INTRODUCTION TO MICROFINANCE
What is microfinance?
Microfinance which is also known as microcredit is a financial service that offers banking services to small entrepreneurs and small business owners who don’t have access to traditional sources of raising capital like banks or other investors. The concept of microfinance and microcredit was pioneered by a Bangladeshi social entrepreneur named Muhammad Yunus who later won a noble prize for peace for founding the Grameen Bank. These loans proved to be very helpful to small businessman mainly sole proprietors to raise capital and run their business efficiently and to grow and prosper.
What is its importance?
Right from its inception microfinance has played an important role in driving growth for the citizens mainly in developing nations such as India, Bangladesh etc. Microfinance is available through various microfinance institutions ranging from small non-profit organizations to larger banks. They offer small loans and help set up and maintain a savings account. They also assist borrowers in obtaining insurance for a variety of needs, such as death, illness or loss of property. Micro-finance slowly has emerged as a great movement with an objective to provide affordable financial services to all mainly the poor and socially marginalized section of the society. This not only helps them to financially grow and expand their business but also serves the society as a whole as it leads to greater productivity, increased
In Chapter 11, microfinance is discussed, it is empowering women, in areas struck by poverty. Microfinance is allowing women to borrow lesser amounts of money and by paying it back bi-weekly it is keeping them coming back and when they pay off their first loan they are allowed to borrow more, larger loans. Women are taking back the power. As we see in Saima’s story below, her husband no longer beats her and she calls the shots and now her husband works for her.
Columnist Scott Gilmore brings to light the operations of payday loan companies and the impact that they have on society. Although the payday loan companies seem to take advantage of the financially vulnerable members of society, perhaps the true fault lies within the education of society. A devastatingly large portion of society seeks out payday loans, and the results are appalling. As mentioned by Gilmore in the article, “[A correlation was found] between the number of payday lenders in a neighborhood and premature mortality”. This reveals a lot regarding the repercussions of seeking out loans that in turn create greater loans.
I believe I should be chosen becuase I will bring a hard working persona, a great can-do attitude, and willing to take on any task. I am bilingual, so I can help assist our non-english speakers and I believe I have skills to persuade future customers to be part of Capital One. I am a very dedicated person who tries to always be the best as I can, meaning helping not only myself, to grow, but everyone around me. I strive to achieve many things and take my education seriously. I’ve always been in Honors classes and get good grades, currently I have a GPA of 3.4 but am striving to better myself and get a 4.0.
This means they have to pay huge amounts of interest to local money lenders, which makes it practically impossible to generate opportunities to create wealth. If lending organizations are able to consider local customs and networks, they could provide cost effective opportunities for the poor to generate sustainable incomes. In a shantytown near Mumbai, India, for example, local moneylenders charge 600% to 1,000% interest. A bank might charge 25% interest, make a very respectable profit and still offer shantytown residents a superior economic alternative. Grameen Bank started as a small community lending organization, and as of 2011 provides loans to more than 25 million people around the world, with a 95% repayment success rate.
Small businesses used to be the backbone of this country now they are in great danger. Small businesses are highly affected by this global financial meltdown because they fall into great financial dept. Many things come into play in this situations. Most small businesses greatly depends on banks to fund their business because most small business owners are every day people looking for the American dream. Due to the financial dependency on the banks small businesses keep asking for more loans from the bank to support their needs for their business and the employees.
The Payday Lending Industry and CFPB Overreach The Payday Lending Industry and CFPB Overreach The payday lending industry is increasingly gaining support from some surprising sources in its campaign against CFPB overreach and the agency 's purported plans to regulate payday lending out of business. The Consumer Financial Protection Bureau, which was established in 2010 to protect consumers from predatory lending practices, was originally expected to limit payday lending severely or attempt to abolish it entirely. The CFPB was granted extraordinary regulatory powers that weren 't subject to the traditional checks and balances of free enterprise, legislative debate and judicial review.
