Living in a Third-World country certainly has its perks, but not for people edging toward the poverty end of the overall sector. Being exposed to starvation almost every single day, these low-income families experience much difficulty sustaining their everyday necessities. Even when they do have enough money to support themselves and manage to have three meals a day, the lack of extra money still pushes them closer to the deeper end of poverty. They cannot establish themselves a decent livelihood or small business to support their families, as they don’t have enough money to do so.
But with the existence of microfinance, it is much more possible now to give leverage to families in a low-income household to keep up with the challenging waves of life. By providing loans, poorer families would be able to cope amidst crises and stabilize their monthly income flow. It would also give them a starting point to establish a business to provide them with a steady source of income and pay off their debts in the future.
Women empowerment through microfinancing
This kind of financial opportunity proves a lot helpful to women living in these Third-World countries. It is indubitable that a woman is finding her place and security in a shaky society. By providing them with access to ample money to support themselves, they could establish a sense of independence. Through this, they could fight off the stigma of gender inequality by giving them the platform to generate their own income. With women having a stronger sense of purpose in society, they would be empowered to voice their decisions without any external factors influencing them.
Microfinancing can eradicate any inequality in society. By slowly breaking the cycle of poverty, women could break their way into the mainstream society where the patriarchy is inevitably stronger. In today’s era, women with power and confidence to break stereotypes and stigmas alike are genuinely the catalysts of change that this world needs. By allowing them to have the opportunity to build their own enterprise, their lives will ultimately become a lot better and more meaningful. Everyone deserves a life where they wouldn’t ever have to worry about how to get food on their plates the next day. By pushing women to take up space in the society, they wouldn’t ever consider being dependent on the patriarchal higher class.
Upholding financial literacy for women in rural areas
Women who had no access to credit since they were young lack enough knowledge of managing their finances properly. Microfinancing programs essentially help these women hone their financial planning skills so that they would be able to utilize this money properly. Without proper planning, they could have a larger debt and have difficulties paying that off when the money was not maximized to plan out a business.
Combining financial education with microlending programs is also one way to elevate the status of Third-World countries to have more progress. Development programs shouldn’t just be done for the sake of development, but it also needs to be paired with decent education programs alongside to ensure the right path for advancement. Providing poorer people with access to education and microlending services will truly reduce the growth of poverty over time.
Saving them from conflicts in the society
Women are mostly affected by the collateral damage done by economic disputes and armed conflicts in the community, especially in Third-World countries. Through microfinancing, women could rebuild their economic standing in society. By giving them a sustainable amount of money, they would be able to improve their lifestyle even amidst regional conflicts and survive economic distress. Given the ongoing pandemic, having the opportunity to still establish a business to survive the economic downturn will save them from swimming deeper into the currents of poverty.
Progressive local growth
Providing microfinance opportunities would also nurture small and local businesses, even those away from the city. It will also help diversify the community’s economic growth because it will pave the way for newer and more organic businesses to come through. Moreover, women in agricultural sectors will have better access to seeds and high-grade fertilizers, improving the overall nutrition in the community. Giving more room for smaller businesses will also help amplify the community’s employment opportunities and further help families build up their way from poverty.
In a way, microfinancing certainly is one helpful innovation in our society that provides even the poorest of the poor a safety net to gain momentum once again. But what is more important is how they would choose to invest in the right business, even after educating themselves with proper financial planning.