimum wage has increased from its original
twenty–five cents to its current seven dollars and twenty–five cents. Donald Trump and Bernie
Sanders have taken divisive stances on the federal minimum wage. For example, Trump wants the
states to set their own minimum wage while Sanders calls for a living wage. This difference in
opinion between two relevant politicians is a clear indicator of the importance of the current federal
minimum wage to the American people. Is the federal minimum wage effective in lifting Americans
out of poverty? No, by itself the minimum wage is unable to make huge steps to get Americans out
of poverty.
Why America Has a Federal Minimum Wage Before we can answer the question "Why can't the
minimum wage get Americans out of poverty?" we have to examine why the federal minimum wage
was put into place. Congress is the branch of government which determines the federal minimum
wage. Initially, the federal minimum wage was to create a 'living wage' and was part of the Fair
Labor Standards Act (FLSA). A 'living wage' is vague, but the overall definition that authors can
agree on is that a family must be able to afford to support themselves at the poverty line (Schmitt,
Croes). The FLSA focused on establishing the bar

Microcredit: The Solution to Global Poverty Essay
Over 1.4 billion people live on less than $1.25 per day (Singer 7). In impoverished nations, the life
expectancy is below fifty, compared to the average of seventy–eight years in rich nations. The
mortality rate of children is twenty times greater in "least developed" countries than in developed
nations. Nearly 18 million people die every year from avoidable, poverty–related causes (UNICEF).
On the other side of the spectrum, there were more than 1,100 billionaires in the world in 2007
(Singer 9). According to Singer, "[t]here are about a billion [people] living at a level of affluence
never previously known except in the courts of kings and nobles" (9). Peter Singer insists in his
book, The Life You Can Save: Acting Now to End World ... Show more content on Helpwriting.net
...
An old Chinese proverb states: "Give a man a fish and you feed him for a day. Teach a man to fish
and you feed him for a lifetime." This wise saying applies to the act of giving aid to impoverished
countries as well, as is currently demonstrated in many underdeveloped nations around the world,
including Somalia:
"Somalians need food and water right now, but what they need in the long term is the same as the
rest of us: functioning market economies based on democracy and the rule of law, where they have
trade and industry rather than tents and food parcels. Oxfam Ireland will never understand that,
because they come from a background which takes the efficacy of aid as a given, rather than merely
one of a number of options" (O'Hanlon).
In addition, statistics show that nations that have received foreign monetary aid develop slower than
those that have not, specifically because of a type of foreign aid called tied aid. Tied aid refers to aid
that must be expended on exorbitantly priced products and services from the donor country ("How
Aid Works (Or Doesn't)"). According to Reality of Aid, foreign aid has failed to deliver real progress
for the bulk of the poor. World Bank data reveals that, "the proportion of donor aid considered to be
tied to purchases in the donor's country is 58% while the proportion of aid tied to purchases is 32%."
African Business cites Frans Lammerson, an aid specialist with the OECD, who claims that "[t]he
main

Problems Faced by Internal Governance Systems
Problems faced by Internal Governance System Relatives of the executive head exist in the
governing body. Regular meeting of the governing body is not held. Members of the governing body
are not informed about the current programs of the organization. Most of the members do not visit
the NGO except Participating in meetings. The governing body is formed according to the choice of
founding executive head. The governing body does not oppose the executive head's opinion and
decision. Meetings of the governing body are held only to maintain formality. Meeting proceedings
are prepared although a meeting is not held. Membership of the governing body is given to people
for their social and political reputation although they are not able to give time to the organization.
Members of the governing body often recommend for recruiting their relatives. No action is taken
against the executive head although s/he acts against the interest and objective of the organization.
There is no scope of giving opinion by general staff. Financial Transparency In some NGOs there is
lack of financial transparency, accountants are not independent sometime they are forced to provide
wrong information in financial reports to show good balance in financial report. There are also some
NGOs that Financial and other facilities are taken by members of the board. The chief executive has
unlimited discretion in financial decision. The chief executives are responsible to communicate with
donors, preparing the

The Concept Of Reference Management As Seen The Eyes Of...
In this study, I will be researching and narrowing down three topics, provide a description and the
reason why the topics should be worth of doctoral–level study in my degree type. Part two of this
study will be to list the keywords used in the research and part three of this study will be to discuss
the concept of reference management as seen in the eyes of author Dianne Ridley.
Micro finance and economics in rural areas
Microfinance also known as microcredit is the provision of financial services to small businesses or
groups of entrepreneurs in an effort to eradicate poverty. This is most common to developing or
third world countries and is provided to people who don't qualify for the formal banking system, in
other words people without ... Show more content on Helpwriting.net ...
Ignoring the emergence of new markets however small they are is doomed to failure of an economy
Emerging market are worth of doctoral–level study because
Operational risk management for small enterprises
Is a tool used by management to make smart decisions about how to mitigate risks. The goal is to
manage risk so that there is minimal impact on the continuity of the business. Operational risk
management involves five steps which includes; identifying hazards, assessing the hazards, making
risk decisions, implementing controls and supervising & watching for change to occur. There are
also three levels associated with risk management to include in–depth, deliberate and time critical.
Operational Risk Management is worth of doctoral–level study because it is the means through
which risks that would negatively affect business operations are identified and informed judgment to
mitigate the identified risks are made. Hence it decreases or eliminates operational loss in
businesses, decreases exposure to future risks by ensuring that management has good continuity
plans and detects illegal actions. It is therefore essential at a doctorial level to have well informed
knowledge about operational risk management to better suit in the work environment.
Part 2
Using the ProQuest dissertation and theses database, I entered Microfinance, microfinance and
economic development, microfinance insights in the search box but the

The dream of owning and successfully running a business is...
The dream of owning and successfully running a business is restricted by significant barriers for any
person that wishes to become their own boss. Financial capital may be one of the only true barriers
that prohibit a male from beginning a business; while depending on the country, a woman may face
financial constraints in addition to religious, legal and cultural limitations. These obstructions will
not only limit the financial independence of women, but also limit the growth and personal freedom
for the entire country. According to the Secretary General of the United Nations Kofi Annan,
achieving gender equality is fundamental to economic development. Nations that oppress the
personal freedoms of women have laws in place to restrict ... Show more content on Helpwriting.net
...
They are often relegated to informal sectors such as family labor and the harvest side of farming.
Therefore the poorest of women are normally those that do not own land. These female laborers
have even more significant barriers to overcome in their effort to be financially successful.
According to Islam, "the greatest obstacle women face is the lack of capital required for building the
permanent structure of the enterprise, labor– saving tools to ease domestic burden, and raw materials
and growth–enhancing machineries needed to increase productivity in their enterprises" (Islam 12).
Bangladesh is not alone in its treatment of women; developing countries around the world are
discriminating against women from aspiring to be anything more than housewives with limited
rights. Therefore without an intervention to help women escape from this oppression and poverty
trap, they will continue to be marginalized and will remain invisible in the specific country's markets
(Islam 11–13). One of the most common forms of intervention that is imposed throughout the world
to benefit both men and women (though primarily targeted at women) escape from a poverty trap is
microfinance. Numerous studies about microfinance have been published, all of which seem to
present a different perspective on whether the program is actually effective. One interesting study
conducted in 2006 by Mark Pitt, Shahidur