This paper explains the meaning of poverty, and all poverty around the world and the United States. In many places, poverty maybe described as the low-income people, poor people. People who are above those in poverty are basically described as the best people, the rich people. Poverty occurs in many parts of the world, its properties are more noticeable in the formed part of town, state, or country.
Throughout many poor and developing countries, it is traditional for men to earn income and money for their families, while women are responsible for caring for their children or elderly parents. However, it can be a struggle for these families to pay for school for their children, or even basic necessities such as food and clothes, due to their limited income. Microcredit organizations are working to help poverty stricken families such as these by lending small amounts of money to women. The provided money, called microloans, helps women start small business of their own and bring in additional income for their family.
In today 's society in America, people are more focused on themselves rather than helping those in need. It is very important that those that are in need can get what they need to survive and not suffer as much as they do now. While there are some corporations that do help these people, they nearly all are non-for-profit, which means they have to rely on donations from people in order to do what they need to do. The problem with this is that not that many people do donate to these charities because they want to spend their extra money on things that they want. America 's society got this way because of the individualistic tendencies of our economy and culture and that our lives are a lot easier than people living in impoverished areas like
It is often alleged that minimum wage plays a significant role in everyday life. Many companies and individual entrepreneurs are inclined to prioritise this notion in their business and work. In order to provide the definition of it the following interpretation can be used: minimum wage is an amount of money that is the least amount of money per hour that workers must be paid according to the law. This amount of the minimum wage depends on a country and the varieties of it are enormous. In general, there are some advantages and disadvantages of denoting the national minimum wage for a particular country.
I believe that the 28th amendment of the Constitution should be that minimum wage should meet the standards of living. No one deserves to struggle to pay for food, water, and other basic necessities if they have a job. If everyone could afford a quality lifestyle I believe that the overall happiness of the United States population would increase drastically. Our society is cruel by having a select few making excruciatingly high salaries while the majority of the population struggles to survive and oftentimes, the poor work harder than the rich to earn their living, however, low that may be. As the gap between the middle class and upper class widens it seems as if no one is willing to solve the problem and most people do not approve of increasing
Introduction Keeping record of activities and expenditures is crucial in personal finance planning and could really help in managing personal finances. This paper identify what is accounting and how does it help to manage personal finance, describes products of accounting and bookkeeping procedures that are useful in personal financial planning and how personal financial software could assist in personal financial decisions. What is accounting and how does it help you manage your personal finances?
Whether you are just about to start a new small business or you already have one, you can qualify and apply for financial grants intended for entrepreneurs and owners of small businesses. These are the funds that are made available for all qualified business owners and entrepreneurs. The main purpose behind these is to give financial source that will help the beneficiaries in the stimulation of economic growth. By providing these resources to all small businesses, they would have more chances to become profitable. They will also be able to start contributing to the general well-being of the economy from the state or city where the blessed businesses are located.
There has been quite a heated debate the last couple of years about the effects of increasing the minimum wage in both Canada and the USA, the question still remains “Is it better to pay above-average hourly wage?”. Despite the possibility of negative effects from a higher than average hourly wages, the positives results of such practices outweigh said negatives. Most businesses believe the conventional wisdom that a high hourly wage can run the risk of driving up production costs and decrease revenue from potential sales. In reality increasing wages and paying new employees above minimum wage can create more positive solutions for a company instead of problems.
The article “Why is financial management so important in business?” defines: Financial management of a small business encompasses more than keeping an accurate set of books and balancing a business checking account, because we must know our financial management responsibilities affect all aspects of the business. The article basically tells us why is the importance of financial management have to do in business, which simply applies to the natural flow of monetary resources and maintaining the financial balance in the world. The article points out that some of the many effective ways of financing are: purchasing assets to create income, managing cash flow, lowering expenses, and tax planning. These suggestions helps the small businesses to keep moving forward and at most the people to have successful