Microfinance Essay Example | Topics and Well Written Essays - 500 words

Microfinance - Essay Example Having been branded a risky lot by universal banks in general, the poor never had chances of proving that they could be successful entrepreneurs and that they would be worth being trusted with loans despite their inability to produce collaterals. Microfinance used to be regarded as a concept that is highly illogical and totally unnecessary in robust and industrialized economies like America was. Exploring microfinance was a worthwhile exercise, but it was never a model to be studied in context of the American banking industry. In the light of the economic recession that continues to plague America, the idea of microfinance as the banking methodology that just might help a good number of today's jobless and financially distraught Americans does not anymore sound so far-fetched. Despite the prevailing economic scarcity in America, however, a lot of questions arise concerning the applicability of microfinance in the country. It is not enough that there is a growing number of poverty-stricken cities at this time; microfinance cannot be offered to such places solely on the basis of the rising economic difficulties therein. There has to be a sufficient degree of compatibility between the Americans as clients and microfinance as a service.