A Helping Hand: My Loan Recipient Essay
Liya Banda is the loan recipient I helped fund from Lusaka, Zambia. Her story stood out to me
because there was not much progress made on her loan. She was far from her goal with only 10%
progress made. At the time I picked her, there was a glitch on FINCA's website and I wasn't even
able to read her full biography. I decided to fund her loan anyways because I trusted that she could
use the help. Her story was on the last page of the website, her loan wasn't near being fully funded,
and her biography was not complete. I put myself in her position and realized just how much help
she needed. I had hope that people would do the same I did and give her the benefit of the doubt.
Once I was able to read her full story, I was so glad I ... Show more content on Helpwriting.net ...
I am so thankful I was given the opportunities in my life that have led me to where I am today. Her
story really impacted the way I view microfinancing and charity in general. I don't think I really
appreciated it and understood the way it can change people's lives until I read her story and realized
that I helped her. I helped her provide for her family and increase her profits for her business. Even
though it was only a twenty five dollar loan, it was enough to make a change. She only needs 16
people to lend her 25 dollars in order for her to get to her 400 dollar goal. I am so honored I was one
of the 16 people to help her get back on her feet and am looking forward to seeing her progress.
People like Liya who are struggling just need a helping hand to pick them up off their feet.
Microfinance and charity have the same goal but are still very different. Charity is when someone
donates their time or money to an organization. When you give money to a charity, you are helping
an organization and not a specific individual. You don't know the specific person you are helping.
With microfinance, you are loaning money to certain individuals. You know the name and story of
the person you are loaning your money to. Organizations such as FINCA and Kiva allow people to
send their money across the world to those who need the help. They have the same goal of helping
those who need it. The major difference is that you give your

The Model Of Microcredit Lending
While the spread of microcredit as a development practice has enabled borrowers in many
developing countries to access credit, not all experiences with microcredit have been positive. The
original model of microcredit lending was not effective in alleviating poverty. To remedy this, an
"improved" lending model was introduced; however, this model, too, has failed the impoverished
citizens of the developing world because of its exclusivity. Traditional microcredit loaning systems
require some form of material collateral to ensure that a borrower will repay their loan. This
excludes the ultra–poor due to their lack of possessions to use as collateral (Schurmann and
Johnston 2009, 521). To solve this issue and provide the poorest citizens with ... Show more content
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The access to and inequality of microcredit loans needs to be remedied in order for the system to be
effective in alleviating poverty. To be eligible for some microcredit programs, there are strict
requirements that must be met: some programs require that all children in a household receiving
funds be in good health (Ott and Hauville 2004, 558), and some have a maximum land allowance,
meaning that families with greater than 0.5 acres of land are ineligible to receive a microcredit loan
(Ahmed 2005, 96). These requirements are unfair because families may be applying for a loan to
care for their sick child, or may be unable to maximize the use of their land without a loan to be
used to obtain the tools needed to work their land. This inaccessibility to and inequality in the
distribution of microcredit loans has not allowed the impoverished citizens of the developing world
to better their economic situation and rise out of poverty.
For those people, most often women, able to access loans through any form of microcredit, the
poverty that initially brought them to seek a loan is perpetuated by high interest rates and large
payments required to the community. Some microcredit institutions, though claiming to be
supporting women in their business ventures and seeking to decrease poverty in

Muhammed Yunus: Banker to the Poor
Muhammed Yunus is an innovative economics professor who through hard work has become the
face of microeconomics. In his novel, Banker to the Poor, Muhammed Yunus presents his concept of
micro–lending as the leading solution for eradicating poverty. During conversations between
Muhammed Yunus and banking professionals, professor Yunus was astounded by the way business
was conducted in financial institutions, more specifically how they decided who qualified for a loan.
After reading, Banker to the Poor, I can't help but wonder, does Muhammed Yunus' concept really
benefit the lower class like he claims it does? Beginning with the introduction of the novel, in 1958
Field Marshal Ayub Khan, president of Pakistan, took power in a military coup. He feared political
agitation and rebellious students, so he ordered universities to be situated away from urban centers.
In 1974 Bangladesh fell into the grip of famine. The government opened gruel kitchens to combat
this devastating ailment; however, every gruel kitchen ran out of rice to feed the citizens. Religious
organizations mobilized groups to pick up and bury the dead bodies. At the time of Muhammed
Yunus was teaching at the University of Chittagong where he served as the head of the economics
department in the southeastern extremity of the country. According to Muhammed Yunus the famine
was so horrid that, "the dead and the living began to look like," (Yunus: Banker to the Poor, 1999).
In chapter 1 we are introduced to Muhammed

Microcredit and Poverty Alleviation Essay example
Microcredit is a financial innovation that is considered to have originated with the Grameen Bank in
Bangladesh, and Muhammad Yunus is its founder. This Bank offers collateral free loan to rural poor
women. Women are afforded the opportunity of education and access to health care, reduced
unemployment, so that their families and communities prosper. The future of the Microcredit is very
bright now because it plays an important role for the development of poor families. This system is
being introduced in both developing and developed countries of the world. The relationship between
Muhammad Yunus's Grameen bank and women's lives is important because he helps poor women to
be independent and economically support their family. Because of ... Show more content on
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Muhammad Yunus has had phenomenal success helping people lift themselves out of poverty in
rural Bangladesh by providing them with credit without requiring collateral. According to his
microfinance theory is largely based on mutual trust, the enterprise, and accountability of millions of
women villagers. The popularity of the work of Muhammad Yunus is known as a pioneered the
world famous microcredit financial institution, Grameen Bank. One interesting goal Yunus set for it
was to have at least half the borrowers be female. Yunus had a dream to end extreme poverty and his
most priority to help poor women to get loans who have nothing because the way they can become
independent and economically succeed. He has interviewed Sufiya Begum in Jobra village to know
about her bamboo stools business. Therefore he asked her that how much you profited from bamboo
stools. She said "five taka and fifty poysha" (about 25 cents) (Yunus 47). Because she bought it with
five taka (about 23 cents) from middlemen and sell back to him with five taka and fifty poysha (25
cents). According to Yunus quote He shocked because Sufiya earned two cents per day that is not
enough for her family's foods, cloths and other expenses. He lent $27 out of his own pocket to a
group of poor craftsmen in the Jobra village including Sufiya Begum since then he has developed
the Grameen Bank. This was a struggle given the low social status of women in

