Poverty has been one of the drawbacks in economic development activities. Coleman (1999) argues that the lack of access to capital in less developed countries resulted in severe poverty in those countries. Everything around the people in Less Developed Countries (LDCs) revolves in a cyclical and unpredictable manner, whereby access to little or no capital and the production on a very small-scale basis makes it more unbear-able for the individuals to accumulate savings, acquire relevant assets and
Introduction This chapter will implement an overview of subsidies in microfinance, the impact and performance of microfinance and loan repayment issues. A definition of microfinance will be provide in Section 2.2, follow with the history of microfinance. The characteristics of Grameen Bank microfinance is discuss in Section 2.4 while types of microfinance provider is discuss in Section 2.5. The subsidies in microfinance and performance of microfinance institutions is review in Section 2.6 and 2.7 respectively
The word microfinance is being used very often in development vocabulary today. It is comprised of two words: micro and finance which precisely means small credit. The concept of microfinance goes beyond the provision of small credit to the poor individuals, households, and entrepreneur or organizations. Christen (1997) describes microfinance as the source of providing a variety of financial services to the poor based on market driven and commercial approaches like savings, money transfers, payments
ABSTRACT In a country like India where 70 percent of its population lives in rural area and 60 percent depend on agriculture (according to the World Bank reports), micro-finance can play a vital role in providing financial services to the poor and low income individuals. Microfinance is the form of a broad range of financial services such as deposits, loans, payment services, money transfers, insurance, savings, micro-credit etc. to the poor and low income individuals. The importance of micro-finance
building of NGOs and SHGs. Realising the potential in the field of microfinance, the government allowed various private players to provide microfinance in the country. These private microfinance providers, commonly known as MFIs, are various NGOs, Non-banking Financial Companies (NBFCs) and other registered companies. Many state governments amended/passed their State Co-operative Acts to use co-operative societies for providing microfinance. These days many public and private commercial banks, regional-rural
To assist the poorest and most marginalized groups in gaining access to improved healthcare. Microfinance and Self-Help Groups: Last but not least was HiH’s microfinance program. The objective of the microfinance initiative was both to alleviate rural poverty and empower women. 2-What is the market failure HiH was founded to address? What problems do its clients face and why have they not been solved
last few decades, Microfinance has become a popular tool in reducing poverty, particularly after the successful impact of Grameen Bank in Bangladesh. There are crossroads between increased humanitarian work and commercialization at which the microfinance industry is standing (Emily, 2005). Micro financing is not successful everywhere but only in some of the regions. In Latin America and Asia the microfinance providers have been the world leaders, and build the significant microfinance industries in Bangladesh
“According to the World Bank, more than one billion people today live on less than $1 per day; about 70% of those people are women. Every 3.5 seconds, a child dies in the developing world from poverty-related circumstances” (“The Effects of Poverty Causes and Consequences of Poverty Today”). The solution to poverty is a very broad topic that has been and is still being discussed and studied. The solution clearly depends on what is causing the problem, poverty, in the first place. Although many attempts
The experience across India and other countries has shown a robust potential of Microfinance to integrate with the development issues thereby significantly impacting the lives of poor. There are plenty of studies which narrate success stories of many microfinance initiatives across the world and the factors that contributed to its success. Robinson opined that microfinance services in general can help low-income people to reduce the personal risk of going
EFFECTS OF MICRO FINANCE SERVICES ON THE GROWTH OF MEDIUM AND SMALL ENTERPRISES CHAPTER ONE 1.0 INTRODUCTION 1.1Background of the study Promotion of MSE sector in Kenya is a viable and dynamic strategy for attaining the national goals which includes employment creation, balanced development between sector and sub sectors and poverty alleviation.This sector have been the means through which accelerated growth and rapid industrialization have been achieved.Koech(2011)