Microfinance is an enabler

Micro-lending that targets poverty has enabled higher income generation through a multitude of economic activities. Offering credit to the unemployed poor, works as a powerful method to breaking the cycle of poverty. Stuck within deathly cycles, these people were squashed under the forces of those they worked for or borrowed from. When one has no other choice but to work a full day for a just handful of rice, that is what must be done. Micro-lending offers another option, enabling people to become independent. Micro-loans provide access to credit and finance, training and skills, which lead both lead to better job opportunities, higher incomes, and a decent standard of living (Geodesudbury.com). Micro-lending makes the previously impossible option of self-employment a reality. With increased opportunities, higher incomes are available. Higher incomes do not only benefit the previously unemployed poor, but the country as well. Micro-lending can expand a country’s financial sector, but adding new companies and products. Variety and increased volume are both beneficial, especially to developing countries that may rely heavily on one export. With this expansion of business, the individual’s and country’s economic power grows.