Microfinance as a way to develop White Center
Most people are aware that the greatest impediment to the start and development of the business is lack of capital. Tradtionally, banks only lend money to people who already have money. This makes it extremely difficult for would-be entrepreneurs to start a business — even one that is desperately needed. One solution to this quandry is the pooling of resources by a community to assist its members with the initial loan that gives them entry. The Asian and Latino communities already have models of this practice, the latter known as Tanda. Variants of this practice are known broadly as microfinance.
Microfinance refers to the provision of financial services to poor or low-income clients, including consumers and the self-employed. The term also refers to the practice of sustainably delivering those services. Microcredit (or loans to poor microenterprises) should not be confused with microfinance, which addresses a full range of banking needs for poor people.
More broadly, it refers to a movement that envisions “a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers.” Those who promote microfinance generally believe that such access will help poor people out of poverty.
I would be curious to know if readers have any thoughts on this subject and how it might used as a tool to spur economic development and vitality in White Center and other areas.
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