What is accounting and finance in business?

Date:

Share post:

Definition of microfinance

This is where financial institutions back tiny start-ups and would-be entrepreneurs, with small loans, in the poorest parts of the world

Microfinance started nearly 40 years ago when Muhammad Yunus, lent $27 to a group of women in Bangladesh making bamboo furniture. Until then traditional banks had been loath to fund such tiny operations, fearing high risk.

But Mr Yunus, who founded Grameen Bank, and economists found these groups were mostly good credit risks, paying back loans fast and often borrowing more to expand. Lending institutions – non-governmental organisations, local co-operatives and banks – found lending to these people was good, repeat business. Moreover, MFIs helped to improve standards of living, transforming and empowering marginalised groups, particularly women, in some of the worst slums and ghettoes in developing markets.

By 2006 it was estimated 90m people were borrowing from microfinance institutions (MFIs) to fund cottage industries and embryonic businesses

1,000FansLike
1,000FollowersFollow
1,000FollowersFollow
spot_img

Related articles

How to Write a Business Plan That Will Help You Achieve Your Goals: The Ultimate Guide

Ah, the business plan – the backbone of every successful venture! It’s that magic potion that can pave...

Modern Business Ideas for the Eco-Conscious Entrepreneur: Green Is the New Gold

Gone are the days when businesses cared solely about profit margins. Today, eco-consciousness isn't just a buzzword –...

Insolvency Advice

What is insolvency? Insolvency refers to when either an individual or business are no longer capable of meeting their...

A small business guide to digital marketing

42% of small-scale entrepreneurs confess that they do not utilize social media channels as a marketing strategy to...

Top Networking Tips For Consultants

Professional networking can be invaluable in any industry. For consultants, networking offers the ideal platform to promote their...

Ways to Have a Strong Legal Stance After a Trucking Accident

You never saw it coming. One moment, you were simply going about your day, and the next, your...

Business Management Tips to Aid Your Company’s Growth

Business Management Tips to Aid Your Company's Growth Business Management Tips: Business management is a complex concept that encompasses...

Here are 5 tips to recognize a meaningful business opportunity when you see one

You've discovered a remarkable market inefficiency It is no surprise that solving a meaningful problem leads to the best...

Five Tips to Recognize a Meaningful Business Opportunity when You See One

You have discovered a notable market inefficiency It's no surprise that the best ideas are generated when there is...

Here are 8 reasons business cards still matter.

Ease Of Giving Contact Details One reason business cards still matter in use is the ease with which they...

Are businesses still using business cards?

Are businesses still using business cards? Are you worried about your small Business Card? Customers trust businesses only after...

What’s the business?

What exactly is business? What exactly is business? It's a procedure that produces, sells and distributes products and...
error: Content is protected !!