Wednesday, April 22, 2009

Expanding Microfinance

Microfinance has proven to be very effective in helping individual families rise out of poverty. With a small loan provided by other people through organizations such as, an individual or group of entrepreneurs can start a small business. They repay the loan with their profits, and earn enough money to help feed their families. The success of this strategy has sparked has sparked an interest in microfinance on a larger scale, "growth finance." Instead of small loans to individuals, growth finance would provide loans between $50,000 and $1 million to entreprises in developing countries in hopes that it would help lift the country out of poverty. Last month, a conference was held to discuss the possibility of carrying such an ambitious project. Read more about it here.