Results of Microfinance

From Accion

Microfinance is defined as "financial services for poor and low-income clients." (http://www.microfinancegateway.org) These "financial services", often loans, are provided by "microfinance institutions" (MFIs). MFIs deliver small loans to unsalaried borrowers, providing these borrowers with access to banking and related services originally out-of-reach. Robert Peck Christen in his article Financial institutions with a double-bottom line: implications for the future of microfinance, states that the object of microfinance is "a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurace, and fund transfers." Just think about the similarities of needs between people in developing countries and ourselves. As cited in Stuart Rutherford's book The Poor and Their Money:
Lifecycle Needs: weddings, funerals, childbirth, education, homebuilding, widowhood, old age.
Personal Emergencies: sickness, injury, unemployment, theft, death.
Disasters: fire, flood, cyclones, war
Investment Opportunities: expanding a business, buying land or equipment, improving housing.

So much good can be done from simple microfinancing. As a final project headed by Jeff Whitlock, we are brainstorming with ideas to form some group, publicize on the internet, use connecting tools to spread the word of microfinance, and establish a desire and curiosity to help people through this means.

missionlocal.org

The Women's Initiative provided basic business training and funding to 2,600 clients. These clients took about 10 or more hours of business training between 2004 and 2008. They created 2,244 jobs at a cost of a little over $4000 per job.






Microfinance Innovations is a group that discusses IDEAS which would help the nation and masses grow.

The Jamii Bora Trust, a microfinance group in Kenya, is building a new, self-contained town that may be home to 10,000 people!

As we explore the world of microfinance, more doors and opportunities of service will be open! I am the happiest when I put others first. This is a wonderful opportunity to help.