Efficient Credit Market in the Rural Areas of Deveoping...
Introduction: A great deal of attention has been paid to the establishment of an efficient credit
market in the rural areas of developing countries over past few decades. This has been motivated by
the fact that widespread shortage of finance can act as critical barrier to agricultural growth and
development in rural areas. Lack of supply of credit can make adoption of new production
technologies unaffordable to the farmers and delay the growth in agricultural sector. Accessing
formal credit has always been difficult for farmers as small or no collateral, inadequate foreclosure
capability along with weak reinforcement arrangement in the rural areas of developing countries
make them very much unattractive for commercial banks to engage in any lending activity. This
absence of formal credit market led to the rise of informal credit markets in many developed
countries. This was an attempt to reduce the borrowing constraint that the poor farmers face and to
improve the their access to small loans and deposits. The whole movement got an institutional
structure in the beginning of 1980's when micro–lending institutions such as Grameen Bank from
Bangladesh and IRB from Indonesia showed that providing small loans to the poor individuals in
large scale can turn out to be a profitable venture. In contrary to the donor or government driven
subsidized rural credit programs, these institutions designed a less costly and more efficient
monitoring procedure to ensure repayments and

The Pros And Cons Of Microfinance
Introduction
"If you are uplifting the poor, you are uplifting the nation"– M.K.Gandhi
This statement clearly explains the essence of microfinance and its importance in the modern
economy. Microfinance is a source of financial services and resources to the small entrepreneurs,
villagers and less privileged section of the society. In December 2007, Forbes has brought out a
special magazine on microfinance and has described microfinance as the next buzzword.
Global Context and History
The concept of microfinance is not something new. In fact, the history of the microfinance goes
back as early as the 15th century. It was in Europe where the concept of pawn shops – an institution
by the Catholic Church against the people who were charging exorbitant ... Show more content on
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Criticism of microfinance
The disadvantages of microfinance are enlisted below:–
It is one of the few ways to reach out to the poorer sections of the society.
Another disadvantage is that the deal may be too small for the lender to devote adequate amount of
time.
The profits are low because the capital involved is less.
Borrowers seldom give the lenders the full story on their situation and with a small amount at risk, it
does not make sense for lenders to give a lot of money to check out the story.
Micro lending depends on an ever increasing number of lenders in order to be successful.
As mentioned by the Gresham's Law, if the poor and the non poor are combined in a single system,
then the non poor will drive out the poor from the society.
Microfinance programs generally affect the moderately poor more than the moderately stronger
section.
Vicious cycles of debt, microcredit, increased roads and micro load associate with microfinance
institutions.
Low repayment rates in comparison with traditional financial institutions.
Use of harsh and coercive methods to push for repayment and excessive interest

Need Of The Study Of Women
NEED OF THE STUDY
Women–owned enterprises contribute 3.09 percent of industrial output and employ over 8 million
people. Approximately, 78 percent of women enterprises belong to the services sector. Women
entrepreneurship is largely skewed towards smaller sized firms, as almost 98 percent of women–
owned businesses are micro–enterprises. As with the broader MSME sector, access to formal
finance is a key barrier to the growth of women–owned businesses, leading to over 90 percent of
finance requirements being met through informal sources. The total finance requirement of women–
owned MSMEs in 2012 was around Indian rupees 8.68 trillion ($158 billion).
Within the segment, small enterprises led the demand for financing: around Indian rupees 6.42
trillion ($116 billion), approximately 74 percent of the total requirement. This was mostly due to
unmet working capital and investment finance needs. Micro enterprises with a requirement of Indian
rupees 2.05 trillion ($37 billion), accounted for 24 percent. Most of this requirement was largely
focused around working capital needs. Women–owned medium–scale enterprises, which account for
0.01 percent of the total MSME sector had finance requirements of around Indian rupees 0.21
trillion ($4 billion), about 2 percent of the total requirement. Microfinance loans for seed capital
allow women borrowers build credit habits and become more bankable. Thus, microfinance plays a
key role in expanding access to finance for low–income women aspiring

Ict Ensuring The Women Participation
For sustaining this transition from agrarian to industrial economy, Bangladesh must create and
exploit knowledge through the widespread use and application of ICT ensuring the women
participation. ICTs have the potential to support the development strategy of "leapfrogging" i.e.,
bypassing heavy infrastructure building it is possible for a developing economy to transform itself
directly into a knowledge economy & women empowerment should be enhanced by using this
dynamic means. For example, during the last half of the twentieth century, substantial achievements
in few countries which succeeded in narrowing the economic divide separating them from the
industrialized world often involved the export–oriented production of ICTs (Kim, 1997, Hobday,
1995, Amsden, 1989).
Although a bright prospect exists for women empowerment in Bangladesh in the oriented
involvements of ICTs (having many problems: very low telephone density, insufficient number of
ICTs as a new tool to attract and teach present and future work force and to improve co–operation
with different stakeholders, low pace of computerization in various offices and sectors, absence of
cyber laws, power outages etc (Islam, 2005). Therefore, this study will investigate the strength and
weaknesses of the ICT industry in this country and suggest measures for the development of a sound
ICT infrastructure to use the ICT as the tool of women empowerment.
The study is divided into the following sections:
– Current Status of ICT

Non Governmental Organizations Today in Bangladesh
The Government view is NGO s are really important for country like Bangladesh, they can have the
role to overcome gaps in delivering and reaching poor people when they require services in natural
and economical problems. The services provide by NGOs create competition among governmental
organizations NGO programs addressing poverty, bringing into sharper focus issues such as cost–
effectiveness, transparency and accountability of the use of public funds. A well known NGO Rural
Employment Support Foundation established in 1990, is a state–run microcredit funding institution.
Established in 1990, it works for microcredit funding and remove poverty from society by providing
microcredit to people who live under poverty level they also help them to start their business by
providing different training another well known international financial agencies is ADB. They
financed different projects that include Urban Health Care Project, essential primary health care
services were contracted through NGO s or private providers via competitive partnership
agreements. This project includes the cities like Dhaka, Rajshahi, Khulna and particularly the slums
located in populous areas inhabited by poorer city dwellers.
This Project by ADB completed in 2005 had a positive impact on the primary health, family welfare,
and nutrition of the urban population, and particularly women and children.
NGOs today in Bangladesh
NGOs of Bangladesh provides lots of welfare services like

`` In Rural Bangladesh : Is It Reaching The Poorest?
Article Details
This critical analysis is done on journal study titled "Microcredit in Rural Bangladesh: Is It
Reaching the Poorest?" which was published by the Journal of ESR. The analysis was performed
with the aim of understanding the why the microcredit programs reached rarely to poorest of the
poor in rural Bangladesh. They found five reason behind this: supply, demand, NGDO's norms and
social issues, sustainable financial services and voluntary and non–voluntary dropouts. This paper
also argues that microcredit is the not best way to help the poorest of the poor. This paper used two
kind of primary data of source, firstly they conducted study in 1999 by World Bank as a part of
study titled "Voices of the Poor". It was organized in 8 rural and 2 urban cities of Bangladesh. (Nabi
et. al., 1999) and the second study done in 2 rural and 5 urban cities of Bangladesh from the 1999 to
2000 and the title was "Listening to the Poor". They utilized different method for finding result of
not reaching microcredit facilities to poorest of the poor. This article was published in 2004 and
mainly focus on financial capital to likely stimulate growth of poor in rural Bangladesh. And the
author of Dr. Dipankar Datta is an advisor of concern worldwide. (Datta, D. 2004) Summary
Microcredit is the one of the best way to reduce poverty in rural Asian countries. Microcredit also
known as microfinance, here talked about Bangladesh has arisen as a new darling of international
aid community.

