Micro American Women

Women taking out micro-loans can have a positive effect on them and their business. Many loans women take out are for tiny incorporations being made in their country. They take out loans to start small businesses and make more money, it helps them give their daughters a possible future for education, and can affect the future of the economy as more of these loans are being made.

In both developing and emerging economies, microfinance has vastly and increasingly been seen as one of the most important means for enhancing the lives of the poor and therefore a major tool for economic and social development mostly in rural areas. Lately, contrary to this widespread belief, critics have raised eyebrows against this growing popularity of microfinance as a major tool for enhancing economic development. Contrary to belief, they are of the opinion that microfinance is a ‘make-belief’ that is hindering economic and social development rather than enhancing it.

Micro enterprising has helped African women in many ways. New machines make it easier for them to work. They raise money to support their large families and themselves. Some also hire workers, which creates more jobs. Micro enterprising also gives women more opportunities to work and inspires them to start their own business. They help their economy little by little. But most importantly, it gives them pride for being a women; one that went from unable to do anything to working and saving their family.

Poverty has stricken many developing nations. However, there are many ways to limit things like this from occurring, micro-loans being one of those things. It is apparent that women in developing countries are empowered by micro-loans. Micro-loans are a small amount of money given to small businesses. Micro-loans help make women more independent and help them not rely on their husbands for money. It helps these women in poverty get their kids and themselves an education with the money they receive. Additionally, micro-loans make it possible for women starting a business, in order to make more money. There are many benefits for women receiving micro-loans.

For Victoria’s case, she needs the money to buy more potatoes and quinoa to make sure her shop has all the proper vegetables (Kiva.org). If Victoria can keep her shop well stocked, she may attract more customers and make more money. By earning more money, Victoria can improve her quality of life. According to Plan Canada “microfinancing can lead to improved access to clean water and better sanitation while also providing better access to health care” (plancanada.ca). Research shows that microfinance loans are better suited for women because they are less likely to miss payments on their loan and it helps them feel empowered (plancanada.ca). By lending to Victoria, she will feel empowered and will be able to support herself and her family. Also, because she is a woman, she is less likely to miss

"Women do two thirds of the world’s work...Yet they earn only one tenth of the world’s income and own less than one percent of the world’s property. They are among the poorest of the world’s poor." –Barber B. Conable Jr, President, World Bank

Micro credit is the process of helping the “poorest of the poor” obtain loans. Since big time banks rarely help people who need help acquiring loans, micro credit is another source that makes it possible for the lower class to achieve that. They focus on they call the “real economy,” where they are on personal relationships with their clients. They want them to succeed and help their clients change their own life. Compared to the big banks, they are not looking to make huge amount of interest back off their loan (paper chasers).

Microfinancing produces many benefits for poverty stricken, or low- income households. One of the benefits is that it is very accessible. Banks today simply won’t extend loans to those with little to no assets, and generally don’t engage in small size loans typically associated with microfinancing. Through microfinancing small loans are produced and accessible. Microfinancing is based on the philosophy that even small amounts of credit can help end the cycle of poverty. Another benefit produced from the microfinancing initiative is that it presents opportunities, such as extending education and jobs. Families receiving microfinancing are less likely to pull their children out of school for economic reasons. As well, in relation to employment,

It is necessary as well to establish development policies for the medium and small industries, promoting social equality and respecting the human rights Including the poor to have freedom and voice to influence the decisions that affect their lives. One of the methods to achieve this goal could be a conditional cash transfer payments that will mainly consist in payments made directly to poor families so long as they meet certain conditions, such as keeping their teenage children in school. It is also important to create programs where people get information and tools of how to create their own income without depending on the government. If the micro-entrepreneur gets a small loan, they can start economic activities that eventually will increase their income. At the same time, these microentrepreneurs should get the assistance of how to manage their finances, until they get enough knowledge of how to manage their own business. Women play an important role in Venezuela’s society, that’s why creating programs were women are empower to create small companies would contribute to diminishing malnutrition within their family

In the same way Khandker state that, microfinance reduces poverty by increasing consumption among participants and their families. Degree of poverty reduction evaluate on the based on consumption impacts of credit show that about 5% of program participants can improved their families out of poverty each year by participating and borrowing from microfinance programs. (Khandker S. R., 1998, p.

Before women became economic independence, they have to rely on men to survive. While the proportion of women to education is increasing, self-reliance has already become a new mark of modern women. “The data show more women than men today have college degrees. In 1970, 64% of graduates were men and 36% were women; in 2007, 53.5% were women and 46.5% were men” (Jayson 2010). Obtained a degree means that more women can afford their living expenses, or even allow their families to have a better living standard. “Also, women's earnings grew 44% from 1970 to 2007, compared with 6% for men” (Jayson 2010). Although men still make more on average, women’s incomes are significant

Mariam, a VSLAs member in Iganga, say in cases of illnesses or emergencies, she can cover the expenses with funds from the VSLA’s welfare fund. It is a great relief, because it prevents me from having to take my children out of school. Bruton et al. (2011) report that one of the major reasons for the failure of borrowers (particularly women) to effectively utilize loans to realize new business opportunities was the health risks of dependents rather than themselves. In societies with a limited or non-existent welfare state, the proceeds from micro-loans are often redirected to pay for medical and other “emergency” expenses rather than invest in originally envisaged new projects. Clearly, the extension of micro-insurance to cover dependents and

Women for years have struggled with not getting the same necessities as men such as healthcare and education. Two-thirds of the worlds 771 million illiterate adults are women and this is probably due to not being in the right area to get an education

Inspired by her own struggle, she has been generous in making small loans to help the underprivileged, “unbanked” female entrepreneurs in her town, in the poor and rural northeastern

What is microlending? In simplest terms microlending is the lending of very small amounts of money at low interest, to low income people in urban and rural areas. It started forty years ago, when a person named Muhammad Yunus was visiting his family and his country Bangladesh which had recently become an independent country. Muhammad Yunus had left his home country then –East Bengal- when he was a child with his parents in search of a better future. He graduated from Vanderbilt University in Nashville, Tennessee, with a PhD in economics. Muhammad Yunus is the founder of Grameen Bank, the first non-profit organization to offer microfinance services in Bangladesh and in the world (New York Times). This bank showed the world on how little