Role Of Microfinance Institutions In Pdf

Role of microfinance institutions in entrepreneurship development in Pakistan

Microfinance institution are organization whose function is to providing financing services to the poor people whose otherwise can’t afford their living expense or can’t even finance own small business. In country like Pakistan where no multinational companies are coming and existing business are also moving to another country because of political instability and energy shortage so result in increase in unemployment rate which lead to increase poverty and social problem in country.

The main role of microfinance organization to reduce poverty and they are working to reduce poverty by funding the man with least resources and encourage them to be an entrepreneur

These all microfinance institutions only cater 2.4 million customers

Microfinance is not just lending loan to the poor but also guide them how to use that money for their growth and educated them that only the saving can change your lifestyle and also providing guidliness for starting small enterprises so as they can finance their children education and home expenses .

Microfinance in Pakistan till today helped lot of poor man to become successful and at microfinance connect website has number of success story which tells that how they changed their life by funding from microfinance institution some of the successful stories are given below

Mr. Rashid doubled his business of diary by funded from the microfinance institution called “Asasah” and now she is living happy life with his family and according to her most of the financial burden ease and she bought basic necessity for her house like washing machine, television and so

Microfinance institutions are giving the opportunity to low people with low resources to show their creativity, innovation and idea and they will finance to become successful.

SBP and government of Pakistan are also working to generate more funds for the microfinance institution as the poverty is main economic indicator and government also knows that they cannot achieve the low unemployment by just only public enterprise and large public and private company, there is need of huge small business to decreases the unemployment rate which result in increased consumption and then economic growth . So entrepreneurs are important for every economy and without entrepreneurs country cannot achieve high growth rate and especially in Pakistan country where business community fear to invest in their own country so the SBP need to provide good schemes by microfinance to the poor people so they can become entrepreneur and contribute for the