Money Flow Indexes
Research Design:
Descriptive research is undertaken for study. Data collection was done from the Credit rating reports
& Microfinance sector reports.
Sources of Data:
Secondary data for the study
Sources:
M–CRIL (Micro Credit Rating International Ltd.)
CRISIL Ratings
Microfinance India, State of the sector reports
Research Tool:
MS–Excel Statistical tools
CHAPTER 4
DATAANALYSIS
Analysis of the funds used by the MFIs for different purposes
Figure 1: Use of funds by MFIs
In this figure, the funds used by the MFIs is denoted in terms of percentage in which most of the
funds i.e. 80.60% is used in the portfolios, 12.50% as cash, 3.20% in other current assets, 1,20 in the
fixed assets, 1% each in short term and long term investments respectively and 0.50% in advances.
Analysis of the different types of MFIs operating in India
Figure 2: Types of MFIs
In this figure, the number of MFIs operating in India as various types is denoted in terms of
percentage where most of the MFIs operate as an NBFC–MFI i.e. 87%, MFIs working as societies
and trusts are 8% MFIs registered under Section 25 of the Companies Act, 1956 are 3% and MFIs as
Co–operatives are 2%

Analysis of the MFIs Client base & Loan disbursements
Figure 3: Client base & Loan disbursements
From this figure, we can understand the growth of MFIs in India. The clients base and amount of
loan disbursed from these five MFIs of India has

Investigating the Role of Micro-Finance in Female...
1 INTRODUCTION
1.1 Background information Poverty is a universal phenomenon, that is found virtually everywhere
and affect a large number of people in the globe. To this effect Thirlwall (2003:87) contributing to
the poverty literature, says that 'in poverty, there is feeling of powerlessness, vulnerability and fear
because the poor is not free, he is exposed to greater risks and living on the margin of subsistence.'
That is to say, the poor have little or no significant say in the society; they are looked upon with
contempt. In every society, especially in Africa, women are the most affected by poverty. To this
effect, it is important that certain measures have to be taken to ameliorate the scourge of poverty.
One of these ... Show more content on Helpwriting.net ...
To examine challenges Facing Micro–Finance program in Kawangware.
1.3.2 Research Questions
1. What are the challenges facing micro–finance program in Kawangware?
1.4 Justification of the Study
Due to the wide acknowledgement of women's empowerment as a key for development and poverty
alleviation, it is of interests to find out how women are empowered. In recent research, access to
credit and participation in a microfinance program has been identified as possible empowering
activities. This study will look further into the role of by conducting a case study of Kawangware, a
context where research on the subject is rare because of the unfriendly nature of the environment
like the sanitary condition and miscreants who loiter about the streets.
CHAPTER TWO: LITERATURE REVIEW
2.1. Introduction
This chapter reviews some of the studies and literatures on the role of Micro–finance and women
empowerment to help get grasp of their experience, challenges and to find out measures put in place
to deal with the various huddles. The chapter is presented as follows:
2.2. Women Empowerment There are a lot of literatures that have been dwelling on matters relating
to women empowerment. Women empowerment does not mean men are inferior. This is not only
because of the sensitive nature and significance of the subject but also the difficulties involved in
defining what empowerment

Essay on Debatable Topics in Microcredit: Interest Rates
The most debatable topic in microcredit has always been interest rates, especially that prices paid by
low–income clients tend to be higher than conventional banks' rates, and interest rates for some
MFIs have exceeded annual rate of 100 percent on effective basis. In Egypt, microcredit rates are
increasingly being criticized and viewed as unreasonably high, while it is immoral to set high prices
on the poor. At least once a year, an article must be found in an Egyptian newspaper urging for the
need to create "a bank for the poor". Driven by religious perspective and long history of subsidized
policies, the longing for a bank for the poor in Egypt have always been spinning around the idea of
providing credit to low–income households ... Show more content on Helpwriting.net ...
2011). Supporters of commercial microcredit claim that microcredit clients' major priority is the
accessibility to finance rather than its costs, Porteous (2006), claims that the main priority for
microcredit clients is the structure of the loan rather than its price, what really matters is the loan
size, type of the loan and disbursement timing and procedures. This claim is usually supported by
steady demand on microcredit regardless of the charged rates, and mainstreaming about high rate of
return for micro–enterprises.
Gobezie, (2004) and Cull, et al (2007) estimate high rate of return to invested capital for those with
low capital and who are facing capital constraints. Accordingly, poor households would still have a
sufficient income even with high effective interest rates. Goldstein, & Udry, (1999) and Bidwell,
(2009), found similar results for small scale farmers. While on the contrary, many studies observed
clear evidence for the sensitivity of the demand for microcredit to interest rate greater than wealthier
borrowers (Dehejia et al. 2005, Annim, 2011 and Karlan, & Zinman 2008).
Hashemi, & Rosenberg, (2006) explained that microcredit high rates are rational, associated with
high risks, lack of guarantees and challenges of continually providing non–financial services. While
according to Morduch, (2000), high rates are caused by high inelastic demand for credit among
populations where financial services are limited. On the basis of cost per

Nicholas D. Kristof And Wudunn's Half The Sky
The author's purpose in Half the Sky, a nonfiction book written by Nicholas D. Kristof and Sheryl
WuDunn, is to educate the reader about the challenges that women and girls in low–income
countries face and to offer solutions on how to turn this oppression into opportunity for these
women and the countries that they come from. Kristof and WuDunn are able to express their
purpose by connecting real stories from women half way across the world to facts about the
situations that they are in, "Saima [a Pakistani women who has defeated all odds by utlizing
microcredit] is a successful participant in the microcredit revolution sweeping the developing
world....Captialism, it turns out, can achieve what charity and good intentions sometimes cannot"

