Comments on: Microfranchising opens new earning opportunities http://www.defeatpoverty.com/2007/08/microfranchising-opens-new-earning-opportunities.html A conversation on global economic issues, ideas & data to help us all become better contributors to defeating the scourge of extreme global poverty Fri, 26 Feb 2010 11:35:08 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: KT http://www.defeatpoverty.com/2007/08/microfranchising-opens-new-earning-opportunities.html/comment-page-1#comment-97 KT Mon, 27 Aug 2007 13:02:00 +0000 http://www.defeatpoverty.com/2007/08/microfranchising-opens-new-earning-opportunities.html#comment-97 Dave, Laili Begum's case is a nice example of what microfinance really helps to achieve - consumption smoothing, certain financial security for the nearest future, social empowerment (it is not being mentioned in the article but I am sure that she is more active and assertive in her household and community now); I also imagine that her children are at school and hopefully her daughter's future will be brighter than Mrs. Begum's. <br/>At the same time, Mrs. Begum is not contributing a lot to the growth of local economy. Her activities hardly seem to increase the amount of wealth in her community. She is still surviving – just much better than before.<br/>A sensible next step for Mrs. Begum will be to pull resources together with other ladies in her community, find the ways to exploit economies of scale, increase their bargaining power but mainly create jobs and pay taxes. No world's economy was developed by petty entrepreneurs financed by debt. Microfinance is just a small component of an integrated bottom-up rural development strategy, which must mobilise all available resources and all community members to work together for the better future.<br/>You are welcome to join our discussion here: https://www.xing.com/app/forum?op=showarticles;id=4955099;articleid=4955099#4955099 <br/><br/>Warmest regards<br/>Ekaterina Dave, Laili Begum’s case is a nice example of what microfinance really helps to achieve – consumption smoothing, certain financial security for the nearest future, social empowerment (it is not being mentioned in the article but I am sure that she is more active and assertive in her household and community now); I also imagine that her children are at school and hopefully her daughter’s future will be brighter than Mrs. Begum’s.
At the same time, Mrs. Begum is not contributing a lot to the growth of local economy. Her activities hardly seem to increase the amount of wealth in her community. She is still surviving – just much better than before.
A sensible next step for Mrs. Begum will be to pull resources together with other ladies in her community, find the ways to exploit economies of scale, increase their bargaining power but mainly create jobs and pay taxes. No world’s economy was developed by petty entrepreneurs financed by debt. Microfinance is just a small component of an integrated bottom-up rural development strategy, which must mobilise all available resources and all community members to work together for the better future.
You are welcome to join our discussion here: https://www.xing.com/app/forum?op=showarticles;id=4955099;articleid=4955099#4955099

Warmest regards
Ekaterina

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