Depending on who you ask, there are different responses when it comes to the effectiveness of microfinance as a program. Some people would say that their lives have changed because of microfinance. Others think that microfinance is an unsustainable promise that has buried more people in debt.
They would tell you that microfinance is nothing more than a scam that has created a failed opportunity for individuals as they were ultimately irresponsible in using the tools given to them to do better in life.
The truth is that if you look closely at people who have benefitted from this program, you can safely say that it works. Here are the winners in microfinance since it was introduced.
The main target of microfinance is poor people in developing countries. Without the chance to do better in life, they will stay where they are. As a result, countries also suffer. These individuals remain on their welfare budget. These poor people who have gotten loans can use the money to start a business and potentially spur on the economy leading to the economic growth of the country.
They are the ones who have tried everything they can to stay ahead or at least go up another level in life but have failed. Their loan applications were always rejected. They were always told they can’t do better in life. They feel like the world is really unfair and there is no opportunity available for them. With microfinance, even if they don’t learn everything and not all tools are given to them. At the very least, they find hope.
Microfinance is not just about getting loans but also how to use the loans to better their lives. This is why people who have not received formal education or have no background in business are also winners. They now have the platform to prove themselves as successful entrepreneurs. They also have the chance to learn something new and even love the idea of learning. They might even be inspired to go back to actual studying, so they can do even better.
Despite all the ups and downs of micro-financing, we can’t deny that a lot of people have received the benefits. Therefore, it is not fair to say that it has been a total disaster. Several reports are currently being analyzed and the data might reveal varied results. However, let us also not forget to ask those who have directly benefitted from the program and how their lives have changed.
Check the information provided by Sharone Perlstein and learn about his expertise in this field to find out more about microfinance and how it has benefitted a lot of people.