Microcredit and Social Business
From Microcredit to Social Business: Towards Making Poverty History
Innovative ideas are not standstill, when ideas works they create attraction and developed gradually
that microcredit did. In the process of advancement, idea continue to change, newer ideas emerge,
sometimes it may outdo the original ideas and very different from the expectations (Mulgan, 2006,
p. 154). In the course of time, Grameen Bank own by the 'poorest of the poor' who are mostly
women becomes a giant that now has 31 different independent companies and organizations.
Grameen microcredit idea work successfully and it leads towards a different idea, which is more
ground–breaking than the original microcredit program. The idea is called 'Social Business'.
Grameen ... Show more content on Helpwriting.net ...
in a sustainable, self–sustaining way (Yunus, 2011). Yunus wishes that the promise of social
business and microcredit movement along with global effort to reduce poverty would help the world
to make the 'poverty history and send it to the museum'. In his bestseller book "Creating a World
without Poverty: Social Business and the Future of Capitalism" he writes
"Once poverty is gone, we'll need to build museums to display it horrors to future generations.
They'll wonder why poverty continued so long in human society–how a few people could live in
luxury while billion dwelt in misery, deprivation and despair. Each Nations will have to choose it
own target date for building a national poverty museum. The initiative could come from
government, foundations, NGOs, political parties, or any other section of society."
(Yunus, 2007, p.223)
Shortfalls and challenge of Microcredit as an Innovative idea
Undoubtedly, microcredit is a fruitful development intervention. It can enable poor people access to
financial systems and meet their basic needs and gradually enhance their economic sustainability
(Simanowitz, In the course of time the idea questioned seriously and facing extraordinary challenges
as Mulgan, et al. (2007, p. 8) noted social innovation does not happen easily. All innovative ideas
have some challenges and criticisms In

Banker To The Poor Summary
In Banker to the Poor, Muhammad Yunus discusses the power of micro–lending in the struggle to
end world poverty. He created a bank called Grameen, which is dedicated to lifting families from
poverty and providing them with the means necessary to become contributing members of society.
Grameen Bank began as a simple project to help poor members of a small village in Bangladesh.
Eventually though, it expanded to across more than one–hundred countries in five continents. It has
helped millions of the world's' poorest people overcome their struggle with poverty. Micro–loans are
essentially the same as traditional loans, just on a much smaller scale. Families living in extreme
poverty usually don't have good enough credit to obtain a traditional ... Show more content on
Helpwriting.net ...
He realizes that many of them borrow miniscule amounts of money, and earn even smaller profits.
To resolve this issue, he first distributes about $27 to about 40 villagers. Then, he gets a loan for
$300 and acts as a guarantor (someone who guarantees a loan will be repaid) so the villagers can
borrow that money.
Chapter 5: A pilot Project is Born In this chapter, Yunus discusses, in detail, the Grameen Bank and
how it operates. Females have very little power or independence. Many people in Bangladesh
thought only men should handle money. Therefore, Grameen had difficulty loaning to women. He
also talks about the complications of a daily repayment system. For over twenty years, borrowers
have paid back their loans in weekly installments.
Chapter 6: Expanding Beyond Jobra into Tangail
In this chapter, Muhammad explains how the Grameen Bank started. At first, it was just an
experiment that Professor Yunus conducted with his students. Eventually, though, Yunus temporarily
left the University of Chittagong to oversee the Grameen Bank Project, which succeeded, despite all
of the hardships it

Microcredit Essay
The Microcredit Foundation of India is a non– profit organization, and effective tool for alleviating
poverty. The Microcredit Foundation has its base located in southern rural India. Microcredit works
with just about everyone who needs their help; however their focus is women. Microcredit presents
the women of rural communities with the opportunity to start a business. The services of micro
credit are dedicated to creating a better stable economy, opportunities in the establishment of
medium sized enterprises, and co–operative development. The Microcredit Foundation of India
provides sufficient and affordable customer oriented funding and other financial services as well as
consulting and training to the target groups. Microcredit also ... Show more content on
Helpwriting.net ...
With the help of Microcredit, people no longer had to borrow money from relatives. In many cases,
the availability of elegant, safe and accessible savings products for the poorest is as important, if not
more important, in poverty reduction than Microcredit. . Microcredit is based on a separate set of
principles, which are distinguished from general financing or credit. The savings–ed microfinance
has gained recognition as an effective way to bring very poor families low–cost financial services.
It's not only provided in poor countries, but also in one of the world's richest country USA, where 37
million people live below the poverty line (Grameen Bank). In Grameen Bank even a beggar gets
special attention. A beggar comes under a campaign from Grameen Bank, which is designed to
convince to join Grameen programme. The bank explains how she can carry some merchandise with
her when she goes out to beg from door to door and earn money, or she can display some
merchandise by her side when she is begging in a fixed place. Grameen's idea is to graduate her to a
noble livelihood rather than continue with begging. Such a programme would not be a part of a
conventional bank's work.
Other developed countries in which the micro–loan model is in fact gaining momentum includes,
Israel, Russia, and Ukraine. Micro–loans given to small business entrepreneurs are also used to
overcome cultural barriers in the mainstream business

Microfinance: Improving the Standard of Living in...
The United Nations has established a list of 8 goals that were to be achieved. These were eradicating
poverty and extreme hunger, achieve universal primary education, promote gender equality and
empower women, reducing child mortality rates, improving maternal health care, combating
HIV/AIDS and other deadly diseases, ensuring environmental stability, and finally to develop a
global partnership for development.
Although these are arduous tasks, several of these goals are being accomplished with the help of
great ideas and well executed planning. Microfinance is one of the great ideas that can help in
accomplish several of the goals established by the United Nations.
A brief history on microfinance
Microfinance is the purveying ... Show more content on Helpwriting.net ...
Not only are the recipients enjoying a higher income and creating employment positions, their
standard of living is enhanced significantly.
But these are just a few of the institutions that are successful in creating social and economic reform.
There have been criticisms to microfinance, in that it may not be as effective as advocates for the
system may claim. Some advocates may claim that microfinance is the best way to eradicate
poverty.
Supporting research for that is not always conclusive. Economic journalist, Nicholas D. Kristof,
asserts that an increase in savings rate by recipients of micro–loans is attributed to the large
difference microfinance makes than simply the process of lending.
Social and non–income related impacts:
Although microfinance helps in combating poverty in developing countries, there is a side–effect of
the implementation of MFIs in them. These are non–income or social impacts on the consumers.
The microfinance industry currently serves over 80 million poor entrepreneurs globally, about 70%
of who were among the poorest when they took their first loan. These clients fit the profile of those
at most risk of contracting HIV/AIDS. Women, who bear the brunt of global poverty, are also the
primary beneficiaries of microfinance. Microfinance has typically targeted women–led
microenterprises

