Microfinance provides the working poor with access to affordable capital. Studies of the development impact of microfinance are compelling. A USAID study[i] of the impact of microfinance in Peru found that micro-enterprises with access to micro-credit earned over $1,000 more in revenue per annum, accumulated over $500 more in fixed assets, and provided employees (typically family members) with 3.25 more days of paid employment per month than micro-enterprises without access to credit. The study suggests that the related household impacts of access to micro-credit in Peru resulted in a $1,200 increase in household income and a $266 increase in per capita income, estimated to be more than a 20% increase in income for the approximately 700 households which participated in the study. Similar causal social impacts of microfinance lending practices are also being seen in Nicaragua.
[i] “The Impacts of Microcredit: A Case Study from Peru.” Elizabeth Dunn and J. Gordan Arbuckle Jr., Management Systems International. Study funded by the USAID’s Office of Microenterprise Development.
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Microfinance Works!
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DID YOU KNOW? Demand for microfinance services is estimated to reach nearly 600 million people by 2010, but lack of capital means only about a third of them can be served.
MEET MICREDITO CLIENTS...
Cecilia grew up in a family of 14 children. Her family owned and operated a small cheese business but struggled to make ends meet. Read more... |