Microfinancing is the provision of financial services to low-income clients, including consumers and the self-employed, who traditionally lack access to banking and related services. It is, in essence, the supply of loans, savings, and other basic financial services to the underpriveleged. More broadly, it is a movement whose object 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, insurance, and fund transfers. Those who promote microfinance generally believe that such access will help poor people out of poverty. But it also serves to empower entrepreneurs from communities world-wide. Could it serve to empower entrepreneurs in small town America? Could it be used to offset the struggles many find when borrowing money from the bank or another lending institution. Would you be willing to microfinance anywhere from $100 to $1000 to help another person get their idea off the ground? GO!
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