How Has Microfinance Revolutionised Businesses?

Gone are the days where only the rich and affluent could thrive and run a business. Now is a time for those with talent and the willpower to work hard. Here is a look at how businesses have changed over the past few years and how small finance options such as micro-credits and microfinance have come to the rescue of so many.

Businesses Then

  • Great source of income

  • Loan availability for businesses was less with many stringent policies

  • Business was launched only after a thorough market study and opportunity analysis

  • Communication did not play a major role then

  • Presence of an offline office space was mandatory

  • Mostly limited to local markets

  • New businesses and new entrants used to confuse people with options

  • Consumers were not aware of business dealings, products, and consumer rights

  • The number of women doing business and becoming CEOs was almost a handful

  • People taking risks were very less

Businesses Now

  • Requires only an average or steady source of income

  • Sources of funding are numerous and easy now

  • Entrepreneurs today are quick to seize any new business opportunity

  • Great communication skills are a plus

  • Businesses can be carried out anywhere anytime, even from the comforts of your home

  • Businesses even small-scale can flourish beyond the local markets with the advent of technology

  • People welcome variety and competition

  • Today consumers are kings and have full awareness of their rights

  • Today more and more women are becoming independent with their own business ventures and creating a name for themselves with the help of different forms of funding

  • The percentage of risk takers have risen significantly

Impact of Microfinance

Analysing the trends of business in the present world, microfinance has a significant role to play. In fact, it can be stated that microfinance has played a huge part in revolutionizing many of the small-scale businesses and has brought about a sense of financial independence in many talented persons.

  • People are encouraged to start their own business with the help of microfinance.

  • It supports people with a wide variety of business ideas including setting up a jewelry store, a cafe, a handicraft shop, and others.

  • People even have an opportunity to restart a previously stopped business due to financial constraints or lack of resources.

  • It has helped people to settle small debts in time without undergoing severe penalization.

  • It does not burden people financially with high-interest rates, repayment terms, or demanding collateral.