Micro Financing

In modern times micro financing is the epitome of teaching a man to fish.

Poverty is a vicious cycle and charitable giving can exacerbate the issue by providing for one’s  needs while hurting another who is trying to better themselves and their community by providing for that same need. It is important to understand that it is impossible to compete with free so hand outs can prevent the local infrastructure from being created. If a poverty stricken community is given rice and vegetables for free by charities then it will be impossible for the local farmers to sell their rice and similar vegetables to a poor community that is already given them for free so the community will become further from being independent and flourishing. So with micro-financing a small farm that could not qualify for conventional financing could get funds to grow their business. This could not only help the farmers flourish and become self sufficient. It can also offer new jobs to the community and better prices on produce. The farm owners growing funds in the local community bank can be used to micro-finance others and taxes used to better the community.

many individuals, who may otherwise resort to less fair borrowing or worse, are able to get small sums of money to increase they’re productivity.