Microfinance Beyond The Obvious
True that microfinance is helping millions worldwide, but financial experts are already contemplating about what is beyond it. After a point, there are limits to which microfinance can enable economic development. This will happen when poor countries will feel the need for more small to medium sized entreprises, bigger than their fruit carts, but still small enough to be comfortable. While these kind of companies generate a lot of income in the developed countries, they are still relatively rare in the poor countries where they need funding for their capital. This missing middle gap is now increasingly being filled by “meso finance” that aims to enable SME’s to grow and subsequently expand their employment bases. Read an interesting report on this here.