Microloans Research Paper

Women all over the world are becoming micro-entrepreneurs. $1.25 a day is not enough money in order to start a business. Many people have noticed the need of women who want to start a business. Micro loans were invented to help. Micro loans are a small loan given to those women who want to start a business, but are lacking the money. This loan gives the needed boost to these women to start their business. Micro loans are indeed helping these women. These micro loans help women to become less dependent on men and has a positive effect on their community. While the microloans are mainly helping woman, sometimes the microloans are unbeneficial by leaving the woman in debt.
Women are becoming empowered by not having to depend on men for everything. Before the micro loans were invented, women had to turn to men; especially for money. Men were in control of the women and the women were treated as items. However, women are now taken more seriously since they are proving that they can be independent and be successful. One article states, “...by bringing in her own income, a women’s dependency on her husband is reduced and her bargaining power is increased.” (Matsangou, 2017). This article also brings up, …show more content…
Instead of the women being benefited, some women are being hurt. Many women are still not making a lot of money, which can lead to a downward spiral for their families. If their business fails, they can end up in debt from their given loans. The article states, “...many women living in extreme poverty are simply unable to understand… and spiralling credit can be a result,” (Karmin, 2013). If the business fails, then the women will be left in debt, which will lead to a continuous downward spiral for the women and their families. While there are situations where the microloans seem to not empower women, overall they have a substantial effect on these