0 the activity or business of providing financial services to poor people or new businesses in poor countries:
Since 1976, microfinance programs have sprung up in developing nations around the world.
1 the activity or business of providing financial services, such as small loans, to poor people or new businesses that cannot use traditional banking services, usually in developing countries:
Microfinance has been very effective in Guatemala.
Both sides of microfinance are covered, the provision of credit and savings facilities.
Microfinance can be defined as small-scale credit and finance services for the poor.
No proper analysis of the data or the evidence of the effectiveness of microfinance is undertaken.
There are problems both in making microfinance self-sustaining and in achieving aims such as targeting it at the poor - especially the very poorest.
Abbink et al. (2006) look at free-riding of loan repayment in microfinance institutions using an economic experiment.
However, theoretical and empirical analysis of the capacity of community organisations (and hence of donor, microfinance and private sector backers) to respond to this challenge is lacking.
Econometric techniques could be used to evaluate their overall effectiveness, including secondary effects which extend beyond the immediate recipient of microfinance.
Bangladeshi individuals and organisations have managed to achieve global renown with innovative strategies in the arena of development and poverty alleviation, for instance, with microfinance and adult education.
