The female in the community often has a supportive role. Giving her the heads up offers a chance to utilise skills she and her community already have which are going to waste by lack of equipment , utilities, what ever it may be, and keeps people entrenched in a cycle of poverty. It is not a handout, it is a business loan which allows people to have pride and optimism about themselves and their future. The money isn't trapped in bureaucracy and greed unlike government assistance. Often their business ideas are for products desirable internationally which can draw tourism or at least awareness to the area. The income sorts out the medical nutritional and emotional needs of whole families and communities. I have read some success stories. The Woman being the provider often changes the amount of respect females are given in the community. The products are desirable because these people have skills whose ethnicity and particularities are only obtainable from them, which is what makes them a success. The people can keep living according to their values and lifestyles, while supporting themselves and their futures.
In the third world countries, resources are under the control of a little percentage which won't let the terms ease on the lower class that has skills, but lack initial finances to utilize their strengths. The history of third world economies shows bad debts always results from funding to the influential class.
It is better to invest than doing nothing.
Such investments may result in jobs creations in the given country.
The investor is only a small tool. Even if 1/10 micro-businesses hire 1 person, it is still better than nothing.
Microlending is not charity, and tons of projects described on pertaining microlending websites show people requiring money to adapt, or increase, or start, their business.
Micro lending is viable because sometimes people only need a little bit of help. A small amount of extra cash at the right time and place will make a much bigger difference than a large amount of cash at the wrong time and place. A small loan to buy a new sewing machine can be paid off much more easily than a large loan and a simple single object may mean a huge difference in someone's income.
Beyond all the positive things micro lending may do for 3rd world local economies, at least as important is the message of empowerment it sends. That is, a one-to-one, person-to-person response to hardship: 'I see you're struggling, here's my help.' It's imperative that individuals who give believe their contribution makes a difference to something and someONE. And it's meaningful for the person receiving the aid to know that someone they've never even met is wishing them success and is willing to contribute to it.
Micro lending offers many advantages to third world citizens, many of whom only need enough money to buy a hen to start selling eggs, or some other project. Often, they don't have enough money or credit to get on a bank's radar, and don't need that much anyway. Also, micro lending provides an alternative investment avenue for individuals in first world economies. And, when the gap between first and third world is narrowed, the whole planet benefits.
Small micro loans made to women in developing countries have been proven to allow them to run their businesses, hire other local women, and provide direct support to their families that men in these situations can't or don't provide.
Micro lending has been a popular way of helping third world countries. A small loan in the United States is a large loan in a poor country. This is relative to the exchange rate. If such a small cost can make the world a better place, why not do it?
Many third world countries are struggling day to day just to get one meal on the table. We know most of the children are hungry and continuously starving. If micro lending could help small business owners improve their strategies and fuel their economy, maybe it will help in some way.
Micro lending has often been successful in poor countries by providing loans to start a variety of businesses. This money can be used to buy sewing machines, goats for breeding, or various other items that the person could not afford up front. It is essential that the organization providing the loans counsels the individuals to choose the most appropriate use of the funds, and continues to work with them as they establish their business. Such successful businesses not only raise the standard of living for those involved, they also serve as both an inspiration to others and a source of more funds to empower others with loans as the original loans are repaid.
Micro lending usually only reinforces first world hegemonies, and where it hasn't it hasn't ever been universally or fairly available. Third world economies aren't undermined for want of a few pennies by some middle-class farmers or merchants - because the truly poor - the ones in the dumps and villages, reduced to begging for food - have other issues - and the truly rich are unfortunately mostly corrupt. Third world economies exist because they have been put there by first-world economies, and every dollar that you give to micro-finance projects, also finances the system that undermined those economies in the first place. That's why no nation in history has ever worked their way out of poverty through microfinance or any other charity scheme. Charity is good and necessary to end immediate suffering, but it does nothing to help stimulate third world economies to the degree that they require.
I'm shocked to see that some of those ladies chose to feed their families instead of buying supplies. Shame on them. No, shame on those who didn't oversee the program well enough to find answers to the problems. Perhaps the problems popped up because of too fast over-sell, not enough mentors for the groups, and not enough leaders. Could it be?
We need to solve our own problems before we try and solve others problems, at worst abandon the poor third world sods and let natural selection occur
Our current economy is in shambles. Before we can help other countries with micro lending, we should "micro lend" to some of the individuals on main street that have been let down by the current government.
Recent studies by economists associated with MIT?s Jameel Poverty Action Lab have found that most borrowers spend the microloans on household necessities rather than on their business needs. Microlending does provide a cheaper and safer means of borrowing. Local moneylenders tend to charge higher rates of interest and may resort to violence when the borrower cannot pay. Some microlending organizations are now considering lending to mid-sized businesses as a means to address large-scale poverty.