THE MICRO-ENTREPRENEUR

 

A handful of euros can be enough to launch a small commercial business in a developing country. But where can you find the money you need to buy a sewing machine, raw materials or cattle when you can barely afford to eat? 

Traditional banks only grant credit to customers who can provide a guarantee of reimbursement and a certain number of official documents. But people living in financial uncertainty cannot provide either.Consequently, banks view such customers as too “risky” and refuse to grant them loans. As a result, millions of poor people around the world are excluded from the traditional banking system. Microfinance actors do believe that low-income people have an expertise which could be used to develop a micro-entreprise and generate regular income.

  • Read the testimony of a micro-entrepreneur

Repayment rate close to 100%

Experiences coming from the microfinance institutions in southern countries show that microfinance clients pay-back their loan: the repayment rate is close to 100%. Microfinance institutions and credit agent play a key role in reaching this result and providing the risk of over-indebtedness.

Autonomy and dignity

Microfinance services give micro-entrepreneurs higher and most important, regular income. They have access to savings products, health insurance, house insurance, they can send their children at school, etc. As actors of their own life and economic development, microfinance clients regain dignity and autonomy. 

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Microfinance basics

 

Other resources on microfinance

 

Ask for a presentation with an ADA expert

In the frame of awareness raising activities, ADA uses to explain microfinance to different audience, on the occasion of conferences, forums, or internal events organised by private companies. Ask for a presentation by using the contact form, or by phoning: ADA Information Center, (+352) 45.68.68-1.