Essays on Microfinance

Institutions

The Fallacy of Microfinance Microfinance has been billed by many as a solution to the persistent problem of poverty. This is as result of the fact that it has been hailed to create and expand micro-enterprises and in the process improving the socio-economic situations of those that own the micro-enterprises, who generally tend to be women. However, according to Banerjee, Duflo, Glennerster, & Kinnan (2014), microfinance does not necessarily lead to people rising out of poverty. The argument held by Banerjee, Duflo, Glennerster, & Kinnan (2014) gives credence to the apprehensions some have had about the romanticized stories on microfinance. I ...

The most innovative and creative people have the opportunity to sell their ideas large and wide without much struggles in the present business environment. When thinking of creativity, I think of nobody else but Shivani Siroya, the Chief Executive Officer (CEO) of InVenture (Tala). Siroya’s creative mind managed to solve financial problems affecting millions of people, especially from developing nations. The entrepreneur came up with an online microfinance system capable of loaning people money without having to look at the individual’s credit history. The company, presently known as Tala, operates in East and South Africa. I find ...

In contemporary societies, microfinance has emerged as one of the main tools for development. In fact, most countries across the globe are adopting it to increase economic growth and improve livelihoods. In the article, Bringing Development Back, Into Microfinance, Otero, Maria suggests that organizations and individuals can still use micro financing as a way of achieving their development goals and objectives (Otero 9). Specifically, the author outlines how organizations can model microfinance to enhance and contribute to various developmental objectives, including economic and social security for the poor, empowering women, promoting livelihoods, and transforming day-to-day social systems (Otero 13). ...

Introduction to Mongolian Financial Institution System

Introduction Following seven decades of communist rule, Mongolia adopted democracy in 1990, closely followed by a shift to a market economy (Wagner). The transition has been beset with turmoil, and the Mongolian financial system has undergone crises in ‘1994, 1998 and 1999’ (ADB), primarily due to the government’s predilection of interfering in the lending policies of banks and directing credit to poorly performing enterprises. More recently, the global financial crisis of 2008 and a drop in copper prices triggered another financial crisis in Mongolia, prompting the government into entering a standby arrangement with the IMF till 2010. The ...

Business Plan for a Gym

Business Plan for a Gym

Executive Summary

The Mountain Fitness Gym is a thriving business-persons gym that focuses on the fitness of all the people from different areas. The gym is famous because it caters for the needs of all the people in the community. However, more than fifty percent of our clients are old people who aspire to be physically fit. The center also caters for the fitness needs of the young people. Currently, the gym has more than 1200 clients who have subscribed to be the gym members. For one to become a member of the gym, he or ...

Question 1

Microfinance’s have gained popularity among the many in the low-income category. Microfinance and microcredit facilities targets to provide poor people with small loans. The loan provided attracts low-interest rates and can be paid over a reasonable period without overburdening the poor to eradicating poverty. The services have been popularized by Nongovernmental organizations and social entrepreneurs between 1970s and 1980s. In Bangladesh Grameen Bank was the first to be established in 1976. The microfinance was founded by Mohammad Yunus, who is an economics professor. The professor targeted to eliminate poverty from the local villager hence, the model adopted by ...

Definition of the microcredit

Microcredit is the main tool of the microfinance concept, which is considered to be invented by the Professor Mohammad Yunus, the founder of Grameen Bank in Bangladesh. As it is stated on the Crammen Bank web page, a microcredit is a program of small loans, offered to the poorest people so that they could generate income through self-employment projects (Grameen Bank, 2012). Microcredit can be also defined as a small loan to poorer households or small entrepreneurs, that lack steady employment and a verifiable credit history. In most cases microcredit does not require any collateral, as its target audience ...