Adriana Galue's Blog

musings about entrepreneurship & life…

Microfinance: Real Development Tool?

Reading Milford Bateman’s book “Why Doesn’t Microfinance Work”, leads to think about changing the way we implement “international development” and poverty alleviation measures. In the two page write up downloadable here, I analyze Compartamos, one of the largest Microfinance organizations in today’s economy.  As Bateman argues, no real sustainable business can afford to pay interest rates of above 30%. Microenterprise development is not the most efficient way to poverty reduction unless microenterprises can efficiently scale. How can you scale while paying unreasonable high interest rates?

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This entry was posted on 09/15/2011 by in Entrepreneurship, Global Issues, microfinance and tagged .
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