Challenges for Microfinance Organizations Serving the Poor
WHAT CHALLENGES DO MICROFINANCE ORGANISATIONS FACE IN THEIR ATTEMPTS
TO SERVE THE POOR? ASSESS THE POTENTIAL BENEFITS AND DRAWBACKS OF
MICROFINANCE IN IMPROVING LIVING STANDARDS.
Over the last 15 years microfinance institutions (MFIs) have rapidly expanded. The number of poor
families with a microloan has grown from 7.6 million in 1997 to 137.5 million in 2010. Microcredit
has generated significant confidence for fast poverty alleviation; creating a multiplier effect leading
to the eradication of poverty and hunger, universal primary education, the promotion of gender
equality and empowerment of women in developing nations. It can be argued that microcredit is a
"win–win" opportunity, in which the poor are given the financial capital and ... Show more content
Within the villages of Bangladesh, weekly meetings occur with a loan officer from an MFI, who
records the weekly instalments on outstanding loans, saving deposits and fees. The loan office also
offers advice, sorts out discrepancies and makes arrangements for customers to obtain new loans
from the local branch office. All of these meetings occur in public, thus making the process more
transparent as it lets the villagers know who among them is moving forward and who may be
running into difficulties (Armendariz & Morduch, 2010 p.98).
However, joint liability has its disadvantages as it can bring costs to the borrowers such as low
flexibility, the loss of social capital for defaults beyond a person's control and peer pressure to
undertake excessively risk–adverse activities (Todaro & Smith, 2011). Group lending ignores the
fact that group members must spend time to assess each other projects along with the fact that group
members may live far–off from each other (Hermes & Lensink, 2007). The peer pressure aspect of
group lending has led to sanctions being implemented on potential or actual defaulters, they were
not just economic but were also social discriminating and tensions had become unpleasant and
oppressive for those concerned (Madajewicz, 2011). Moreover, it has been argued that the size of
the desired loan

Essay on The Effects of Small Loans to Those in Need
This year Avila had the pleasure of being a part in fighting poverty. Interestingly enough it wasn't a
traditional way of donations. Companies such as FINCA and KIVA have found a new way of giving
to those in need. They decided to give out loans to people across the world, who suffer financially.
As a part of our first year project this year's freshmen were able to be a part in giving out these loans
to both individuals and families in need. This money came from us selling t–shirts and various
donations
As a part of this project we were required to get into groups of 2 and decide upon a recipient of our
loans. Each loan was a total of $50 and we were able to personally choose who we wanted to
sponsor which in my opinion was very cool. The ... Show more content on Helpwriting.net ...
I wanted to be a part of helping her make Liya's dream for her family come true.
I'm very glad that we were able to be a part of the micro loan process. I think that microfinance is an
interesting and great way to help others across the world. It is nothing like traditional charities.
Microfinance is not only a way to provide but it is a way to teach responsibility and creates a
connection between the giver and the receiver. Typical charities consist of foundations or groups of
people that you may never even meet. However with micro loans you are able to get to know the
receiver of your money and you can see what type of work your donation has done for these people.
Micro loans also teach the receiver the responsibility of paying back their loan and managing their
money. I feel that micro financing is more beneficial than charity. Overall this experience was very
important and impactful. It allowed all of us to be a part of change in the world. I think it is
important for all of us to be aware of what's going on across seas. I think it is very easy to get
distracted and focused on life in the US we lose sight of the struggling families and countries around
the world. I think as humans we are all responsible for contributing to making the world a better
place. We are all called to make a difference. I think this project was a great practice and a great way
to start off our change, which

Relationship Between Corporate And Corporate Social...
This essay will evaluate the relationship between Corporate Strategy, Corporate Social
Responsibility and will give some examples in order to give an idea to companies why they should
engage in CSR and the consequences of engaging on it. It has been told that engaging on Corporate
Social Responsibility is a cost, but recently has been demonstrated that if it is well managed the
money that you put on CSR implementation can be taken into account as an investment. Companies
engage in CSR not only because moral questions, it has been demonstrated that CSR is a door to an
increase in the reputation of the company. In the long term companies realize that customers really
appreciate the engagement of the company to social or environmental activities. Managers
nowadays realize on how the consumers mind are changing towards a more responsible
consumption and how these consumers look for information on how the products they consume
have been produced. So these managers in order to increase in a long term base the good reputation
of the company are investing nowadays on changing their strategy and trying all the company to
engage in responsible practices. As explained in more detail in this paper the consequences of
engaging in CSR are worth more than the cost of changing the company' strategy. Some of them are
the increase of consumer loyalty, investor attractiveness, political stability and economic benefits. 2.
– Methodology The procedure taken into account

Impact Of Household Credit On Education
Doan, D., Gibson, J., Holmes, M. (2014). Impact of Household Credit on Education and
Healthcare Spending by the Poor in Peri–Urban Areas, Vietnam. Journal of Southeast
Asian Economies, 31(1), 87–103.
The authors of this article are affiliated with the University of Waikato in New Zealand (The
University of Waikato, n.d.). Tinh Doan was a PhD student at the university for three years, between
2007 and 2010, who studied the impact of microfinance on human capital formation (Doan, n.d.). In
the past four years, he has published ten articles that relate to Vietnam and how their economy is
influenced by a multitude of factors, including import competition, productivity spillover, and
employee benefits (Doan, n.d.). The other two men, John ... Show more content on Helpwriting.net
...
The article uses a statistical test, Propensity Score Matching (PSM), with a control group of 107
households, who does not receive any financial support, and a treatment group of 304 households,
who receive financial support from any type of formal lender. The PSM matches the control group
family to the treatment group family by identifying their similarities. In order to be matched, each
family must have similar observable characteristics/factors which includes an income that falls
below the poverty line of VND6 million (Doan et al., 2014). The most relevant aspect of this idea is
that it shows the correlation between families who formal receive micro–credit and those who do
not. The authors found that the families who received micro–credit spent about VND81,000–99,000
more on education and VND93,000 more on health care (Doan et al., 2014). There is evidence, at
the 5 percent confidence level, which shows that the impact is significant. Therefore, families in
peri–urban Vietnam, who receive a formal micro–credit loan, are more inclined to spend money on
health care and education. I can use this to show that microcredit does alter how families spend their
money. This article uses a quantitative method to show impact. Doan offers an example of a flaw in
their method resulting from selection bias if the correlation between matched houses occurs due to
the unobservable

