Microfinance Pros And Cons

Microfinance has both pros and cons just like everything else. Microfinance can make it possible for people to move up and out of poverty and better provide for their families. Microfinance also empowers women and helps the economy. It could also make it so that some people are publicly shamed because they are unable to pay back their loans. Microfinance is a good thing because it makes it possible for people to better the lives of themselves,families, and their communities. Microfinance empowers women. It empowers women because they are able to provide for their themselves, their families, and their children. Being able to provide things makes the women a vital part of the family, unlike before when there were treated unimportant and no …show more content…
Microfinance can help the economy by lowering mortality rates, increasing educational attainment, and making higher productivity rates. In addition, without microfinance communities are extremely restricted in terms of financing opportunities they can get. (microfinance empowers women entrepreneurs) people in these areas are very restricted to the opportunities they are offered by big banks and regular loans. They are not given the same opportunities as people in the middle and high class because banks do not want to take a risk on the people in poverty. furthermore , “ women invest the money in goods and services that improve the wellbeing of families, in goods that are conducive to development.” (microfinance empowers women entrepreneurs) women in these areas where they need microfinance are very good at using their money wisely. When they use their money they invest into things that will make them more money in the long run not just short term. They also invest in things for the well being of their families, things that will improve their quality of life they have. They also invest into things that help development, they create stores and companies, these help to improve the quality of life for everyone because they can create jobs that lead to more money in communities or even within the country. Another thing that is a result of microfinance is that “there is a lower child and maternal rates, increased educational attainment by daughters and sons, and a higher productivity rate. “ (microfinance empowers women entrepreneurs) After improving the peoples quality of life they can decrease the child and maternal mortality rates because they can afford better medical attention, this can help with the risk of pregnancy because the death rates are lower than before. When the child and mother live they can contribute to the economy because they can create money and sometimes jobs for other people. They