4 tips to implementing effective and efficient microfinance programs

Tuesday, September 2, 2014

Despite being in place for more than 20 years, microfinance has yet to achieve its full potential, some experts suggest.

Microfinance is being used in a variety of ways — from seed funding social enterprises to achieving social objectives at the community and household level. But this form of financial service should be implemented strategically and effectively by well-informed, highly skilled, socially sensitive microfinance players and development practitioners. Else, microfinance could be “a double-edged sword.”

“The effective use of money … is fundamental to achieving development objectives. Without affordable credit and accompanying financial services, offered at the right terms and sizes, sustainable long-term economic expansion at a household and community level cannot occur,” Neal Youngquist, World Vision Myanmar’s microfinance program general manager, told Devex.

Source: Devex (link opens in a new window)

Categories
Entrepreneurship
Tags
Base of the Pyramid, business development, financial inclusion, microfinance