A Social Business, Microlending Essay
What is microlending? In simplest terms microlending is the lending of very small amounts of
money at low interest, to low income people in urban and rural areas. It started forty years ago,
when a person named Muhammad Yunus was visiting his family and his country Bangladesh which
had recently become an independent country. Muhammad Yunus had left his home country then –
East Bengal– when he was a child with his parents in search of a better future. He graduated from
Vanderbilt University in Nashville, Tennessee, with a PhD in economics. Muhammad Yunus is the
founder of Grameen Bank, the first non–profit organization to offer microfinance services in
Bangladesh and in the world (New York Times). This bank showed the world on how little ... Show
more content on Helpwriting.net ...
The money to start the business came from donations and from a loan from the bank where he
served as the guarantor. Hence Grameen bank was created, the bank started expanding very rapidly
because people were paying their loans back given that they had to pay very little on interests, and it
was much easier to pay the capital back. As time progressed and Grameen Bank kept getting bigger,
Grameen bank representatives noticed that women in comparison with men were always punctual
with their payments and that they were the most productive with their money, and took it directly to
their families, which was the mission when the bank was created (New Delhi). Based on those facts,
Grameen bank created more programs for women. For instance, Grameen bank would give a woman
a goat or a chicken depending on what the woman picked so that she can sell the milk or eggs and
she would also get a weekly stipend. If something were to go wrong, she would not be tempted to
kill the animal to feed her family. Grameen bank obtained these animals from donations and from
purchases the bank itself made. When the animal was no longer productive, they would kill it and
sell the meat to the same people at very low prices (Wall Street Journal).
At the beginning when Muhammad Yunus first introduced the idea of lending money to the poor
people, there was a lot of apprehensiveness and skepticism among conventional banks because poor
people

Toms Shoes Case Statement
Toms Shoes, the company known for doling out a pair of shoes for each pair it offers, has sold a
50pc stake to private value firm Bain Capital. Toms was situated up by ambitious person Blake
Mycoskie in 2006 after an outing to Argentina, where he volunteered at a shoe drive. The company's
direct considering purchase one–give–one took off after it was championed by A–list celebrities.
The company, situated in Los Angeles, has since given away more than 25 million pairs of shoes to
youngsters and has dispatched an eyewear division, with returns going towards restoring seeing
250,000 individuals. Superb global news coverage obliges investment. An early pioneer in the
booming revenue driven ethical design commercial center, Toms had assessed ... Show more content
The individuals from Grameen Bank are urged to plant trees, develop kitchen enclosures and
assemble houses and clean restrooms, which are planned to address environmental concerns. The
Grameen Bank has deliberately focused on women understanding that their support in social
development is essential for financial development in light of the fact that women assume essential
part in giving health, training and sustenance. The Bank's social development programs additionally
incorporate exhaustive preparing program in maternal health, nourishment and youngster
consideration (Rahman & Qiang, 2011). The social development programs likewise supplies tree
seedlings and seeds for kitchen plants with a specific end goal to enhance both living conditions and
the environment. Grameen Bank has been set up to sort out the provincial poor through a credit
program with the goal that they can produce profitable independent work for themselves in exercises
of their decision. Grameen Bank considers poverty not as the making of poor rather that of the
framework which is comprised of the ideas, theoretical systems, approaches and foundations. On the
off chance that we can change the framework, there would be no poverty. Grameen Bank thinks
poor as proficient and venturesome as any other individual on the planet (Barua,

Book Review Of Banker To The Poor By Muhammad Yunus
Banker to the Poor is a readable, engaging first–person memoir by Muhammad Yunus, the founder
of the Grameen Bank of Bangladesh. Born in 1940, Muhammad Yunus grew up in the Bengal
Province of British India (now Bangladesh). Yunus studied economics at Dhaka University
receiving a B.A. and M.A. in the field. Afterward, he accepted a Fulbright scholarship in order to
study at Vanderbilt University receiving his Ph.D. in economics in 1971. While teaching at
Chittagong University , Yunus observed the poverty epidemic in the rural villages around
Chittagong and began a poverty reduction program which later became Grameen Bank.
Yunus expounds on his endeavors to change how persons have the capacity move out of neediness.
Neediness needs to be particularly ... Show more content on Helpwriting.net ...
It first starts with a personal record of Yunus' close to home life as an inquisitive tyke growing up in
the midst of the turmoil of the Second World War, the Pakistan Movement, alongside the Bengali
War of Liberation. Special to his story are the occasions which will encompass and influence his
adolescence, youthful and adulthood life. His unquenchable requirement for the headway of his
instructive foundation brings light to the incalculable remarkable positions he secures all through the
book. This incorporates showing positions, global grants, alongside a few authority obligations amid
the Bengali street to

A Research On Micro Finance
EXECUTIVE SUMMARY
Micro–finance is a service provided by banks and other financial institutions in which extremely
affordable and easy loans are provided to the low–income segment of the country and those people
having no source of financing. It is mostly practiced in under–developed and developing countries.
Micro–finance ensures that these people have a secure income source for their future. Furthermore
Micro–finance serves a dual purpose of:
1. Raising the Employment level
2. Increasing the per–capita income
One of the biggest examples of success of microfinance is Bangladesh. However talking about the
Indian context of Micro–finance, as a concept it has made its presence felt in India through several
prominent MFIs and NGOs and now Banks are also stepping forward. Microfinance has a great
scope in creating sustainable economic development in the economically backward areas of India.
Work has already been started in promoting micro–finance and making it a provider of credit and
banking facilities for those not covered under the purview of the Indian banking system and the
associated benefits. However, apart from its primary function of extending the benefit of credit
facility to the rural community and economically backward classes, microfinance also has a huge
potential in creating community based entrepreneurship with the ability to create significant
employment in the communities.
OBJECTIVES The presented paper seeks to achieve the following

Impact of Microfinance Upon Developing Countries
Question: "Microfinance appears to offer a 'win–win' solution, where both financial institutions and
poor clients profit" (Morduch, 1999). Critically assess this statement with reference to the empirical
literature.
Introduction
Microfinance has achieved growing significance as a tool for poverty alleviation with the year 2005
marked as the United Nations International Year of Microcredit. Over the years, the world has
witnessed a remarkable growth in the number of institutions offering microfinance and the number
of clients reached. Figures reported to the Microcredit Summit Campaign show that as at 2007,
3,352 institutions offered microfinance to about 155 million clients, 68 percent of which were
defined as poor clients. ... Show more content on Helpwriting.net ...
It does this by reducing transaction costs and monitoring investments on behalf of lenders. Secondly,
to make the borrower better off such that the borrower has an incentive to take out a loan. Thirdly, to
carry out the above functions while making profit so as to keep the business afloat (Matthews and
Thompson 2005). Because the bank's profit is a function of the profitability of the borrower, the
bank would prefer to lend to borrowers with a higher probability of return. (Stiglitz and Weiss,
1981). This means that borrowers with a lower probability of return, i.e. poor borrowers have a
much lower chance of getting loans. Coupled with the bank requirements for obtaining a loan, such
as specific kind of collateral and the characteristics of rural credit markets such as informational
gaps, existence of segmentation & interest rate variation and preference for exclusivity; this makes
for a vicious circle for poor people in the society. This creates the need for some form of
microfinance whereby poor people could also receive credit.
History of Microfinance
The concept of microfinance is not new by any chance. Informal savings groups and cooperatives
have been in existence for centuries and are still operating in some parts of the world. Examples
include the esusu and tontines in West Africa, tandas in Mexico and chit funds in India (Global
Envision 2006). However, the oldest semi–formal micro–credit institution in the Americas was a
pawnshop

Developing A Small Enterprises And Micro Leasing
Microfinance provides the basic financial services to low income people, who have lack to access to
bank related services. This includes credit for instance, micro saving's, micro insurance and micro
leasing. The main focus of European Union is on microcredit because there is only limited
experience with micro savings and micro leasing exists, it is due to the strict regulation, for instance
with regard to deposit taking.
The microcredit is the extension of very small loans to those who are in poverty designed to spur
entrepreneurship and the microcredit is defined below 25,000 Euros as a loan for business initiative
and it is also have two groups which are micro enterprises and for disadvantaged people.
In European Union 91.8% businesses are micro. These businesses are responsible for more than two
thirds of the European Union's workforce. Small enterprises and Micro is the engine of the
European economy.
The main providers of microfinance within the European Union are the private banks. They provide
microfinance independently for their own account and in partnership with other providers, such as
public bodies, particularly the European Investment Bank (EIB) and specialised Microfinance
Institutions (MFI's). Private Banks provide microfinance offering to bankable borrowers, who
believe to have a viable business with a relatively high profitability of being able to repay debt.
Other Microfinance Institutions and public bodies are more likely to provide microfinance to

Advantages And Disadvantages Of Small Scale Credit
Business analysts have contemplated over the viability of the arrangement of miniaturized scale
credit as an instrument for enhancing the financial states of ladies in neediness and handling sexual
orientation imbalances through more pleasant dispersion and access to money related assets.
Hypothetically, arrangement of smaller scale credit ought to enable ladies in 3 key ways – a) free
wellsprings of wage outside the home, in this way decreasing reliance and upgrading independence,
b) introduction to new thoughts, qualities and social bolster that ought to empower their self–
assuredness, c) improve ladies' status, for example, according to their spouses, that may advance
more prominent talk and participation over utilization of assets. An emotional ... Show more content
In reality, it is generally perceived that small scale fund plans have met constrained triumphs. The
capacity of a lady to change her life through access to money related administrations relies on upon
her individual circumstance, capacities, environment and the status of ladies as a gathering. Control
of capital is one and only measurement of an intricate procedure of strengthening. Tragically,
advantages of smaller scale credit are undermined by inconveniences confronted by ladies in getting
to data, informal communities, and different assets they have to prevail in business. An investigation
of the effect of miniaturized scale credit plots in Bangledesh uncovered consequences of just 21% of
respondents getting to be enabled. Out of financial variables investigated, they inferred that ladies
institutional cooperation, media presentation and family arrive property were the more critical
necessities for ladies strengthening than accessibility of credit. A few faultfinders have contended
that the greater part of microfinance projects are organized so as to have their most noteworthy
effect in helping ladies perform conventional parts better. They contend that by accentuating the
advantages that ladies' families get from their entrance to credit and ensuring this does not meddle
altogether with their customary obligations, microfinance foundations may strengthen conventional
sex parts as opposed to change

Microfinance As An Opportunity For Sustainable Development
Paper Title Resource Management
Paper Code
95.806(b)
Term 2 2015
Lecturers : Dr. Maurice Judd
Assignment Title
Microfinance as an opportunity in sustainable development
Case 3 Microcredit in Rural Bangladesh: Is It Reaching the Poorest?"
Due: 02/10/2015
Student Name: Patel Nimisha Student ID: S2145218
Article Details
This critical analysis is done on the journal study titled "Microcredit in Rural Bangladesh: Is It
Reaching the Poorest?" which was published by the Journal of ESR. The analysis based on the aim
of understanding the why the microcredit programs reached rarely to the poor in rural Bangladesh.
They found five reasons behind this: supply, demand, NGDO 's norms and social issues, sustainable
financial services and voluntary and non–voluntary dropouts. This paper also argues that microcredit
is the not best way to help the poor. This paper used two kinds of primary data of source, firstly they
conducted the study in 1999 by World Bank as a part of the study titled "Voices of the Poor". It was
organized in 8 rural and 2 urban cities of Bangladesh. (Nabi et. al., 1999) and the second study done
in 2 rural and 5 urban cities of Bangladesh from 1999 to 2000 and the title was "Listening to the
Poor". They utilized a different method for finding a result of not reaching microcredit facilities to
poorest of the poor. This

Microfinance Is A Complex Important Issue For Both The...
Background to the Problem Microfinance is a complex but important issue for both the average
person, and the financial sector to understand. While the financial instruments used may be similar,
the demographics of the users of microfinance is important to understand. The main purpose of the
paper is to give the reader a better understanding of microfinance and provide a researched opinion
on the overall impact of the practice. Matthew A. Pierce defines microfinance as "an emerging
market in the financial services industry, aiming to provide small loans to low–income clients or
small entrepreneurs who are traditionally overlooked by the mainstream credit markets" (2013).
Microfinance also includes microcredit which is just specifically lines of credit under the envelope
of microfinance. Microfinance includes other services such as savings accounts, checking accounts
and other basic financial services. Microfinance is commonly done through a variety of
Microfinance Institutions also known as MFIs. These institutions commonly offer a variety of
services in addition to just monetary contributions. Depending on the country some microfinance
institutions offer coaching, financial literacy courses and direct or indirect education about business
or other topics. Some topics discussed in the paper include; the history of microfinance, the US
versus global use of microfinance, and the overall economic impact on microfinance and how
microfinance has evolved over the years.

Building Social Business By Muhammad Yunus
I. Introduction
Building Social Business is a book about social enterprise written by Muhammad Yunus.
Muhammad Yunus is a social entrepreneur, economist, banker, and civil servant leader from
Bangladesh. He is known for founding the Grameen Bank which is a microfinance organization and
community development bank. Yunus is a well–known proponent of microfinance and microcredit.
Due to his efforts in making a change through microfinance and microcredit and other noble causes,
Yunus has been given several awards including the Independence Day Award in 1987, World Food
Price in 1994, Pfeffer Peace Price also in 1994, Gandhi Peace Price in 2000, Volvo Environment
Prize in 2003, Nobel Peace Prize in 2006, Presidential Medal of Freedom in 2009, Congressional ...
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Through this book, Yunus shows how social business is applied in the current business setting.
Yunus also explains how the social business model could redeem the failed promise of the free
enterprise model.
III. Reflection
After reading the first two chapters of Building Social Business, I was moved. I was inspired. Yunus
opened my eyes to another side of business which in his words was selfless. And indeed it was
selfless. Social business is truly selfless because it focuses on helping others and earning profit
comes second. By reading this book and reflecting, I realized it is better to be part of the solution
than be part of the problem. By looking at my community, at my environment, and at my
experiences in life, there are problems that will need solutions and I firmly believe that having a
social business is the solution. By my observation, slow public utilities, expensive medicine, and
empowering marginalized sectors are problems that can be solved by putting up social businesses.
By combining entrepreneurial mindset and experience, social awareness, and creativity, the ideal
social business can be done. But what makes a social business truly a social business is the

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